Understanding deceptive trade practices

Businesses in Louisiana dedicate much time and effort into marketing, advertising and selling their products or services. Therefore, when claims are made against a business regarding their business practices, businesses often take these accusations seriously. Such business disputes can not only harm the reputation of the company, but can also result in the business facing serious penalties if the claims are proven.

A business can face a claim for deceptive trade practice if it is believed that the company is practicing activities that are meant to mislead the public or lure consumers into purchasing their product or service. False advertising is a common example of this business dispute, and they could stem from false representation, representing goods as new when they are used, false certifications and other similar actions.

State laws define what acts are deceptive trade practices, and most states have very similar lists of offenses; however, they can vary on how they are handled state by state. Because large companies, manufacturers and retailers typically do business in multiple states, deceptive trade practices can affect several individuals and businesses from several states. In these matters, the Uniform Deceptive Trade Practices Act might apply.

If it is determined that a business is in fact guilty of deceptive trade practices, the business could face civil penalties as well as injunctions for the violations. Additionally, those harmed by the situation can seek costs and damages.

If a claim of deceptive trade practice is made against a business, it is important to initiate business litigation against these claims. This can help address this business dispute, determine whether any deceptive practices exist and, if so, what damages have resulted from them.

Source: Findlaw.com, “Details on State Deceptive Trade Practices,” accessed March 14, 2016