Second District Holds That Purchasing a Product for the Purposes of Litigation Does Not Constitute Injury in Fact Sufficient to Confer Standing Under the UCL

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The Second District Court of Appeal found that Burger King’s “Transform Your Way” promotional sweepstakes was not a lottery under Penal Code section 319, and that the game pieces were slot machines or punchboards under Penal Code sections 330b and 330c.  McVeigh v. Burger King Corp., B220964, 2010 WL 4056857 (Cal. Ct. App. 2d Dist. Oct. 18, 2010).  The court also held that purchasing a product for the purposes of litigation did not constitute injury in fact sufficient to confer standing under the Unfair Competition Law.  Id. *1.

Background

Plaintiff went to a Burger King restaurant and asked an employee for a free sweepstakes game piece.  Id. And although the game piece prominently indicated that no purchase was necessary, appellant alleged he was told he could not receive a free chance for a prize unless he bought a value meal.  Id. Plaintiff purchased a value meal and removed a pull-tab game piece from the soda and french fry containers.  Id. The game piece required him to scratch off only one of two concealed areas or the game piece would be voided.  Id. Plaintiff-appellant filed a complaint against Burger King, asserting that Burger King had illegally conducted a lottery in violation of section 319, and it had distributed slot machines or punchboards in violation of section 330c.  Id. Burger King’s business acts or practices allegedly caused appellant and the public unspecified injury, as to which appellant claimed entitlement to relief. Id. Read the rest of this entry »