Unfair competition refers to any business practices that are deceptive, unethical or illegal and that give one business an unfair advantage over its competitors. These practices can take many forms, harming competing Florida businesses, consumers, and the overall market.
The most obvious example of unfair competition is when a business uses false or misleading advertising to promote its products or services. This can include making false claims about the quality or benefits of a product, using misleading pricing information or false testimonials or endorsements. These tactics can deceive consumers and make operating difficult for competing businesses.
Trade secret theft
Theft of trade secrets or confidential information is a business tort. This can give the competing business an unfair advantage by allowing them to produce similar products or services without investing in research and development.
Anti-competitive contracts consist of agreements that restrict competition, such as agreements not to compete or agreements that limit the ability of suppliers or distributors to work with competing businesses. These practices can harm competitors by limiting their access to markets or resources.
Other examples of unfair competition include price-fixing, predatory pricing and monopolistic practices. Price-fixing occurs when businesses collude to set prices artificially high or low.
Predatory pricing occurs when a business deliberately sets prices lower than its competitors to drive them out of business. Monopolistic practices occur when a business uses its dominant market position to restrict competition and harm consumers.
Ensuring a fair business environment
Unfair competition is a serious problem that can harm both businesses and consumers. It is vital for a free economy that businesses compete fairly and ethically, and for consumers to be aware of the risks of unfair competition. By recognizing and avoiding unfair practices, businesses can ensure a level playing field and help to create a healthy and competitive market.