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 Massachusetts, unfair competition laws are in place to protect both consumers and businesses from deceptive and unfair trade practices. These laws encompass a range of issues including trademark infringement, patent infringement, copyright infringement, misappropriation of trade secrets, and breaches of restrictive covenants in employment or business sale contracts. Massachusetts General Laws Chapter 93A, known as the Consumer Protection Act, specifically addresses unfair or deceptive acts or practices in the conduct of any trade or commerce. This statute allows for both consumers and businesses to bring claims against parties engaging in such practices, which can include misleading advertising, bait and switch tactics, and substituting advertised goods with inferior products. Additionally, federal statutes govern intellectual property rights, providing a basis for unfair competition claims related to trademarks, patents, and copyrights. In Massachusetts, both state and federal laws work in tandem to provide a framework for addressing unfair competition and protecting the integrity of the marketplace.