What is the difference between a deceptive trade practice and a false advertisement?
The difference between a deceptive trade practice and a false advertisement is an important concept in unfair competition law in Hawaii. A deceptive trade practice is when a business engages in any kind of conduct that misrepresents a product or service in a way that can be damaging to another business. This includes misrepresenting the quality, price, characteristics, or the usefulness of a product. It is illegal for a business to engage in this type of activity and is a type of unfair competition. In contrast, false advertising is when a business purposefully misrepresents a product or service in order to influence a potential customer to purchase it. False advertising is also illegal and considered an unfair competition practice. False advertising is different from a deceptive trade practice in that it is intended to mislead a potential customer with the goal of them purchasing the product or service. Both of these activities are considered unfair competition practices and Hawaii law forbids them. If a business is found to be engaging in unfair competition or false advertising, then they can be fined or prosecuted. In addition, the victim of the unfair practice is entitled to receive monetary damages. Therefore, a deceptive trade practice is a misrepresentation of a product or service that could be damaging to another business, while false advertising is an intentional misrepresentation of a product or service with the goal of influencing a customer to purchase it. Both of these activities are illegal and victims can seek compensation for damages.
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