unfair business practices
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Unfair business practices (also unfair commercial practices) describes a set of practices by businesses which are considered unfair, and which may be unlawful. It includes practices which are covered by other areas of law, such as
fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
,
misrepresentation In common law jurisdictions, a misrepresentation is a False statements of fact, false or misleading''Royal Mail Case, R v Kylsant''
931 Year 931 ( CMXXXI) was a common year starting on Saturday of the Julian calendar. Events By place North Africa * The Ummayad Caliphate of Córdoba invades and conquers the city of Ceuta, which was ruled by the Berber dynasty Banu I ...
Question of law, statement of fact made during negotiations by one party to another, the statement then in ...
, and oppressive or
unconscionable Unconscionability (sometimes known as unconscionable dealing/conduct in Australia) is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining ...
contract terms. Protections may be afforded to
business-to-business Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when: * A business sources materials for its production process for ...
dealings, or may be limited to those dealing as
consumer A consumer is a person or a group who intends to order, or use purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...
s. Regulation of such practices is a departure from traditional views of freedom to agree on contractual terms, summed up in the 1804 French Civil Code as ''qui dit contractuel dit juste'' (roughly, anything contractual is fair).


Canada

Canadian provinces enact their own consumer protection laws which differ in scope and coverage. For example, Saskatchewan's Consumer Protection Act says:
It is an unfair practice for a supplier, in a transaction or proposed transaction involving goods or services, to: (a) do or say anything, or fail to do or say anything, if as a result a consumer might reasonably be deceived or misled; (b) make a false claim; (c) take advantage of a consumer if the person knows or should reasonably be expected to know that the consumer: (i) is not in a position to protect his or her own interests; or (ii) is not reasonably able to understand the nature of the transaction or proposed transaction.
For example, the Saskatchewan Act has been applied to a case in which an automobile dealer mis-sold cars, based on allegations of false claims, representing goods as new or unused when they weren't, and using exaggeration, innuendo, or ambiguity when representing material facts. Other Canadian provinces have laws headed ''Unfair Trade Practices Act'' (Alberta), "Trade Practices Act" (B.C.), "Business Practices Act" (Ontario), '' Consumer Protection Act (Quebec), and Trade Practices Inquiry Act (Manitoba).


European Union

Under the Unfair Commercial Practices Directive 2005 (amended 2017) each member state is required to regulate unfair business practices. As the EU described its objectives:
The objective of the EU Directive on unfair commercial practices from 2005 was to boost consumer confidence and make it easier for businesses, especially small and medium-sized enterprises, to trade across borders. It is the overarching EU legislation regulating unfair commercial practices that occur before, during and after a business-to-consumer transaction has taken place.


United States

In the United States, the
Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
addresses unfair business practices. It has in the past included in its mission the goal of preventing "fraud, deception, and unfair business practices in the marketplace". It does so by "collecting reports from consumers and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their responsibilities". Individual states within the U.S. are also responsible for protecting consumers against unfair practices.


United Kingdom

In the United Kingdom unfair business practices are
Unfair terms in English contract law Unfair terms in English contract law are regulated under three major pieces of legislation, compliance with which is enforced by the Competition and Markets Authority (CMA). The Unfair Contract Terms Act 1977 is the first main Act, which covers so ...
by the
Unfair Contract Terms Act 1977 The Unfair Contract Terms Act 1977 (c. 50) is an act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most ...
,
Consumer Rights Act 2015 The Consumer Rights Act 2015 (c. 15) is an act of Parliament of the United Kingdom which consolidates existing consumer protection law legislation and also gives consumers a number of new rights and remedies. Provisions for secondary ticketi ...
and Consumer Protection from Unfair Trading Regulations.


Australia

In Australia unfair business practices are regulated under the Australian Consumer Law which is enforced by the Australian Competition & Consumer Commission (ACCC). For example, in 2023 the ACCC took action against airline
Qantas Qantas ( ), formally Qantas Airways Limited, is the flag carrier of Australia, and the largest airline by fleet size, international flights, and international destinations in Australia and List of largest airlines in Oceania, Oceania. A foundi ...
for, among other things, advertising and allowing customers to book unavailable flights. The law provides, among other things, that "A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive."


See also

*
Anti-competitive practices Anti-competitive practices are business or government practices that prevent or reduce Competition (economics), competition in a market. Competition law, Antitrust laws ensure businesses do not engage in competitive practices that harm other, u ...
*
Competition policy Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...
*
Consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...
* Misleading or deceptive conduct (Australian law) *
Restraint of trade Restraints of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business. It is a precursor of modern competition law. In an old leading case of '' Mitchel v Reynolds'' (1711) Lord S ...
*
Sucker list A sucker list is a list of people who have previously fallen for a scam such as a telemarketing fraud, lottery scam, high-yield investment program, get-rich-quick scheme, or work-at-home schemes, or, as used by charities, someone who made a do ...
*
Unfair competition Anti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws ensure businesses do not engage in competitive practices that harm other, usually smaller, businesses or consumers. ...


References


External links

* Business law {{law-term-stub