California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 2 — Preservation and Regulation of CompetitionChapter 4 — Unfair Trade PracticesArticle 2 — DefinitionsSection 17030
“Loss leader” means any article or product sold at less than cost:
(a) Where the purpose is to induce, promote or encourage the purchase of other merchandise; or
(b) Where the effect is a tendency or capacity to mislead or deceive purchasers or prospective purchasers; or
(c) Where the effect is to divert trade from or otherwise injure competitors.
Notes
Defines a loss leader as an article or product sold below cost when its purpose is to induce, promote, or encourage purchases of other merchandise, or when its effect tends or has capacity to mislead or deceive purchasers or prospective purchasers, divert trade from competitors, or otherwise injure competitors.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 17030 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-2/chapter-4/article-2/section-17030