Business owners know that success is earned, not given. You have to work hard and do everything possible to beat the competition. After all, they are doing the same thing and expect nothing less.
But the competitive spirit behind American business ingenuity does not operate without rules. State and federal laws regulate competition to try to keep things fair and reduce fraud against the public. Laws like the Lanham Act and the state-level Uniform Trade Secrets Act exist to help businesses harmed by a competitor’s unfair practices seek rightful compensation.
Four examples of unfair competition
Examples of unfair competition include:
- Trademark infringement, such as using a competitor’s logo on your own products without permission.
- False advertising, such as making untrue claims about your competitor’s product or exaggerating the benefits of yours.
- False representation, which is making a misleading guarantee or warranty about your product.
- Stealing trade secrets, such as a food recipe or marketing strategies.
These are only a few examples. Anything of this nature can potentially be grounds for a lawsuit. Plaintiffs can seek injunctive relief (essentially, a court order requiring the defendant to stop the conduct), money damages or both. When calculating damages, courts tend to look at factors like how many times the defendant used unfair practices, the nature and seriousness of the violations, how willfully the defendant acted, and the defendant’s assets and liabilities.
Whether your business has been accused of unfair practices or your company has suffered harm because of a competitor’s illegal actions, the stakes can be high. Consulting with a business attorney can help you understand the process and what to expect.