Interesting. How exactly does one price advertising "below cost"? And does that silly law mean loss-leader ads are illegal in California? If so they could probably prosecute every retailer in the State. I seem to remember a famous line in Atlas Shrugs about the necessity of making all men criminals so they can be controlled.
This I posted for the humor content, so I will brief you on California rules in an attempt to integrate your serious reply.
Rule 1: California is Bizarro World, common sense reacts like antimatter here.
Rule 2: California has the Rule of Gay, this is substantially different from the Rule of Law. (See my tagline)
Rule 3: In California everything not required is forbidden, which is a corollary of Rand's The State has no power over an honest man.