Unfair competition is an industrial or commercial practice that violates the ethical and legal rules of free competition, with the purpose of gaining unfair advantages in the market by capturing customers from others. It is a very common practice in Brazil, but it is also very repressed by Brazilian legislation, so it is a crime under the Industrial Property Law, in Article 195, III.
Thus, the most significant unfair competition practices in Brazil are: (i) imitation of products or services; (ii) publication of false information about competitors; (iv) violation of commercial secrets; and (v) misuse of customers.
Based on these considerations, the practice of unfair competition can affect both companies and consumers. For companies, it can result in major financial damage, since there is a reduction in their sales and market participation, generating a large reduction in their revenues. In addition, there is a great possibility that the company’s reputation will be damaged, since consumers may buy a product of poor quality and be fooled into thinking that the product they were buying was from a different company than reality.
As for the consumer, there can be a number of consequences, including a reduction in the quality of the products or services purchased, a reduction of transparency, where consumers don’t know what they are really buying, as well as distrust in the market and serious safety risks, where products sold may not meet the safety standards required by legislation, as is the case with counterfeit products.
In view of all these facts, in a scenario where there is a large practice of unfair competition, such as in Brazil, it is extremely important to have proper legal advice to make sure that your creations are protected in Brazil, or even that you don’t commit practices of unfair competition against others and that you always comply with the legal procedures.
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Author: Isabela Nicolella Vendramelli and Cesar Peduti Filho, Peduti Advogados
Source:
https://www.brunnerdigital.com.br/concorrencia-desleal
https://riccipi.com.br/concorrencia-desleal/
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Se quiser saber mais sobre este tema, contate o autor ou o Dr. Cesar Peduti Filho.
If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.
