Filed 12/15/16

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

SAJID VEERA et al.,

Plaintiffs and Appellants,

v.

BANANA REPUBLIC, LLC,

Defendant and Respondent.

 B270796

 (Los Angeles County

 Super. Ct. No. BC541146)

APPEAL from a judgment of the Superior Court of Los Angeles County,

John Shepard Wiley, Jr., Judge. Reversed and remanded.

Jones, Bell, Abbott, Fleming & Fitzgerald, William M. Turner, Asha 

Dhillon; Grignon Law Firm, Anne M. Grignon and Margaret M. Grignon for 

Plaintiffs and Appellants.

Morrison & Foerster, David F. McDowell and Miriam A. Vogel for 

Defendant and Respondent.
2

Plaintiffs Cherilyn DeAguero, Sean Bose, and Rakhee Bose filed a 

putative class action against Banana Republic, LLC, a clothing and 

accessories retailer with stores throughout California, alleging that signs in 

Banana Republic store windows advertising a 40 percent off sale were false 

or misleading because they did not disclose that the discount applied only to 

certain items. Plaintiffs alleged causes of action under the Unfair 

Competition Law (Bus. & Prof. Code, § 17200 et seq.) (UCL), the False 

Advertising Law (Bus. & Prof. Code, § 17500 et seq.) (FAL)1 and the 

Consumers Legal Remedies Act (Civ. Code, § 1750 et seq.) (CLRA). In 

opposition to Banana Republic’s summary judgment motion, plaintiffs 

produced evidence that in reliance on the allegedly false advertising, they 

were lured to shop at certain Banana Republic stores and selected various 

items for purchase at the advertised discount. However, as the items were 

being rung up at the cash register, plaintiffs were told for the first time that 

the advertised discount did not apply to their chosen merchandise. Having 

waited in line to purchase the selected items, and out of frustration and 

embarrassment, they ultimately bought some (but not all) of the items they 

chose even though the discount did not apply. The trial court granted 

summary judgment in favor of Banana Republic, concluding that plaintiffs 

lacked standing because they failed to raise a triable issue whether they 

suffered injury in fact and lost money or property. In this appeal by 

plaintiffs, we conclude that neither the ground cited by the trial court, nor 

the other grounds raised in Banana Republic’s motion, support summary 

judgment. Instead, we conclude that on the evidence presented, plaintiffs 

raised a triable issue whether they lost “money or property sufficient to 

 

1 Undesignated statutory cites are to the Business and Professions Code.
3

qualify as injury in fact, i.e., economic injury,” and whether “that economic 

injury was the result of, i.e., caused by, the unfair business practice or false 

advertising that is the gravamen of the claim.” (Kwikset Corp. v. Superior 

Court (2011) 51 Cal.4th 310, 322 (Kwikset).) Therefore, we reverse the 

judgment. 

BACKGROUND

I. The Complaint

As here relevant, plaintiffs alleged that they were lured to shop at Banana 

Republic stores (DeAguero in November 2010, the Boses in December 2011) 

by store window signs advertising a discount of 40 percent off purchases, with 

no apparent limit. Though they would not have entered the store but for the 

advertised discount, they ultimately purchased some (but not all) of their 

selected items after being informed by a store clerk at the cash register that 

none of the items they wished to purchase were on sale. They alleged that 

they had been damaged in the amount they overpaid for the items they 

bought, and that Banana Republic’s deceptive advertising violated the FAL, 

UCL, and CLRA.

II. Banana Republic’s Motion for Summary Judgment

In support of its summary judgment motion, Banana Republic

submitted a declaration by a project manager, Debbie Cotton. Cotton 

described the various promotions offered at Banana Republic stores in 

December 2011. She explained that Banana Republic employees were 

instructed about which merchandise was excluded from the promotions and 

were given handouts to provide to customers about the promotions. 

According to Cotton, there were no 40 percent off promotions in any Banana 
4

Republic stores in California on November 7, 2010, the date DeAguero 

alleged she saw the sign. 

Banana Republic attached copies of the handouts, the display easels 

(freestanding signs) and the so-called “window clings” that stores were 

instructed to display to advertise the various promotions in December 2011. 

Banana Republic also attached a copy of the displays of Banana Republic 

store windows on November 7, 2010. 

Banana Republic moved for summary judgment on three grounds:

(1) plaintiffs could not establish they suffered injury as a result of the 

allegedly misleading advertising; (2) the signs were not misleading, and 

(3) plaintiffs were not entitled to injunctive relief because plaintiffs did not 

know whether Banana Republic continued to engage in the contested 

conduct. 

III. Plaintiffs’ Opposition

In opposition to summary judgment, plaintiffs produced the following 

evidence. 

A. Cherilyn DeAguero

Cherilyn DeAguero testified in her deposition that on November 7, 

2010, she and her 14-year-old daughter were driving past a Banana Republic 

store on Ventura Boulevard in Studio City. DeAguero saw a large red sign in 

the store window stating in black letters “40 percent off.” She pointed it out 

to her daughter, and they decided to stop and go shopping. Based on the 40 

percent off discount, DeAguero thought she would be able to buy six to eight 

outfits for her daughter, who required a variety of outfits for auditions in her 

acting career. 
5

As they entered the store, DeAguero saw another sign on a stand. This 

sign also was red and stated “40 percent off” in black lettering. DeAguero did 

not recall if the sign said anything else. She did not recall seeing any signs

inside the store while they were shopping, other than one advertising “New 

arrivals.” 

After shopping and trying on outfits for approximately 40 minutes, 

DeAguero’s daughter chose eight pieces and wore one new outfit out of the 

dressing room. They went to the register, and the sales clerk began ringing 

up the items. DeAguero was talking excitedly with the customer behind her, 

stating “This is great, 40 percent off.” The clerk told her the items she was 

purchasing were not 40 percent off. DeAguero replied that the sign indicated 

everything was 40 percent off, but the clerk said the discount did not apply to 

the items she chose. 

DeAguero became embarrassed, noticing that the line behind her was 

getting long. She found the experience “humiliating,” because she was trying 

to remain in a budget but did not want to make her daughter return to the 

dressing room to remove the outfit she was wearing. 

She became angry and asked the clerk why the store had “waste[d] 

[her] time luring [her] in” and which items were 40 percent off. The clerk 

explained that there were “selected items” throughout the store, even though 

DeAguero did not see any signs in the store indicating those items. 

DeAguero did not ask to speak with a manager because her daughter 

was embarrassed and was whispering to stop. She ultimately purchased the 

new items her daughter was wearing because she did not want to embarrass 

her. She did not buy the other items because they were not 40 percent off. 
6

B. The Boses

Plaintiffs Sean and Rakhee Bose testified in their depositions that in 

December 2011, they were shopping at the Dos Lagos mall in Corona.2 They 

saw red signs containing the words “sale” and “40 percent off” in the windows

of the Banana Republic store. The signs were large, covering most of the 

windows’ glass. Sean noticed a smaller sign stating “discount,” “sale,” and 

“40 percent off,” on a stand at the entrance of the store. He stated in his 

deposition that there were no other words on the smaller sign. He did not 

recall if any Banana Republic employees were handing out flyers. Rakhee 

did not recall if there was either a sign at the entrance or employees handing 

out flyers. 

Sean and Rakhee entered the store and began shopping. They both

tried on clothes, selected some items to purchase, and took them to the 

register to pay. When the sales clerk began ringing up their items, the total 

seemed too high, so they asked her about the 40 percent discount. The clerk

explained that the discount did not apply to everything in the store. They

began to argue with her, pointing out that the signs did not state that the 

discount applied only to certain items. 

Rakhee told Sean, “Let’s not cause a scene, and let’s go.” According to 

Sean, there were at least 15 people in line and he was annoyed and very 

embarrassed. He ultimately purchased one item (a sweater) because “we had 

invested all that time and effort, and just to leave with nothing would be a 

complete and utter waste of energy and time.” They did not purchase any 

 

2 In order to distinguish between Sean Bose and Rakhee Bose, we refer 

to them by their first names when necessary.
7

other items. They did not ask to speak to a manager or call Banana Republic 

to complain. 

IV. Ruling

The trial court granted Banana Republic’s summary judgment motion

on the ground that plaintiffs failed to establish any economic injury, 

reasoning that “[l]ost shopping time” was not “money or property” as required 

to confer standing. 

DISCUSSION

Plaintiffs contend that none of the grounds raised in Banana Republic’s 

motion justified summary judgment. For reasons explained below, we agree. 

I. Standard of Review

“A court may grant a summary judgment only if there is no triable 

issue of material fact and the moving party is entitled to judgment in its 

favor as a matter of law. (Code Civ. Proc., § 437c, subd. (c).) A defendant 

moving for summary judgment must show that one or more elements of the 

plaintiff’s cause of action cannot be established or that there is a complete 

defense. [Citation.] The defendant can satisfy its burden by presenting 

evidence that negates an element of the cause of action or evidence that the 

plaintiff does not possess and cannot reasonably expect to obtain evidence 

needed to establish an essential element. [Citation.] If the defendant meets 

this burden, the burden shifts to the plaintiff to present evidence creating a 

triable issue of material fact. [Citation.] [¶] We review the trial court’s 

ruling on a summary judgment motion de novo, liberally construe the 

evidence in favor of the party opposing the motion, and resolve all doubts 
8

concerning the evidence in favor of the opponent. [Citation.]” (Garrett v. 

Howmedica Osteonics Corp. (2013) 214 Cal.App.4th 173, 180–181.)

II. Statutory Framework

Before considering the merits of the issues presented, we briefly review

the statutes underlying plaintiffs’ three causes of action, and the requirement 

of standing.

A. UCL and FAL

“The UCL prohibits, and provides civil remedies for, unfair competition, 

which it defines as ‘any unlawful, unfair or fraudulent business act or 

practice [and unfair, deceptive, untrue or misleading advertising and any act 

prohibited by [the FAL].’ (§ 17200.) Its purpose ‘is to protect both consumers 

and competitors by promoting fair competition in commercial markets for 

goods and services.’ [Citations.]” (Kwikset, supra, 51 Cal.4th at p. 320.) 

“The [FAL] generally prohibits advertising that contains ‘any 

statement . . . which is untrue or misleading, and which is known, or . . .

should be known, to be untrue or misleading . . . .’ (. . . § 17500.) . . . [¶] The 

UCL and the [FAL] ‘prohibit “not only advertising which is false, but also 

advertising which[,] although true, is either actually misleading or which has 

a capacity, likelihood or tendency to deceive or confuse the public.”

[Citation.] Thus, to state a claim under either the UCL or the [FAL], based 

on false advertising or promotional practices, “it is necessary only to show 

that ‘members of the public are likely to be deceived.’” [Citations.]’ 

[Citation.]” (Chapman v. Skype Inc. (2013) 220 Cal.App.4th 217, 226; see also 

In re Tobacco II Cases (2009) 46 Cal.4th 298, 312 (Tobacco II).)
9

“The remedies available in a UCL or FAL action are generally limited 

to injunctive relief and restitution. [Citation.]” (Pfizer Inc. v. Superior Court

(2010) 182 Cal.App.4th 622, 631; see Kwikset, supra, 51 Cal.4th at p. 337 

[“Injunctions are ‘the primary form of relief available under the UCL to 

protect consumers from unfair business practices,’ while restitution is a type 

of ‘ancillary relief.’”]; §§ 17203, 17535.)

B. CLRA

“The CLRA makes unlawful, in Civil Code section 1770, subdivision (a) 

. . . , various ‘unfair methods of competition and unfair or deceptive acts or 

practices undertaken by any person in a transaction intended to result or 

which results in the sale or lease of goods or services to any consumer.’” 

(Meyer v. Sprint Spectrum L.P. (2009) 45 Cal.4th 634, 639.) In contrast to the 

UCL and FAL, the remedies under the CLRA include not only injunctive 

relief and restitution, but also actual damages and punitive damages. (Civ. 

Code, § 1780, subd. (a).)

The CLRA sets forth 27 proscribed acts or practices. (Civ. Code, § 1770, 

subd. (a)(1)-(27).) In the present case, the complaint alleged Banana Republic 

engaged in three of those unlawful practices: (1) “[a]dvertising goods or 

services with intent not to sell them as advertised” (Civ. Code, § 1770, subd. 

(a)(9)); (2) “[m]aking false or misleading statements of fact concerning 

reasons for, existence of, or amounts of price reductions” (Civ. Code, § 1770, 

subd. (a)(13)); and (3) “[r]epresenting that a transaction confers or involves 

rights, remedies, or obligations which it does not have or involve, or which 

are prohibited by law” (Civ. Code, § 1770, subd. (a)(14)). 
10

C. Standing Requirements

Proposition 64, passed by California voters in 2004, amended the UCL’s

and FAL’s standing requirements for private actions for relief. (Kwikset, 

supra, 51 Cal.4th at p. 320; Tobacco II, supra, 46 Cal.4th at p. 314.) “‘[N]ow 

private standing is limited to any “person who has suffered injury in fact and 

has lost money or property” as a result of unfair competition’” or false 

advertising. (Kwikset, supra, 51 Cal.4th at pp. 320-321; §§ 17204, 17535.) 

“‘The phrase “as a result of” in its plain and ordinary sense means “caused 

by” and requires a showing of a causal connection or reliance on the alleged 

misrepresentation.’ [Citations.] . . . [¶] However, a ‘plaintiff is not required 

to allege that [the challenged] misrepresentations were the sole or even the 

decisive cause of the injury-producing conduct.’ [Citation.]” (Kwikset, supra, 

51 Cal.4th at pp. 326-327.)

Thus, in order to establish standing under the UCL and the FAL, a 

private party must “(1) establish a loss or deprivation of money or property 

sufficient to qualify as injury in fact, i.e., economic injury, and (2) show that 

that economic injury was the result of, i.e., caused by, the unfair business 

practice or false advertising that is the gravamen of the claim.” (Kwikset, 

supra, 51 Cal.4th at p. 322; §§ 17204, 17535.) “[T]his standing requirement 

applies only to the named plaintiffs in a class action [citation] . . . .” (Morgan 

v. AT&T Wireless Services, Inc. (2009) 177 Cal.App.4th 1235, 1257.) “[T]he 

quantum of lost money or property necessary to show standing is only so 

much as would suffice to establish injury in fact; [which] . . . is not a 

substantial or insurmountable hurdle . . . . [Citation.]” (Kwikset, supra, 51

Cal.4th at p. 324.)

For purposes of this appeal, plaintiffs concede that the standing 

requirements of the CLRA are essentially identical to those of the UCL and 
11

FAL. We therefore consider the standing requirements under all three 

statutes together.3

III. Analysis

In granting summary judgment, the trial court agreed with Banana 

Republic that plaintiffs failed to satisfy the economic injury prong of the 

standing requirements – that is, they failed to produce evidence showing they 

lost money or property. On appeal, in addition to relying on that ground, 

Banana Republic reprises its argument that plaintiffs also failed to raise a 

triable issue of causation. Reduced to their essence, these grounds rest on 

the premise that plaintiffs cannot demonstrate economic injury or causation 

because they made their purchases after they learned the 40 percent discount 

did not apply to the items they had chosen. For several reasons, we disagree. 

First, we find our prior decision in Medrazo v. Honda of North 

Hollywood (2012) 205 Cal.App.4th 1 (Medrazo), instructive on the issues of 

injury in fact and economic harm. In Medrazo, the plaintiff introduced 

evidence showing that the defendant dealership offered motorcycles for sale 

without complying with certain sections of the Vehicle Code that require a 

motorcycle dealer to disclose dealer-added costs on tags hung on motorcycles 

available for purchase. The plaintiff testified that along with her boyfriend, 

 

3 We note only that the CLRA does not require lost injury or property, 

but does require damage and causation. “Under Civil Code section 1780, 

subdivision (a), CLRA actions may be brought ‘only by a consumer “who 

suffers any damage as a result of the use or employment” of a proscribed 

method, act, or practice. . . . Accordingly, “plaintiffs in a CLRA action [must] 

show not only that a defendant’s conduct was deceptive but that the 

deception caused them harm.”’ [Citation.]” (Hale v. Sharp Healthcare (2010) 

183 Cal.App.4th 1373, 1386, italics deleted; Civ. Code, § 1780, subd. (a).)
12

she discussed the price of a particular motorcycle with the salesman, saw no 

tag on that motorcycle or any other, and was not informed of the destination 

charges and total price until she was presented with the sales contract, which 

she agreed to sign. She made payments for the first two months under the 

contract, and owed more than $12,000. 

The plaintiff sued, asserting claims under the UCL and the CLRA

arising from the failure to display a hanger tag disclosing the total cost of the

motorcycle she bought. The trial court, after hearing evidence in a bench 

trial, granted the defendant’s motion for judgment. As pertinent here, the 

trial court concluded that because the plaintiff was informed of the dealeradded charges before she signed the purchase contract, she was not misled by 

the alleged failure to display hanger tags, and suffered no injury as a result 

of it. Thus, she lacked standing. (Medrazo, supra, 205 Cal.App.4th at p. 9.)

In reversing, we explained: “[T]he amended UCL requires a plaintiff to 

establish that he or she ‘has suffered injury in fact and has lost money or 

property as a result of the unfair competition.’ [Citation.] Thus, the plaintiff 

must establish both injury in fact and ‘some form of economic injury’ that has 

a causal connection to the unfair competition. [¶] Our Supreme Court has 

explained that ‘injury in fact is “an invasion of a legally protected interest 

which is (a) concrete and particularized, [citations]; and (b) ‘actual or 

imminent, not “conjectural” or “hypothetical,”’ [citation].” [Citations.] 

“Particularized” in this context means simply that ‘the injury must affect the 

plaintiff in a personal and individual way.” [Citation.]’ [Citing Kwikset, 

supra, 51 Cal.4th at pp. 322–323.] The court emphasized that ‘injury in fact 

is not a substantial or insurmountable hurdle . . . . [Citation.] Rather, it 

suffices . . . to ‘“allege[] some specific, “identifiable trifle” of injury.’” 
13

[Citations.]’ [Citation.] [Citing Kwikset, supra, 51 Cal.4th at pp. 324–325.]” 

(Medrazo, supra, 205 Cal.App.4th at pp. 12-13.)

Under this standard, we concluded that the plaintiff “presented 

evidence of injury in fact. She presented evidence that there was no hanger 

tag showing the dealer-added charges for the motorcycle that she and her 

boyfriend were interested in purchasing, and that she was not informed of 

the dealer-added charges or the total price of the motorcycle until she was 

presented with the sales contract. This evidence is sufficient to establish that 

she suffered a concrete, particularized, and actual invasion of an interest 

legally protected by [Vehicle Code] section[s] 11712.5 and . . . 24014, i.e., the 

disclosure—before a decision to purchase a specific motorcycle is made—of 

the MSRP and any dealer-added charges for all new motorcycles offered for 

sale.” (Medrazo, supra, 205 Cal.App.4th at p. 13, fn. omitted.)

By analogy to Medrazo, plaintiffs’ evidence raised a triable issue 

whether plaintiffs suffered injury in fact. The UCL prohibits “unfair, 

deceptive, untrue or misleading advertising,” and any act prohibited by the 

FAL. (§ 17200.) The FAL generally prohibits advertising that contains “any 

statement . . . which is untrue or misleading, and which is known, or . . .

should be known, to be untrue or misleading . . . .” (§ 17500.) The CLRA 

prohibits, inter alia, “[m]aking false or misleading statements of fact 

concerning reasons for, existence of, or amounts of price reductions.” (Civ. 

Code, § 1770, subd. (a)(13).) These provisions are designed in part to protect 

consumers such as plaintiffs by requiring businesses to disclose the actual 

prices of items offered for sale, and prohibiting businesses from using false 

and deceptive advertising to lure consumers to shop. In short, plaintiffs had 

a legally protected interest in knowing from the outset, when they started to 

shop, the true prices of the items they chose to buy. Assuming plaintiffs’ 
14

version of Banana Republic’s advertising occurred, there is a triable issue 

whether that legally protected interest was violated in the same way as the 

legally protected interest of the plaintiff in Medrazo, who had a right to know 

dealer-added charges as stated on a required hanger tag when deciding to 

buy a motorcycle. (Medrazo, supra, 205 Cal.App.4th at p. 13.)

We also find Medrazo instructive on the issue whether plaintiffs 

suffered economic harm. In Medrazo, we concluded that the plaintiff 

“presented evidence of an economic injury caused by the alleged unfair 

competition. She testified that she made the first two months’ payments, and 

owes more than $12,000 on a motorcycle that [the defendant] allegedly was 

not legally allowed to sell (or at least was not allowed to sell at the price for 

which it was sold) because it failed to disclose the dealer-added charges on a 

hanger tag attached to the motorcycle. [¶] In short, the undisputed evidence 

before the trial court was sufficient to establish that [the plaintiff] ‘has 

suffered injury in fact and has lost money . . . as a result of the [alleged] 

unfair competition.’ [Citation.]” (Medrazo, supra, 205 Cal.App.4th at p. 13.) 

Similarly here, plaintiffs presented evidence raising a triable issue 

whether they suffered economic harm. They bought certain items at full 

price, even though (assuming plaintiffs’ evidence of misleading advertising is 

true) Banana Republic sold those items to them in violation of the UCL, FAL, 

and CLRA. The economic harm thus suffered is the difference between the 

advertised price plaintiffs should have been charged, and the full price 

plaintiffs actually paid. (See Kwikset, supra, 51 Cal.4th at p. 325 [“If a party 

has alleged or proven a personal, individualized loss of money or property in 

any nontrivial amount, he or she has also alleged or proven injury in fact.”].)

Medrazo has been criticized by some federal district courts because we 

stated that “an actual reliance requirement does not apply to UCL actions 
15

that are not based upon a fraud theory. [Citation.]” (Medrazo, supra, 205 

Cal.App.4th at p. 12.) (See, e.g., Kane v. Chobani, Inc. (N.D. Cal. 2014) 973 

F.Supp.2d 1120, 1131, vacated on other grounds by Kane v. Chobani, LLC

(9th Cir. 2016) 645 Fed.Appx. 593 [“Medrazo contains no discussion of 

Kwikset’s statement that the actual reliance requirement applies to claims 

under the unlawful prong of the UCL where the alleged unlawful conduct is 

based on a statute that prohibits specific types of misrepresentations.”]; De 

Keczer v. Tetley USA, Inc. (N.D.Cal. Aug. 28, 2014, No. 5:12-CV-02409-EJD) 

2014 U.S.Dist.LEXIS 121465, at *21-22 [rejecting the plaintiff’s reliance on 

Medrazo for “the proposition that no showing of reliance is required where a 

defendant sells a product that is illegal to sell.”].) We agree that in stating 

that reliance was not required in a UCL action premised on a fraud theory, 

we went too far in Medrazo: when a consumer’s theory is that the defendant 

“engaged in misrepresentations and deceived consumers” (Kwikset, supra, 51 

Cal.4th at p. 326, fn. 9), the consumer needs to show reliance. (See Durell v. 

Sharp Healthcare (2010) 183 Cal.App.4th 1350, 1363 [the reliance 

requirement “applies equally to the ‘unlawful’ prong of the UCL when . . . the 

predicate unlawfulness is misrepresentation and deception.”].) 

However, in the instant case, the evidence raises a triable issue 

whether plaintiffs’ reliance on the allegedly deceptive advertising resulted in 

their economic loss. “While a plaintiff must show that the misrepresentation 

was an immediate cause of the injury-producing conduct, the plaintiff need 

not demonstrate it was the only cause. ‘“It is not . . . necessary that [the 

plaintiff’s] reliance upon the truth of the fraudulent misrepresentation be the 

sole or even the predominant or decisive factor in influencing his conduct. . . . 

It is enough that the representation has played a substantial part, and so has 

been a substantial factor, in influencing his decision.” [Citation.]’” (Tobacco 
16

II, supra, 46 Cal.4th at p. 326.) In other words, it is enough if a plaintiff 

shows that “in [the] absence [of the misrepresentation] the plaintiff “in all 

reasonable probability” would not have engaged in the injury-producing 

conduct.’ [Citation.]” (Ibid.) 

Here, construing plaintiffs’ evidence in the light most favorable to their 

case, there is a triable issue whether, in all reasonable probability, in the 

absence of the allegedly false advertising, they would have engaged in the 

injury-producing conduct, i.e., would have bought certain items at full price 

despite the advertised discount. According to DeAguero, having been lured 

by the advertised discount to shop, to select items for her daughter, and to 

wait in line to purchase them, she became embarrassed because, as she 

argued with the store clerk about whether the discount applied, the line 

behind her was getting long. She felt humiliated because she was trying to 

remain in a budget but did not want to force her daughter to return to the 

dressing room to remove the outfit she was wearing, and she was angry at 

having wasted her time. She did not ask to speak with a manager because 

her daughter was embarrassed and was whispering to stop. So as not to 

embarrass her daughter, she purchased at full price the new items her 

daughter was wearing. 

Similarly, according to Sean Bose, when he and Rakhee were told at 

the register that the discount did not apply, he protested. There were at least 

15 people in line and he was annoyed and very embarrassed. Rakhee told 

him not to make a scene and to just leave. He purchased one item (a 

sweater) because “we had invested all that time and effort, and just to leave 

with nothing would be a complete and utter waste of energy and time.” 

On these facts, the question of reliance and causation does not rest as a 

matter of law on whether plaintiffs knew the actual price of the items they 
17

purchased at the moment money was exchanged. To isolate that point in 

time as solely determinative of reliance and causation ignores the true nature 

of those elements. If the reliance on the misleading advertising was a 

substantial factor in causing plaintiff’s decision to buy, the requirements of 

reliance and causation are met. (Tobacco II, supra, 46 Cal.4th at p. 326.) 

Here, in plaintiffs’ version of events, the advertising led them to enter the 

store, to shop, to select items, to decide to purchase them, and to stand in line 

to make the purchases. Their reliance on the advertising informed their 

decision to buy, which culminated in the embarrassment and frustration they 

felt when, as the items were being rung up, they learned that discount did 

not apply. And it was the temporal proximity of that chain of events, and the 

pressure the events brought to bear on plaintiffs’ judgment, that played a 

substantial role in leading them to purchase the items they did, even though 

they knew the discount did not apply. On this reasoning, there is a triable 

issue whether plaintiffs’ reliance on the allegedly misleading advertising was 

a cause, though not the only cause, of their economic harm.4

 

4 Banana Republic argues that under Chern v. Bank of America (1976) 

15 Cal.3d 866 (Chern), a pre-Proposition 64 decision, plaintiffs cannot show 

causation, because plaintiffs’ knowledge of the price of the items they 

purchased breaks the chain of causation between the allegedly deceptive 

advertising and their economic injury. But Chern has nothing to do with 

causation as relevant to plaintiffs’ standing.

In Chern, the named plaintiff called a bank to arrange a loan and was 

told the interest rate would be 9 percent. When she arrived at the bank, she 

was shown a promissory note showing a 9 percent interest rate but also a 

Federal Truth in Lending Statement showing an interest rate of 9 1/4 

percent, based on a different method of calculating the rate. “[A]lthough she 

protested that the method was dishonest, [she] nevertheless executed the 

various forms.” (Chern, supra, 15 Cal.3d at p. 870.) She filed a putative class 

action alleging breach of contract and misleading statements under the FAL, 

seeking damages and injunctive relief. The trial court granted summary 
18

We also find it pertinent to consider the implication of a contrary 

result. Plaintiffs’ evidence portrays, in essence, a type of “bait and switch” 

advertising. (See Hawaii Community Federal Credit Union v. Keka (2000) 11 

P.3d 1, 15 [“[t]he term ‘bait and switch’ is usually applied in the context of 

advertising goods or services with the intent not to sell them as advertised”]; 

Stern, Cal. Practice Guide: Bus. & Prof. Code Section 17200 Practice (The 

Rutter Group 2016) § 4:35 [“A ‘bait and switch’ is a form of false advertising 

in which advertisements may not be bona fide because what the merchant 

intends to sell is significantly different from that which drew the potential 

customer in. [Citation.]”].) In such a scheme, one of the dangers is that the 

consumer will rely on the deceptive advertising to decide to buy merchandise. 

Then, when the deception is revealed, the consumer, now invested in the 

decision to buy and swept up in the momentum of events, nonetheless buys at 

the inflated price, despite his or her better judgment. 

If such a scheme is unsuccessful – that is, if the consumer is able to 

resist the influence of the momentum to buy created by the chain of events 

flowing from the false advertising – the consumer has no standing to bring a 

private action under Proposition 64, because the consumer has suffered no 

economic injury. That result is consistent with the purpose of Proposition 64, 

which was intended to curb “use [of the UCL] by unscrupulous lawyers who 

exploited the generous standing requirement . . . to file ‘shakedown’ suits to 

extort money from small businesses.” (Tobacco II, supra, 46 Cal.4th at p. 

 

judgment in favor of the bank. The Supreme Court affirmed the judgment as 

to the breach of contract claim on the ground that plaintiff’s knowledge of the 

actual interest rate “dispose[d] of her contention that [the bank] agreed to 

charge only 9 percent interest.” (Chern, supra, 15 Cal.3d at pp. 873-874.) 

Thus, Chern is of no assistance here.
19

316.) “‘[T]he intent of California voters in enacting’ Proposition 64 was to 

limit such abuses by “prohibit[ing] private attorneys from filing lawsuits for 

unfair competition where they have no client who has been injured in fact’ 

[citation] and by providing “that only the California Attorney General and 

local public officials be authorized to file and prosecute actions on behalf of 

the general public” [citation].’ [Citation.]” (Tobacco II, supra, at pp. 316-

317.) 

But under Banana Republic’s theory, if the scheme is successful – that 

is, if the consumer is influenced by the momentum to buy created by the false 

advertising, and therefore buys at the inflated price—the consumer, as a 

matter of law, also has no standing, because just before money changed 

hands, when the deception was finally revealed, the consumer learned the 

full price of the item bought. Under this theory, only in the very rare case 

when the advertiser surreptitiously charges an inflated price, which the 

consumer does not realize he has paid until after money has changed hands, 

does the consumer have standing to bring a private action. This result seems 

at odds with the intent of Proposition 64, which “did not propose to curb the 

broad remedial purpose of the UCL or the use of class actions to effect that 

purpose, but targeted only the specific abuse described above.” (Tobacco II, 

supra, 46 Cal.4th at p. 317.) 

In sum, we conclude that plaintiffs have raised a triable issue whether 

they lost “money or property sufficient to qualify as injury in fact, i.e., 

economic injury,” and whether “that economic injury was the result of, i.e., 

caused by, the unfair business practice or false advertising that is the 

gravamen of the claim.” (Kwikset, supra, 51 Cal.4th at p. 322.) 

Besides arguing that plaintiffs have no standing, Banana Republic also 

contends that it presented undisputed evidence that defeats plaintiffs’ claim 
20

on the merits. The contention overstates Banana Republic’s showing. 

Although project manager Debbie Cotton declared that there were no 40 

percent off promotions in any Banana Republic stores on November 7, 2010, 

DeAguero testified in her deposition that she saw a sign advertising such a 

promotion on that date. Thus, whether DeAguero observed such a sign is a 

disputed issue of fact.

Moreover, the evidence of the easels and window clings displayed in

Banana Republic stores in December 2011 is not sufficient to defeat plaintiffs’

evidence of deceptive advertising. True, the easel for December 8 through 

December 15 states, “Save 40% on select styles*” and the easel for December 

16 through December 18 states, “Save 40% on your purchase.*” The 

asterisks indicate material in small print at the bottom of the easel

concerning limitations (it is illegible in the record). Regardless, the window 

clings for December 16 through December 18, seen in Exhibits 5 and 6, state 

“Last Chance” in large letters, followed in smaller letters by “Four Days Only. 

December 15-18,” then “40%” in large type, followed by “off your purchase” in 

small type. There are no other words and no asterisks. 

Thus, at best, Banana Republic’s evidence shows that for at least a few 

days in December 2011,5 its windows displayed signs advertising 40 percent 

off a purchase with no limitations. In any event, the evidence of Banana 

Republic’s promotional campaign is insufficient on summary judgment to 

defeat plaintiffs’ deposition testimony concerning the advertising they 

observed. Resolution of that dispute must await a trial. “[T]he sole 

declaration of a party opposing a summary judgment motion which raises a 

triable issue of fact is sufficient to deny that motion.” (Estate of Housley

 

5 The Boses did not recall the date they shopped in Banana Republic. 
21

(1997) 56 Cal.App.4th 342, 359; see Evid. Code, § 411 [“Except where 

additional evidence is required by statute, the direct evidence of one witness 

who is entitled to full credit is sufficient for proof of any fact.”].) Thus, 

Banana Republic’s evidence is insufficient to warrant summary judgment on 

the merits of plaintiffs’ claims.6

DISPOSITION

The judgment in favor of Banana Republic is reversed. Plaintiffs 

shall recover their costs on appeal.

CERTIFIED FOR PUBLICATION

WILLHITE, Acting P. J.

I concur:

MANELLA, J.

 

6 In light of our decision, we need not address plaintiffs’ arguments 

regarding their request for injunctive relief or leave to amend. 
Bigelow, P. J. Dissenting:

I respectfully dissent. I do not believe the plaintiffs have raised a 

triable issue of fact as to reliance, therefore I would affirm the trial court 

judgment.

In Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310 (Kwikset), the 

California Supreme Court explained that to establish a claim under Business 

and Professions Code section 17200, et seq.,1 the unfair competition law 

(UCL), or section 17500, et seq., the fair advertising law (FAL), as amended 

by Proposition 64 (Prop. 64), a consumer must plead and prove an “injury in 

fact” that involves “lost money or property.” (Kwikset, at p. 324.) A plaintiff 

must show some form of economic injury. (Id. at p. 323.) 

In addition, when the case is based on a fraud theory involving false 

advertising and misrepresentation, the plaintiff must plead and prove 

“‘actual reliance on the allegedly deceptive or misleading statements, in 

accordance with well-settled principles regarding the element of reliance in 

ordinary fraud actions’ [citation]. Consequently, ‘a plaintiff must show that 

the misrepresentation was an immediate cause of the injury-producing 

conduct . . . .’ [Citation.]” (Kwikset, supra, 51 Cal.4th at pp. 326-327, fn. 

omitted, citing In re Tobacco II Cases (2009) 46 Cal.4th 298, 306, 326, 328.) 

Similarly, under the Consumer Legal Remedies Act (CLRA), “‘“plaintiffs . . . 

[must] show not only that a defendant’s conduct was deceptive but that the 

 

1 All further undesignated statutory references are to the Business and 

Professions Code. Section 17204 provides, in relevant part: “Actions for 

relief pursuant to this chapter shall be prosecuted . . . by a person who has 

suffered injury in fact and has lost money or property as a result of the unfair 

competition.” Section 17535 includes similar language. 
2

deception caused them harm.”’ [Citation.]” (Hale v. Sharp Healthcare (2010) 

183 Cal.App.4th 1373, 1386.)

The only legally cognizable economic injury the plaintiffs in this case 

allege they suffered was the money they spent on full-priced clothes.2 

Whether or not the store window signs were ambiguous or misleading, it is 

undisputed that before the plaintiffs incurred any economic injury, they 

learned the clothes they had selected were not 40 percent off. They then 

changed their purchase decisions, choosing to buy only some of the items they 

had selected, fully aware they were not discounted. 

On these undisputed facts, the plaintiffs cannot establish they would 

not have purchased the items they bought absent the misleading signs, or 

that because of the misrepresentation they parted with more money than 

they otherwise would have, or that they believed the 40 percent off 

representation to be true and in reliance thereon entered into the purchase. 

(Kwikset, supra, 51 Cal.4th at p. 330; Chapman v. Skype, Inc. (2013) 220 

Cal.App.4th 217, 231-232; see also Hall v. Time Inc. (2008) 158 Cal.App.4th 

 

2 To the extent the plaintiffs claim their economic injury consisted of lost 

opportunity costs and time, they have cited no legal authority supporting the 

claim that such harm alone is sufficient to establish standing in a UCL or 

FAL claim. As noted in Troyk v. Farmers Group, Inc. (2009) 171 Cal.App.4th 

1305: “Whereas a federal plaintiff’s ‘injury in fact’ may be intangible and 

need not involve lost money or property, Proposition 64, in effect, added a 

requirement that a UCL plaintiff’s ‘injury in fact’ specifically involve ‘lost 

money or property.’” (Id. at p. 1348, fn. 31; §§ 17204, 17535.) Despite 

arguing, pursuant to Meyer v. Sprint Spectrum L.P. (2009) 45 Cal.4th 634, 

that certain types of transaction costs and opportunity costs may constitute 

“any damage” under the CLRA, plaintiffs failed to proffer any evidence 

creating a triable issue of fact as to whether they suffered any such 

transaction or opportunity costs as a result of the store’s allegedly deceptive 

conduct. 
3

847 [no causation where plaintiff alleged invoice was misleading but he took 

no action based on invoice]; Brown v. Bank of America (D. Mass. 2006) 457 

F.Supp.2d 82, 89 [no causation where, despite any deficiencies in signs on 

ATMs warning of fees to be charged, customers were notified by “click 

through” screen of charges before completing transaction].) 

While reliance on the truth of the defendant’s misrepresentation need 

not be the sole or decisive cause of the plaintiff’s injury, that reliance must be 

at least a substantial factor in influencing the decision that causes the injury. 

(In re Tobacco II Cases, supra, 46 Cal.4th at p. 326.) Thus, a consumer 

similar to the plaintiffs in this case may have wanted to buy a Banana 

Republic sweater because she liked the color, the material was desirable, and 

a misleading sign led her to believe it would be 40 percent off. In that 

scenario, reliance on the store’s misrepresentation is only one factor that led 

to the consumer’s decision to hand over money to buy the sweater. But to 

establish a fraud-based deceptive advertising claim, the consumer must still 

show that, although the deception was not the only reason she bought the 

sweater, she in part relied on the truth of the misrepresentation in 

consummating the transaction. The plaintiff cannot make that showing if, 

before executing the sale, she knew the representation of a 40 percent 

discount to be false.

Indeed, “‘well-settled principles regarding the element of reliance in 

ordinary fraud actions’” require this conclusion. (Kwikset, supra, 51 Cal.4th 

at pp. 326-327, citing In re Tobacco II Cases, at p. 306) Evidence a plaintiff 

knows the defendant’s representation is false, before the injury-producing 

conduct occurs, rebuts a presumption of reliance. (Engalla v. Permanente 

Medical Group, Inc. (1997) 15 Cal.4th 951, 976 [presumption of reliance 

arises when there is a showing a misrepresentation is material, absent 
4

evidence conclusively rebutting reliance].) This principle has often been 

stated in cases in which the plaintiff conducted an investigation prior to 

consummating a transaction, and, through the investigation, discovered the 

falsity of the defendant’s statements. 

In such cases, the plaintiff’s claim of reliance fails. “‘If after a 

representation of fact . . . the party to whom it was made . . . actually learns 

the real facts, he cannot claim to have relied upon the misrepresentation and 

to have been misled by it. Such claim would simply be untrue.’” 

(Oppenheimer v. Clunie (1904) 142 Cal. 313, 319, impliedly overruled on 

another ground in Liodas v. Sahadi (1977) 19 Cal.3d 278; see also MaxonNowlin Co. v. Norswing (1913) 166 Cal. 509, 512 [no recovery by party who 

has actually learned the truth, and has not relied upon the 

misrepresentation]; Orient Handel v. United States Fid. & Guar. Co. (1987) 

192 Cal.App.3d 684, 694-696; Elkind v. Woodward (1957) 152 Cal.App.2d 

170, 176-179; Blackman v. Howes (1947) 82 Cal.App.2d 275, 278-280; 

Carpenter v. Hamilton (1936) 18 Cal.App.2d 69, 71-72, 75-76; Gratz v. 

Schuler (1914) 25 Cal.App. 117, 121-122 [if plaintiff tests the truth of 

representations and discovers “prior to the consummation of the contract that 

such representations are false, he will not be heard to say that he was 

deceived by them. We take it that this proposition needs no authority to 

support it.”].)3 I would find this long-standing principle applicable to 

ordinary fraud cases is controlling here.

 

3 There are exceptions to this rule, none of which apply here. (See e.g., 

Jue v. Smiser (1994) 23 Cal.App.4th 312, 316-318 [real property transaction 

in which plaintiff is misled at inception of transaction, enters purchase 

contract, learns of fraud while property is in escrow, and still closes escrow; 

plaintiff may still establish reliance to support fraud claim, as permitted by 

Civil Code section 3343]; Brownlee v. Vang (1965) 235 Cal.App.2d 465, 474-
5

The majority opinion repeatedly states the plaintiffs raised a triable 

issue of fact on actual reliance because, even though they learned the 40 

percent discount did not apply to their items, their embarrassment and 

frustration led to them feeling pressured to buy clothes at full price anyway. 

I am aware of no legal authority supporting the proposition that a plaintiff’s 

embarrassment or frustration is relevant to a determination of reliance when 

the plaintiff knows the true facts before consummating the transaction that 

causes the injury. Similarly, I see the majority’s “momentum to buy” theory 

as both a departure from well-settled principles regarding reliance in 

ordinary fraud actions and as a dilution of the Prop. 64 requirement that the 

plaintiff suffer economic injury as a result of the defendant’s improper 

conduct. 

I also do not believe the majority’s “momentum to buy” analysis can be 

applied consistently, while adhering to principles of reliance in ordinary 

fraud actions. For example, as I understand the majority’s reasoning and 

“momentum to buy” theory, any of the following scenarios could arguably 

establish actual reliance so long as the consumer is drawn into the store by a 

misleading discount advertisement: a) a consumer is told as soon as he picks 

up an item in the store that it is not in fact discounted. He is frustrated or 

embarrassed and buys the item anyway; b) a consumer learns the “true price” 

when he is in line to buy the item, but not yet at the front of the line; c) a 

consumer, upon learning at the cash register that the discount will not apply, 

is not too embarrassed or frustrated to simply walk away from the sale. 

However, she decides she wants one of the items she selected, even at full 

 

476 [if plaintiff suspects deception but defendant reassures plaintiff there has 

been no fraud, plaintiff may still establish reliance]; Blackman v. Howes, 

supra, 82 Cal.App.2d at p. 279 [accord].) 
6

price, and therefore buys it; or d) a consumer is at home shopping on the 

internet when she sees a misleading advertisement for a 40 percent discount 

at an online retailer’s website. She visits the site and places items in her 

online shopping cart, only to learn right before she clicks “buy” that the items 

in her cart are not, in fact, 40 percent off. 

I expect the court’s decision will invite exhaustive litigation as parties 

attempt to work out just how little “momentum to buy” is required to 

establish actual reliance. Rather than opening the door to suits that veer 

ever farther away from establishing actual reliance, this court should adopt 

the bright line rule that if the plaintiff learns the “truth” about an item’s 

price before executing a purchase, he or she cannot establish actual reliance 

on a misleading price advertisement.4 

 

4 In a variety of consumer protection contexts, a plaintiff’s actual or 

imputed knowledge of the falsity or misleading character of a defendant’s 

statement or conduct has been a factor in defeating claims based on the 

defendant’s allegedly misleading or deceptive conduct. (See, e.g., Chern v. 

Bank of America (1976) 15 Cal.3d 866, 873-874 [knowledge of actual method 

of computing interest defeated claim of damages for breach of contract]; Hall 

v. Time Inc., supra, 158 Cal.App.4th at pp. 857-858 [despite invoice that 

suggested payment was due before expiration of free-trial period, plaintiff did 

not act based on invoice or pay for book before free-trial period expired; no 

sufficient allegation of causation]; Wayne v. Staples, Inc. (2006) 135 

Cal.App.4th 466 [despite order form that may have been ambiguous as to 

whether customers would be charged certain surcharge, form was not 

misleading because customers were clearly informed of actual price before 

purchase]; Plotkin v. Sajahtera, Inc. (2003) 106 Cal.App.4th 953 [failure to 

have posted sign of valet parking charges was not unfair business practice 

since customers were given parking ticket that clearly displayed charges]; 

South Bay Chevrolet v. General Motors Acceptance Corp. (1999) 72 

Cal.App.4th 861 [interest computation was not deceptive or misleading 

business practice where plaintiff, a sophisticated business, was aware in 

advance of how interest would be calculated]; Brown v. Bank of America, 

supra, 457 F.Supp.2d at p. 89 [no causation related to defective notice of 
7

The majority suggests a finding of no reliance in this case would go too 

far in limiting consumers’ standing to bring claims seeking redress for “bait 

and switch” schemes. As an initial matter, I note this case does not represent 

a classic “bait and switch” scheme. A classic bait and switch involves the 

advertisement of a product the merchant does not actually intend to sell. 

“The trick is to lure the prospective ‘sucker’ and then overwhelm him with 

glib salesmanship. The essence of this practice is that the seller really has no 

intention of delivering the product advertised.” (Hawaii Community Federal 

Credit Union v. Keka (2000) 11 P.3d 1, 15; Wyatt v. Union Mortgage Co.

(1979) 24 Cal.3d 773, 779, 785 [describing as “‘bait and switch’ advertising” 

television advertising campaign in which bank represented a $1,000 loan 

could be repaid in full for $18 per month, but no such loan was actually 

available].) 

In a classic bait and switch, the merchant actively conceals the fact of 

the misrepresentation from the consumer, resulting in the consumer buying 

an item he did not enter the store to purchase. Further, the consumer 

continues to rely on the merchant’s misrepresentations through the 

consummation of the purchase of the “unwanted” item, believing the 

advertised item is not actually available, or that it is inferior in a meaningful 

way to the item the merchant actually wants to sell to reap greater profit 

margins.

In such schemes, the consumer’s awareness that she is buying a 

product different from what was advertised does not necessarily mean she 

has ceased relying on the merchant’s continuing deception regarding the 

advertised product. In contrast, here, there was no evidence any salesperson 

 

charges on ATMs because screen requiring customer consent before charges 

were imposed broke chain of causation].)
8

attempted to convince the plaintiffs to purchase items they did not want. 

Everything about the allegedly misleading 40 percent off sale sign was 

revealed to the plaintiffs before they consummated their purchases. I 

therefore disagree that any decision in this case is necessarily applicable to 

other “bait and switch” cases.

However, I accept that the facts of this case present what could be 

described as a version of a bait and switch scheme. I am sympathetic to the 

concern that a finding that a plaintiff cannot establish actual reliance under 

the circumstances presented here will allow some misleading advertising 

claims to go unprosecuted. Yet, I do not believe the law as it stands permits 

any other conclusion. 

Under the language of section 17204 as amended by Prop. 64, and the 

California Supreme Court’s interpretation of the law, actual reliance is 

required. To have standing, plaintiffs must suffer concrete economic injury 

as a result of the defendant’s allegedly misleading or deceptive conduct. 

(Californians for Disability Rights v. Mervyn’s, LLC (2006) 39 Cal.4th 223, 

228; Hall v. Time Inc., supra, 158 Cal.App.4th at pp. 853-854.) Based on the 

relevant authorities, I can only understand this rule as requiring that the 

plaintiff establish he believed the defendant’s representation was true and, in 

reliance on that representation, the plaintiff consummated the transaction 

that is the source of the economic loss. In my view, only a legislative change 

may create an exception to this rule.

As stated in Kwikset, “a UCL fraud plaintiff must allege he or she was 

motivated to act or refrain from action based on the truth or falsity of a 

defendant’s statement, not merely on the fact it was made.” (Kwikset, supra,

51 Cal.4th at p. 327, fn. 10.) Our high court has explained that amended 

section 17204 should be applied in accordance with ordinary fraud principles. 
9

In an ordinary fraud case, if the plaintiff learns the relevant true facts before 

engaging in the conduct that causes the alleged injury, he cannot prove 

reliance on the deception. The economic harm here was that plaintiffs paid 

full price for the clothes they bought. As a result, we must “isolate” the point 

in time at which money was exchanged because that is the moment at which 

the plaintiffs were injured in a legally cognizable way under the consumer 

protection laws. The plaintiffs knew the relevant true facts before they paid 

full price. They cannot establish their reliance on the defendant’s deception 

caused their injury.

For these reasons I would affirm the trial court judgment. 

BIGELOW, P. J.*

*Assigned by the Chief Justice pursuant to article VI, section 6 of the

 California Constitution.