UNFAIR COMMERCIAL COMPETITION PRACTICES

Legal base:

• Competition Law

Definition of unfair competition practices

According to law, unfair competition practices mean competition acts performed by enterprises against the principles of fairness, honesty, commercial practices, and standards, which cause or may cause damage to the legitimate rights and interests of other enterprises.

As we can see, unfair competition brings more negativity to the market and is not supported by the law due to its violation of the principles of honesty, fairness and infringement upon the interests of the State, public interests, legitimate rights, and interests of enterprises and consumers.

Prohibited unfair competition practices by law

Enterprises are entitled to freedom of competition following legal provisions to ensure the lawful right to competition in business. According to Article 45 of Competition Law, these acts are prohibited:

Firstly, trade secret infringement in the following forms:

– Assessing and acquiring trade secrets by going against security measures of the owner of such trade secrets;

– Disclosing or using trade secrets without consent of the owner.

Secondly, forcing customers or business partners of other enterprises through threatening or coercion so that they do not enter in transaction or stop transaction with such enterprises.

Thirdly, Discrediting competitors through directly or indirectly providing untruthful information about such competitors which negatively impacts their goodwill, financial status or business operation.

Fourthly, disrupting the business activities of another enterprise by directly or indirectly obstructing or disrupting the lawful business activities of that enterprise.

Fifthly, illegally luring customers through:

– Providing false or misleading information to customers about the enterprise or products, services, sale promotion programs, transaction conditions related to the products or services provided by the enterprise to attract customers of competitors;

– Comparing products, services of the enterprise with those of the same kinds of competitors without evidence to prove the comparison.

Lastly, sale of goods and services below cost that drives or probably drives competitors out of the market.

And others prohibited unfair competition practices in different laws.

Resolve unfair competition cases

According to Article 59 of Competition Law, the President of the National Competition Commission is the person with authority to decide on settling unfair competition cases and handling complaints about unfair competition.

The time limit for the Chairman of the National Competition Commission to handle an unfair competition case is 15 days from the date of receiving the dossier, investigation report, and investigation conclusions. Accordingly, the President of the National Competition Commission must make one of the following decisions:

– Settle the unfair competition case;

– Request further investigation if the evidence collected is not sufficient to determine violations against competition regulations. The time limit for further investigation is 30 days from the date of decision. After receiving the dossier, investigation report, and additional investigation conclusions, processing must be carried out within 10 days;

– Suspend the settlement of the unfair competition case.