Global Law Experts Top Search Results to
Help Tackle Law in Unfair Competition

Unfair competition encompasses any business practice that is deceptive, fraudulent, or otherwise violates the principles of commercial honesty. The central aim of such laws is to prevent a company from gaining an improper market advantage by misleading the public. Legally, the concept is designed to protect a business’s valuable and hard-earned goodwill and reputation by preventing actions that are likely to cause consumer confusion regarding the origin of goods or services.

The most common examples of unfair competition include a practice known as “passing off,” which involves imitating a competitor’s product packaging or overall appearance to confuse consumers. Other prevalent examples are false advertising about one’s own or a competitor’s products, the theft or misappropriation of confidential trade secrets, and trade libel, which is the act of knowingly publishing false and damaging statements about another business to harm its reputation.

While related, these are distinct legal claims. Trademark infringement is a specific offense involving the unauthorized use of a legally registered trademark in a way that is likely to cause confusion among consumers about the source of goods or services. Unfair competition is a broader legal concept that covers a wide range of deceptive or fraudulent business practices. It does not necessarily require a registered trademark and often focuses on the intent to deceive the public by copying a product’s overall look and feel.

Passing off is a classic form of unfair competition where a business makes its product, service, or its packaging look confusingly similar to that of a well-known competitor. The goal of this practice is to mislead consumers into thinking they are buying the original, reputable product. By doing so, the infringing party unfairly capitalizes on the goodwill, reputation, and marketing efforts of the established business, essentially stealing its customers through deception about the product’s origin.

If a competitor makes false or misleading claims about your business, a common first step is to have a lawyer send a formal cease and desist letter demanding a retraction of the statements. If the competitor fails to comply, you can file a lawsuit for trade libel or commercial disparagement. The legal remedies available include seeking an injunction, which is a court order compelling the competitor to stop making the false claims, as well as monetary damages to compensate for any harm to your reputation and lost profits.