What is a deceptive trade practice?
Deceptive trade practices refer to any act or practice done by a company that misrepresents or deceives their consumers. These acts can involve false advertising, misrepresenting the quality of products or services, and misleading customers about prices or availability of goods. In North Dakota, deceptive trade practices are regulated under Unfair Competition Law. Under this law, deceptive trade practices are illegal and can be subject to civil sanctions, including injunctions, restitution, and the recovery of damages caused by the deceptive trade practice. Examples of deceptive trade practices may include bait and switch advertising, such as when a company advertises a sale on a certain product but then once the customer gets to the store the product is not available and they are offered a different, more expensive product; or having a hidden charge on a product that the consumer did not know about ahead of time. All businesses in North Dakota must comply with Unfair Competition Law or they may face serious legal consequences. Businesses engaging in deceptive trade practices can be sued and forced to pay damages to their customers, including actual damages as well as punitive damages. It is important for businesses to be aware of this law and play fair when it comes to advertising and dealing with customers.
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