The Consumer Protection Act: A Surprising Weapon in Business to Business Litigation
Many business owners assume the Consumer Protection Act (CPA) applies only to disputes involving individual consumers. After all, the name says it plainly. In reality, Washington courts have repeatedly held that business-to-business conduct can trigger CPA liability—sometimes with severe financial consequences.
Understanding when a commercial dispute crosses into CPA territory is critical. The difference between a routine contract disagreement and a CPA claim can mean treble damages, attorney fee awards, and expanded litigation exposure.
What Is the Washington Consumer Protection Act?
The Washington CPA is designed to prohibit:
- Unfair or deceptive acts or practices
- Occurring in trade or commerce
- That affect the public interest
- And cause injury to business or property
Unlike many states, Washington’s CPA explicitly allows businesses to bring claims, not just individual consumers.
Yes, Businesses Can Sue Other Businesses Under the CPA
Washington courts have made clear that the CPA is not limited to retail consumer transactions. A business may bring a CPA claim against another business if the conduct at issue impacts the public interest.
Why This Matters
CPA claims dramatically raise the stakes of litigation:
- Treble damages (up to $25,000 per violation)
- Mandatory attorney fee shifting
- Broader discovery and reputational risk
- Increased settlement pressure
What begins as a contract or vendor dispute can quickly become a far more dangerous lawsuit.
When Does a Business Dispute Trigger CPA Exposure?
Not every business disagreement qualifies. Courts look closely at whether the conduct affects the public interest. Common scenarios that do trigger CPA risk include:
1. Deceptive Practices in Ongoing Commercial Transactions
If a business repeatedly misrepresents pricing, services, or capabilities to customers or partners, even sophisticated ones, courts may find a public interest impact.
2. Conduct That Could Be Repeated Against Others
A dispute involving standardized contracts, marketing practices, or sales tactics is more likely to trigger CPA liability than a one-off negotiation.
3. Abuse of Market Power or Industry Position
Businesses with leverage—exclusive distributors, dominant suppliers, or gatekeepers—face higher CPA risk if their conduct is viewed as unfair or coercive.
4. Misrepresentations in Advertising or Marketing
Marketing statements directed at other businesses can still qualify as deceptive practices under the CPA.
Common Business-to-Business CPA Claims in Washington
Some of the most common CPA claims arising in commercial disputes include:
- Misrepresentation of services or capabilities
- Deceptive billing or pricing practices
- Unfair competition and trade practices
- False or misleading marketing statements
- Interference with competitor relationships
These claims often appear alongside breach of contract or tort claims, amplifying damages and litigation cost.
Why CPA Claims Are So Dangerous for Businesses
Attorney Fee Shifting Changes Everything
Unlike ordinary contract disputes (which may or may not include attorney fee provisions), the CPA allows the prevailing plaintiff to recover attorney fees. This alone can greatly enhance the underlying damages.
Treble Damages Increase Settlement Pressure
Even modest actual damages can multiply quickly, giving plaintiffs leverage early in the case.
Insurance Coverage Is Often Limited
Many commercial policies exclude CPA claims or unfair trade practices, leaving businesses to fund defense costs directly.
Reputational Harm
CPA claims often involve allegations of deception, which can damage business relationships even before trial.
How Businesses Can Reduce CPA Litigation Risk
While no strategy eliminates risk entirely, businesses can reduce exposure by:
- Reviewing marketing materials for accuracy and clarity
- Avoiding overpromising in sales communications
- Documenting pricing, scope, and performance expectations
- Training sales and management teams on compliance
- Consulting litigation counsel early when disputes arise
Early intervention often determines whether a dispute remains a contract disagreement or escalates into a CPA claim.
CPA Claims Demand Strategic Litigation Experience
Defending or prosecuting a CPA claim requires a different strategy than ordinary commercial litigation. Public interest analysis, damages exposure, and fee shifting change how cases are evaluated, litigated, and resolved.
Beresford Booth represents Washington businesses in high-stakes litigation involving:
- Consumer Protection Act claims
- Unfair competition disputes
- Contract and tort litigation
- Business-to-business conflicts
If your business is involved in a dispute that may implicate the CPA, early legal guidance can make a decisive difference. Please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.