Unfair Competition Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Unfair Competition, written in plain English, along with examples of how it is used.

What is Unfair Competition?

(n) When business houses initiate practices with an intention to block healthy competition it is called Unfair competition. For example reducing the price far lesser than cost so that competitor could not sell his product and has to close his business. Issue false promises about the quality. Issue false propaganda for them and against competitors are treated as Unfair practices

History and Meaning of Unfair Competition

Unfair competition refers to any dishonest or fraudulent economic activity that harms other businesses or consumers. This term has a long history in commerce law, tracing back to Roman times when traders were required to act honestly in selling their goods. Today, unfair competition includes activities such as trademark infringement, false advertising, misappropriation of trade secrets, and other acts that create an uneven playing field for competitors.

Examples of Unfair Competition

  1. A company uses false advertising to make exaggerated claims about the benefits of their product.
  2. A business copies the packaging and design of a popular product to deceive customers into buying their inferior version.
  3. A competitor steals trade secrets, such as customer lists or product formulas, from another company.
  4. A company offers a product at a price lower than what it costs to manufacture in order to push out competitors.
  5. A business spreads malicious rumors about a competitor to damage their reputation.

Legal Terms Similar to Unfair Competition

  1. Trademark infringement - Unauthorized use of a registered trademark that could cause confusion or deception.
  2. Passing off - When a business tries to pass its goods or services as those of another business.
  3. Trade secret misappropriation - Theft or unauthorized use of confidential information or trade secrets.
  4. False advertising - Misleading or untrue statements about a product or service.
  5. Anti-competitive practices - Business activities that are intended to create a monopoly or unfairly limit competition.