Also known as: unfair method of competition · unfair competition
Written by attorneys · grounded in primary & secondary sources — see below
A statutory prohibition under the Federal Trade Commission Act that empowers the FTC to challenge business conduct violating the letter or spirit of the antitrust laws or constituting an incipient violation.
Ulysses Maritime sues a rival for federal copyright infringement over copied shipping logs and joins a state unfair competition claim arising from the same documents. The district court exercises pendent jurisdiction because the claims share a common nucleus of operative fact.
Umar Underwood, a late-night host, sues Here’s Johnny Portable Toilets for using his signature introduction phrase on portable toilets. The court finds the use constitutes unfair competition by appropriating Underwood’s identity for commercial benefit.
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Universal Motors sues a radio station for airing a tape of its executives discussing pricing strategies obtained by an unknown interceptor. The station claims First Amendment protection, but the court weighs whether the broadcast involves unfair methods of competition.
Utopia Pharmaceuticals challenges an agency order capping drug prices as beyond statutory authority. The court upholds the order, finding the controls address unfair methods of competition in the pharmaceutical market.
Union Steel contests federal wage and hour rules applied to its factories. The court sustains the rules, holding that substandard labor conditions can amount to unfair methods of competition in interstate commerce.
No. Section 5 reaches conduct that violates the spirit or policy of the antitrust laws or constitutes an incipient violation even without a formal agreement.
Yes. The Supreme Court has held that the FTC may define and proscribe an unfair competitive practice even if it does not infringe the letter or spirit of the antitrust laws.
The interests of third persons and the public may carry substantial weight. An injunction can end an illegal practice affecting multiple competitors or customers and provide broader relief than damages alone.
Yes. When both claims arise from the same set of facts, such as the same alleged appropriation of a work, the federal court may exercise pendent jurisdiction because the claims form part of the same case or controversy.
…among the workers of the several States; (2) burdens commerce and the free flow of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in…