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.
Related FAQs
What is the Sherman Antitrust Act?How does the Federal Trade Commission (FTC) regulate unfair competition?
Are there federal statutes that specifically address unfair competition?
How does the Digital Millennium Copyright Act (DMCA) protect against unfair competition online?
What is the difference between unfair competition and trademark infringement?
What is a tortious interference with prospective business relations?
What is the scope of the Digital Millennium Copyright Act (DMCA)?
What is the difference between unfair competition and antitrust law?
Is cybersquatting a form of unfair competition?
What is the purpose of the Communications Decency Act?
Related Blog Posts
What Is Unfair Competition Law and How Can It Protect Your Business? - July 31, 2023Understanding Unfair Competition Law: What You Need to Know - August 7, 2023
Unfair Competition Law: Key Concepts and Terminology - August 14, 2023
The Basics of Unfair Competition Law for Business Owners - August 21, 2023
How to Recognize and Respond to Unfair Competition Practices - August 28, 2023