Current legislation defines unfair competition as any business practice that, by violating the law or commercial customs, seeks to obtain an undue advantage over other market participants. This definition includes both explicitly prohibited actions and those that, although not specifically detailed, infringe upon principles of commercial ethics and fair dealing.
The legal framework upholds transparency in commercial relations and recognizes that actions undermining this principle may give rise to both civil and criminal liability.
OBLIGATION TO REFRAIN FROM UNFAIR PRACTICES
LEGAL CONSEQUENCES AND LIABILITY
Actions constituting unfair competition may lead to:
- Civil liability, including compensation for damages caused.
- Criminal sanctions, when specific legal provisions are violated.
- Prohibition from using distinctive signs (trademarks, names, symbols) that cause harm to third parties.
- Contractual obligations following certain transactions, such as business transfers.
For instance, in a business sale, the seller may not establish a competing company engaged in unfair practices for three years following the transaction, unless expressly agreed otherwise.
RELATION TO THE CONSTITUTIONAL ORDER
The Bolivian Constitution sets clear limits on business practices that affect market competition. It prohibits monopolies, oligopolies, and collusive agreements aimed at controlling the market to the detriment of free enterprise. This reinforces the legal framework that bans unfair competition as a structural safeguard of the economic system.
For a detailed analysis of specific actions considered unfair competition under Bolivian law, consult our complementary article: What Constitutes Unfair Competition? This resource provides concrete examples and explains each scenario governed by current commercial legislation.
In summary, unfair competition disrupts commercial equilibrium and is governed by a series of legal norms imposing specific duties on business operators. Understanding its legal foundations enables entrepreneurs and legal professionals to identify risks, prevent disputes, and act in defense of a transparent market.
If you are facing a situation involving unfair competition or require legal guidance in commercial matters, our law firm offers specialized counsel. Contact us today for the legal support your business needs.
Frequently Asked Questions (FAQs)
What is the difference between fair competition and unfair competition?
Fair competition is lawful and encouraged; unfair competition involves practices that violate legal norms or commercial ethics.
Does an act need to be explicitly prohibited to be considered unfair?
Not necessarily. If it violates the law or commercial customs and causes harm, it may qualify as unfair.
Can a merchant be sanctioned without causing direct damage?
Yes, some unfair practices are punishable solely based on their execution, regardless of proven harm.
Does the Criminal Code address unfair competition?
Yes, certain unfair practices have corresponding criminal offenses, such as misleading use of trademarks or willful product tampering.
Are there restrictions on competing after selling a business?
Yes. Unless agreed otherwise, the seller may not open a similar business engaging in unfair competition for three years.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
