Unfair competition

WHAT IS UNFAIR COMPETITION

Unfair Competition regulations aim to protect consumers and businesses alike against aggressive and deceptive business practices such as trade defamation, misappropriation of business trade secrets, unlawful comparative advertising, induction to breach of contractual obligations by employees, suppliers or clients, unfair pricing strategies like gouging, and false or misleading representations, among others.

A conduct will be deemed to constitute an act of unfair competition if the following three requirements are met:

  1. The act must take place in the market;
  2. The act must be carried out with competition purposes; and
  3. The act must be objectively contrary to the requirement of good faith.

The following practices are considered as unfair competition acts:

  • Deceptive acts
  • Trade defamation
  • Unlawful imitation acts
  • Infringement of industrial and commercial secrets
  • Induction to breach of contract
  • Taking wrongful advantage of the reputation of others
  • Violation of procedures, discrimination and economic dependence
  • Sale at a loss
  • Aggression, harassment, constraint and exertion of undue influence
  • Unlawful advertising

The Spanish Unfair Competition Law describes a wide range of relevant types of unfair practices directed both at companies and at consumers. These regulations affect all companies that offer goods or services directly to consumers, since they may be exposed to claims brought not only by consumers and representative associations, but also by rival companies that believe they were directly affected by the unfair practices. Such claims may aim to cause harm to competitors and seek damages. Therefore, at Domènech Corbella – Legal Services we strongly recommend our clients to reduce their exposure to claims by auditing their commercial practices to ensure that they conform to the unfair competition rules.


OUR LEGAL ADVICE

Domènech Corbella – Legal Services offers professional advice on all kind of issues related to unfair competition, including:

  • Review, negotiation and drafting of contracts: We prepare, negotiate and review all kind of contracts related to the protection of your intangible assets, your know-how and trade secrets, for example through confidentiality agreements.
  • Response to all legal consultations: Feel free to submit your queries regarding unfair competition practices and confidentiality. We will provide you with complete legal advice and solve all your concerns rapidly and effectively. Send us an email, call us or contact us through the contact form on this website, and we will deal with your inquiry immediately.