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Florida company sued for deceptive trade practices

The business world can be cutthroat and result in intentional and unintentional fraud. Failure to act in good faith can result in ruined reputations and irreparable business relationships. Xiaoyu Abrasive Inc, doing business as Universal Polishing Systems, has been accused of violating business law by using another company's industry knowledge and reputation to improve their own business.

Vertical Concrete Polishing Inc. has sued Universal Polishing Systems, citing both the Lanham Act and the Florida Deceptive and Unfair Trade Practices Act. The suit claims that Vertical Concrete Polishing Inc. and Universal Polishing Systems had considered entering a business partnership and even shared a booth space during a trade show. However, when the idea of a partnership dissolved, Universal allegedly took some of the work belonging to Vertical and passed the machines off as their own online in an effort to directly compete with Vertical.

Vertical claims that Universal is responsible for causing confusion with regards to Vertical's affiliation with Universal and that Universal used Vertical's name and reputation to improve their own business.

Anytime a business takes another business' ideas and passes them off as their own with the intent to mislead consumers into buying their product, they could be found guilty of deceptive trade practice. False representation, false advertising, selling counterfeit goods and other forms of deception can lead to serious penalties. Lawsuits stemming from deceptive trade practices can result in huge payouts for the injured party. Misrepresentation is inexcusable in the business world as it can negatively impact another company's sales and reputation, and ultimately cause the downfall of a company.

Source: Florida Record, "Universal Polishing Systems alleged to have violated Deceptive and Unfair Trade Practices Act," Jenie Mallari-Torres, Jan. 24 2017

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