Which of the following is considered an unfair trade practice?

Providing false advertising is considered an unfair trade practice because it misleads consumers and distorts their understanding of a product or service. This practice undermines fair competition and consumer trust, as companies that engage in false advertising might gain an unfair advantage over their competitors who are honest in their representations. The regulations enforced by the Federal Trade Commission (FTC) are particularly focused on protecting consumers from such deceptive practices, thereby ensuring a fair marketplace. By providing inaccurate or misleading information, businesses do not allow consumers to make informed purchasing decisions, which can harm not only the competitive landscape but also consumer welfare.

In contrast, encouraging competition, offering discounts to loyal customers, and creating partnerships with suppliers are typically considered legitimate business practices aimed at fostering growth and customer retention. These practices contribute positively to the market and are often seen as enhancing consumer choice rather than undermining it.