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Use these two tips to stop unlawful competition from ruining your company

by , 25 June 2013
Unlawful competition is any unlawful act aimed at harming or gaining a competitive advantage over your business rival. And includes many well-established wrongs such as murder or arson. If your business rival is competing with you unlawfully and committing these acts, would you know what to do? Read on to discover two methods that'll ...

While the struggle for survival in the market-place might at times be fierce, it's not a free for all. Competition must remain within lawful bounds, warns FSP Business.

So if your competitor spreads misinformation against your business; markets his product as similar to or as good as yours; and misleads customers into thinking that his product is your more famous product, it's deemed unlawful competition.

The big question now is if you have any recourse?

Yes you do.

In fact, you have two options you can use to stop your rival from competing against you unlawfully

Two ways to put a stop to a rival business' unlawful competition

According to The Labour Law for Managers Loose Leaf Service, there are two options you can explore when a rival is competing against you unlawfully:

#1: Obtain an interdict: The first thing you need to do is to put a stop to your rival's unlawful activities. To do this, you'll have to get an interdict from the court restraining your rival from doing what he's been doing.

The court will grant the order if you can show that his competitive behaviour goes beyond what the law permits and threatens to cause you or your business harm.

#2: Recover damages: Alternatively, or in addition to an interdict, you may wish to recover damages for any financial losses that your business has suffered as a result of the unlawful competition. You'll then need to prove all the elements that are required for delictual liability.

These elements include

  • Unlawful conduct (the competitive behaviour isn't merely robust or even unfair, but unlawful)
  • Fault (he's acting with deliberate intent to cause harm, or negligently, that is, he should foresee the harm)
  • Damage (financial harm to you or your business)
  • Causation (the harm is caused by the conduct about which you are complaining.

If you can prove these things, the court will order your rival to pay you compensation that will place you in the financial position you would have been in had the unlawful conduct not been committed.

Well there you have it. These are the two ways you can stop a rival company from competing against you unlawfully.

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