A deceptive trade practice is a misleading act that causes harm to consumers or competitors in the market. For something to be considered a deceptive trade practice, it must affect commerce and cause some type of harm — usually financial harm — to consumers or a competing business. For assistance with deceptive trade practices litigation, please contact the Law Office of William Kolb, LLC.
Federal Trade Commission Act
Section 5 of the Federal Trade Commission Act (FTCA) governs deceptive trade practices. This Act created the Federal Trade Commission and afforded it the ability to do the following:
- Prevent unfair methods of competition and deceptive practices or acts in or affecting commerce
- Seek monetary relief for conduct that is injurious to consumers
- Create trade regulation rules that define deceptive acts or practices and establish requirements that are designed to prevent such acts or practices
- Conduct investigations related to the practices, organization, business, and management of entities that are engaged in commerce
- Make legislative recommendations and reports to Congress
What is a Deceptive Trade Practice?
Under the law, a deceptive trade practice is an act that:
- Misleads, misrepresents, omits, or is likely to mislead consumers,
- Would likely reasonably be misinterpreted by a consumer under the circumstances, and
- Is material.
Deceptive and Unfair Trade Practices Examples
Deceptive and unfair trade practices can take many forms. Examples of deceptive and unfair trade practices include:
- Failing to settle insurance claims in good faith
- Altering or falsifying measuring devices like scales that are used to measure a product that is sold by weight
- Claiming that a product is something it isn’t or that it performs a task it does not
- Substituting an inferior product for the product advertised
- Systematically overcharging for a service or a product
- Causing misunderstanding or confusion about the origin, source, or certification of a service or good
- Slander or libel in business dealings
- Misrepresenting the ingredients, benefits, characteristics, or uses of a service or good
- Implying or claiming that a product is new when it is damaged, altered, used, or otherwise not in its claimed condition
- Representing that services or goods are of specific grade, model, quality, style, or standard when they are not as represented
- Claiming that the services or goods that belong to another business or entity are one’s own through the use of misleading facts or misrepresentation
- Advertising services or products with the intent to sell them at a different price or in different quantities
Compensation for Deceptive Trade Practices
Remedies available for deceptive trade practices under the FTCA include:
- Injunctions
- Cease and desist orders
- Consent decrees
- Disgorgement of profits
In addition to the above remedies under federal law, several states have their own laws and remedies addressing deceptive trade practices. Although some states limit plaintiffs in deceptive trade practices cases to actual damages, restitution, or equitable relief, several other states allow for additional remedies, including:
- Statutory damages
- Treble damages
- Punitive damages
- Attorney’s fees
The Bottom Line
Deceptive trade practices litigation is complicated, especially when both federal and state laws come into effect. Therefore, if you are addressing a deceptive trade practices issue, it is advisable to contact an experienced deceptive trade practices attorney for assistance. With a deceptive trade practices attorney on your side, your odds of a successful outcome in your case are far greater than if you were to attempt to handle the situation on your own.
Contact a Providence Deceptive Trade Practices Attorney
If you require assistance with deceptive trade practices in Providence, Rhode Island, you need an experienced Providence deceptive trade practices attorney on your side. At the Law Offices of William Kolb, LLC, we have the experience and knowledge to assist you with your deceptive trade practices matter. When you come to us for help, experienced Providence deceptive trade practices attorney William Kolb will diligently pursue a successful resolution of your case. Please contact us to arrange an initial meeting with an experienced Providence deceptive trade practices attorney.