In Medrazo v. Honda of North Hollywood, 2012 WL 1021692 (2012), the California Court of Appeal reversed a trial court’s finding that a Plaintiff had no UCL standing against a motorcycle dealer because the motorcycle did not have a ‘hanger-tag’ on the handlebars – loosely, the motorcycle equivalent of a “Monrone sticker” — under Vehicle Code section 11712.5 and 24014.
In the present case, Medrazo presented evidence of injury in fact. She presented evidence that there was no hanger tag showing the dealer-added charges attached to the motorcycle that she and her boyfriend were interested in purchasing,FN10 and that she was not informed of the dealer-added charges or the total price of the motorcycle until she was presented with the sales contract. This evidence is sufficient to establish that she suffered a concrete, particularized, and actual invasion of an interest legally protected by section 11712.5 and section 24014, i.e., the disclosure—before a decision to purchase a specific motorcycle is made—of the MSRP and any dealer-added charges for all new motorcycles offered for sale. (See Cal. Dept. of Consumer Affairs, Rep. on Assem. Bill No. 3645 (1973–1974 Reg. Sess.) Sept. 6, 1974 [purpose of bill enacting section 24014 and amending section 11712.5 is to bring laws regulating the sale of a motorcycle in line with federal laws mandating disclosure of MSRP in car sales, and “is designed to provide … motorcycle buyers with information that is necessary to make a wise purchase”].) Medrazo also presented evidence of an economic injury caused by the alleged unfair competition. She testified that she made the first two months payment, and owes more than $12,000 on a motorcycle that HNH allegedly was not legally allowed to sell (or at least was not allowed to sell at the price for which it was sold) because it failed to disclose the dealer-added charges on a hanger tag attached to the motorcycle.