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Definition of unfair competition in Colombia

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Law 256 of 1996 regulates unfair competition, defines it as the actions and conducts against the different market participants. These acts are contrary to healthy commercial custom, to the principle of commercial good faith, to honest uses in industrial or commercial matters, or when it is aimed at affecting or affecting the freedom of decision of the buyer or consumer, or the operation of the market.

The healthy customs or honest uses in industrial or commercial matters refer to the fact that market participants must act in good faith, transparency and loyalty in the normal and honest development of competitive activity.

Unfair acts are considered:

1. Acts of diversion of the clientele

Diversion of the clientele through means contrary to healthy customs or honest uses in industrial or commercial matters.

2. Acts of disorganization

It has the effect of internally disorganizing the company, the commercial services or the foreign establishment, it consists in the use of tricks in order to confuse, deceive the clientele, or on the contrary the abduction of employees, violation of industrial and commercial secrets that harm to the enterprise.

3. Acts of confusion

It consists of the behavior that creates confusion, doubt and uncertainty to the customer about who he is buying from.

4. Acts of deception

Acts of deception are considered to be conducts that seek to provide incorrect information about a certain product, as well as the nature, mode of manufacture, characteristics, suitability for use or quantity of the products. Either in order to stand out from other merchants or in order to harm the competition's product.

5. Acts of discredit

It is the use or dissemination of incorrect or false indications or assertions, the omission of the true ones and any other type of practice that has the object or effect of dishonoring the activity, benefits, establishment or commercial relations of a third party, not to be they are accurate, true and relevant.

6. Comparison acts

They are the public comparisons that are made on activities, establishments and products, seeking to influence the buyer in incorrect, false or true information to excel in marking.

7. Acts of imitation

It is the creation and commercialization of products with similar characteristics, this generates confusion about the business origin of the service or has an improper use of the reputation of others.

8. Exploitation of the reputation of others

Taking advantage of the advantages of an industrial, commercial or professional reputation acquired by another in the market for one's own benefit or that of others, the unauthorized use of other people's distinctive signs or false or misleading designations of origin, even if they are accompanied by the indication about of the true origin of the product or of expressions such as «model», «system», «type», «class», «genre», «way», «imitation», and «similar».

9. Violation of secrets

Disclosure or exploitation, without authorization of the owner, of industrial secrets or any other kind of business secrets or confidential information to which access has been obtained with a duty of reservation

Acquisition of secrets through espionage or similar procedures.

10. Induction to breach of contract

It is the Incitement to workers, suppliers, clients and others obliged by the contractual relationship to breach the agreed duties. Its main purpose is to eliminate or harm a competitor from the market.

11. Violation of rules

It is an infringement of the rules that regulate commerce, the creation of companies, good faith, etc. in order to obtain an advantage

12. Unfair covenants of exclusivity

It is considered unfair to agree in the supply contracts exclusivity clauses, when said clauses have the object or effect of restricting the access of competitors to the market, or monopolizing the distribution of products or services, except for the liquor industries while they are owned of territorial entities.

Definition of unfair competition in Colombia