Unfortunately, unfair competitions can hurt many consumers and businesses in California. Practices that are deemed to be unfair include trademark infringement, false advertising and misappropriation of trade secrets. Both state and federal laws aim to protect consumers and businesses from being hurt by such illegal acts. Consumer protection laws are generally distinct from those that protect companies from such activities.
Congress has the power to regulate commerce through the Commerce Clause in the Constitution. The federal government also derives such power through legislation like the Langham Act. The Uniform Trade Secrets Act further protects companies from having trade secrets or other sensitive information used against them by the competition. If a company believes that its rights have been infringed upon, it could seek both an injunction against the infringing party as well as monetary damages.
These are often available through state and federal courts. Damages are generally determined by taking into account the severity of a violation as well as how many were committed. A court can also take into account the amount of time that illegal activities had been conducted as well as how much a defendant is worth. If a defendant willfully engaged in illegal activity, that could factor into how much a court may order them to pay.
Businesses that engage in unfair competition make it harder for other companies to offer quality products at fair prices. It could also stifle the ability of smaller businesses to exist and innovate within a given sector. Victims of such illegal activity may want to consult with an attorney.
