What is unfair competition?

The concept of unfair competition is used to refer to the behavior of any professional or employer that is contrary to the requirements of good faith. It is understood that this is the case when it does not conform to practices considered as honest or that seeks to alter the behavior of the client. Here are more keys to understand the definition of unfair competition.

Unfair competition practices

Spanish regulations include different practices of unfair competition, based on a series of categories:

Acts linked to deception and confusion:

  • Acts of deception: includes false or misleading information to the person who receives it. The deception affects essential aspects such as price, guarantees, main characteristics of the item, repairs, etc.
  • Acts of confusion: when the behavior is intended to create confusion among the users of a business, activity, etc.
  • Concealment: information that is essential for the client to make a correct decision is omitted. Something similar happens when ambiguous or unclear data is provided.

Acts associated with violence and violation of norms:

  • Aggressive practices: attitudes of coercion and harassment that seek to reduce the freedom of choice on the part of users.
  • Denigrating attitudes: use of false or inappropriate information with the purpose of negatively affecting the image of the competition.
  • Comparison situations: the law allows comparisons between services and products that satisfy the same need. However, it is considered unfair when copies are used that violate intellectual property rights, violence or deception.
  • Imitation situations: it is considered unfair when the imitation aims to create confusion for the customer.
  • Breach of secrets: the disclosure of business secrets without the consent of the owner, in addition to espionage, is also considered unfair competition.
  • Induction of contractual infringement: it is also considered unfair to induce clients, Suppliers or workers to not respect their contractual obligations with competitors.
  • Exploitation of the reputation of others: refers to the activity that seeks to take undue advantage of the industrial or professional reputation acquired by the competition.

Other situations:

  • Illegal advertising: advertising that goes beyond the limits of the legislation
  • Low-price sale: with the intention of creating confusion among customers and thus eliminating competitors even if sales lead to losses.
  • Discrimination and economic dependence: when a company unjustifiably discriminates against its customers or takes advantage of suppliers whose task depends on it.

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