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What companies should know about unfair business practices

On Behalf of | Dec 23, 2020 | Commercial Litigation |

No matter how hard you try, your business may not always satisfy every customer or client. However, if someone accuses your business of using unfair business practices, you need to investigate that. Your company could end up facing a lawsuit over using unfair business practices and have to pay compensatory and punitive damages, as well as a portion of the plaintiff’s legal fees.

Examples of unfair business practices

Some unfair business practices that could get your business in legal trouble include the following:

  1. Failing to meet product guarantees and warranties.
  2. Using false endorsements or testimonials about your products or services.
  3. Engaging in unfair advertising, where you promote a specific item for sale, but then give a customer a low-quality or less-in-demand item. Or if you exaggerate the performance of a product or service.
  4. Giving misleading information about a product or service price. Your business may advertise or quote one price, but then charge another. Or you claim to be offering a product at a sale price for a limited time, but that price is just the regular price you offer all the time.
  5. Targeting vulnerable people, such as the elderly or those who don’t speak English, when selling products or services. Often, elderly people or those who don’t speak English well are victims of telemarketing scams or aggressive sales tactics.

What to do about a lawsuit over unfair business practices

If your company is facing a lawsuit over unfair business practices, you need to consult with an experienced commercial litigation attorney. An attorney who understands unfair business practices and the Louisiana Unfair Trade Practices Act can help you resolve this matter, minimizing the amount of damages you may have to pay.