WHAT IS UNFAIR COMPETITION IN BUSINESS
In essence, unfair competition refers to unethical or dishonest commercial practises that financially hurt either customers or business entities
WHAT IS UNFAIR COMPETITION IN BUSINESS
In essence, unfair competition refers to unethical or dishonest commercial practises that financially hurt either customers or corporate entities. Unfair competition is fundamentally a commercial tort intended to put an end to any unfair behaviour that might be taking place in a professional setting. Federal and state regulations are intended to safeguard the financial, intellectual, and creative efforts that firms make to distinguish themselves and their goods.
EXAMPLES OF UNFAIR COMPETITION
There are many examples of unlawful trade practices that are a part of unlawful competition law. Some of these practices include things like stealing confidential business information or deceptive pricing. Explore these different forms below.
Using one brand of goods in place of another without authorization is frequently referred to as "bait and switch." Manufacturers of the "bait" product may bring legal action against the seller on the grounds that the seller exploited trademarked images of the "bait" product without intending to sell them in order to profit financially.
Taking a competitor's "secret formula" for fried chicken and exploiting it for financial gain is an example of misappropriating trade secrets.
Falsely guaranteeing a product or making a substantially deceptive claim about a service are examples of false representations of goods or services.
Unauthorized substitution of one brand of goods or products for another.
Imitation or counterfeiting
WHY ARE UNFAIR COMPETITION LAWS IMPORTANT
Five key objectives are served by unfair competition legislation. These comprise:
Helping to protect intellectual, economic, and creative investments made by business owners.
Preserve goodwill between businesses and their customers.
Deter businesses from stealing ideas and appropriating the goodwill of their competitors
Promote stability and clarity by making products clear to customers
Increase competition among companies within similar industries by providing incentives to offer better goods and services
REMEDIES
In order to stop unfair competition from occurring and to compensate those who have been harmed by it, courts may use a variety of methods. In certain circumstances, governments like California permit both monetary damages and injunctive relief.
Businesses affected by unfair competition may file a lawsuit to get monetary damages to make up for any losses brought on by the illegal conduct, injunctive relief to stop the rival from continuing with the illegal behaviour, or both. Depending on the specifics of the wrongful behaviour, these remedies may be available in both state and federal court.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080