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Unfair business practices
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'''Unfair business practices''' (also '''unfair commercial practices''') describes a set of practices by businesses which are considered unfair, and which may be unlawful. It includes practices which are covered by other areas of law, such as [[fraud]], [[misrepresentation]], and oppressive or [[unconscionability|unconscionable]] contract terms. Protections may be afforded to [[business-to-business]] dealings, or may be limited to those dealing as [[consumer]]s. Regulation of such practices is a departure from traditional views of freedom to agree on contractual terms, summed up in the 1804 French Civil Code as ''qui dit contractuel dit juste'' (roughly, anything contractual is fair).<ref>{{Cite journal |last=Rutgers |first=Jacobien |last2=Sauter |first2=Wolf |date=December 2021 |title=Promoting Fair Private Governance in the Platform Economy: EU Competition and Contract Law Applied to Standard Terms |url=https://www.cambridge.org/core/journals/cambridge-yearbook-of-european-legal-studies/article/promoting-fair-private-governance-in-the-platform-economy-eu-competition-and-contract-law-applied-to-standard-terms/4D6259A62D7E49EA18631960465F7E89 |journal=Cambridge Yearbook of European Legal Studies |language=en |volume=23 |pages=343β381 |doi=10.1017/cel.2021.11 |issn=1528-8870|doi-access=free }}</ref> ==Canada== Canadian provinces enact their own consumer protection laws which differ in scope and coverage.<ref name="buck">{{Cite journal |last=Buckwold |first=Tamara M |date=1999 |title=Statutory Regulation of Unfair Business Practices in Saskatchewan: Possibilities and Pitfalls |url=https://www.canlii.org/en/commentary/doc/1999CanLIIDocs624 |journal=Saskatchewan Law Review |volume=62 |issue=1 |pages=45 |via=CanLII}}</ref> For example, Saskatchewan's Consumer Protection Act says: <blockquote>It is an unfair practice for a supplier, in a transaction or proposed transaction involving goods or services, to: (a) do or say anything, or fail to do or say anything, if as a result a consumer might reasonably be deceived or misled; (b) make a false claim; (c) take advantage of a consumer if the person knows or should reasonably be expected to know that the consumer: (i) is not in a position to protect his or her own interests; or (ii) is not reasonably able to understand the nature of the transaction or proposed transaction.</blockquote> For example, the Saskatchewan Act has been applied to a case in which an automobile dealer mis-sold cars, based on allegations of false claims, representing goods as new or unused when they weren't, and using exaggeration, innuendo, or ambiguity when representing material facts.<ref>{{Cite web |date=2024-02-06 |title=Sask. auto dealer violated consumer protection and business practices, province says |url=https://regina.ctvnews.ca/customers-of-sask-auto-dealer-might-be-eligible-for-compensation-consumer-affairs-1.6756404 |access-date=2024-09-19 |website=Regina |language=en}}</ref> Other Canadian provinces have laws headed ''Unfair Trade Practices Act'' (Alberta), "Trade Practices Act" (B.C.), "Business Practices Act" (Ontario), ''[[Consumer Protection Act (Quebec)]], and Trade Practices Inquiry Act (Manitoba).<ref name="buck" /><ref>{{cite web |title=Unfair Business Practices |url=https://www.alberta.ca/unfair-business-practices.aspx|website=Government of Alberta|access-date=15 August 2023}}</ref> ==European Union== Under the [[Unfair Commercial Practices Directive 2005]] (amended 2017) each member state is required to regulate unfair business practices.<ref>{{Cite web |title=EU consumer law: Unfair Commercial Practices Directive |url=https://uk.practicallaw.thomsonreuters.com/w-031-0861 |access-date=2024-09-19 |website=Practical Law |language=en-GB}}</ref> As the EU described its objectives: <Blockquote>The objective of the EU Directive on unfair commercial practices from 2005 was to boost consumer confidence and make it easier for businesses, especially small and medium-sized enterprises, to trade across borders. It is the overarching EU legislation regulating unfair commercial practices that occur before, during and after a business-to-consumer transaction has taken place.</blockquote> ==United States== In the United States, the [[Federal Trade Commission]] addresses unfair business practices. It has in the past included in its mission the goal of preventing "fraud, deception, and unfair business practices in the marketplace".<ref>{{Cite web |date=1999 |title=Federal Trade Commission: Performance Report Fiscal Year 1999 |url=https://www.ftc.gov/sites/default/files/documents/reports_annual/annual-report-1999/prfy1999.pdf |url-status=live |archive-url=https://web.archive.org/web/20151025104732/https://www.ftc.gov/sites/default/files/documents/reports_annual/annual-report-1999/prfy1999.pdf |archive-date=25 October 2015 |website=Federal Trade Commission}}</ref> It does so by "collecting reports from consumers and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their responsibilities".<ref>{{cite web |title=FTC Bureau of Consumer Protection |date=12 March 2013 |url=https://www.ftc.gov/about-ftc/bureaus-offices/bureau-consumer-protection}}</ref> Individual [[U.S. state|states within the U.S.]] are also responsible for protecting consumers against unfair practices.{{citation needed|date=September 2024}} ==United Kingdom== In the United Kingdom unfair business practices are [[regulated|Unfair terms in English contract law]] by the [[Unfair Contract Terms Act 1977]], [[Consumer Rights Act 2015]] and [[Consumer Protection from Unfair Trading Regulations]]. ==Australia== In Australia unfair business practices are regulated under the [[Australian Consumer Law]] which is enforced by the Australian Competition & Consumer Commission (ACCC). For example, in 2023 the ACCC took action against airline [[Qantas]] for, among other things, advertising and allowing customers to book unavailable flights. <ref name="marquis">{{Cite web |last=Marquis |first=Mel |last2=Srivastava |first2=Neerav |date=2023-09-27 |title=Even if Qantas is fined hundreds of millions it is likely to continue to take us for granted |url=https://theconversation.com/even-if-qantas-is-fined-hundreds-of-millions-it-is-likely-to-continue-to-take-us-for-granted-213754 |access-date=2024-09-21 |website=The Conversation |language=en-US}}</ref> The law provides, among other things, that "A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive."<ref>{{Cite web |last=Bartak |first=Erika |last2=Warren-Myers |first2=Georgia |last3=Cradduck |first3=Lucy |date=2020-05-07 |title=Spruiking the stars: some home builders are misleading consumers about energy ratings |url=https://theconversation.com/spruiking-the-stars-some-home-builders-are-misleading-consumers-about-energy-ratings-136402 |access-date=2024-09-21 |website=The Conversation |language=en-US}}</ref><ref name="marquis" /> ==See also== *[[Anti-competitive practices]] *[[Competition policy]] *[[Consumer protection]] *[[Misleading or deceptive conduct]] (Australian law) *[[Restraint of trade]] *[[Sucker list]] *[[Unfair competition]] ==References== {{Reflist}} == External links == * {{cite web |title=Australian Competition & Consumer Commission |date=11 January 2013 |url=https://www.accc.gov.au/business/treating-customers-fairly/unfair-business-practices}} {{Authority control}} {{DEFAULTSORT:Unfair Business Practices}} [[Category:Business law]] {{law-term-stub}}
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