When running a business, a group has to abide by certain laws. This article will discuss laws for small businesses and laws for large businesses. Either way, they must be followed to uphold the business standards.
Fair Practice Laws
In a world where businesses are always trying to get ahead, it’s important to monitor the competition of businesses. Antitrust laws are laws that don’t allow the domination of a market. For instance, a business cannot take the business away from other businesses in an unfair way. This is to insure the integrity of the business. One example of a violation of law is the act of two or more businesses coming up with a plan to hurt another business for their own financial gain. This is not allowed because of fair practice always. As a result, businesses and customers will build a better relationship.
The Federal Trade Commission monitors these fair practices to ensure the consumer has the best experience possible. One specific part of the law is when businesses agree to terms on their own, without discussing them with a competitor. This way, customers can see that products aren’t rigged to a businesses’ selfish gain. When competitors agree to halt the competition, the effect is often higher prices. So, this type of law makes sure to monitor price fixing schemes.
Employment and Labor Laws
With any business, they must also be fair in their employment. There are certain laws to help a business remain fair in the employment process. The Fair Labor Standards Act is one of these laws. When this law was passed in 1938, there were many guidelines businesses had to follow. For one, the idea of minimum wage was established. Also, the overtime pay eligibility was put in place. Another part of this law was the child labor standards, which didn’t allow children to work. These are all strict laws that don’t allow for any unfair treatment of the employees.
Advertising and Marketing Laws
With this law, the promotion of someone’s business or company is restricted to certain guidelines. The Federal Trade Commission monitors advertisement and marketing laws in the US. These laws range from monitoring the label of a product to the health of a product.
One of the specifics of the advertising and marketing laws are in relation to children. If a company targets children as the customer for their product, the company has to follow certain rules. For example, if a company is advertising food products to children, they must practice responsible marketing.