What is Unfair Competition and How Can It Be Recognized?

Business owners and managers work hard to get customers and achieve financial success. Yet sometimes a business can be the victim of unfair competition. Some company owners may wonder, what is unfair competition? It is necessary to understand and recognize unfair business practices that could hurt your company.

Types of Unfair Competition

Unfair competition consists of a number of different practices. Unfair competition happens when a competitor does something that is unfair or illegal, that causes your company financial damage. Some of the most common forms of unfair competition include:

  • False Marketing
  • Defamation
  • Misrepresentation
  • Trademark Infringement
  • Misappropriation of Trade Secrets
  • Business Interference
  • Breach of Non-Compete Agreement

These types of issues happen all the time to businesses of all sizes. Companies need to take steps to protect their businesses and when they discover a problem, should take legal action to stop it from happening.

End Unfair Competition

There are laws in place that are designed to protect companies from financial injury due to unfair business practices. It can be difficult, however, to stay on top of all the potential unfair practices from your competition. When you find that a company is participating in an illegal activity that is hurting your business, it is best to seek legal help as soon as possible. An experienced commercial law attorney will help to identify what has taken place and determine what type of action should be taken.

Defend Your Business

It is necessary to remain attentive to potential unfair practices that could hurt the financial well-being of your business. Know who your major competitors are and remain watchful of their advertising and other practices.  It is helpful to observe their websites to ensure that no improper activities are taking place. Put internal documents in place to keep employees from giving away trade secrets and stop them from bringing your private information with them when they leave the company.

Protect Your Interests

When an unfair business practice is noted it may not require an immediate lawsuit. In fact, many of these types of problems can be easily resolved by sending a cease and desist letter. This is a legal letter informing the company of their illegal action and requesting them to stop the unfair practices. Very often, companies will quickly respond by making changes that resolve the problem. Once the company stops the actions, there is no need to move forward with legal action.


This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding What is Unfair Competition, or any other litigation matter, please feel free to contact contact us at 480.461.5300, log on to udallshumway.com,  or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.