Unfair Competition

According to Law 256 of 1996, rule for unfair competition, free and fair economic competition is guaranteed in Colombia, by prohibiting acts and conduct of unfair competition to the benefit of all who participate in the market.

Considering the provisions of the above Act, some acts of unfair competition are:

Acts of deviation of the clientele. Any conduct which has the purpose or effect to divert clientele from activity, commercial benefits or alien establishments is considered unfair.

Acts of disorganization. Any conduct which has the purpose or effect of disrupting the business internally, its commercial benefits or the alien establishment is considered unfair.

Acts of confusion. Any conduct which has the purpose or effect of creating confusion with activity, commercial benefits or an alien establishment.

Acts of deception. Any conduct which has the purpose or effect of inducing the public to be misled about the activity, its commercial services or the alien establishment is considered unfair.

Acts of disrepute. Any conduct which uses or spreads incorrect or false statements or claims, omits truths, and commits any other practice which has the purpose or effect to discredit the activity, its benefits, the establishment or the market relations of a third party, is considered unfair unless they are accurate, true and relevant.

Acts of comparison. Public comparison of the activity, its commercial benefits or both the own or an alien establishment with a third party, where such comparison utilizes incorrect or false allegations or indications, or omits the truth, is considered unfair. Likewise, all comparison of extremes that are not similar or verifiable is considered unfair.

Acts of imitation. Imitation of foreign business performance and business initiatives is allowed, unless they are protected by law.

Exploitation of others’ reputation. The exploitation of the industrial, commercial or professional reputation acquired by another in the market, for one’s own benefit, is considered unfair.

Violation of secrets. The disclosure or exploitation of industrial secrets or any other kind of business secrets to which one has had access that is legitimate but with duty of confidentiality, without the owner’s authorization, is considered unfair.

Induction of contractual breach. It is considered unfair to induce workers, suppliers, customers and others into violating the basic contractual obligations they have undertaken with competitors.

Violation of rules. It is considered unfair to use a competitive advantage acquired over competitors gained by the violation of a rule.

Unfair exclusivity agreements. It is unfair to agree on supply contracts’ exclusivity clauses when the clauses have as their object or effect to restrict the access of competitors to the market or monopolize the distribution of products or services.

Cárdenas Vega Advisors has lawyers that will address your questions on this matter and will advise you on jurisdictional actions that may be required. Contact us.