Issue: Under the laws of the Pennsylvania Unfair Trade Practices Act, what conduct is prohibited in general?
| Area of Law: | Antitrust & Trade Regulation, Litigation & Procedure |
| Keywords: | Conduct prohibited; Unfair Trade Practices Act; Fraud |
| Jurisdiction: | Pennsylvania |
| Cited Cases: | 619 A.2d 769; 636 A.2d 187 |
| Cited Statutes: | Pa. Stat. Ann. tit. 73, § 201-2(4)(xvii) |
| Date: | 01/01/2001 |
Pa. Stat. Ann. tit. 73, § 201-2(4)(xvii) is the so-called "catch-all" section of the unfair trade practices law. It prohibits "[e]ngaging in any other fraudulent conduct which creates a likelihood of confusion or of misunderstanding." Id. at subsec. (xvii).
A fundamental prerequisite to any claim under this section is that it alleges facts tending to show "that any confusion or misunderstanding created by the actor is fraudulent." A plaintiff invoking the protection of the unfair trade practices law therefore must show that its cause contains the common-law elements of fraud. Prime Meats, Inc. v. Yochim, 422 Pa. Super. 460, 619 A.2d 769, 773 (1993). Fraud requires the following elements: a false representation, which if innocently made must be material to the transaction; scienter; justifiable reliance; and damages to the person relying on the representation. see Mellon v. Barre-National Drug Co., 431 Pa. Super. 175, 636 A.2d 187, 189 (1993).
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