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Avoiding unfair trade practice claims and accusations

On Behalf of | Sep 5, 2023 | Business & Commercial Law, Business Litigation |

While litigation is available to businesses who face unfair trade practice claims and accusations, preventing such disputes works better for companies to save costs and time and maintain their reputation. To do so, companies must be familiar with the unfair and deceptive business practices regulated by the Federal Trade Commission (FTC).

Practices that can lead to litigation, regardless of intention

In this aspect of business and commercial law, it does not matter if it wasn’t a company’s intention to deceive or cause injustice to their customers. A mere proof of the practice being deceptive or unfair can lead to a company facing legal repercussions.

Companies can protect themselves from unfair trade practice claims and accusations by avoiding common mistakes such as the following acts:

  • Misleading or false description of products and services
  • Deceptive or false product or service prices, deals and promotions
  • Fake claims and guarantees
  • Misleading advertisements and fake endorsements
  • Aggressive and pressuring sales tactics
  • Failure to disclose material information about the products or services

Technically, any business practice that can cause or causes substantial injury to a customer, which they could not have reasonably avoided, and the benefits of which do not outweigh the damage, is unfair. On the other hand, deceptive practices are material acts that mislead consumers, whose interpretation of the product or service representation is reasonable.

Conducting regular training and sending reminders to employees and other staff about unfair trade practices can help the company avoid these mistakes.

Unsuccessful prevention does not mean it’s the end

Suppose a company did its best to prevent unfair business practice claims and accusations but still had a mistake slip through. There are still ways to fight for the business and its interests. Sufficient research for viable strategies can help a company resolve business disputes like this one.