People v. First Federal Credit Corp.

Defendants and appellants First Federal Credit Corporation (First Federal), Frederick Tucker (Tucker) and Ida Lee Hansen (Hansen) (collectively defendants) appeal a judgment imposing $200,000 in civil penalties pursuant to the unfair competition law (UCL) (Bus. & Prof. Code, *726 §§ 17200 et seq., 17206) 1 and the false advertising law (§§ 17500 et seq., 17536).

The essential issue presented is whether the People had the burden of presenting evidence of defendants’ financial status as a prerequisite to the imposition of civil penalties under sections 17206 and 17536.

We conclude evidence of a defendant’s financial condition, although relevant, is not essential to the imposition of the statutory penalties, making the issue of a defendant’s financial inability a matter for the defendant to raise in mitigation. The judgment imposing civil penalties is affirmed.

Factual and Procedural Background

On June 9, 1998, the Los Angeles District Attorney filed a complaint against First Federal, Tucker and Hansen seeking an injunction, civil penalties and other relief. The operative first amended complaint, in two causes of action, alleged defendants engaged in unlawful, unfair or…