North Carolina's unfair and deceptive trade practices law.
North Carolina's deceptive trade practices law, enacted in 1913, closely follows the federal Sherman Act prohibiting the exercise of monopoly power. The law establishes a private or individual right of action against any entity conducting business in an unfair or deceptive manner.
Application
North Carolina's Chapter 75, Monopolies, Trust and Consumer Protection prohibits any contract or conspiracy that restrains trade or commerce that causes injury to an individual or business. Section 75-1.1 (b) applies the prohibition to all business activities and excludes professional services. The law also excludes from liability any form of media that disseminates information about an entity that conducts unfair or deceptive practices unless the media has a direct financial interest in the deceptive entity.
Monopolization
Section 75-2.1 explicitly prohibits monopolization or any attempt to monopolize any part of trade or commerce within North Carolina. A monopoly is when a single firm or entity controls the production of a particular product. The state law prohibits the act of monopolization. The act of monopolization includes actively preventing or limiting other firms or entities from the entering the production of a specific good to compete.
Party
The Attorney General is authorized under North Carolina law to investigate any corporations or persons who are suspected of violating the statute. Each act or violation of the law is considered a separate offense for which the entity or person may be charged. An individual or the State may sue, but the State cannot, itself, be sued for violations of the statute.
Punishment
Under Section 75-16.2 the statute of limitations for any offense under the deceptive trade practices law is four years. The clock on the statute of limitations begins when the act of fraud occurred or when the fraud became known to the victim. If the court finds that an entity violated the law, the entity may be fined in addition to individuals within the entity who took part in the deceptive or unfair act.
Specific Acts
In addition to the broad scope of deceptive and unfair practices, specific acts are explicitly prohibited and fall under the statute. Entities are explicitly prohibited from using the term of "wholesale" when advertising unless the price is established by an independent agency or have a certificate of resale issued by the State. The statute also prohibits excessive increase in pricing of goods during a state of disaster, state of emergency or other market disruptions.
