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 South Dakota, 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. South Dakota, like other states, has statutes and relies on common law (court opinions) to address unfair competition. Additionally, federal statutes govern intellectual property rights, which are often at the heart of unfair competition claims. For instance, the Lanham Act provides a federal basis for trademark infringement claims. Consumers are protected from deceptive practices such as false advertising, bait and switch tactics, and unauthorized substitution of products through both state and federal consumer protection laws. An attorney specializing in intellectual property or business law would be able to provide specific guidance on these matters within South Dakota.