The business field is considered very attractive and exciting for many, but it has a dark side that is unfair competition , since companies try to compete with each other, which is normal, but some incur in unethical actions to do so. Surely you are wondering what unfair competition is, also known as illicit competition, since it is defined as a group of techniques that try to illicitly alter the functioning of the market by failing in good faith.
This behavior can also affect the consumer and we will see it in the examples:
- Force to buy a product or hire a specific service.
- Force to maintain the product or service.
- Encourage them to make decisions that they would not have made in another situation.
Business dependency occurs when a company that owns a large part of a supplier’s turnover takes disproportionate advantage of that position to ask the supplier for special treatment.
Enticing infringement occurs when a company that has all the power in the market encourages its customers or suppliers to violate the contracts they have signed with other companies that are considered direct competitors. The main purpose is to try to harm others to cause them various problems and make them tremble in the market.
Constant imitation occurs when one company blatantly and persistently copies another to hinder its launch and thus prevent its growth. This unfair competition usually occurs when a small company launches a product and a larger one copies it, so by having more customers and being better known it covers the small one.
The aggressive practice is defined as an act in which consumers see their freedom altered when choosing a product or service. For this there are different types and they are the following:
- Undue influence.
- Use of force.
Public denigration occurs when a company publicly discredits or discredits the actions carried out by the competition without any type of evidence.
False advertising is unfair competition by making disproportionate claims about the benefits of a good or service compared to competitors.
This can mislead the economic behavior of the consumer, which is why Law 29/2009 of December 30 was approved, in which the legal regime of unfair competition and advertising is modified to improve the protection of consumers and users.
Trademark infringement occurs when a company uses the trademark of another that is already registered in order to market an alternative good or service, which makes the consumer believe that there is some kind of link between the two, which could be considered as a hoax