Depending on the industry and services or products your business deals in, the competition that you have to contend with may be plentiful. Keeping your company on the cutting edge in order to attract more customers to patronize your business over another is a constant part of being a business owner. However, this needs to be done both cunningly and within the confines of the law. In California, businesses should always follow the regulations with respect to operating in good faith. If your strategy is questionable, you could face unfair competition suits against your business that can be incredibly harmful to your operations.
The goal is always to engage in honest marketing and business operation practices, to be a great success. Though, a business owner should be prepared that when this is the situation, competitors may become envious. As such, other businesses may participate in actions that are meant to specifically hurt your business to benefit their own.
What are the Most Common Types of Unfair Competition Practices?
There are times when a business will make the case that your business is not operating properly and as a result negatively impacting their ability to run their operations fairly. Because of this, a claim may be brought against you, and rightfully so, if you are engaging in practices that are unreasonable and dishonest.
Nevertheless, there are also situations when you have hit on a business model and way of doing things that work out well for your company. Your company stands out from the rest and you are selling more than others in a similar industry. To combat this, another entity may enter into methods that are unseemly and damaging to your ability to function at the highest level.
Unfair competition practices can come in a variety of forms, but the following four are the most commonly reported:
- A company makes false claims for services they provide or products they have to attract clients to come to their front door. When a company knowingly makes claims to the public that it is unable to uphold, this is considered false advertising and is a form of unfair practice.
- A ploy where a company claims that it has a specific product or service and prices it attractively, much lower than the competition. Then, when a customer comes in for that affordable product or service the business does not actually have it. However, what the business does have is a product or service that is nearly identical but is more expensive.
- Stealing another company’s intellectual property and using it to attract customers to a business.
- One entity spreads false information that is harmful to another entity.
Speak to a California Business Litigation Attorney Today
When another business in your community is engaging in deceitful and treacherous activities which are directly impacting your business’s ability to survive and be a success, a lawyer can help you defend you and your company’s interests. The Los Angeles business litigation attorneys at Levia Law have extensive experience litigating such cases and can help your business fight off the attacks. Call Leiva Law today to schedule a free consultation at (818) 519-4465.