Unfair competition laws are designed to protect consumers and businesses from unfair, deceptive business or trade practices. Unfair competition claims include trademark infringement, patent infringement, copyright infringement, misappropriation of trade secrets, and breach of restrictive covenants in employment agreements and contracts for the sale of businesses.

Unfair or deceptive trade practices usually target consumers and include misleading claims about the quality or characteristics of goods or services; bait and switch sales tactics; and the unauthorized substitution of an advertised or represented brand or quality of goods for a lesser brand or quality of goods. Most unfair competition laws are located in state statutes and court opinions (common law). But patent, copyright, and trademark laws that may be the source of unfair competition claims are located in federal statutes.

In California, unfair competition laws are primarily governed by Section 17200 of the Business and Professions Code, which defines unfair competition as any unlawful, unfair or fraudulent business act or practice, as well as false, deceptive, or misleading advertising. This broad statute is designed to protect both consumers and competing businesses. It encompasses a variety of legal claims, including trademark infringement, copyright infringement, patent infringement, misappropriation of trade secrets, and breach of restrictive covenants. California's law is particularly consumer-friendly, allowing for both public prosecutors and private plaintiffs to bring actions for unfair competition. Additionally, federal laws such as the Lanham Act govern trademark infringement and provide remedies for false advertising, while copyright and patent protections are enshrined in federal statutes like the Copyright Act and the Patent Act. These federal laws complement state regulations and provide a framework for addressing unfair competition on a national level.