What is Unfair Trade Practice?

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You have probably heard that it is illegal to conduct an unfair trade practice, but do you really understand what this means? Generally speaking, it is any trade practice used for the purpose of selling or supplying goods or services using an unfair or deceptive practice. Below are a few examples of unfair trade practices:

A false representation can be made orally or in writing. Examples of common false representations include:

When an advertisement represents that goods or services are offered at a bargain price, there must be a true intent to offer or sell them at that price for a reasonable period of time and with a reasonable quantity available. A “bargain price” is the price that is set forth in the advertisement or the price at which a reasonable person reading or seeing the advertisement would believe to be the better price than the price which such goods are usually sold.

It is an unfair trade practice to offer a gift or prize when goods are purchased if there is no intent to provide the additional gift or prize. It is also illegal to represent that an additional good is being offered as a free bonus when the price of the bonus good is wholly or partly covered by the price of the original item being sold.

The law prohibits the sale of consumer goods if there is knowledge or reason to think that such goods do not comply with the standards governing the goods performance, design, construction, or packing, as is necessary to reduce or prohibit risk of injury to the consumer using such goods.

It is an unfair trade practice to hoard or destroy goods, or refuse to sell goods or provide services, with the intent to increase the cost of those or similar goods or services.

If you are interested in learning more about unfair trade practices or you have compliance questions, contact the legal team at The Swenson Law Firm for assistance.

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