Competition is normal for any business. However, there are limits to what your competitors can do legally.
Unfair trade practices generally involve a competitor using deceptive tactics. This puts your business at a disadvantage. Fortunately, there are steps you can take to remedy such situations.
What are unfair trade practices?
Some businesses engage in misleading or unethical behavior to gain an advantage. False advertising is a common issue, where a company exaggerates product benefits or makes misleading comparisons. Bait-and-switch tactics trick customers by advertising one product but selling another.
Predatory pricing is another concern. Some businesses sell products at a loss just to drive competitors out. Others try to confuse customers by using a name, logo or branding similar to another company’s. Some even go as far as posting fake negative reviews about a business or creating fake positive ones for themselves.
If someone uses your branding, you may have legal options in intellectual property law. Asserting these will help prevent the conduct from continuing. You may even be awarded compensatory damages. If another business has created fake reviews that damage your reputation, then you may be able to file a defamation lawsuit.
Legal protections against unfair competition
Several laws help protect businesses from unfair trade practices. The Federal Trade Commission (FTC) Act prohibits deceptive business tactics and false advertising. Many state consumer protection laws also target deceptive trade practices and unfair competition.
If your competitor is using deceptive tactics, it’s important to take the appropriate steps. Sometimes, sending a cease-and-desist letter is enough to stop the behavior. However, if this doesn’t work, you have several other legal options. Seeking experienced legal guidance will help you to explore these options in detail.