Chapter 3, Question 8
What is the distinction between deceptive and unfair business practice?
A deceptive business practice is anything where the customer is under false impression by a claim fact discrepancy, or the false claim is believed by the customer. The FTC has integrated a policy based on the misleading nature, based on reasonable customers’ perception and that the information must be material, and likely to influence their choice.
An unfair business practice any act that offends public policy, immoral, oppressive, and causes injury to customers, competition or other businesses.
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In theory, a deceptive practice is one that is materially false yet is believed by consumers to have influenced their behavior.
Unfair advertising is an even more nebulous regulatory concept. In general, business practices are considered unfair if they are evaluated to be immoral, unethical, oppressive, or unscrupulous and cause substantial injury to consumers, competitors, or other businesses.
Deception policy has been a much more frequently used regulatory policy than unfairness policy.
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