Unfair Trade Practices in Florida: Business Liability & Remedies

Unfair trade practices in Florida can expose businesses to significant civil liability and damage competitive relationships. The Florida Deceptive and Unfair Trade Practices Act (FDUTPA), codified in Chapter 501 of the Florida Statutes, provides a broad legal framework for addressing deceptive and unfair business conduct. For executives and business owners, understanding FDUTPA and related unfair competition laws is essential to protecting your company and avoiding costly litigation.

What Are Unfair Trade Practices?

Unfair trade practices encompass a wide range of deceptive, fraudulent, or anti-competitive business conduct. Under FDUTPA, an unfair or deceptive act or practice is one that offends established public policy and is immoral, unethical, oppressive, unscrupulous, or substantially injurious to consumers. Common examples include: false or misleading advertising, deceptive pricing or product descriptions, misrepresentation of product quality or safety, interference with a competitor’s business relationships, and passing off goods or services as those of a competitor.

Who Can Sue Under FDUTPA?

FDUTPA provides a private right of action to any person who suffers actual damages as a result of an unfair or deceptive trade practice. Both consumers and businesses can bring FDUTPA claims. Competitors harmed by deceptive advertising or false claims about competing products have standing to bring claims. The Florida Attorney General also has authority to bring FDUTPA enforcement actions on behalf of the public.

Damages and Remedies Under FDUTPA

Successful FDUTPA plaintiffs may recover: actual damages suffered as a result of the unfair practice; declaratory and injunctive relief to stop the offending conduct; and attorney’s fees and court costs. FDUTPA does not allow punitive damages, but the availability of attorney’s fees makes it an attractive vehicle for business litigation when the underlying conduct is clearly deceptive.

Trade Secret Misappropriation

A common form of unfair trade practice involves the misappropriation of trade secrets. Florida’s Uniform Trade Secrets Act (FUTSA), codified in Chapter 688 of the Florida Statutes, provides remedies for the theft or misuse of trade secrets including customer lists, proprietary formulas, business processes, and confidential financial information. Remedies for trade secret misappropriation include injunctive relief, damages for actual loss, unjust enrichment, and exemplary damages of up to twice actual damages for willful misappropriation.

Tortious Interference

Another form of unfair competition recognized under Florida law is tortious interference with business relationships or contracts. If a competitor intentionally induces a breach of your contracts or interferes with your prospective business relationships through improper means, you may have a claim for tortious interference. These claims can result in significant damages including lost profits and consequential economic harm.

Protecting Your Business

To protect against unfair trade practice claims and to position your business to bring claims when necessary, companies should: review all advertising and marketing materials for accuracy; implement trade secret protection programs including confidentiality agreements; include non-solicitation clauses in employment contracts; document competitive practices carefully; and consult with a business litigation attorney when competitors engage in deceptive conduct. Contact Adam Ludwin at Ludwin Law Group for guidance on unfair trade practices and business competition claims in Florida.