What is a deceptive trade practice?
A deceptive trade practice is a type of unfair competition that occurs when a business uses false information or deceptive tactics in order to gain an advantage over other businesses in the same industry. In Tennessee, deceptive trade practices are regulated by the Tennessee Deceptive Trade Practices Act. The act defines deceptive trade practices as including false advertising, misrepresenting or omitting important information about products or services, and using unfair or coercive business tactics. For example, businesses may engage in false advertising by making false or exaggerated claims about their products. Misrepresenting or omitting important information about products or services may include not listing key ingredients or not disclosing safety hazards. Businesses may also use unfair or coercive tactics to persuade customers to purchase their products or services, such as using high-pressure sales tactics. Generally, businesses must not engage in deceptive trade practices, as it can be detrimental to the public and other businesses in the industry. Violations of the Tennessee Deceptive Trade Practices Act will result in civil penalties. In some cases, businesses may also be subject to criminal liability.
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