Definition
Unfair competition refers to the use of sales practices deemed unethical by judicial, legal, or administrative agencies (e.g., selling products below cost to drive a competitor out of business or dumping goods in foreign markets). [1]
It is defined in antitrust laws as acts to mislead and confuse consumers, such as the deceptive substitution of one product for another in order to gain unfair advantage over competitors. [1]
Unfair Trade Practices acts are sales-below-cost statutes that vary widely from state to state and most frequently prohibit the sale of branded and unbranded goods below cost when the intent is to destroy competition or to injure a competitor. [1]
Deceitful diversion of patronage is a practice in which a retailer publishes or verbalizes falsehoods about a competitor in an attempt to divert patrons from that competitor. [1][2]
Deceptive advertising is the unethical sales practice of advertising with the intention of misleading consumers by making false claims, failing to make full disclosure (withholding information), or providing inaccurate information.
Deceptive pricing means savings claims, price comparisons, “special” sales, “two-for-one” sales, “factory” prices, or “wholesale” prices that are unlawful if false or deceptive. When these terms are used, the terms and conditions of the sale must be made clear at the outset. False pre-ticketing—the practice of marking merchandise with a price higher than that for which it is intended—is also unlawful.
See Also
Antitrust laws
Fair trade laws
References
- American Marketing Association, AMA Dictionary.
- Dunne, Patrick M., Robert F. Lusch, and James R. Carver. Retailing. Cengage Learning, 8th edition. (Jan 2013)