Unfair Business Practices

Georgia’s consumer protection laws provide certain remedies for those who have fallen victim to unfair business practices. Generally, these laws protect consumers and businesses from unfair or deceptive acts during the sale, purchase, lease, or rental of goods, services, or property. Many of these laws are triggered the moment a business opens its doors to the public, and a single deceptive or unfair act by a business can be enough to hold it liable. If you feel that you have been deceived by the practices of a business, you should consult an experienced consumer attorney to ensure that your rights are protected.

Georgia law provides many examples of deceptive trade or unfair business practices. For instance, when a business causes confusion as to where a good or service came from, the business may be liable. Another example is when a business misrepresents that a good has a certain benefit, ingredient, or is in a certain condition. A business that disparages the goods, services, or business of another with misrepresentations may also be held liable. Additionally, advertising goods or services with no intention of actually offering the advertised goods or services to the public may violate consumer protection laws.

Georgia law addresses other questionable transactions such as unsolicited credit card requests, the absence of terms on gift certificates, certain telemarketing activities, and the solicitation of customers by personal care facilities in some cases. This is only a brief list of practices that have the potential to violate Georgia’s consumer protection laws, and you should consult a lawyer with experience in Georgia consumer law to determine if a specific incident constituted an unfair business practice.

The remedies offered to a party injured by unfair business practices vary. In some cases, an injured party may seek injunctive relief to stop the defendant from continuing its practices. In other cases, a party may seek damages to recover the amount it suffered due to an unfair or fraudulent business practice. When the plaintiff shows that the acts were intentional violations of the law, the court may be required to award three times the actual damages. The court may also award punitive damages when the violations are intentional to deter the business and others from violating the rights of consumers in the future.

Generally, when a plaintiff seeks injunctive relief, the plaintiff must show a causal connection between some deceptive act that the defendant has committed and the harm sustained by the plaintiff. Additionally, a court will normally not issue an injunction unless there is evidence that the defendant’s actions are likely to harm the plaintiff at some point in the future. Further, the plaintiff needs to show that the damage already sustained can be alleviated through an injunction.

When the plaintiff seeks relief in the form of money damages, three elements must be proven. First, there must be a violation of the law. Second, the violation of the law must have caused the plaintiff’s injury. Third, the plaintiff must have sustained an actual injury. Proving that the defendant intended to violate consumer protection laws is not necessary to succeed. Additionally, in cases where there was a misrepresentation, the plaintiff must also prove that he or she relied on the misrepresentation and was harmed due to that reliance.

Different defenses exist depending on the specific consumer rights law relied on. For instance, an action for unfair business practices may fail if a diligent inspection would have discovered the misrepresentation. It is usually not enough for a plaintiff to assume that what he or she is being told is true. Instead, the court will often look to see if the plaintiff could have reasonably made an independent inquiry into the truth of the representations.

Additionally, the injured party may be required to show that an unfair business practice was a threat to the public at large and not just the harmed individual, since many of these laws were enacted to protect the public as a whole. A plaintiff’s claim may also fail if the area of the marketplace in which the alleged practice took place is regulated. In both instances, other causes of action may exist when a business engages in an unfair practice, and an attorney can help explain other ways of bringing a successful suit.

The information provided above is a very general summary of the law of unfair business practices at the time this text was prepared. Because this analysis is subject to change depending on recent cases and legal developments, you should not rely on this summary as legal advice. As with any important legal question, you should always consult a lawyer licensed to practice in your jurisdiction. Our lawyers are licensed to practice in all state and federal courts in Georgia.