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 Connecticut, unfair competition laws are in place to protect both consumers and businesses from deceptive and unethical practices. These laws encompass a range of issues including trademark infringement, patent infringement, copyright infringement, misappropriation of trade secrets, and violations of restrictive covenants in employment or business sale contracts. Connecticut's Unfair Trade Practices Act (CUTPA) is the primary state statute that addresses unfair trade practices targeting consumers, such as false advertising, bait and switch tactics, and unauthorized substitution of goods. CUTPA allows for both the Attorney General and private parties to bring actions against businesses engaging in unfair practices. Additionally, federal laws govern intellectual property rights, including patents, copyrights, and trademarks, and these federal statutes provide remedies for infringement that can constitute unfair competition. It is important for businesses to comply with both state and federal regulations to avoid liability for unfair competition.