Pollard
Pollard v. Ericsson, Inc.
Opinion
Opinion
Vogel, J.
Subdivision (a)(17) of section 1770 of the Civil Code makes it unlawful to represent that a consumer will receive a rebate “if the earning of the benefit is contingent on an event to occur subsequent to the consummation of the transaction.” In Kramer v. Intuit, Inc. (2004) 121 Cal.App.4th 574 [ 18 Cal.Rptr.3d 412 ], Division Two of our court held that this statutory language means what it says, and that there is nothing unlawful about a rebate offer conditioned on events that can occur before or at the same time as the transaction, notwithstanding that the event could also occur after the transaction is completed. Two rebate offers are before us in these consolidated appeals, one offered by Ericsson, Inc., the other by Nokia, Inc., both based on sales of cellular telephones conditioned on the extension or acquisition of AT&T Wireless service contracts. For the reasons explained below, we hold that, because both offers could be satisfied by the earlier or simultaneous purchase of the required service contract, neither transaction was unlawful, and demurrers to both complaints were properly sustained by the trial court.