What is the difference between a deceptive trade practice and a false advertisement?
The difference between a deceptive trade practice and a false advertisement lies in how the information is being presented. A deceptive trade practice is a type of unfair competition law that prohibits businesses from engaging in deceptive activities in order to gain an unfair advantage over their competitors. It includes activities like false or misleading pricing, bait and switch tactics, or failing to disclose information important to a customer’s decision. A false advertisement is a misleading statement made in a commercial or promotional context. This could include false claims or exaggerations about a product or service, or omitted information about a product’s performance. Both deceptive trade practices and false advertisements are illegal in North Dakota. The North Dakota Consumer Fraud and Deceptive Trade Practices Act makes it unlawful to engage in any conduct or practice that is likely to deceive consumers in the course of a business transaction. This includes both deceptive trade practices and false advertising. It’s important to note that businesses can be held liable for their employees’ deceptive practices. Therefore, North Dakota businesses need to make sure their staff is aware of the legal implications of unfair competition.
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