What is the definition of unfair competition?

Unfair competition refers to any illegal practice that harms or attempts to harm a business or its customers. In the state of California, unfair competition is defined as any act or practice that “unjustly” interferes with the free and fair business practices of another. Unfair competition can refer to a variety of activities, such as false advertising, price discrimination, the use of another business’s intellectual property without permission, or using a competitor’s confidential information. California prohibits any form of unfair competition under Business and Professions Code Section 17200. Unfair competition also includes “deceptive” or “unlawful” business practices, including misleading or false advertising, or false representations of a product’s characteristics. Any time a company misrepresents its own or its competitor’s products or services, it is engaging in unfair competition. A company may also be guilty of unfair competition if it fails to provide customers with the full terms and conditions of a sale, or if its products or services do not meet the customer’s expectations. In California, it is illegal to intentionally engage in unfair competition or to knowingly allow any of your employees or agents to engage in such practices. Violators may be subject to civil and “criminal” penalties such as fines and damages. Therefore, it is important to be aware of what constitutes unfair competition in California so that you can protect your business from becoming a victim of it.

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