If you’ve ever found yourself in a friendly business competition, it likely happened because everyone played by the same rules. When a business breaks these common practice rules, or even federal law, a competition can become criminal activity.
What is an unfair act of competition?
Sneaky or deceptive business practices are not only unfair, they can be illegal. The following are common ways one business may target another to try and dismantle their competitors:
- False advertising
- Slander, libel or fraud
- Copyright/trademark infringement
- Violation of non-compete or other contract agreements
- Unauthorized publication of trade secrets
- Improper labeling
Collectively, these usually qualify as business or economic torts. They can cost you in profits, in brand recognition, endanger your investors or even your consumers.
What protects businesses against unfair or illegal competitive acts?
If you run a business, you know that litigation is sometimes the only way to ultimately protect your brand or product. Businesses use the following state and federal laws to protect their investments:
- California Unfair Business Practices Act
- Article 43 of the Lanham Act
- The Commerce Clause of the US Constitution
However, the bad practice could also violate laws set by the Food and Drug Administration, Food Safety and Inspection Service, the US International Trade Commission or other federal regulations. If you believe your business is suffering because of unfair business practices, explore your legal options today.