What Is Unfair Competition? Boundaries in Commercial Life
Where competition crosses into unfairness, and the legal remedies available to businesses.
Günay Legal
Competition is a natural and necessary part of commercial life. But when it is pursued through means contrary to the principle of good faith, it becomes unfair competition.
When does unfair competition arise?
Misleading advertising, conduct that creates confusion with another's products or services, unlawful acquisition or use of trade secrets, and inducing third parties to breach their contracts can all fall within the scope of unfair competition — though each case must be assessed on its own facts.
What legal remedies are available?
Businesses affected by unfair competition may seek a determination of the act, an order to cease it, removal of its effects, and compensation for material and moral damages where applicable. Depending on the circumstances, an interim injunction may also provide swift protection.
Practical guidance for businesses
Protecting trade secrets through contractual confidentiality obligations, regularly monitoring competitor conduct, and seeking an early legal assessment when something looks amiss all strengthen a business's position if an unfair competition claim arises.
This article is for general information only and does not constitute legal advice. For your specific situation, please get in touch with us.