unfair methods of competition

This phrase within Federal Trade Commission Act has broader meaning than common-law term "unfair competition," but its scope cannot be precisely defined, and what constitutes "unfair methods of competition" must be determined in particular instances, upon evidence, in light of particular competitive conditions and of what is found to be a specific and substantial public interest. Federal Trade Commission Act No. 5, 15 U.S.C.A. No. 45. A. L. A. Schechter Poultry Corporation v. United States, N. Y., 295 U.S. 495, 55 S.Ct. 837, 844, 79 L.Ed. 1570.

The term though not defined by the statute is clearly inapplicable to practices never heretofore regarded as opposed to good morals because characterized by deception, bad faith, fraud, or oppression, or as against public policy because of their dangerous tendency unduly to hinder competition or create monopoly. The act was not intended to fetter free and fair competition as commonly understood and practiced by honorable opponents in trade. In re Amtorg Trading Corporation, Gust. & Pat.App., 75 F.2d 826, 830.

But a method was said to be an unfair method if it does not leave to each actual or potential competitor a fair opportunity for play of his contending force engendered by an honest desire for gain. California Rice Industry v. Federal Trade Commission, C.C.A.9, 102 F.2d 716, 721.

See also antitrust acts

- unfair competition

- Uniform Deceptive Trade Practices Act

- vertical restraints of trade