Unfair business practices encompass fraud, misrepresentation, and oppressive or unconscionable acts or practices by business, often against consumers and are prohibited by law in many countries. Unfair business practices may arise in many areas, including: Generally, misrepresentation is a refined term for lie. ... Unconscionability is a term used in contract law to describe a defense against the enforcement of a contract based on the presence of terms unfair to one party. ... This article does not cite its references or sources. ... Consumers are individuals or households that consume goods and services generated within the economy. ...

• tenancy matters
• matters involving the purchase of products and services by consumers
• matters involving insurance claims and the settlement thereof
• debt collection in cases of default

In addition to providing for the award of compensatory damages, laws may also provide for the award of punitive damages as well as the payment of the plaintiff's legal fees. A lease or tenancy is an interest in personal property or real property given by a lessor to another person (lessee or tenant) for a fixed duration such that the lessee has obtained certain of the Lessors rights to possess and/or use the property and has provided to... Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. ... Debt is that which is owed. ... In finance, default occurs when a debtor has not met its legal obligations according to the debt contract, e. ... In law, damages refers either to the harm suffered by a plaintiff in a civil action, or to the money paid or awarded to the plaintiff in compensation for such harm. ...

At common law, individuals were not entitled to attorneys fees or punitive damages for wrongful acts committed by businesses in most states. Most often, laws prohibiting unfair business practices require consumers to send demand letter to the business prior to commencing with a law suit. If the business fails to make a reasonable offer of settlement within a specified period of time, and is subsequently found liable in court, it may be liable for punitive damages and the injured parties reasonable attorney's fees under many statutes. In some instances, the statutes provide for prevailing plaintiffs to recover double or triple the actual damages against non-settling defendants. This article concerns the common-law legal system, as contrasted with the civil law legal system; for other meanings of the term, within the field of law, see common law (disambiguation). ...

When statutes prohibiting unfair and deceptive business practices provide for the award of punitive damages and attorneys fees to injured parties, they provide a powerful incentive for businesses to resolve the claim through the settlement process rather than risk a more costly judgment in court.

See also

• Competition law
• Competition policy
• Consumer protection
• Misleading or deceptive conduct (Australian law)