What is the difference between an unfair competition claim and a claim for false advertising?

Unfair competition law refers to the area of law that protects businesses from illegal and unethical practices of competitors. In Texas, unfair competition claims can be brought under both state and federal laws. A claim for unfair competition is different than a claim for false advertising. Unfair competition laws protect businesses from a wide range of practices by competitors, such as anti-competitive conduct, deceptive or misleading practices, false or misleading trademarks, or other acts that cause confusion in the marketplace. In comparison, a claim for false advertising is more specific and only applies to communications by a company about its own products or services. The burden of proof in an unfair competition claim is greater than in a false advertising claim. In an unfair competition case, the plaintiff must demonstrate that the defendant’s actions were likely to cause confusion among consumers, that the defendant intentionally engaged in the deceptive conduct, and that the plaintiff has suffered damages. A false advertising claim requires the plaintiff to show that false or misleading statements were made regarding a product or service, that the defendant intended to deceive or mislead consumers, and that the plaintiff suffered damages as a result.

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