As both a business owner or operator, everyone should know what qualifies as unfair or deceptive business practices. There is a lot to know about the laws surrounding these actions, making it hard to identify whether a business is engaging in this kind of behavior. To help everyone recognize these practices, here are a few common examples of them:
Misrepresentation
The products that a business sells should be able to perform in the way the company claims it can. The company also needs to describe its products and services accurately. For example, describing something as “new” is only allowed for something that is no more than six months old, and a merchant cannot call something a “cure” unless it actually cures a particular ailment.
Misleading prices
Businesses also need to be upfront with the cost of their services and products. It is a deceptive practice to offer a 50% off sale while doubling the original price of a product, just as it is to offer a sale for a limited time when there is no actual end to the sale.
Deceptive advertising
Similar to misrepresentation, a business cannot falsely advertise its products and services. Examples of this would be lying about the price of something, false guarantees, and inaccurate descriptions.
Taking advantage of customers
Just because a business consents to a sale does not mean that the transaction was not deceptive. If a salesperson pressures someone into a sale through unsubstantiated claims or misrepresentation, they are likely engaging in unfair practices.
Withholding pertinent information
A company that knowingly fails to provide its clients with necessary information is performing a deceptive sales practice. For example, failing to inform a potential commercial real estate buyer of a radon leak or weak building foundation could qualify as a deceptive practice.
Trust your instincts
If you suspect that something about a business exchange is unfair or deceptive, you may be right. Consult with Brick Business Law to review the situation and confirm if something illegal may be happening with your business exchange.