Unfair trade practices are practices a business or person engages in when they use dishonest, misleading, or unethical ways to obtain business. These practices may be targeted at customers or rival companies.
Unfair labor practices are actions taken by employers or unions prohibited under the National Labor Relations Act (NLRA) and other labor laws. Some of these regulations apply to the employer and the union; others cover individual employees from unfair treatment by an employer or union.
The NLRA gives workers the liberty to act together to improve the terms and conditions of their employers by forming or joining a union. The NLRA sets out the rules for union elections, collective bargaining, and more to preserve these rights.
The NLRA also prohibits employers and unions from taking certain actions that interfere with these employee rights or the delicate balance the NLRA creates between unions and employers. These actions are called “unfair labor practices.”
The NLRA forbids employers from interfering with an employee’s right to organize, join, or assist a union; engage in collective bargaining; or engage in protected, concerted activities. For instance, employers must treat union-related conversations among employees like any other matter unrelated to work: They may not make special rules that single out communications relating to the union or workplace grievances for disciplinary treatment.
Employers cannot dominate or provide illegal assistance or support to a labor union. Employers may not designate their union (a company union or sham union) or dominate or interfere with any labor organization. To resolve whether an employer unfairly restrains a particular workplace group, the National Labor Relations Board (NLRB) looks at all of the facts, including who created the group, whether the employer played a role in managing the group and deciding how it would function, whether management attends meetings or otherwise arranges the group’s plan, the group’s goal, and how the group makes decisions.
Employers cannot discriminate against workers to promote or discourage membership in a labor organization or replace employees who strike to protect an unfair labor practice.
Employers are not permitted to retaliate against an employee for filing a charge with the NLRB or giving testimony.
Employers cannot decline to engage in good-faith collective bargaining.
Employers also can’t make a hot cargo agreement with a union. A hot cargo agreement is an arrangement between an employer and a union. The employer promises to stop doing business with another employer, typically one with whom the union has a dispute.
The NLRA forbids unions from:
An employer, worker, or union that feels an unfair labor practice has been committed may file a charge with the NLRB. You must file a charge within six months of the incident. The NLRA can be enforced only through the NLRB, not through private lawsuits.
Over the years, the Federal Trade Commission (FTC) has taken action against many companies accused of engaging in fraudulent and misleading advertising.
If FTC investigators are persuaded that an ad breaks the law, they can do all of the following:
Clients often have the freedom to sue advertisers under state consumer protection laws. For instance, someone who purchases a product relying on a misleading ad might sue in small claims court for a refund or join others (sometimes tens of thousands of others) to sue for a massive totality in another court.
The two pricing practices most likely to get your company into trouble are making false price comparisons with other merchants or with your own “regular” prices or offering something supposedly “free” but has a cost.
Presenting a reduction from your normal selling price is a common sales approach. But the smaller price is deceptive unless the one-time price is the real, bona fide price at which you offered the article. For instance, if you promote a new product for $129 but market it to wholesalers as if it were a $79 product and discount it to direct clients, the $129 price never really existed, and you have violated the rule. It deceives consumers into believing they are obtaining a bargain.
Unfair trade practices include any business actions proclaimed forbidden by law, such as:
Any advertisement containing deceptive, inaccurate, or misleading representations is false. As mentioned above, this form of promotion is an unfair trade practice.
False advertising includes:
An individual or a company engages in deceptive business practices when they engage in any business activity that may deceive the public. These practices are forbidden by law because of their adverse effects on the general public.
Examples of deceptive practices include:
No. Puffery involves extravagant or exaggerated statements made to attract buyers to purchase a particular service or product. Engaging in puffery is not unlawful because companies can “puff up” their products as long as it is opinion rather than fake facts.
Unfair trade practices not only negatively impact the marketplace but can also result in sanctions from government agencies. Contact a business lawyer if you suspect or have been accused of unfair trade practices. The lawyer can advise you on how to proceed with your case.
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