How to Litigate Against Unfair Business Practices

posted byBagasian LawNovember 25, 2020

Whether you are aware or not, you can litigate against unfair business practices, no matter how great or menial the damages suffered or losses incurred as a result.

Have you ever bought a product after being convinced by highly persuasive advertising, but when you received the product, it did not function as it was supposed to or do what it promised to do? Well, this is an unfair business practices case.

Are you looking to understand what constitutes unfair business practices and how to litigate against them? In this article, you will learn:

What are Unfair Business Practices?

Unfair business practices, also known as unfair trade practices , describe situations in which business is obtained through illegal means, such as fraud or deception.

Unfair Businesses Practices are defined generally in the law because they can appear in many forms. However, some of the most common examples, such as misrepresentation of facts, false advertising, and tied selling, are explained in the next section.

Examples of Unfair Business Practices

There are many unfair business practices, but in this article, we are going to explain some of the most common.

One example of unfair business practice is “misrepresentation,” which is when one party presents false statements and could happen in a transaction of any size. For example, the seller of a house could misrepresent the structural issues with the property. Without knowledge of these issues, the buyer buys the property based on false information.

Another example of unfair business practice is false advertisement, which is advertising with false or misleading information that is knowingly communicated to the audience with the intent of persuading the audience to buy a product or property.

Additionally, “tied selling” also constitutes unfair business practice. Tied selling, as defined by Investopedia, is “providing a product or service on the condition that a customer purchases some other product or service.”

The umbrella of unfair business practices also includes falsely advertising a free prize or gift with the purchase of another product and businesses that do not comply with legally-defined manufacturing standards.

What are Consumer Protection Laws?

Consumer Protection Laws protect consumers against unfair business practices from something as menial as a faulty product to issues of misrepresentation and false advertisement in transactions that may have cost the consumer large sums of money.

One example of consumer protection laws is a warranty, which ensures that the product or service sold to a customer will function as advertised. If it does not work as it is supposed to, the warranty covers a replacement or repair of the product.

Ways to Litigate Against Unfair Business Practices

If you are the victim of an unfair business or trade practice, you have multiple options when taking action.

First, you have the option of contacting the Federal Trade Commission and filing a complaint about the seller or manufacturer.

Second, you can contact the Consumer Product Safety Commission (CPSC), a government agency that specifically focuses on ensuring that the products being bought and sold do not pose a risk to consumers.

The CPSC focuses on extremely hazardous products such as those that pose a risk of fire or chemical exposure. If the product has posed multiple safety risks and has proven to be defective, the CPSC can also issue recalls.

Additionally, if a consumer is camped by telephone solicitor or by a TV advertisement, they can contact the Federal Communications Commission (FCC). The FCC oversees all communications, advertising included, regulating the media for misinformation and other breaches of communication law.

Although there are many options when dealing with unfair business practices, it is always wise to contact your lawyer when pursuing consumer fraud litigation.

Considering consumer fraud cases often affect more than one consumer, one of the most powerful choices for litigation in these citations are class-action lawsuits.

Since large companies often have a team of lawyers that a single person could not successfully fight against, filing a class action lawsuit ensures that the consumers’ voices are heard and that they have the financial backing to fight against the company.

In the state of California, the Unfair Competition Law ( UCL) works to prevent false advertising and the spread of misinformation, which are both categorized as “unfair competition.”

If the Unfair Competition Law is violated, consumers can choose to proceed with litigation but must prove that there were financial losses and damages, and the litigation must take place within four years of the incident.


Large companies and corporations take advantage of consumers with the assumption that consumers will not bother to litigate against them. However, you have rights as a consumer, and if these rights were impinged on, it is important to hire legal representation .

Having a lawyer on your side ensures that you not only understand your rights but also ensures that you receive adequate compensation for the damages you have suffered due to unfair business practices.

Los Angeles-based lawyer, Alina Bagasian, will provide the best legal services for your business. Possessing an understanding of business and corporate law, Alina Bagasian is ready to represent your business and provide you with excellent legal advice.

The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services to avoid any legal complications when buying or selling a business.

Get the help you need today!

Recent Posts