Business and Professions Code section 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.