In Florida, the Deceptive and Unfair Trade Practices Act protects consumers from unethical, misleading, or oppressive business practices by companies that sell goods and services in the state. Florida consumers should familiarize themselves with what may constitute a deceptive or unfair trade practice and the remedies they could seek under the law.
What Is the FDUTPA?
The Florida Deceptive and Unfair Trade Practices Act seeks to clarify and modify state law governing consumer protection, unfair methods of competition, and deceptive or unfair trade practices. The law also aims to protect consumers and legitimate businesses from parties who engage in these practices. Finally, the Act makes Florida’s state consumer protection and enforcement laws consistent with established federal consumer protection laws. The FDUTPA covers a broad range of consumer transactions. It also protects individual consumers from deceptive and unfair trade practices and businesses from unfair methods of competition.
What Constitutes a Deceptive or Unfair Practice?
A deceptive business practice can include any misleading representation or omission of material information likely to mislead a consumer into making a purchasing decision. Conversely, an unfair business practice refers to any immoral, unethical, unscrupulous, or oppressive practice.
Common examples of deceptive or unfair trade practices under the FDUTPA include:
- False advertisements, including false claims about a product or service
- Hidden fees or burying unfavorable deal terms in fine print
- Misrepresenting the nature or quality of products or services
- Bait-and-switch tactics, which involve switching to an inferior good or service than the one originally promised
A company can engage in a deceptive or unfair trade practice even if the business does not intend to deceive or gain an unfair advantage over customers.
Who Can Bring a Claim Under the FDUTPA?
Both individual consumers and businesses can file claims under the FDUTPA. An individual consumer might bring a claim when a company uses deceptive or unfair business practices to induce the consumer into a transaction they otherwise would not have made. A business may also have a claim when a competitor engages in unfair competition, resulting in the business losing potential sales or goodwill. An individual business’s or company’s FDUTPA claim will require proof that the plaintiff has incurred actual damages due to deceptive trade practices or unfair competition.
Although private individuals and businesses can bring FDUTPA claims, the Florida Attorney General can also file an action against a company for violating the statute.
Remedies and Penalties
An FDUTPA claim may provide consumers and businesses with various legal remedies for losses caused by a company’s deceptive or unfair trade practices, including:
- Compensation for losses, such as replacement costs to obtain conforming goods or services, the difference in value between the goods/services promised and received, or lost sales/goodwill
- Injunctive relief to preclude a business from continuing unfair or deceptive trade practices
- Awards of legal fees and costs incurred to pursue an FDUTPA vacation
When the Florida Attorney General brings an action under the FDUTPA, it can request an order imposing civil penalties of up to $10,000 per violation (the law authorizes increased penalties for violations involving senior citizen victims).
The financial recovery and penalties imposed on a company that violates the FDUTPA can help convince that company to cease ongoing violations or deter other businesses from engaging in similar conduct. Compensation awards for victims can also help them recover financial losses caused by a business’s misconduct.
Tips for Consumers to Protect Themselves
Florida consumers can protect themselves from potential deceptive and unfair trade practices by following best practices such as:
- Keeping all documentation related to a purchase, including copies of advertisements, solicitation letters, seller correspondence, sales contracts, and invoices
- Researching companies on platforms such as the Better Business Bureau (and state licensing boards for professional service providers) and reading reviews on Google, Facebook, or Yelp
- Reporting suspected violations of the FDUTPA to the state and consulting a consumer protection attorney
Contact Us Today to Learn More
When you’ve suffered harm due to a business’s deceptive or unfair trade practices, you need experienced legal counsel to protect your rights under consumer law. Contact Lehrman Law today for an initial consultation with a consumer protection attorney to learn more about Florida’s Deceptive and Unfair Trade Practices Act.