Matthew L. Sharp is a trial lawyer with years of experience with successfully helping those who have been harmed by deceptive trade practices in Reno and throughout the state of Nevada. To find out if and how he can help you, contact our law office and schedule a consultation with Mr. Sharp today.

The Federal Trade Commission

Laws at both the federal and state levels prohibit what are called deceptive trade practices and unfair competition in business. At the federal level, the Federal Trade Commission (FTC) enforces federal laws that prohibit specific activities in interstate commerce. The commission is the largest agency of the federal government to regulate such activities. At the state level, some states have set up consumer protection offices that are part of the offices of the state attorneys general.

Consumer Product Safety Commission

Consumer protection laws have been passed by both the federal and state governments. One agency to protect consumers — The Consumer Product Safety Commission — was created in 1972. Its mission is to protect the ordinary consumer from buying dangerous or faulty products. The commission can ban or recall the distribution of such products.

Because of budget cuts, the activities of the commission have been limited to some extent in recent years. Fewer staff work for the commission and often manufacturers need to regulate themselves to protect the public and voluntarily recall products that are dangerous or defective.

This problem might result in more lawsuits by consumers or businesses saying they are harmed by a product or the actions of another business.

Changing Criteria

Over time the FTC has changed its criteria for defining when a company has acted unfairly. The rules it established in 1964 concerned labeling and advertising of cigarettes. The standard at that time for considering an action to be unfair was if the manufacturer's action:

• "Offended public policy"
• "Was immoral, unethical, oppressive or unscrupulous"
• "Substantially injured consumers"

In 1980 the FTC changed the criteria for what was unfair. The most important and often the only rule that mattered was if an action injured consumers. Violation of this rule has often led to consumer lawsuits.

The FTC made another change in the criteria for what is considered deceptive acts or practices. Before 1988, when the FTC changed its policies, it regulated deceptive acts as tending or being able to deceive. It also defined deceptive in terms of an action's effect on an ignorant or naïve consumer. In 1988, however, the FTC changed the definition. The current practice considers an action deceptive if it is probable that the reasonable consumer will be harmed.

Unfair Competition in Business

In addition to protecting consumers, the FTC and individual states govern unfair competition in business. As an example, in Nevada, some rules make a trade practice deceptive when:

• Someone intends to injure or harm a competitor
• A person does something to result in the restraint of trade and commerce
• Someone harms free and open competition in the market
• A bank or other businesses engage in deceptive and unfair trade practices
• Advertising of food, cosmetics, devices and other consumer products that are defective

These are only a few examples of what constitutes unfair and deceptive trade practice in the state of Nevada. If you or your business has suffered from businesses' using deceptive and unfair trade practices, you should consult a lawyer who is an expert in helping to resolve such violations.

To schedule a consultation with an experienced business disputes attorney in the Reno, Nevada area, contact Mr. Sharp today.