Predatory Practices

PREDATORY PRACTICES are forms of unfair competition. In consumer markets, they mostly involve exploiting the public's lack of information about products, often financial products such as home loans or credit terms, thereby obtaining unjustifiable fees and unfair contractual conditions. In business markets, predatory practices involve attempts by one company to use its market power or influence to take advantage of a smaller company or companies. Making a large order from a small company and then not making payments so that the supplier is forced into bankruptcy is one example of a predatory practice.

In consumer markets, predatory practices most commonly focus on the attempt to exploit people's lack of information about lending practices, thereby obtaining more money from them. This includes such practices as flipping, which ...