If you are a part of a business or an organization that produces consumer products, you should be aware of the consumer protection laws under the Federal Trade Commission. In simple words, these laws require businesses to keep their customers informed about their products and services so they can make an informed choice.
Failing to comply with consumer laws can result in lawsuits. Since these laws can be tricky to understand, you might accidentally engage in something illegal without even realizing it. A Las Vegas Business Litigation Attorney can explain what you need to do and not do to prevent legal problems in your business.
Examples of unfair trade practices you should stay away from
- Taking advantage of customers.
Many businesses take advantage of poorly educated and other vulnerable customers, such as older people and people who do not know English. This happens mainly through telemarketing, where they use false information and pressuring tactics to make sales. To make sure you do not take advantage of your potential customers, you are required to provide them with clear information about the products and services in a language they understand.
- False promises.
It is quite a famous form of unfair trade practice to lie about their products’ and services’ quality, quantity, standard, composition, grade, style, model, etc. They lure the customers in by making these false promises and scam them for monetary gains. To avoid lawsuits based on false promises, you must provide your customers with what you promise them or what is written on the product.
- Unfair advertising.
False advertising refers to advertising a particular product for a specific price and then giving the person a different product for a higher price. This method is known as bait and switch. For example, suppose you see an ad for a blue pair of jeans that costs $50. Now, when you buy that product, they give you poor-quality jeans for double the price.
Providing fake descriptions that do not match the actual product is a serious crime.
- Free gift or prize scheme.
Giving out free gifts or prizes with products is popular in many stores. However, not all of them are genuine. Types of deceptive free gift or prize schemes are as follows.
- Creating an impression that something is given to the customers for free, whereas in reality, its price has been included with the product being sold.
- Offering gifts or prizes for free when the actual intention is something different entirely.
- Failing to disclose pertinent information.
Sometimes merchants do not disclose the real information about their products or services as they think it would influence the customer’s decision to purchase. The seller should always disclose important information to the potential customers, whether they decide to buy or not.
If you were accused of unfair business practices, immediately reach out to a Las Vegas Business Litigation Attorney to explore your options.
