What is a deceptive trade practice?
A deceptive trade practice is a form of unfair competition. It is a false or misleading statement or action that is used by one business to gain an unfair advantage over the other. In Virginia, the Virginia Consumer Protection Act (VCPA) prohibits a wide range of deceptive trade practices, such as false advertising, bait and switch tactics, and other deceptive acts. False advertising is one common example of a deceptive practice. It happens when a business uses false information or deceptive language to make a product or service seem better than it is. For example, if a company advertises a product as “all natural” when it clearly contains artificial ingredients, it is engaging in false advertising. Another example is a bait and switch tactic, which is when a business lures customers in with an attractive offer, then switches them to a different product with a higher price or inferior quality. The VCPA also prohibits other deceptive trade practices, such as failing to honor a warranty or refusing to provide a refund. To protect the public, the Virginia Attorney General’s Office investigates and prosecutes unlawful trade practices. If a business is found to have violated the VCPA, it may be required to pay a civil penalty, or the court may order the business to stop engaging in the deceptive practice.
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