What are the legally recognized types of unfair competition?
Unfair competition law in California protects businesses from being harmed by illegal or unethical business practices. Generally speaking, there are three legally recognized types of unfair competition: misappropriation, false advertising, and restraint of trade. Misappropriation is when someone uses a competitor’s trade secret information, or infringes on their trademark, without permission. Trade secrets, such as recipes or formulas, must be kept confidential in order to be protected. Trademark infringement is when someone uses a trademark without authorization from the owner, potentially confusing customers as to who is offering the product and services. False advertising is when a business knowingly makes false or misleading statements about their own products or services, or about their competitor’s. This includes false claims about comparative advantages, use of misleading descriptions, or false pricing. Restraint of trade is when a business unreasonably restricts the ability of another business to compete. This can include things such as setting a maximum price at which a product can be sold, or creating exclusive territories in which another business cannot compete. Overall, Californian businesses are protected from unfair competition. It is important to note, however, that some of these practices can be considered legal when done in certain situations. It is important to contact a lawyer to find out more information regarding what is considered illegal and legal.
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