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What Are Deceptive Trade Practices

You likely understand that competition within your company’s service space can be strong (even to the point of being considered “harsh” or “cutthroat”). Yet while that may be expected to a certain degree, there is a limit to the extent that a competitor can attempt to negatively influence your business. Some might hear the term “deceptive trade practices” and think that any practice that pulls their customers away is deceptive. Fortunately, New Jersey state law has eliminated the potential for any misinterpretation by clearly defining what it considers  deceptive trade practices to be.

When addressing this issue, the state identifies two distinct forms of deceptive practices. The first is false and/or misleading advertising. Section 56.8-2 of New Jersey’s state statutes forbids the following to be made in connection with either the sale of merchandise or real estate, or the performance of services:

• Unconscionable commercial practices
• Deception
• Fraud
• False pretenses or promises
• Misrepresentation
• The knowing suppression, concealment or omission or material facts

A consumer does not need to be hurt or otherwise injured in any way for a business to be cited for false advertising; rather, you simply showing that such practices have happened may be enough for you to seek injunctive relief from the further use of them. Keep in mind that action against such practices can only be targeted at the organization perpetuating them. Media outlets used for the purpose of false advertising are typically immune from liability.

The second recognized form of deceptive trade practices is odometer tampering. It is a criminal offense in the state to alter or disconnect a vehicle odometer to give the impression that it has less mileage in order to facilitate a sale.

Outside General Counsel Solutions

If you would like more information on this issue or if you are a small business owner in need of guidance, please contact us today. At Santomassimo Davis LLP, our team of lawyers, experienced in compliance, can help effectively minimize your company’s risk and avoid the unnecessary liabilities many businesses unknowingly face.

Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law in New Jersey, New York and Pennsylvania.

Thanks for reading our latest blog talking about topical legal issues facing small businesses. Learn more from our Outside General Counsel Blogs.

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