Unfair competition is actions that violate the rules of honesty in commercial life and cause harm to others or the business environment. It is regulated in TTK articles 54-63.
Main Situations Considered Unfair Competition (TTK Article 55)
- Deceptive promotions, statements and behaviors
- Distributing misleading information about someone else's commodity, work product, price, or business
- Creating confusion with someone else's promotional means
- Using someone else's title, trademark, sign or commodity in a way that may cause confusion
- Leading the other party to breach of contract
- Forcing customers to buy others' products/services
- Secretly obtaining or unauthorized use of business secrets
- Attracting customers by telling them that their product/service is no different from anyone else's
Cases That Can Be Filed (TTK Article 56)
- Declaratory action:Determination that the action constitutes unfair competition
- Proceeding for prohibition: Suspension of action, discontinuation
- Restitution case:Returning to the situation before the action
- Compensation lawsuit: Compensation for material and moral damages
Injunction
The plaintiff may request injunction to prevent the continuation of the action during the trial period. The court may issue an immediate injunction if the case seems justified.
Plaintiff Adjective
- Trader who suffered direct loss
- Customer
- Professional or economic associations (chamber, association)
Prescription (TTK article 60)
- 1 year:From the date the plaintiff learned about the unfair competition and its perpetrator
- 3 years: In any case, due to unfair competition
Supreme Court 11th HD Approach
The 11th Civil Chamber of the Supreme Court of Appeals adopts that in unfair competition cases, the existence of "danger of confusion" should be taken as a criterion that an average consumer can confuse products/businesses. The professional buyer standard does not apply.
Establishing a rival business by a resigned employee using the former employer's customer portfolio is not considered unfair competition per se, but it is considered unfair competition if the customer list is a confidential trade secret.
Criminal Liability (TTK article 62)
Some types of unfair competition (e.g. using someone else's brand, false promotion) may also be subject to up to 2 years imprisonment and judicial fine
.Jurisdictional and Competent Court
- Officer: Commercial Court of First Instance (special court)
- Authority:The defendant's place of residence or the place where unfair competition was committed/where the result arose
Unfair competition cases require detailed evidence collection and prompt precautionary measures; commercial law lawyer support is critical for effective results.