STAND. COM. REP. NO. 2318

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2437
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2437 entitled:

     "HOUSE RESOLUTION RELATING TO ANTITRUST,"

begs leave to report as follows:

     The purpose of this measure is to clarify that a private
person may bring an unfair method of competition action.

     Testimony on this measure was presented by the Consumer
Lawyers of Hawaii.

     Your Committee finds that in the State of Hawaii, the
primary vehicle for ensuring that consumers are not subjected to
fraudulent practices is through chapter 480, Hawaii Revised
Statutes, which provides a cause of action for unfair methods of
competition and unfair and deceptive trade practices.

     Your Committee also finds that while it is clear that a
consumer may bring direct causes of action for unfair and
deceptive practices, it is unclear under existing law as to
whether a consumer may similarly bring a claim for an unfair
method of competition.

     Your Committee has amended the measure by adding two new
sections which amend sections 480-13 and 480-14, Hawaii Revised
Statutes, to enable indirect purchasers to bring an action for
unfair method of competition.  A technical, nonsubstantive
amendment was also made.

 
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                                   STAND. COM. REP. NO. 2318
                                   Page 2


     Your Committee believes that the amended measure will
clarify that consumers, whether they are direct or indirect
victims of unfair competition, are able to file claims in court
for these causes of action.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2437, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2437, S.D. 1, and be referred to the Committee on Judiciary.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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