Louisiana has many laws aimed at protecting consumers. Among these laws are the state's deceptive trade practices laws. These laws identify different sorts of practices that are deemed to be deceptive to consumers and they prohibit businesses from engaging in these practices.
It is very important for Louisiana businesses to be aware of what sorts of practices are banned under the state's deceptive trade practices laws and to take great care to not engage in these sorts of practices. If a business is accused of having committed deceptive trade practices, it could face legal actions from consumers or the state.
Being the subject of a deceptive trade practices lawsuit can be a very high-stakes situation for a business. If a business loses in such a case, it can suffer some significant financial consequences.
For one, being found to have engaged in deceptive trade practices could significantly harm a business' reputation among consumers and companies it has business relationships with.
Also, a business losing a case in which it was accused of deceptive trade practices can lead to a business being ordered to pay damages. How much in damages a business in such a situation could be ordered to pay depends on several factors. One is how much harm the deceptive trade practices the business was found to have committed is found to have caused to the harmed party, as actual damages can be awarded. Another is whether the business' purported violation of deceptive trade practices law is found to have been a willful one, as a damage award will generally be tripled in the event of a willful violation.
Also, there are other types of orders that could be issued against a company in connection to a finding of having engaged in deceptive trade practices, such as an injunction, and these other types of orders can have economic impacts.
Thus, a business' financial future could potentially be in jeopardy when it has had legal action brought against it alleging deceptive trade practices. Consequently, when a business is facing deceptive trade practice allegations, it may want to bring in a skilled business law attorney to help it with defending itself against the allegations and working to find an acceptable resolution to the matter.
Source: FindLaw, "Louisiana Deceptive Trade Practices Laws," Accessed March 25, 2015