Are there any special rules for unfair competition related to the internet?
In Tennessee, unfair competition law applies to the internet just as it applies to traditional commerce. The main rule regarding internet-related unfair competition is that businesses are not allowed to engage in deceptive or fraudulent practices that harm their competitors. This includes creating misleading advertising, intentionally misinforming customers, and attempting to use a competitor’s intellectual property or brand without permission. Businesses must also abide by Tennessee’s trademark and patent laws when engaging in online marketing, as this can constitute unfair competition if done unlawfully. For instance, businesses cannot register domain names that are identical or confusingly similar to existing trademarks of competitors. Additionally, businesses should not copy an existing website design, trademark, or logo without permission, as this can amount to copyright infringement and potentially unfair competition. Tennessee courts may also consider certain “unfair methods of competition” to be violative of the state’s unfair competition law. This includes practices like using predatory pricing strategies to undercut competitors, false or misleading advertising, and the use of threats or intimidation to force a competitor to engage in certain activities. Overall, businesses must abide by Tennessee’s unfair competition laws both online and offline in order to remain compliant with the law. Failure to do so can result in costly fines, injunctions, or other legal consequences.
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