In business, deceptive trade practices can cause financial harm, damage a company’s reputation, and cause long-term legal consequences.
What Constitutes Deceptive Trade Practices?
Deceptive trade practices are activities meant to mislead the public into purchasing a product or service. They are actions or omissions that deceive consumers. The following are some common examples:
- Bait and switch tactics: Advertising a low price for a product to lure in consumers, then pushing them to purchase a more expensive item.
- False advertising: Making misleading statements about the qualities or performance of a product.
- Misrepresentation of products or services: Claiming features, uses, or benefits that products or services do not have.
- Failing to disclose important information: Omitting crucial details about a service or product that may influence consumers’ purchasing decisions.
- Unauthorized substitutions: Delivering goods or services significantly different from what was promised or advertised.
- Selling counterfeit goods or services: Passing off goods or services as those of another.
- Odometer tampering: Turning back, resetting, or disconnecting the odometer of a vehicle to reduce the mileage indicated.