Business professionals reviewing contracts in a Miami conference room during a deceptive trade practices dispute
By Davy Karkason
Founding Attorney

FDUTPA, Florida’s Deceptive and Unfair Trade Practices Act, lets businesses and individuals sue over unfair competition and deceptive acts in trade or commerce. A damages claim requires a deceptive act or unfair practice, causation, and actual damages. In general, a claimant must sue within four years. Moreover, the prevailing party may recover attorney’s fees.

In Florida business litigation, the statute often appears next to breach of contract, fraud, or tortious interference counts. It can add fee-shifting and broad remedies to claims about unfair business practices. However, it also carries real risk for the party that files it. This guide explains how the law works in business disputes and what Florida courts require.

What Does FDUTPA Prohibit?

The law appears in Part II of Chapter 501, sections 501.201 through 501.213, Florida Statutes. Section 501.204(1) declares unlawful “unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce.” In addition, section 501.202 directs courts to construe the law liberally. Its stated purposes include protecting the consuming public and legitimate business enterprises.

The phrase “trade or commerce” reaches far. Under section 501.203(8), it covers advertising, soliciting, providing, offering, or distributing goods, services, or property. Furthermore, section 501.204(2) tells courts to give great weight to Federal Trade Commission and federal court interpretations of section 5(a)(1) of the FTC Act.

In PNR, Inc. v. Beacon Property Management, Inc., 842 So. 2d 773 (Fla. 2003), the Florida Supreme Court held that FDUTPA applies to a single unfair or deceptive act. Indeed, one party, one transaction, or one contract can be enough. The court described an unfair practice as one that “offends established public policy” and is “immoral, unethical, oppressive, unscrupulous or substantially injurious to consumers.” Deception, in turn, is a representation, omission, or practice likely to mislead a consumer acting reasonably in the circumstances.

How Federal Trade Commission Standards Shape FDUTPA

The Legislature tied the statute closely to federal consumer protection law. Under section 501.203(3), Florida Statutes, a violation may rest on rules adopted under the Federal Trade Commission Act, 15 U.S.C. § 41 et seq. It may also rest on the standards of unfairness and deception set forth and interpreted by the Federal Trade Commission or the federal courts. Finally, it may rest on any other law, rule, or ordinance that proscribes unfair methods of competition or unfair, deceptive, or unconscionable acts. Each reference is fixed as of July 1, 2017.

As a result, a breach of another law that prohibits unfair or deceptive acts can support a claim under the Florida Deceptive and Unfair Trade Practices Act. Therefore, decisions under the Federal Trade Commission Act often guide how Florida courts read unfair trade practices claims.

Can a Business Sue Under the Florida Deceptive and Unfair Trade Practices Act?

Generally, yes. Section 501.203(7) defines “consumer” to include businesses, corporations, partnerships, and any commercial entity. Likewise, a 2001 amendment to section 501.211(2) allows damages claims by “a person who has suffered a loss,” not only by a consumer.

In Caribbean Cruise Line, Inc. v. Better Business Bureau of Palm Beach County, Inc., 169 So. 3d 164 (Fla. 4th DCA 2015), the Fourth District relied on that amendment. It held that a claimant does not have to be a consumer to bring a claim. Nevertheless, the claimant must still prove an injury or detriment to consumers to satisfy all of the elements. As a result, a competitor should be ready to show how the conduct affected consumers, not just its own revenue.

Elements of a FDUTPA Damages Claim

As the Fourth District explained in Caribbean Cruise Line, a claim for damages has three elements:

  • A deceptive act or unfair practice. The conduct must meet the PNR standards, not merely break a promise.

  • Causation. The deceptive or unfair conduct must have caused the loss.

  • Actual damages. The claimant must prove a measurable loss, as discussed below.

FDUTPA claim review: a business owner and counsel examining a disputed contract

When Does a Contract Dispute Become a Statutory Claim?

Many business disputes start as contract fights. A missed delivery or an unpaid invoice is usually a breach of contract, not a statutory violation. In PNR, the Florida Supreme Court made this point in a footnote. The statute does not convert every breach of contract or lease into a claim under the Act. Instead, the conduct itself must be unfair or deceptive under controlling case law.

Therefore, stronger claims usually point to specific conduct beyond nonperformance. Examples include false statements about a product or misleading claims about who must perform an obligation. Moreover, section 501.213(1) states that the Act’s remedies add to other remedies under state or local law. In practice, parties often plead FDUTPA alongside contract, fraud, or tortious interference in Florida counts.

Actual Damages Under FDUTPA

Section 501.211(2) allows a person who suffered a loss to recover “actual damages,” plus attorney’s fees and court costs. The statute does not define that term. However, in Rollins, Inc. v. Heller, 454 So. 2d 580 (Fla. 3d DCA 1984), the Third District adopted a market-value measure. Generally, actual damages equal the difference between the market value of the product or service as delivered and its value as it should have been delivered.

Several limits follow from the statute and from Rollins:

  • No punitive damages under FDUTPA itself. Rollins held that punitive damages need an independent basis, such as fraud.

  • No recovery for personal injury or death. Section 501.212(3) also excludes damage to property other than the property that is the subject of the consumer transaction.

  • No fraud requirement. Rollins confirmed that a violation need not rise to the level of fraud.

For example, the Rollins court limited recovery to the alarm system and services the defendant agreed to provide. It did not allow recovery for property later stolen from the home. Consequently, claims for consequential damages deserve close review against the statutory measure.

Attorney’s Fees: A Two-Way Risk

Fee-shifting is one reason businesses plead FDUTPA. However, it cuts both ways. Under section 501.2105(1), the prevailing party, after judgment and exhaustion of all appeals, may receive reasonable attorney’s fees and costs from the nonprevailing party. Thus, a claimant that loses may face a fee claim from the defendant. The award is discretionary, since the statute says the trial judge “may” award fees.

In addition, section 501.211(3) gives defendants a tool against weak suits. A defendant may move on the ground that the action is frivolous, without legal or factual merit, or brought for harassment. After a hearing, the court may then require the claimant to post a bond covering the defendant’s damages, including reasonable attorney’s fees.

Exemptions That Can Defeat a Claim

Section 501.212 lists activities outside FDUTPA. Before filing or defending a claim, check whether any of these apply:

  • Acts required or specifically permitted by federal or state law.

  • Claims for personal injury or death, or for damage to property other than the property that is the subject of the consumer transaction.

  • Persons or activities regulated by the Office of Insurance Regulation, and banks, credit unions, and savings and loan associations regulated by state or federal agencies.

  • Activities regulated by the Florida Public Service Commission.

  • Claims about commercial real property in Florida where the parties signed a written lease or contract that expressly provides for dispute resolution and for damages, attorney’s fees, and costs.

This carve-out matters for landlords and tenants. A lease with a dispute resolution clause and a fee provision may place a related claim outside the Act.

FDUTPA Statute of Limitations

FDUTPA has no limitations period of its own. Instead, Florida courts apply section 95.11(3), Florida Statutes, which sets a four-year period for “an action founded on a statutory liability.” In Yusuf Mohamad Excavation, Inc. v. Ringhaver Equipment Co., 793 So. 2d 1127 (Fla. 5th DCA 2001), the Fifth District applied the four-year period to an unfair and deceptive trade practice claim. It also held that the delayed discovery doctrine does not extend that period.

As a result, the clock can run before a business learns of the problem. Contract claims follow different rules, as our guide to Florida’s contract limitations periods explains.

Government Enforcement and Civil Penalties

Private lawsuits are only part of the picture. Under section 501.203(2), the enforcing authority is usually the local state attorney. However, the Department of Legal Affairs acts when a violation affects more than one judicial circuit. It also steps in if the state attorney defers in writing or fails to act within 90 days after a written complaint.

Under section 501.2075, a person who willfully uses an unlawful method, act, or practice faces a civil penalty of up to $10,000 per violation. Conduct is willful when the person knew or should have known it was unfair or deceptive. Moreover, section 501.2077 raises the cap to $15,000 per violation for willful conduct that victimizes senior citizens or people with disabilities. The same cap applies to conduct directed at military servicemembers or their spouses or dependent children.

FDUTPA Remedies at a Glance

RemedyWho can seek itStatute
Declaratory judgment and injunctionAnyone aggrieved by a violation§ 501.211(1)
Actual damages, plus fees and costsA person who suffered a loss§ 501.211(2)
Reasonable attorney’s fees and costsThe prevailing party, whether claimant or defendant§ 501.2105(1)
Bond covering defense damages and feesA defendant facing a frivolous or harassing claim§ 501.211(3)
Civil penalty of up to $10,000 per willful violationThe enforcing authority only§ 501.2075

A Practical Checklist Before Filing or Defending

  1. Identify the specific deceptive or unfair act, not just the breach.

  2. Confirm that the conduct occurred in trade or commerce.

  3. Review the section 501.212 exemptions, including the commercial lease carve-out.

  4. Quantify actual damages under the market-value measure.

  5. Calendar the four-year deadline early, since delayed discovery does not extend it.

  6. Weigh attorney’s fees exposure in both directions before filing.

  7. Preserve advertisements, emails, proposals, and invoices.

  8. Consider pairing the claim with contract or other counts.

Each step can change the litigation strategy. For broader context on commercial disputes, see our Florida business litigation practice.

Frequently Asked Questions

What is FDUTPA in simple terms?

FDUTPA is Florida’s Deceptive and Unfair Trade Practices Act, found at sections 501.201 to 501.213 of the Florida Statutes. It prohibits unfair methods of competition and unfair, deceptive, or unconscionable acts in trade or commerce. Both government enforcers and private parties can use it.

Can one business sue another for deceptive trade practices in Florida?

Generally, yes. In 2015, the Fourth District held that a claimant does not need to be a consumer to sue. However, the claimant must still prove a deceptive or unfair act, causation, actual damages, and injury or detriment to consumers.

How long does a company have to file a claim under the Act?

Florida courts apply the four-year period for actions founded on a statutory liability in section 95.11(3). Moreover, the Fifth District has held that the delayed discovery doctrine does not extend that period. Therefore, waiting until a problem surfaces can be risky.

Can the losing side have to pay attorney’s fees?

Yes. Section 501.2105 allows the prevailing party to seek reasonable attorney’s fees and costs from the nonprevailing party after judgment and any appeals. Still, the court has discretion, so an award is possible but not automatic.

Conclusion

FDUTPA gives Florida businesses a flexible tool against unfair competition and deceptive business practices. Yet it is not a substitute for a contract claim. A strong case identifies a deceptive or unfair act, ties it to a measurable loss, and fits within the four-year period. Meanwhile, the two-way attorney’s fees provision and the section 501.212 exemptions call for careful review before filing. Defendants, in turn, should test each element and every exemption early in the litigation.

If your company is weighing a deceptive trade practices claim or facing one, contact our team to discuss options tailored to your situation.

About the Author
As a lawyer and the founder of Transnational Matters, Davy Aaron Karkason represents numerous international companies and a wide variety of industries in Florida, the U.S., and abroad. He is dedicated to fighting against unjust expropriation and unfair treatment of any individual or entity involved in an international matter. Mr. Karason received his B.A. in Political Science & International Relations with a Minor in Criminal Justice from Nova Southeastern University. If you have any questions about this article you can contact Davy Karkason through our contact page.