What are the elements of an unlawful act of unfair competition?

Unfair competition law in New Mexico generally prohibits conduct which is either false or misleading in a material respect. An unlawful act of unfair competition is when someone engages in practices that are detrimental to the marketplace and which are likely to deceive or confuse consumers. There are three key elements of an unlawful act of unfair competition that must be present for an act to be considered to be unlawful in New Mexico. The first element is that there must be a false or misleading representation. This means that the representation made by the person engaging in the unfair competition must be inaccurate or misleading in a material respect. This could include false advertising, deceptive pricing schemes, or deceptive labeling. The second element is that the false representation must be likely to cause confusion as to the origin, sponsorship, or approval of the goods or services. This means that a consumer may mistakenly believe that the goods or services are from another product or sponsored by someone other than the company engaging in the unfair competition. The third element is that the false representation must be likely to damage a competitor’s business. This means that the claimant must prove that the defendant’s act of unfair competition has caused, or is likely to cause, economic harm to a competitor’s business. Examples of this could include lost sales or decreased market share. When all these elements are present it is considered an unlawful act of unfair competition and the claimant may be able to recover any damages they incurred as a result of the unlawful act.

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