When does business cross the line into unfair competition in California? What is the difference between competing with another company for business and unfair competition in San Diego?
What is Unfair Competition
“Unfair competition” can generally be described as anything that one business does to prevent other businesses from being able to compete in a market or geographic location, outside of “normal” strategies to gain a competitive edge. California law describes behavior that is considered as an “unlawful, unfair or fraudulent business act,” or “unfair, untrue or deceptive advertising.” California’s unfair competition law also addresses fraudulent business practices or acts against individuals, fellow stakeholders (i.e. partners, members, shareholders, investors), or other businesses.
Usually, “unfair” in this context is often misconstrued as deceptive to the general public. While this is true, Unfair Competition can involve actions or practices within a company or between two or more competitors. This statute is not about a business contract dispute as much as it is about business practices.
When Does Business Cross the Line into Unfair Competition – Examples
When does business cross the line into unfair competition and what are a few common examples. One of the most common involves business fraud, deception, or making false misrepresentations in a business transaction. The standard for “fraud” in these cases is much broader than the definition found in California common law. The intention is to give the Court broad power to decide if a new scheme or a practice is good business and when it may cross the line into unfair competition in San Diego or throughout California.
Another common example involves market manipulation such as “marked down” price tags when the item is normally priced in that range, sales below cost (i.e. loss leaders), bait and switch tactics and other forms of price or product manipulation.
One cannot sue for the normal form of “damages” contained in most civil actions. The law limits unfair competition remedies to two options: restitution, and injunctive relief (putting an immediate stop to the practice in question). There is an important element of risk if you have been accused of unfair competition in San Diego: attorneys fees. If another company or group of businesses accuses your business of unfair competition and succeeds you will face a substantial amount of money to cover restitution as well as your opponent’s legal fees.
Why Do You Need a Proven Attorney?
You will need an experienced, proven business litigation attorney to protect your interests in these complex cases. Unfair competition is not usually the only source of complaint. Unfair business practices are related to unfair competition but are separate and distinct issues. Many business lawsuits list both issues (and many others) as part of the lawsuit. Unfair business practices expand available remedies to include multiple forms of damages in addition to injunctive relief and attorneys fees.
When does business cross the line into unfair competition in San Diego and Southern California? If you have been accused of unfair competition in San Diego, or are concerned about the practices of another competitor we invite you to review our Podcast Episode 16 – Unfair Competition, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
Unfair competition is a complex and somewhat vague area of the law and requires the decades of experience and legal skill which the Watkins Firm brings to our business clients.
