A competitor that copies your packaging to confuse customers, spreads false statements about your company, lures away your employees to take your information or trades on your reputation to sell its own products is not competing: it is competing unfairly, and Colombian law provides tools to stop it and recover damages. We are unfair competition attorneys in Colombia: we analyse the conduct, gather the evidence, request the interim measures that stop it and bring the claim before the Superintendence of Industry and Commerce (SIC). We also defend companies facing unfair competition claims.
Unfair competition under Colombian law
Unfair competition is governed by Law 256 of 1996. Article 7 prohibits all acts of unfair competition and defines them as any act carried out in the market for competitive purposes that is contrary to sound commercial practice, commercial good faith or honest industrial or commercial usage, or that is aimed at or affects the buyer’s freedom of choice or the competitive functioning of the market. Under Article 2, the competitive purpose is presumed when the act is objectively capable of maintaining or increasing market share, and under Article 3 the law applies to any market participant, without requiring a competitive relationship between the parties.
Acts of unfair competition
Articles 8 to 19 of Law 256 of 1996 describe specific acts, including diversion of customers (Article 8), confusion (Article 10), deception (Article 11), discrediting a competitor with false or impertinent statements (Article 12), exact imitation that causes confusion or exploits another’s reputation, and systematic imitation aimed at blocking a competitor (Article 14), exploitation of another’s reputation (Article 15), misuse of trade secrets (Article 16), inducing employees, suppliers or customers to breach their contracts (Article 17) and obtaining a significant competitive advantage by breaking the law (Article 18).
Former employees and partners
One of the most common cases is the employee or partner who leaves, sets up a business in the same field and takes the customer base, pricing information or the team. Not every competing activity by a former employee is unfair: the law protects the freedom to work and to do business. What is unfair is using confidential information, inducing others to breach their contracts or diverting customers by means contrary to commercial good faith. The outcome of these cases almost always depends on what the company had signed beforehand: confidentiality agreements, non-disclosure clauses and evidence that the information was protected.
What a claim can achieve
Article 20 provides two actions: a declaratory and condemnatory action, to have the acts declared unlawful, their effects removed and damages paid; and a preventive action, to stop an unfair act that has not yet occurred or to prohibit it even before any damage is caused. Under Article 31, once an act of unfair competition or its imminence is shown, the court may order its provisional cessation, and in cases of serious and imminent danger interim measures may be granted without hearing the other party within twenty-four hours of the request.
Where to file and deadlines
Under Article 24 of the General Code of Procedure, the SIC has judicial powers to hear cases concerning breaches of unfair competition rules, as well as industrial property infringement cases, so claims involving a registered trademark, patent or design can be coordinated. Under Article 23 of Law 256 of 1996, unfair competition actions are time-barred two years after the claimant learns who committed the act and, in any event, three years after the act.
How we handle your case
We first identify which specific act under the law matches what is happening, because unfair competition claims are won by proving acts, not suspicions. We then gather and secure the evidence, check whether registered industrial property rights allow an infringement action as well, calculate the deadlines and request interim measures where the harm is ongoing. With more than 20 years of practice before the SIC, we know how it decides these cases. If your company is the one being sued, we assess the real strength of the claim and build the defence. See also our pages on trademark oppositions and appeals and commercial law.
Frequently asked questions
Where are unfair competition claims filed in Colombia?
Before the Superintendence of Industry and Commerce, which has judicial powers in unfair competition matters under Article 24 of the General Code of Procedure. It is a judicial proceeding, not an administrative complaint, and it should be filed with evidence of the specific acts.
Can a foreign company bring an unfair competition claim in Colombia?
Under Article 21 of Law 256 of 1996, any person who participates or shows an intention to participate in the market and whose economic interests are harmed or threatened by unfair acts may bring the actions, which includes foreign companies selling or planning to sell in Colombia.
How long do I have to file?
Two years from learning who committed the act and, in any event, three years from the act itself, under Article 23 of Law 256 of 1996.
Is copying a competitor’s packaging unfair competition?
It can be, as an act of confusion or exploitation of another’s reputation, when the imitation leads customers to confuse the products or takes advantage of the other company’s standing. If the packaging is also registered as a trademark or industrial design, an infringement action is available as well.
Talk to an attorney
Write to us on WhatsApp with what is happening and we will tell you whether it is unfair competition, what evidence you need and what measures can be requested.