Running a successful business can bring about admiration and jealousy from outside parties and other companies. Though you may do your best to ensure that your company follows California business regulations and conducts all operations in good faith, it may not prevent claims from other businesses coming against your company.
Some businesses may think they have a legitimate claim against your business, but others may simply try to discredit your company or ruin its reputation. Though such scenarios can be frustrating, it is important that you handle them as best as possible to protect your company’s best interests.
Claims of unfair competition
One tactic that another company may try to use against your business is to claim that you and your company are implementing unfair business practices that negatively affect your competitors. Typically, unfair competition involves a company misleading consumers in efforts to generate business and revenue, and to take that business from competing companies. Some common forms of unfair competition include the following:
- False advertising, which would involve a company making claims that seem inviting to consumers without having the ability to actually uphold those claims
- Bait-and-switch methods, which involves a company offering a particular product at a reasonable price to entice consumers to purchase that item, then claiming that the item is sold out and offering a similar but higher-priced item
- Trademark infringement, which happens when a company uses material or similar material trademarked by another company, such as a logo or slogan, in efforts to confuse consumers into thinking they are dealing with the other company
- Rumor mongering, which takes place when one company spreads malicious rumors about another company in order to damage its reputation
Unfair competition could take place in other ways as well, so your company could face claims from outsiders for numerous reasons. If this happens, your company’s reputation could be on the line, and you certainly do not want false claims or rumor mongering against your business to result in losses.
Defending your company
If another company brings allegations of unfair competition against you and your business, it pays to be prepared. Gaining information on ways to defend your company and prevent as much damage as possible could allow you to develop a strong legal strategy. It is also wise to enlist the help of experienced business law attorneys who understand how to litigate such matters for successful companies and their operators.