Don’t be Deceptive or Misrepresent Anything to Consumers

When we were younger and on the playground with our friends, and believed we may have been wronged, we would often yell, “that’s not fair!” As simple as that sounds, it actually is almost the basis for a very powerful law that can affect your business, if someone feels that you didn’t treat them fairly.

Unfair and Deceptive Acts

It’s called Florida’s Deceptive and Unfair Trade Practices Act or FDUTPA. It generally makes it illegal for a business to do anything that is unfair or deceptive. And if that sounds vague or general, it is. That ambiguity and lack of definition can be a blessing or a curse, depending on what side of an FDUTPA lawsuit that you’re on.

Because the words “deceptive” and “unfair” are so broad and general, it leaves open a lot of room for people to sue businesses for a lot of different behaviors. From a consumers’ standpoint, it means that you have a lot of leeway to sue a business, if you truly feel that you have been wronged.

But from a business’ standpoint, it means that you really don’t know what behavior is, or is not, an FDUTPA violation.

What Does it Mean?

Deceptive or unfair business practices does not have to be outright fraud, though it could be. Many courts have defined behavior which is immoral or unethical, as violating FDUTPA. Violations don’t have to be intentional; even accidental mistakes (such as wording or representations that are accidentally misleading) can give rise to FDUTPA lawsuits.

Many things that businesses would think would lead to trouble, can be FDUTPA violations — things like misrepresentations or false advertising. Worse for businesses, FDUTPA claims can be stacked onto other causes of action — so, for example, you can be sued for both false advertising and FDUTPA, or fraud and FDUTPA.

Damages for FDUTPA Violations

Consumers who bring FDUTPA violations against businesses, can only recover their actual, out of pocket damages that stem from or are caused by the allegedly deceptive behavior. They cannot get, for example, emotional damages, or double damages.

While that is some relief to businesses, the law does allow for aggrieved consumers to get their attorneys fees as well — meaning that even nominal value or damage claims, will still be pursued by consumers, as they do not have to worry about paying attorneys fees. Additionally, many FDUTPA claims are brought as class actions, so even if the damage per-consumer is small, the overall harm to the business being sued, can be great.

Government FDUTPA Claims

FDUTPA can and is often used by the government, often by the consumer affairs or similar government agencies, to sue on behalf of consumers in the state that the government feels have been wronged by a business.

Because the government is representing all of its citizens harmed by the allegedly deceptive behavior, these actions brought by the government can entail significant damage penalties.

Do you need to bring or defend against an FDUTPA claim? Ask us how we can help. Call our West Palm Beach commercial litigation attorneys at Pike & Lustig to help you with your business litigation case.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0501/0501PARTIIContentsIndex.html