Business litigation often begins with a business tort. One party engages in conduct that causes damage to an organization, and the company affected by that conduct takes legal action.
Claims of unfair competition are among the more common business torts that might lead to a lawsuit against another organization or professional practice. Business leaders need to recognize unfair competition if they hope to hold competitors responsible for inappropriate conduct.
What constitutes unfair competition?
Unfair competition involves behavior intended to manipulate the markets or consumer conduct. Competitors can drop their prices or innovate without violating the law or putting their organizations at risk of litigation. However, deceptive, illegal and unethical behavior intended to secure a competitive advantage could lead to a lawsuit.
Price-fixing schemes where multiple business leaders or professionals in the same industry agree to cooperatively undercut another organization could deprive the targeted business of the opportunity to fairly compete. The misappropriation of trade secrets through various questionable means could also constitute unfair competition.
Fraudulent activity, including false advertising, can constitute unfair competition. So can trademark infringement intended to confuse consumers. Companies that cannot compete fairly may engage in actionable misconduct in their attempts to secure or retain a share of the market. Documenting activities intended to undermine the free market can help business leaders build a case against competitors who crossed the line when looking for a competitive advantage.
Successful business litigation can lead to an award of financial damages or an injunction preventing future unfair competition. Working with a business attorney to document and counter unfair competition can help business owners ensure they compete on a level playing field.
