What does unfair competition mean in the business world?

On Behalf of | Jan 15, 2021 | Business Litigation

Those who own and operate a company in Florida have worked hard to create a thriving business. When another party resorts to fraudulent business activities, your company may begin to suffer. In the business world, this is called unfair competition.

Essentially, unfair competition involves wrongful or deceptive business activities. When these deceptive practices result in economic harm to legitimate companies, the business owner may seek a legal solution.

Examples of unfair competition

The ambiguous nature of unfair competition makes it hard for the average business owner to understand which activities are wrongful. The examples below can improve your grasp of what constitutes unfair competition:

  • A business uses your trademark to brand its products
  • A business engages in false advertising about the untrue benefits of its products
  • A business steals your trade secrets for use in the products or goods it sells
  • A business advertises your products to lure customers in but then substitutes them for its products when customers make a purchase
  • A business lies to customers about guarantees or warranties for its products

All the practices above could cause financial harm to businesses, consumers or both. In some cases, this is not just unfair competition; it is a crime. For example, stealing intellectual property (trade secrets, etc.) can even be a criminal offense.

What can you do about unfair competition?

The law is on your side when unfair competition hurts your business. You may file a lawsuit against the parties that harmed you, which can prevent them from continuing their wrongful activities. Engaging in business litigation can also provide you with financial compensation to address the financial damage your business suffered.