What Are Claims of Unfair Competition?
Running a business is complicated, even when you are successful there is a myriad of additional complications that come along with your success. Even if you are mindful to operate under the best business practices as put forward by laws and regulations, you may still run into issues with other businesses.
Claims may be made against your company whether they are legitimate or aimed to harm your company. You must be prepared to handle such scenarios to protect your company.
Claims of unfair competition
Companies may make claims that you are implementing unfair business practices to undermine your competition. This often involves being purposefully misleading in an effort to profit and steal customers from other businesses. Examples of unfair competition include:
False advertising – When a company makes false statements to appeal to customers and cannot back up the claims.
Bait-and-switch – When a business advertises a product at a low price to attract customers, then states the item is sold out and replaces it with a comparable but more expensive one.
Trademark infringement – When a business rips off content that is trademarked by another company, such as a logo or slogan, in order to mislead consumers into thinking they are the other company.
Rumor mongering – When one company promotes false information about another in an attempt to harm that company’s reputation.
Unfair competition arises in a variety of ways, resulting in claims from other companies. If this occurs, your company’s reputation could be jeopardized, and you would risk losing money as a result of false accusations or rumor mongering. If claims are made against you or you see a company committing acts of unfair competition, reach out to a lawyer immediately.