Go to navigation Go to content
Toll-Free: 1-800-74-TRIAL
Phone: (561) 655-3925

Unfair Competition in Business Transactions

Business and Commercial Torts : Unfair Competition in Business Transactions

A cause of action for unfair competition may be brought by a plaintiff under Florida common law.  To bring a cause of action for unfair competition a plaintiff must establish the following elements: deceptive or fraudulent conduct of a competitor; and a likelihood of consumer confusion.  Additionally, the elements have also been identified as:

  • Time, labor, and money expended by the plaintiff;

    Competition; and

    Commercial damage.

    However, if the defendant's interference with the competitor's business is merely an incident to the accomplishment of a legitimate business purpose, namely lawful competition, there can be no liability.

    To prevail on a cause of action for unfair competition a plaintiff should consult with an experienced West Palm Beach business tort lawyer specializing in unfair competition, who will advise a plaintiff that he or she must plead that the defendant competes with its opponents for a common pool of customers. Moreover, the Florida common law of unfair competition is an umbrella for all statutory and nonstatutory causes of action arising out of dishonest business practices which are contrary to honest competition in industrial or commercial matters. A cause of action for unfair competition may arise from an infringement or unfair competitive use of a trade name, which occurs when the name is imitated in a way that the general public, in the exercise of reasonable care, might mistake it for the name of the one first appropriating it. When this type of similarity occurs and it diverts trade from a business rival, it is considered to be a fraud. Therefore, the defendant may be subject to an injunction whether or not the prior user has an exclusive right to the use of the name.

    The essence for a cause of action of unfair competition is customer confusion. The customer confusion test is satisfied when a plaintiff establishes that a similarity of trade names caused potential customers of the first appropriator of a trade name to conduct business with a second appropriator under the mistaken impression that they are doing business with the first appropriator.

    Additionally, a cause of action for unfair competition may arise from an infringement of trademark. Specifically, any person who, without the consent of the registrant of a mark, uses any reproduction, counterfeit, copy, or colorable imitation of a mark registered under Florida law in relation with the sale, distribution, or advertising of any goods or services, which may cause customer confusion, may be held liable to the trademark registrant.

    A cause of action for unfair competition may have many complex issues. Therefore, you should consult with an experienced West Palm Beach business and commercial lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.

Library for Unfair Competition in Business Transactions: