The corporate world can be ruthless, but it is also subject to the rule of law. Rival firms can compete for customers, but they have to do so in a way that is fair and above board. There are instances when competitors do not follow these rules. Some common examples of unfair, potentially illegal, competition include the following.
False advertising can hurt business
A rival may try and get an edge by making promises about their own product that you know they cannot deliver on. A couple of notable examples that have recently circulated in the media include Splenda claiming their product tasted like sugar because it was made from sugar (hint: it’s not) and New Balance claiming their shoes helped customers lose weight (turns out it takes more than just buying a pair of shoes.) These famous examples of false claims, along with plenty others, are examples of cases that led to big losses for the business.
You can potentially hold those who make similar egregious claims accountable with a civil suit when these actions have a negative impact on your business. Isolating a share of the market through fraudulent behavior is unacceptable and unlawful.
Copycat tactics can damage the brand
Your competitors may not be able to provide the same product or service, so instead could try to copy it. Your intellectual property is pivotal to the profitability of your firm, and it is important to ensure that this is protected. Rivals cannot simply steal branding, technology, or trade secrets without consequence. If a competitor is trying to imitate your brand to steal customers away, it is important to seek counsel and know your rights.
Competition in the marketplace can be healthy, but not when a competitor uses unfair practices. To protect your business, make sure you have some experienced legal guidance on your side.