What is a deceptive trade practice?
A deceptive trade practice is a type of unfair competition law that aims to make sure businesses don’t use unfair practices to gain an advantage in the marketplace. In Delaware, deceptive trade practices are defined as acts or omissions by businesses that are likely to deceive consumers. Examples of deceptive trade practices include false advertising, bait and switch, and misappropriating someone else’s ideas or products. False advertising involves making false statements in order to promote a product or service. This could include exaggerating the benefits of the product or service or making false claims about the product or service. Bait and switch is when a business advertises a product at one price, only for the customer to find out the product isn’t available at that price. The business then switches the customer to a more expensive product. Misappropriation is when a business copies or uses someone else’s ideas or products without permission, such as infringing on a patent. Deceptive trade practices are illegal in Delaware. The Delaware Consumer Fraud Act prohibits false and misleading statements in advertising, as well as the use of bait and switch tactics. The Delaware Uniform Deceptive Trade Practices Act prohibits misappropriation of ideas or products. Violations may result in civil penalties, such as fines, and even criminal charges.
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