What is the difference between civil fraud and unfair competition?

Civil fraud and unfair competition are both civil, or non-criminal, offenses in the state of California. The main difference between the two is the types of activities they refer to. Civil fraud is any type of knowingly false statement that results in harm to another person—financial or otherwise. Examples of civil fraud include falsifying a document or making misleading statements to obtain property or money from another person. Unfair competition is a broader term and refers to any activity or behavior that harms or has the potential to harm another business or individual. This could include false advertising or misrepresentation about the quality of a product or service, or infringing on another business’s trademark or copyright. In criminal cases, civil fraud is treated more severely than civil unfair competition. In civil cases, though, the penalties for both offenses may be similar depending on the severity of the fraudulent or unfair behavior. The main determining factor in whether a case is civil or criminal is the level of intent behind the behavior. If the intention was to harm or deceive another party, it is likely a criminal case. If the behavior was simply negligent, it could be civil.

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What is the difference between civil fraud and unfair competition?

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