WHAT CONSTITUTES UNFAIR COMPETITION?

Commercial competition is essential for economic development; however, when dishonest practices harm other entrepreneurs, the law categorizes them as unfair competition. In the Plurinational State of Bolivia, these actions are regulated and sanctioned to preserve a fair and transparent business environment. Understanding what constitutes unfair competition is crucial to prevent legal conflicts and protect the reputation and capital of any business.

UNAUTHORIZED USE OF PROTECTED SIGNS

One of the most common acts of unfair competition is the violation of rights over trademarks, patents, trade secrets, and other distinctive signs. For instance, if a cosmetics company uses the name and logo of a registered brand without permission to market its own products, it engages in a prohibited practice that can mislead consumers and harm the original owner.

USE OF CONFUSINGLY SIMILAR NAMES OR IMAGES

Adopting similar names or distorting well-known trademarks with the intent of causing consumer confusion is another form of unfair competition. A typical example would be a clothing startup using the name “Abidas” and a logo similar to “Adidas” to exploit the reputation of the established brand.

DISCREDITING AND PRODUCT TAMPERING

Any attempt to disparage a competitor’s products or deceitfully alter their characteristics is also considered unfair. For example, if a vendor spreads false rumors about the poor quality of a rival’s food products, leading to customer loss, such behavior is punishable under commercial and criminal law.

IMITATION OF QUALITIES AND MISUSE OF GEOGRAPHICAL INDICATIONS

Using a geographical name that does not reflect the actual origin of a product, or copying the attributes of a well-known item to enhance the perception of another product, without respecting legal rights, is a sanctioned infraction. Labeling a product as “Tarateño cheese” when it was not produced in that region constitutes clear unfair competition.

FALSE OR EXAGGERATED ADVERTISING

Promotional content containing exaggerated claims that mislead consumers is also penalized. For instance, advertising a medicine as a cure-all without scientific backing or health approval can result in legal liability for unfair competition and related offenses.

BRIBERY AND CORPORATE DISLOYALTY

Offering bribes to employees of competing firms to access trade secrets or poach clients is a serious form of unfair competition. For example, if a business owner pays a competitor’s salesperson to persuade clients to switch providers, it is an illegal act subject to judicial action.

INTENTIONAL MARKET DISRUPTION

Deliberate schemes aimed at destabilizing the market are also punishable. This includes actions such as buying large quantities of a competitor’s products solely to deplete their stock and hinder operations. Such tactics negatively impact free competition and economic development.

ANY OTHER ACT CONTRARY TO LAW OR COMMERCIAL CUSTOM

Finally, any other act that—while not explicitly listed—harms competitors and violates legal or ethical commercial practices is considered unfair competition. For example, leaking confidential information obtained unlawfully to damage a competitor’s image or strategy qualifies as such.

Unfair competition practices pose a serious threat to the proper functioning of commerce and can lead to swift and forceful judicial actions. Affected businesses have the right to request the termination of the unfair act, the destruction of the means used, public correction, and even financial compensation for damages.

Our law firm has extensive experience in defending and representing business owners against acts of unfair competition. If you require specialized legal advice, contact us today for a confidential consultation.

Frequently Asked Questions (FAQs)

What is the difference between unfair competition and illegal competition?

Unfair competition includes actions that may appear legal but violate ethical and commercial norms. Illegal competition directly violates specific laws.

Can I sue if someone imitates my logo even if it’s not registered?

Yes, if you can prove prior commercial use and recognition of the logo, you may file a claim for unfair competition even without formal registration.

What evidence do I need to report unfair competition?

It depends on the case, but generally includes advertisements, witness statements, business records, and any documents that demonstrate the harm caused.

Is using similar names always considered unfair?

Not necessarily. It is only considered unfair when it causes consumer confusion or exploits the reputation of another business.

Can a chamber of commerce act on behalf of affected parties?

Yes, Bolivian law allows the appropriate chamber to act if the unfair practice affects a group of merchants or entrepreneurs.

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.