8 Methods of Unfair Competition Used in Practice

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The article explains:

What does fair and unfair competition mean?
8 Methods of Unfair Competition Used in Practice
How to Recognize Signs of Unfair Competition
A telling example of unfair competition in Russia
5 Legal Ways to Protect Yourself from Unfair Competition
How to file a complaint to the FAS about unfair competition
What is the liability for unfair competition?
Methods of independent suppression of unfair competition
What to do if a case of unfair competition is initiated against you

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Competition is the main component of any market that is beneficial for the client. Fair competition between competitors contributes to adequate pricing policy, a wide range of products, and the emergence of new technological solutions.


Unfair competition slows down the process of economic development and neutralizes many positive factors that arise in open confrontation.

What does fair and unfair competition mean?
The concept of unfair competition means a fight between companies organized in circumvention of the current legislation. It is considered that it is conducted by prohibited methods, when human rights, interests of other organizations, and established business relations are violated. The law on unfair competition is reflected in the acts "On the Protection of Consumer Rights" and "On the Protection of Competition". It regulates relations between opposing companies.

Differentiation from competitors

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The following features of unfair competition are distinguished:

one company seizes all the privileges in the field of activity;

the laws of the Russian Federation, rules of ethics and business relations are violated;

organizations are damaged and business is negatively impacted.

If a company uses fair and legal methods of struggle, then no damage is caused to another enterprise.

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There are a number of signs that can distinguish fair competition from unfair competition. Fair competition includes:

small markups on the product;

offering a product of higher quality than others;

use of incentive programs and promotions;

improving customer service standards;

warranty and post-warranty service;

gifts for consumers;

free related services (delivery, setup, connection, etc.).

That is, a fair fight between companies is one that is conducted in accordance with the law.

All actions that are carried out in violation of the law are unfair competition in the market. This includes:

use of illegal means to disclose commercial secrets;

copying the goods of another company, but with obviously low quality of execution, which ultimately harms the reputation of the original;

the name of the organization contains prohibited words; it is similar in appearance and sound to the name of a well-known company, which is why buyers confuse the company with the latter;

methods that mislead the customer regarding the origin of the goods;

intentionally causing damage to the opponents' products;

illegal methods of obtaining information about a competitor’s business and their unfair use;

extortion and slander against an opposing company;

exaggeration or lies about the characteristics and quality of a product in order to gain a market advantage;

advertising a product that defame the opponent's name or contains false information.

In modern Russia, in the territory of the former CIS countries, unfair competition is most often manifested in the form of bribery. Dishonest businessmen, through bribery, direct inspections to the firms of their opponents.

Article 34 of the Constitution of the Russian Federation is the main legislative act enshrining the inadmissibility of monopolization and the right to entrepreneurial activity.

Federal Law No. 135-FZ contains provisions that define the concept of unfair competition, its characteristics and methods of manifestation.

The Criminal Code of the Russian Federation and the Code of Administrative Offenses describe the responsibility and types of punishment for unfair fighting techniques of opponents.

The Law of the Russian Federation “On the Protection of Consumer Rights” also touches upon some issues related to unfair competition.