What is a deceptive trade practice?
A deceptive trade practice is a form of unfair competition law that is prohibited in North Carolina. This type of activity is designed to give one business an advantage over another by misleading or deceiving customers. A deceptive trade practice can take many forms, including false advertising, false labelling, and other deceptive tactics. False advertising is the act of making false or misleading claims in order to gain an advantage over competitors. False labelling is when products are labelled with false or deceptive statements. Unlawful price discrimination is the practice of charging different prices to different customers for the same goods or services. Bait and switch is another form of deceptive trade practice. This is when a business offers one good or service at a low price only to switch it out for a higher priced alternative after the customer has made the purchase. Finally, Predatory pricing is a practice where a company sets prices significantly below the cost of their competitors in order to drive them out of business. All of these practices are prohibited in North Carolina. To protect consumers from deceptive trade practices, the North Carolina Department of Justice offers an online complaint form for customers who have been affected by any of the prohibited activities. Any complaints are then investigated and the law firm of the North Carolina Attorney General can pursue legal action against businesses found to be engaging in deceptive trade practices.
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