UDAP laws
State laws that ban unfair or deceptive business practices. Every state has one, many let consumers sue, and they power many consumer class actions.
Also called: unfair and deceptive acts and practices, state consumer protection acts, consumer fraud acts
State laws that ban unfair or deceptive business practices. Every state has one, many let consumers sue, and they power many consumer class actions.
What it means
UDAP stands for unfair and deceptive acts and practices. UDAP laws are consumer protection statutes. They ban unfair or deceptive business tactics, such as misleading ads, hidden fees, bait-and-switch pricing and misdescribing what a product is. The idea comes from Section 5 of the federal FTC Act, and many state laws are modeled on it or on model acts. They go by different names, including consumer protection acts and consumer fraud acts.
Every state has a UDAP statute, and they differ a lot. State attorneys general are the main enforcers. Many state laws also let harmed consumers sue. Some make you prove you lost money. The rules on remedies and procedure vary by state.
At the federal level, the FTC enforces Section 5. For financial products, the CFPB enforces a related ban on unfair, deceptive or abusive acts or practices, known as UDAAP.
What it means for you
UDAP laws are the legal basis for many consumer class actions about ads, fees, labels and subscriptions. A notice or case page may name a state law such as California's Unfair Competition Law. That is a state UDAP law. Which state's law applies, and who is in the class, often depends on where you live or bought the product. So your state can affect whether you qualify, and sometimes how much you get. Read the class definition for state limits before you file.
Example
Say a hypothetical meal-kit company advertises a $9.99 plan, then adds a mandatory $6 "service fee" at checkout. A customer sues under her state's UDAP law, saying the ad was deceptive, and asks to represent other customers in the state. If the company settles, the notice might define the class as people in that state who paid the fee during a set period. Each member could claim a share.
FAQ
Unfair and deceptive acts and practices. It is the label for laws that ban unfair or deceptive business conduct. The federal FTC Act uses the idea in Section 5, and every state has its own UDAP statute.
Often, yes. State attorneys general are the main enforcers, but many state UDAP laws also let harmed consumers sue. The details, such as whether you must prove a loss, vary by state, so check your state's law or ask a lawyer.
Related terms
- Congressional Research Service, Legal Sidebar LSB11467 (Aug. 10, 2026): state UDAP statutes
- Congressional Research Service: UDAP Enforcement Authority Under the FTC Act (IF12244)
- National Association of Attorneys General: consumer protection 101
- 12 U.S.C. 5531: CFPB authority over unfair, deceptive or abusive acts (Cornell LII)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.