Unfair competition is unethical, deceptive, and an abuse of people’s trust. It holds consequences not only for other businesses in the industry, but also consumers.Laws, to this effect,have been passed and implemented to deter such practices.
A good example of unfair competition are violations of the antitrust law (or competition law a known in the EU). Violations include the attempt to push competitors out of the market or block prospective companies from entering it, predatory pricing, or getting all the rights to materials important to the manufacture of business products.
Trademark infringement is another unfair competition example, as is passing off. Here, the deception occurs when companies use the brand name, or logo that resemble that of another company to trick buyers into thinking that they are purchasing the victim company’s products.
Another act that constitute as unfair competition include espionage, bribery, or theft of trade secrets, or misappropriation of trade secrets.
The unfair competition tactic known as trade libel is very much like common law libel except that in unfair competition, companies spread false information that destroys the reputation of a company’s products and name.