Unfair competition can be a serious concern for the success and viability of a business. Unfair competition essentially refers to wrongful or deceptive business practices that economically harm another business or consumers. In some circumstances, unfair competition can lead to business litigation. It is important for businesses to understand what is considered unfair competition and how to protect themselves.
Both federal and state laws concerning unfair competition are in place to protect the economic, intellectual and creative investments made by businesses as they differentiate themselves and their products or services in the marketplace. Consumer protection laws generally protect consumers from unfair or deceptive trade practices. It is helpful for businesses to be familiar with the laws protecting them from unfair trade practices and how to use them to halt unfair trade practices when they occur.
Examples of unfair competition include trademark infringement, misappropriation of trade secrets, false representation of products or services, false advertising, unauthorized substitution of one brand or goods for another or when a manufacturer or a product is used as bait. Unfair competition can be devastating to a business an entrepreneur has worked hard to build which is why it is important to know how to handle it if it arises.
Business torts, or wrongs committed in the course of business, are an important area of legal protection for businesses to be familiar with. It is useful for a business to know how to enforce protections related to business harm, whether that results in litigation for damages or to stop the behavior, negotiation or other measures to help ensure the business is facing only fair competition.
Source: Statelaws.findlaw.com, “Unfair Competition,” Accessed Sept. 5, 2017