Spanish Unfair Competition Law and Business Protection

Protection Against Unfair Competition in Spain

Protection against unfair competition requires a minimum standard of conduct in relation to competitors. In Spain, this protection is regulated by Law 3/1991, which was subsequently amended by Law 29/2009. This legislation ensures that companies compete fairly with one another by prohibiting a range of business conducts designed to prevent unfair competition.

Prohibited Business Practices

• a) Acts of confusion: Prohibited by Article 6, this includes any behavior suited to create confusion regarding the activities, services, or facilities of others.
• b) Acts of deception: Prohibited by Article 7, these involve incorrect or false information, the omission of facts, or any other misleading practice regarding the characteristics of a product.
• c) Gifts and bonuses: Article 8 prohibits obtaining or improving business figures through gifts, bonuses, and similar cases that pressure the consumer into a commitment to hire the initial benefit. When the actual cost of the gift exceeds 15% of the initial benefit, it is legally recognized that the consumer has been placed under a compromise.
• d) Acts of denigration: Prohibited by Article 9, it is considered unfair to disseminate statements about a third party aimed at undermining their credit. However, product demonstrations of a third party may be disseminated if they are accurate, true, and relevant.
• e) Acts of comparison: Prohibited by Article 10, these are forbidden when they involve extreme comparisons that are not relevant, similar, or comparable.
• f) Acts of imitation: Article 11 prohibits acts of imitation. While a benefit can be mimicked if not protected by exclusive rights, imitation is prohibited when aimed at taking unfair advantage of another's reputation or when it constitutes systematic imitation.
• g) Exploitation of another's reputation: Forbidden by Article 12, this involves taking unfair advantage or seeking personal gain from the industrial or commercial reputation of a third party.
• h) Violation of professional or industrial secrets: Article 13 prohibits disclosing trade secrets or business information without the owner's permission.
• i) Induction to breach of contract: Prohibited by Article 14, this involves inducing employees, suppliers, or customers to violate the contractual duties they have established.
• j) Discrimination and economic dependence: Prohibited by Article 16, this includes the exploitation by a company of the state of dependence in which a customer or supplier may find themselves.
• k) Selling at a loss: Prohibited by Article 17, a company cannot sell its products at a price lower than the cost of production with the intent to eliminate competitors.

Legal Actions Against Unfair Competition

When an action of unfair competition occurs, the following may be requested through the court:

• A formal statement declaring the action as unfair competition.
• The cessation of the unfair act.
• A return to the "current situation" (restoration of the traditional state prior to the act).
• The correction of misleading information.
• An indemnity for damages.