What is a deceptive trade practice?
A deceptive trade practice is a form of unfair competition outlined in the New Mexico Unfair Competition Law. It is an action by a company that deceives or causes injury to another business or individual. Examples of deceptive trade practices include false advertising, misleading the public about a product or service, and underselling competitors. False advertising occurs when a company misrepresents information about its products or services to influence consumer decisions. A company might make false or unsubstantiated claims about its products, such as its performance, safety, or quality. It could also exaggerate the benefits of its product or service. Misrepresenting the public about a product or service means creating confusion or misunderstanding about the product or service. For example, a company could use a foreign language to promote its products, leading potential customers to believe the product is from another country. Underselling competitors occurs when a company uses pricing tactics to gain an advantage over its competitors. This could include using false price comparisons, offering false discounts, or advertising unsustainable prices. In general, any practice that is deceptive and has the potential to cause harm to consumers or other businesses can be considered a deceptive trade practice and may be subject to legal penalties.
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