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What are unfair business practices?

On Behalf of | Oct 30, 2020 | Business Law |

Unfair business practices are hard to define because there isn’t a single definition that’s going to give you a good understanding of what they are. However, there are a variety of actions that may be seen as unfair business practices. Those unfair actions could lead to consumer complaints or issues between business partners.

There are dozens of unfair business practices that could take place. Some common kinds of unfair business practices include:

  • False advertising
  • False free prize or gift offers
  • Noncompliance with manufacturing standards
  • Misrepresentation

Unfair trade practices are usually seen when products are purchased by consumers. Acts are considered to be unfair when they:

  • Cause substantial injuries to consumers
  • Can’t be reasonably avoided by consumers
  • Can’t be outweighed by other benefits to the consumers

Deception takes place when it meets these criteria:

  • The misleading omission, practice or representation is material
  • The omission, practice or representation is likely to mislead consumers
  • The understanding of the practice, omission or representation by the consumer is reasonable, considering the circumstances

For business owners, it’s important to remember to take steps to correctly promote services and to be sure you’re not overpromising results. If someone does accuse your business of participating in unfair trade practices, then it’s going to be important to take those claims seriously. You want to defend your business because if the other party’s claims are successful, you could face serious repercussions.

Your attorney can help you review the claims and determine the best path forward in terms of defense. A strong defense can make a difference in your case and help you stop litigation in some cases.