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Trade Regulation
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What types of practices are prohibited by California’s unfair practices act?

The Unfair Practices Act forbids four specific pricing practices:

  • Sales below cost — sales of a product or service below the seller’s cost (including overhead) undertaken with the purpose of injuring competitors or destroying competition;
  • Loss leaders — sales of a product or service below the seller’s cost (including overhead) under certain circumstances (for example, to induce sales of a different product or service) undertaken with the purpose of injuring competitors or destroying competition;
  • Locality discrimination — charging different prices for the same product or service in different locations, with the intent to injure competitors or destroy competition; and
  • Secret rebates — secret payments of rebates or commissions to one customer but not another, where such payments injure a competitor and tend to destroy competition.


Related Information
» General Trade Regulation Questions
» Covenant not to compete
» Monopoly
» Price fixing
» Trade regulation laws

Topics Related To Trade Regulation
» Business Law
» Corporations
» Franchise Law
» Partnerships
» Starting A Business
» Trade Regulation
 
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