As a businessperson, you are likely comfortable with a little healthy competition, and it may even fuel you. However, when competition takes a turn towards dishonest and unfair practices which undercut others, you may find your business suffering through no fault of your own. If this sounds like you or your business, you may be the victim of unfair competition.
At McCune Law Group (MLG), we are often asked whether businesses can take legal action against competitors who use unfair tactics. The answer is yes: unfair competition law is designed to protect businesses from deceptive, fraudulent, or anti-competitive conduct.
What is Considered an “Unfair Business Practice”?
Unfair business practices refer to actions by a company that are dishonest, deceptive, or otherwise unethical in a way that causes harm to competitors or consumers. These can include, but are not limited to:
- Trade libel — also known as purposefully communicating false information about a competitor’s products.
- Trademark infringement — when consumers are tricked into buying a competitor’s product while believing they are purchasing another. This is commonly known as a “cheater brand,” in which various identifying characteristics are essentially copied and stolen.
- Breaches of anti-trust law — in which one competitor employs predatory pricing or purchasing exclusivity to specific materials, thus forcing out other competitors.
- Misappropriation of trade secrets — including bribery, theft, or espionage.
- Tortious interference — also known as when someone intentionally and deliberately ruins a competitor’s contract, by way of convincing the other party to breach or otherwise fail to fulfill their end of the deal.
In California and many other states, such conduct may be challenged under laws such as the Unfair Competition Law (UCL) and the Lanham Act, which provide legal remedies to businesses harmed by a competitor’s misconduct.
When Can You File a Lawsuit?
You may be able to sue a competitor for unfair business practices if you can show that:
- The conduct was unlawful, fraudulent, or unfair.
- It directly harmed your business or economic interests.
- You suffered measurable damages as a result
Legal claims can be brought in both state and federal court, depending on the nature of the misconduct and whether it involves intellectual property, interstate commerce, or state-specific consumer protection violations. A successful lawsuit can result in injunctions to stop the conduct, monetary damages, and potentially even punitive damages.
Real-World Examples of Unfair Competition Claims
Unfair competition lawsuits can arise in a wide variety of industries. For example, a business that copies your branding or falsely claims their product is “superior” to yours using misleading data can be sued under the Lanham Act for false advertising.
Similarly, if a former employee shares your proprietary client list or product formula with a competitor, you may have grounds to file a claim for trade secret misappropriation.
Why Legal Representation Matters
Unfair competition cases can be complex. They often require a deep understanding of business law, intellectual property rights, and regulatory compliance. At McCune Law Group, our experienced commercial litigation team works closely with clients to assess the strength of their claims, gather compelling evidence, and build a strategy to protect their business interests. We understand how damaging unfair competition can be to your brand, your profits, and your long-term success.
Protect Your Business with McCune Law Group
If you suspect that a competitor is using illegal or unethical tactics to harm your business, don’t wait. These actions can have serious financial consequences and erode your reputation. At McCune Law Group, we are committed to helping businesses hold wrongdoers accountable through strong legal action.
Contact us today to schedule an evaluation and learn more about how we can help you take a stand against unfair business practices.