Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 1320, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to amend the antitrust and unfair competition law to allow any person to bring a lawsuit for enforcement and to prohibit a class action suit by indirect purchasers unless specified materials are provided to the Attorney General (AG) and the AG declines the case.

Your Committee received testimony in support of this measure from the Attorney General and Consumer Lawyers of Hawaii.

Your Committee finds that the State's antitrust law is one of the primary means of ensuring that consumers are not subject to fraudulent practices. Under current law, it is clear that consumers may bring a direct cause of action for unfair and deceptive practices, but unclear that consumers may bring a claim for unfair methods of competition. This measure would add that protective provision.

Your Committee further finds that this measure would allow class actions lawsuits or proceedings on behalf of direct or indirect purchasers by a party other than the AG.

Your Committee believes, however, that the proposed prohibition of a class action suit by indirect purchasers unless specified materials are provided to the AG and the AG declines the case, would not be in the best interests of the consumer, and has deleted this language. Your Committee has also made a technical amendment to correct a drafting error.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1320, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1320, S.D. 2.