Why you need to Understand Fair Business Practice

Everyone who starts a business, does so with the aim of achieving some set goals. They also hope that, all market conditions will be fair to everyone so that they are able to compete without bias. However, this is not always the case in many scenarios as many competitors will go out of their way to make sure they take over a larger potion of the market. These are unfair business practices that should be shunned.

There is need for every business man to understand fair business practices and to appreciate that they go a long way in making the market favorable for everyone. What comprises unfair practices is contained in some laws that govern individual industries and these are known as the antitrust laws. They make it illegal for any individual to try and control the market conditions.

Among the unfair business practices is conspiring to control market prices by discussing it with competitors. No matter how small a marketplace may be, this is greatly unfair to other traders who may not command much authority in the market. Price discrimination, which is basically favoring some buyers in terms of product prices, is also a violation of the antitrust laws.

Holding discussions with competitors on how to boycott another competitor or supplier is a violation of the laws and it warrants the involved parties have their trading licenses withdrawn. Domination of market or customers through the arrangement of suppliers or traders to agree on the territories that each should trade in is also illegal. If it occurs through exclusion of some customers from given competitors or through control of market prices, it is punishable by law.


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