Are there any special rules for unfair competition related to the internet?
Yes, there are special rules for unfair competition related to the internet in California. Unfair competition laws in California are chaptered and outlined in Business and Professions Code Section 17200. Under the law, it is unlawful to use the internet to make false or misleading statements about a business’s products, services, or employees. It is also unlawful to engage in “cyber-squatting” which is the act of registering a domain name with the intent to profit off of a business’s trademark. In addition, it is illegal to “steal” content from another business’s website and post it on another website. Businesses in California are also protected from unfair competitive practices related to “metatags.” Metatags are HTML tags hidden in webpages that contain a keyword or phrase representing the content of the webpage. It is unlawful for businesses to use a competitor’s keywords and phrases in their metatags to drive website traffic for their own websites. Finally, it is also illegal in California to use false advertising online. This includes “bait-and-switch” tactics where a business advertises one product but attempts to sell a different, inferior product to customers. Overall, California’s unfair competition law protects businesses from malicious practices online. This law helps to ensure that businesses are able to operate fairly and that consumers are not deceived in the process.
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