Deceptive Trade Practice

834 Words4 Pages
I. Deceptive Trade Practices: An Introduction a. What it is b. Who is affected c. The impact on individuals and society d. Solution(s) to the problem: to regulate or not to regulate What are “Deceptive Trade Practices”? Whenever a business or an individual engages in activity that is likely to mislead the public may be considered a “deceptive trade practice”. Deceptive trade practices are prohibited due to the negative effects they have on consumers and the general public. When a person or a firm is involved in a business which misguides the people can be regarded as deceptive trade practice. It is illegal because it has various harmful impacts on the consumers. Federal and state laws prohibit the use of deceptive trade practices. The Uniform Deceptive Trade Practices Act (UDTPA) is an example of federal legislation that regulates deceptive trade practices. All states have adopted some form of the Act in their own statutes. The Federal Trade Commission Actalso governs deceptive trade practices. Not only federal laws but also the state laws disallow any kind of deceptive trade practices. UDTPA or Uniform Deceptive Trade Practices Act can be seen as an instance of federal laws. The act has been adopted by the different states in different forms in their respective statutes. The Federal Commission Act (FCT) also regulates deceptive trade practices. Deceptive trade practice laws cover a very wide range of business aspects, including trade & commerce, consumer transactions, and goods & services. It comprises many areas of business such as commerce and trade, goods and services, and consumer transactions. What are some examples of Deceptive Trade Practices? Deceptive trade practices can take a variety of forms. The basic idea behind deceptive trade practice is that the activity results in misleading or
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