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Understanding Deceptive Trade Practices

Charles S. Liberis Dec. 22, 2017

When you are running a business or marketing a product, it is vital that you establish a unique selling point so that you can show your prospective customers that the product is going to add value to their lives. When creating advertising campaigns from slogans to commercial videos, this unique selling point must be conveyed both directly and indirectly. Of course, many brands add a sense of glamor to their campaigns that can convey unrealistic expectations.

So where can the line be drawn between savvy marketing and deceptive trade practices?

Defining deceptive trade practices

Different states have different laws when it comes to deceptive trade practices. However, deceptive trade practices usually transcend states; in fact, they often affect consumers throughout the country. This is why the Uniform Deceptive Trade Practices Act (UDTPA) was adopted. This legislation is created to provide protections for people across the country and to prevent complications arising from differing state laws.

What are some examples of deceptive trade practices?

Deceptive trade practices can include convincing a customer that certain modifications to a product that he or she owns are needed, for example, if he or she is told that his or her car needs to be fixed when in fact it is not faulty. It also includes selling fake brands through the act of convincing prospective customers that they are purchasing the authentic brand's goods. Lying about the sponsorship or endorsement received for a product is also a type of deceptive trade practice.

If you believe that you have become a victim of deceptive trade practices, then it is important to look into your situation and assess how the law applies.