What Are Unfair Trade Practices?

Unfair Trade Practices

The phrase unfair trade practices can be defined as any business practice or act that is deceptive, fraudulent, or causes injury to a consumer. These practices can include acts that are deemed unlawful, such as those that violate a consumer protection law. Some examples of unfair trade methods are: the false representation of a good or service; false free gift or prize offers; non-compliance with manufacturing standards; false advertising; or deceptive pricing.

Unfair Advertising

A simple definition of unfair advertising is false advertising that misrepresents a product, service, or price. A broader description of the term will include unfair sales strategies, such as “bait and switch,” a practice of advertising one item at a low price with the intent of actually selling other items. Unfair ads can be categorized as those with incorrect pricing, fake endorsements, false statements, or exaggerated performance descriptions. Deceptive guarantees are also considered a form of unfair advertising.