Although the state has not adopted the uniform Deceptive Trade Practices Act, their laws on deceptive trade practices (DTP) are included under “Rhode Island General Laws.” With this in place, consumers can sue businesses who advertise their goods or services in a fraudulent way.
To ensure that your business can operate without committing any forms of deceptive act, you must have a clear understanding of the laws that govern them.
What is in Rhode Island’s list of prohibited acts?
Under the state’s DTP laws, there are 19 prohibited business practices that are considered as “unfair or deceptive.” Eight of those include:
- Advertising your goods with no intent to sell them as such.
- Selling your goods as “new” or “original” when they are old or second-hand.
- Labeling your goods with deceptive geography origins.
- Labeling your goods with a false list of ingredients, materials or quantities.
- Claiming that your goods are made of a particular quality or grade when they are not.
- Claiming that your goods have “uses” or “benefits” that they do not carry.
- Failing to include the brand name and/or manufacturer in your product advertisements.
- Misleading your consumers with deceptive price reduction labels.
By learning about Rhode Island’s list of illegal business trade acts, you can practice safety checks within your operations and incorporate measures that can help safeguard your business from potential damages.
What can happen if my business fails to comply?
In this case, the Attorney General may serve your business with an “investigative demand” that indicates the details of the alleged violation, as well as the statute and section where this specific prohibited act was written under.
Depending on the complaint filed by your consumer/s, your order may be a temporary injunction, a permanent injunction or a restitution. Keep in mind that violating the terms of an injunction can lead to serious legal consequences.
Your business deserves to thrive
By regularly checking your business operations, you can recognize any known deceptive trade act and work on a plan that can resolve the issue in a prompt manner.
