Three Tips For Protecting Your Business From Class Action FDUTPA Claims
The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) is a statute that protects consumers (and businesses) against commercial practices deemed to be deceptive, unfair, abusive, or unconscionable. In many cases, FDUTPA claims are class action lawsuits. A company found liable in a class action FDUTPA could face a significant financial burden. Here, our Miami deceptive & unfair trade practices lawyers offer three tips to help protect your business against class action deceptive and unfair practice claims.
- Take Care to Avoid Potential FDUTPA Violations
Ideally, your Florida business will never face a class action lawsuit under the FDUTPA. While you cannot control everything that other parties do, you can take steps to reduce the risk that your company is found liable for a Deceptive and Unfair Trade Practices Act violation. Companies should take care to avoid FDUTPA violations.
As a business owner, you may be wondering: What constitutes an FDUTPA violation? It is not necessarily an easy question to answer. Though, it is useful to keep in mind Florida law instructs courts to construe the FDUTPA “liberally”—meaning advertisements and other commercial practices deemed likely to “mislead” a reasonable consumer may be a violation.
- Make Sure All Written Agreements/Advertising Have Clear Terms
In many cases, businesses run into FDUTPA problems in the written agreements and/or in their advertisements. When you write something down for customers, you need to make sure that terms are clear, accurate, and not contradictory. Here is an example: Imagine that a retail store in South Florida offers appliances with a big sign that says “Final price: $499.” When the customer checks out with the applicant, they are charged an additional $50 “stocking fee” on top of the $499. That type of practice could easily result in a class action lawsuit under the FDUTPA. Terms and representations made to customers should be as clear and accurate as possible.
- Be Proactive: Know How to Respond to an FDUTPA Complaint
Did your business receive notice that a class action lawsuit is being filed against it under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA)? If so, it is essential that you take proactive steps to protect your interests. First and foremost, you need to review the demand letter/complaint to understand the matter. Next, you should gather and organize all relevant documents, records, and information. Your next phone call should be to an attorney who has experience defending class action claims under the FDUTPA. A lawyer can review the allegations, explain your risk of liability and help you devise an effective plan of action to respond to the claim.
Call Our FDUTPA Attorney for Immediate Help
At Pike & Lustig, LLP, we represent clients in FDUTPA claims. Our mission is to protect your rights. If your company is facing legal action for alleged deceptive or unfair commercial practices, we will help you find the best solution. Call us now to arrange your confidential initial consultation. We represent clients in Miami, Fort Lauderdale, West Palm Beach, and throughout Southern Florida.