When Does Unfair Competition Rise to the Level of an Actionable Offense?
Provided by HG.org
It is important to understand how to deal with unfair competition in the business world, or the victim of such actions may not have any recourse based on possible actionable offenses versus those that are not yet to that level. In seeking a remedy to the activity, those affected need to gather as much evidence and attempt to resolve the matter with a lawyer.
Unfair competition occurs with frequency in certain business markets. The companies that engage in these practices usually have marketing techniques that are unacceptable to various industries. This may include untrue statements about the products or details that could lead consumers to believe something else entirely about the item or service provided. These activities often attract customers to purchase, but many may later become unsatisfied with these purchased items. However, the level of the offense could either end up brushed off by the market or rise to significant damage that needs recourse. This often depends on the circumstances and number of customers harmed in the process.
Unfair Competition Explained
Some examples of unfair competition include negative rumors about a company. These lies or propaganda lead customers to leave or look negatively on the business. This provides several advantages to the company spreading such rumors. However, the affected business may sue for defamation. Another example is when online or magazine reviews show the company in an unfavorable light. This is through a review about a product or the business as a whole. While this is potentially illegal, the business and marketing authorities would need to launch an investigation. This takes time and may injure the company in the process.
The Actionable Offense
When the competitor is engaging in illegal activity, defamation or a serous obstruction of competitive actions between companies, these problems may lead to legal battles. This is best observed through existing trademarked logos used by another company that are either confusing or may distract the customer from the original business. These trick the public into believing that another company is providing products in a different manner. This harms business and detracts from the mission and goals of the company. Trade secrets purchased or stolen by the competitor is an unauthorized action which could lead to a courtroom battle before a judge or jury.
Attracting customers through the likeness of a person or company is an actionable offense that many companies engage in when trying to steal focus. Misleading emails, phishing scams and other electronic negative impact could lead to litigation. There are many other actions a company may engage in that lead to legal complications. These could include phone call issues, websites that lead away from the company and illegitimate information proposed about an entity as truth. The economic damages that harm a business significantly are what may lead to the courtroom for compensation. Then, a lawyer’s hire is necessary to battle against the other company or person.
Proceeding to the Next Stage in Unfair Competition
When a company is facing an instance of unfair competition, it is important that legal assistance starts quickly and smoothly. Sometimes, it is better to keep things in secret and have the element of surprise. Then, after enough evidence gathered and details ironed out through the beginning stages, the plaintiff should possess enough strength in the claim to attack the other company or person. Because litigation is time consuming and complicated, it is essential that the business has enough to progress through the lawsuit without needing to acquire more information or data about the situation or illegal activity.
The legal team may start by sending a cease and desist letter. This warns the company that the owner or management engages in unfair marketing or competition campaigns and is harming the financial and economic outlook of the business. It is crucial that the plaintiff’s legal team proceed cautiously and properly in the case to ensure that the judge or jury will understand what occurred and why. If the company or person does not stop the unfair competition activity, then the company may proceed to the next level and either sue or attempt to negotiate a resolution.
The Lawyer’s Help in Unfair Competition
When actionable offenses require the services of a lawyer, the situation usually leads to the courtroom. It is important to hire a lawyer immediately and seek a remedy for a conclusion to the problem. Often, the company affected requires an end of activity as well as compensation for the damages caused.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.