How is unfair competition defined under federal law?
Unfair competition is defined by federal antitrust law, which is enforced by the Federal Trade Commission (FTC). This law prohibits companies from engaging in anticompetitive practices, such as forming cartels, price-fixing, or creating a monopoly. Unfair competition law is also known as the Sherman Act. The FTC defines unfair competition as “deceptive or unethical business practices that harm competitors or consumers.” These practices are prohibited under both federal and state laws. Under the Sherman Act, it is illegal for businesses to “create a monopoly, divide markets, fix prices, or otherwise attempt to exclude competitors from a market.” In New Jersey, the state has its own set of unfair competition laws. The New Jersey Law Against Discrimination (NJLAD) is one of the main laws that prohibits businesses from engaging in deceptive and unethical practices. The NJLAD also provides remedies for those affected by unfair competition. For example, it provides maximum penalties for those engaging in price-fixing, which can be up to $10,000 per violation. In addition to the NJLAD, the New Jersey Consumers Fraud Act also provides protection for consumers. This law prohibits businesses from engaging in dishonest and unconscionable conduct or using deceptive tactics to misrepresent a product or service. There are several other state and federal laws that are designed to protect consumers from unfair competition.
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