What are the Legal Remedies for Unfair Competition?

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What are the Legal Remedies for Unfair Competition?

Unfair competition is an ill-defined catch-all, but it occurs when a business uses deceptive or dishonest business practices to gain a competitive advantage that harms consumers or other businesses. Some of the most common types of unfair competition impacting businesses include:

  • Trademark infringement
  • Misappropriation of trade secrets or use of confidential information
  • “Bait and switch,” the unauthorized substitution of one type of goods for another
  • False, deceptive, or misleading advertising
  • False representation of products or services
  • Price fixing and discrimination
  • Predatory lending
  • Violation of email unsubscribe, do-not-call or do-not-fax requests

Laws Governing Unfair Competition

There are federal and state unfair competition laws as well as court rulings under common law that have established legal precedents.

On the federal level, the Commerce Clause of the U.S. Constitution (Article 1, Section 8, Clause 3) provides for the regulation of unfair competition by Congress. The Lanham Act—also known as the Trademark Act of 1946—covers the violation of trademark rights and false advertising.

Virtually every state, including Arizona, has laws that prohibit deceptive trade practices. Typically, these laws grant the state attorney general power to take legal action against alleged offenders. Most states, including Arizona, have adopted a version of the Uniform Trade Secrets Act to define and protect trade secrets. In addition, Title 44, Chapter 9 of the Arizona Revised Statutes addresses a number of additional fraudulent trade practices.

Legal Remedies for Unfair Competition

If your business has been harmed by unfair competition, you can file a lawsuit for injunctive relief in order to stop another business from competing unfairly. You can also seek monetary relief to compensate your business for any losses it may have suffered as a result. Depending on the circumstances of your case, these remedies may be available in both state and federal court.

Consumers harmed by unfair competition typically seek redress under a variety of federal and state consumer protection laws.

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