Cal. Bus. & Prof. Code § 17030 : CALIFORNIA BUSINESS AND PROFESSIONS CODE — GENERAL BUSINESS REGULATIONS — PRESERVATION AND REGULATION OF COMPETITION — UNFAIR TRADE PRACTICES — DEFINITIONS — "Loss leader" defined

"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.

Ca. Bus. and Prof'l. Code § 17030

Added by Stats. 1941, Ch. 526.