Why Unfair Competition Rules Dictate

Original Language Title: Por la cual se dictan normas sobre competencia desleal

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ACT

(January 15)

Official Journal No. 42,692 of 18 January 1996.

For which rules on unfair competition are dictated.

Vigency Notes Summary

THE CONGRESS OF COLOMBIA,

DECRETA:

CHAPTER I.

GENERAL PROVISIONS

ARTICLE 1o. OBJECT. Without prejudice to other forms of protection, this Law is intended to guarantee free and fair economic competition, by prohibiting acts and conduct of unfair competition, for the benefit of all participating in the the market and in accordance with the provisions of the numeral 1. Article 10a of the Paris Convention, adopted by Law 178 1994.

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ARTICLE 2o. OBJECTIVE SCOPE OF APPLICATION. The behaviors provided for in this law shall be considered as acts of unfair competition as long as they are carried out on the market and for concurrent purposes.

The concurrent purpose of the act is presumed when it is, due to the circumstances in which it is carried out, that it is objectively suitable to maintain or increase the participation in the market of the person who performs it or of a third party.

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ARTICLE 3o. SUBJECTIVE SCOPE OF APPLICATION. This Law will apply to both traders and any other market participants.

The application of the Law cannot be made subject to the existence of a competitive relationship between the active subject and the taxable person in the act of unfair competition.

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ARTICLE 4. TERRITORIAL SCOPE OF APPLICATION. This Law will be applied to acts of unfair competition whose main effects take place or are called to have them in the Colombian market.

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ARTICLE 5o. THE CONCEPT OF COMMERCIAL BENEFITS. The commercial benefits may consist of acts and operations of market participants, related to the delivery of goods and goods, the provision of services or the fulfillment of facts positive or negative, susceptible to pecuniary appreciation, which are constituted in the concrete and effective activity for the fulfillment of a legal duty.

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ARTICLE 6o. INTERPRETATION. This Law shall be interpreted in accordance with the constitutional principles of free economic activity and private initiative within the limits of the common good; and economic and free and fair but responsible competition.

CHAPTER II.

UNFAIR COMPETITION ACTS

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ARTICLE 7o. GENERAL BAN. of unfair competition are prohibited. Market participants must respect in all their actions the principle of good commercial faith.

In accordance with what is set by the number 2o. Article 10 bis of the Paris Convention, approved by Law 178 of 1994, is considered to constitute unfair competition, any act or event that is carried out on the market for concurrent purposes, when it results contrary to sound commercial customs, to the principle of good commercial faith, to honest uses in industrial or commercial matters, or where it is intended to affect or affect the freedom of decision of the buyer or consumer, or the concurrent operation of the market.

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ARTICLE 8o. ACTS OF DEVIATION OF THE CLIENTELE. It is considered unfair any conduct that has as object or as an effect to divert the clientele of the activity, commercial performances or other establishments, provided that it is contrary to the healthy customs trade or honest uses in industrial or commercial matters.

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ARTICLE 9o. ACTS OF DISORGANIZATION. It is considered to be unfair any conduct that has as its object or as an effect to disorganize internally the company, the commercial benefits or the foreign establishment.

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ARTICLE 10. ACTS OF CONFUSION. In accordance with the provisions of point 1 of Article 10a (3) of the Paris Convention, approved by Law 178 of 1994, any conduct which it has by itself is considered to be unfair. object or as an effect to create confusion with the activity, the commercial performances or the other establishment.

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ARTICLE 11. ACTS OF DECEPTION. In accordance with the provisions of point 3 of Article 10a (3) of the Paris Convention, approved by Law 178 of 1994, any conduct which it has by itself is considered to be unfair. or as an effect to mislead the public about the activity, the commercial services or the other establishment.

The use or dissemination of incorrect or false indications or assertions, the omission of the true and any other type of practice which, in the circumstances in which it takes place, is presumed to be liable to mislead the persons to whom it is directed or reached on the activity, the commercial benefits or the other establishment, as well as on the nature, the mode of manufacture, the characteristics, the aptitude in the employment or the quantity of the products.

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ARTICLE 12. ACTS OF DISREPUTE. In accordance with the provisions of point 2 of Article 10a (3) of the Paris Convention, adopted by Law 178 1994, the use or dissemination of such acts is considered to be unfair. of incorrect or false indications or assertions, the omission of the true and any other type of practice which has as its object or as an effect to discredit the activity, the services, the establishment or the mercantile relations of a third, unless they are accurate, true and relevant.

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ARTICLE 13. ACTS OF COMPARISON. Without prejudice to Articles 11 and 13 of this Law, the public comparison of the activity, the business performance or the establishment itself or the other with those of a third party is considered to be unfair when such a comparison use incorrect or false indications or assertions, or omit the true ones. Similarly, any comparison with regard to extremes which are not similar, or verifiable, is considered unfair.

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ARTICLE 14. ACTS OF IMITATION. The imitation of business services and other business initiatives is free, unless they are covered by the law.

However, the exact and thorough imitation of the benefits of a third party will be considered unfair when it creates confusion about the business origin of the benefit or makes an improper use of the reputation of others.

The inevitable existence of the indicated risks of confusion or exploitation of the reputation of others excludes the disloyalty of the practice.

The systematic imitation of a competitor's business performance and initiatives will also be considered unfair where such a strategy is aimed at preventing or hindering its claim on the market and exceeds what is claimed by the circumstances, can be repudiated as a natural response of the market.

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ARTICLE 15. EXPLOITATION OF THE REPUTATION OF OTHERS. It is considered unfair to take advantage of the advantages of the industrial, commercial or professional reputation acquired by another in the market.

Without prejudice to the provisions of the Criminal Code and international treaties, the unauthorized use of other distinctive signs or false or misleading designations of origin shall be deemed to be unfair even if they are accompanied by the indication about the true provenance of the product or expressions such as "model", "system", "type", "class", "gender", "manner", "imitation", and "similar".

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ARTICLE 16. VIOLATION OF SECRETS. The disclosure or exploitation, without authorization of its holder, of industrial secrets or any other kind of business secrets to which access has been legitimately but with a duty of reserves, or illegitimately, as a result of some of the conduct referred to in the following paragraph or article 18 of this Law.

It will also have the consideration of disloyal, the acquisition of secrets by means of espionage or analogous procedures, without prejudice to the sanctions that other norms establish.

The actions relating to the violation of secrets shall proceed without the requirements referred to in Article 2or. of this Law.

Editor Notes
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ARTICLE 17. INDUCTION OF CONTRACTUAL RUPTURE. The induction of workers, suppliers, customers and others is unfair, in breach of the basic contractual obligations they have incurred with competitors.

The induction of the regular termination of a contract or the use for the benefit or other of a contractual breach is only unfair when, where it is known, it is intended to expand an industrial or commercial sector. (a) business or accompanied by circumstances such as deception, the intention to remove a competitor from the market or other analogues.

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ARTICLE 18. VIOLATION OF RULES. It is considered to be unfair the effective market performance of a competitive advantage acquired against competitors by infringement of a legal standard. The advantage must be significant.

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ARTICLE 19. UNFAIR AGREEMENTS ON EXCLUSIVITY. It is considered unfair to enter into supply contracts exclusive clauses, where such clauses have as their object or effect, to restrict competitors ' access to the market, or to monopolise the market. distribution of products or services, except for the liquor industries while they are owned by the local authorities.

Effective Case-law

CHAPTER III.

ACTIONS DERIVED FROM UNFAIR COMPETITION

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ARTICLE 20. ACTION. Against acts of unfair competition, the following actions may be brought:

1. Declarative action and conviction. The affected by acts of unfair competition will take action to declare the illegality of the acts carried out judicially and consequently the infringer is ordered to remove the effects produced by these acts and to compensate the damages caused to the complainant. The plaintiff may request at any time in the proceedings that the precautionary measures enshrined in Article 33 of this Law be practiced.

2. Preventive or prohibition action. The person who thinks that he/she may be affected by acts of unfair competition will take action to ask the judge to avoid the conduct of unfair conduct that has not yet been perfected, or to prohibit it even if it has not yet been produced. damage.

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ARTICLE 21. ACTIVE LEGITIMATION. In accordance with Article 10 of the Paris Convention, approved by Law 178 of 1994, any person who participates or demonstrates his intention to participate in the market, whose economic interests are harmed or threatened by acts of unfair competition, is entitled to the exercise of the actions provided for in Article 20 of this Law.

The actions referred to in Article 20 may also be exercised by the following entities:

Professional and professional associations or corporations when the interests of their members are severely affected.

The associations which, according to their statutes, are intended to protect the consumer. The legitimation will be conditional on the fact that the act of unfair competition is seriously and directly affecting the interests of consumers.

The Attorney General of the Nation on behalf of the Nation, regarding those unfair acts that seriously affect the public interest or the preservation of an economic order of free competition.

Legitimization shall be presumed when the act of unfair competition affects an economic sector in its entirety, or a substantial part thereof.

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ARTICLE 22. PASSIVE LEGITIMIZATION. The actions provided for in Article 20 shall be against any person whose conduct has contributed to the performance of the act of unfair competition.

If the act of unfair competition is performed by workers or other collaborators in the exercise of their contractual duties and duties, the actions provided for in Article 20 of this Law must be addressed. against the employer.

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ARTICLE 23. PRESCRIPTION. The actions of unfair competition prescribe in two (2) years from the moment that the legitimized was aware of the person who carried out the act of unfair competition and in any case, for the course of three (3) years counted from the moment of the performance of the event.

CHAPTER IV.

PROCESSING PROVISIONS

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ARTICLE 24. PROCEDURE. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 25. TERRITORIAL JURISDICTION. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 26. REQUEST AND DECREE OF PRELIMINARY INVESTIGATIONS. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 27. PRACTICE AND ASSESSMENT OF PRELIMINARY VERIFICATION DILIGENCE. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 28. CERTIFICATION OF PRELIMINARY PROCEEDINGS. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 29. TERM TO FILE THE COMPLAINT. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 30. CLAIM OF THE PARTY AFFECTED BY THE PRELIMINARY PROCEEDINGS. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 31. " PRECAUTIONARY MEASURES. ...................................................................... other precautionary measures which are relevant.

The measures provided for in the preceding paragraph shall be of preferential treatment. In the event of serious and imminent danger, they may be adopted without hearing from the opposing party and may be handed down within twenty-four (24) hours following the filing of the application.

If the measures are requested before the application is filed, it will also be competent to adopt them the Judge of the place where the act of unfair competition produces or can produce its effects.

However, once the main application has been lodged, the Judge who is aware of the application shall be the sole competent authority in all matters relating to the measures taken.

The precautionary measures, as provided for in this article, shall be governed in accordance with the provisions of Article 568 of the Trade Code and in Articles 678 to 691 of the Civil Procedure Code.

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ARTICLE 32. SPECIALTY IN PROBATIVE MATTER. 626 of Law 1564 of 2012. It governs from 1o. of January 2014. In the terms of the numeral 6) of article 627, see in Previous Legislation the current text up to this date >

Vigency Notes
Previous Legislation
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ARTICLE 33. VALIDITY. This Law governs from its enactment and repeals Article 10 of Law 155 of 1959; Articles 75 to 77 of Decree 410 of 1971, Articles 975 and 976 of the Trade Code and other rules that are contrary to it.

The President of the honorable Senate of the Republic,

JULIO CESAR GUERRA.

The Secretary General of the honorable Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the honorable House of Representatives,

RODRIGO RIVERA SALAZAR.

The Secretary General of the honorable House of Representatives,

DIEGO VIVAS TAFUR.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santafe de Bogota, D. C., on January 15, 1996.

ERNESTO SAMPER PIZANO

The Minister of Economic Development,

RODRIGO MARIN BERNAL

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