Honolulu, Hawaii

, 2001

RE: S.B. No. 1320

S.D. 1



Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii


Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 1320 entitled:


begs leave to report as follows:

The purpose of this measure is to allow a private citizen to bring an action based on unfair methods of competition.

This measure also disallows the Attorney General (AG) from bringing a class action on behalf of indirect purchasers. Your Committee received testimony in support of this measure from the Consumer Lawyers of Hawaii. The Attorney General and Hawaii Medical Service Association submitted comments.

Current law does not allow private individual actions based on unfair methods of competition, although actions based on unfair or deceptive acts or practices are allowed. This measure corrects that inconsistency which has produced uncertainty in the courts.

Your Committee has amended this measure on the recommendation of the AG as follows:

(1) To prohibit a class action by a private person brought on behalf of indirect purchasers, unless the proposed class representative or its counsel supplies the AG with certain material and the AG declines to commence the class action; and

(2) To allow the AG to bring a class action for indirect purchasers.

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

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