What is the definition of “unfair trade practices”?
Unfair trade practices are illegal acts that unfairly or deceptively increase a company’s profits by hindering fair competition or taking advantage of consumers. The Unfair Competition Law in California makes it illegal for any business to use false, deceptive, or fraudulent practices when advertising, promoting, or selling products or services. This law prohibits false statements or messages that are used to deceive consumers, such pricing, warranties, and product performance. It is also illegal to use any form of bait-and-switch schemes. That is, when a business advertises at a low price and then tries to switch customers to a more expensive item. Another form of unfair trade practices is when a business makes false or misleading statements about the quality of a product or service. Unfair trade practices also include illegal tie-ins, which is when a business bundles products together and forces a customer to buy them together. Additionally, it is illegal for businesses to use false or deceptive tactics in order to enter into an agreement with a customer. This includes misrepresenting the terms or conditions of the agreement. Unfair trade practices also covers deceptive pricing, which involves charging for services without the consent of the person buying them. It is also illegal to manipulate the price of a product to gain an unfair advantage over competitors. Finally, businesses are not allowed to buy or sell stolen goods or knowingly sell counterfeit products.
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