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How to avoid breaking California’s unfair competition laws

Jan 20, 2023 | Business Litigation

You have likely heard stories of big businesses using underhanded or unscrupulous methods to “edge out” the competition. While it may seem like the business world is a “no-holds-bar” arena, this simply is not the case.

While competition is essential to the business world and economy, some practices are simply illegal. The law has outlined what is considered unfair business practices, and those found engaging in these practices may face serious consequences.

Understanding California’s unfair competition law

The unfair competition law in California covers any fraudulent, unfair or unlawful business practice or act. It also prohibits misleading, untrue, deceptive or unfair advertising practices.

This provides a broad overview of what this means. However, for someone in the retail industry, examples of breaking these laws include price fixing, misleading pricing or false promises.

Potential penalties for breaking the unfair competition law

If a person or business is convicted of breaking the unfair competition law, they may face a civil penalty of up to $2,500 for each violation. 

Protecting your business from unfair competition accusations

You work hard to build your business and remain competitive as a business owner. While this is true, you must ensure you take steps to avoid accusations of unfair business practices. If you do face this accusation, you should not brush it off or ignore it. No matter the resolution, the accusation can damage your reputation, so it is best to stay ahead of the situation to mitigate the consequences you face. Knowing your legal options can help with this.