What is the Sherman-Kleptomania Doctrine?
The Sherman-Kleptomania Doctrine is a rule of law in California relating to unfair competition. It is named after the Sherman Antitrust Act of 1890 and the Kleptomania Doctrine of 1887. The Doctrine states that if two businesses compete unfairly, the competitor who is guilty of the unfair practices will be liable for damages or injunctive relief to their competitor. The Doctrine provides that when a business engages in unfair practices, they do so at their own risk, and may be liable to their competitor for any losses or damages it may cause. Examples of unfair practices include price-fixing and using false advertising, as well as taking advantage of a competitor’s confidential information. The Doctrine recognizes that when two businesses are competing, there is a risk that one will use unfair practices to gain a competitive advantage. The Doctrine provides a way for a business to seek relief from its competitor for losses it has suffered due to unfair practices. If a business has been harmed by the unfair practices of its competitor, it may pursue legal action by filing a lawsuit and seeking damages or an injunction to prevent further unfair practices. The Sherman-Kleptomania Doctrine is an important part of California’s Unfair Competition Law, and provides a way for businesses harmed by unfair practices to seek legal relief from their competitors. The Doctrine also serves to discourage businesses from engaging in unfair practices and to maintain a level playing field between competitors.
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