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An overview of deceptive trade practices

In the business world, there are many different issues that can lead to litigation. Deceptive trade practices is one. But, like many areas of business law, the concept of a deceptive trade practice might be foreign to many entrepreneurs and business leaders in New Jersey.

In short, a deceptive trade practice is something that a company engages in to intentionally lure or mislead another party - usually consumers - into purchasing a particular product or service. As our readers can probably imagine, it can be incredibly hard to prove that a company engaged in deceptive trade practices, which is why, in many of these types of cases, so-called "whistleblowers" can be important.

There are many different examples of conduct that could be labeled as a deceptive trade practice. For instance, selling counterfeit goods - pushing one product and purporting that it is another - can be a deceptive trade practice. As can informing a costumer that a certain type of repair or service is needed for a particular product. Or, making a false representation about certain characteristics of a product, like where it came from, can be a deceptive trade practice as well.

The main point is that most deceptive trade practices involve an element of bad faith. That is why companies that are found to have engaged in deceptive trade practices can be held responsible for that conduct under the law. Businesses in New Jersey need to make sure that they are not open to this type of legal claim, which can cause irreparable damage to a brand name.

Source: FindLaw, "Details on State Deceptive Trade Practices," Accessed April 16, 2017

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