{"id":4511,"date":"2016-05-12T11:21:22","date_gmt":"2016-05-12T16:21:22","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-laws-and-regulations\/unfair-competition.html"},"modified":"2024-06-06T01:55:06","modified_gmt":"2024-06-06T06:55:06","slug":"unfair-competition","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/unfair-competition.html","title":{"rendered":"Unfair Competition"},"content":{"rendered":"\n
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Unfair Competition <\/h1>\n
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\n By Jade Chounlamountry, Esq.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

In business, where small companies work hard to succeed, unfair competition can create big problems. This article is about how small-business owners can face unfair competition. Here, we will focus on unfair trade practices, which impact businesses and business owners. Consumers injured by deceptive trade practices generally seek the remedies provided by\u00a0consumer protection laws<\/a>.<\/p>\r\n

Unfair Competition: What Is It?<\/h2>\r\n

Unfair competition is a deceptive or wrongful business practice that harms consumers or a business. Unfair competition is a\u00a0business tort<\/a>\u00a0designed to stop unfair practices from creating a competitive advantage. Federal and state laws, like antitrust laws, protect businesses’ efforts to stand out from their competitors.<\/p>\r\n

Unfair competition applies to all levels of the supply chain, from former employees to distributors.<\/p>\r\n

Where Do Unfair Competition Laws Originate?<\/h2>\r\n

Congress created the\u00a0Federal Trade Commission (FTC)<\/a>\u00a0to protect consumers. The FTC is critical in investigating and taking legal action against unfair business practices. This helps level the playing field for small businesses and ensures they have a fair chance to compete.<\/p>\r\n

These practices can undercut the fair market and lead to legal action. Both federal and state laws work to protect against these unfair competition practices. Federal laws like the\u00a0Lanham Act<\/a>\u00a0allow business competitors to sue advertisers for false advertising.<\/p>\r\n

States have also enacted laws regulating everything from misappropriation to counterfeit goods. Many states have adopted the\u00a0Uniform Trade Secrets Act (UTSA)<\/a>. The UTSA defines and\u00a0protects trade secrets<\/a>. State laws protect almost any information that gives a business a competitive edge in the same industry.<\/p>\r\n

Examples of Unfair Competition<\/h2>\r\n

Unfair competition is an umbrella term encompassing several types of economic torts. Below are forms of unfair competition.<\/p>\r\n