FAQ: Everything You Need to Know About Unfair Competition in 2026

Unfair competition is one of the main concerns of French businesses. Faced with commercial practices that are at times aggressive or misleading, company directors and entrepreneurs ask what their rights are and what remedies are available. This FAQ answers the most frequent questions on unfair competition (concurrence déloyale), its forms and the legal solutions available.

What exactly is unfair competition?

Unfair competition covers all commercial practices that breach the rules of fair dealing in business relations. Unlike normal and desirable competition between companies, unfair competition uses means contrary to honest commercial practice.

French law, mainly through Article 1240 of the French Civil Code (formerly Article 1382), penalises this conduct. French case law has gradually defined three cumulative criteria for unfair competition:

• A fault in the conduct of commercial activity
• Damage suffered by the competitor
• A causal link between the fault and the damage

This protection applies to all companies, whether or not they are direct competitors, provided they operate in related markets.

What are the most common forms of unfair competition?

Disparagement

Disparagement (dénigrement) consists in harming a competitor's reputation through false or malicious statements. It can take various forms:

• Unjustified criticism of products or services
• Spreading rumours about the financial situation
• Personal attacks on managers
• Calling into question quality or reliability

Confusion

Confusion is aimed at misleading customers by creating a similarity with an established competitor. This practice takes the following forms:

• Imitation of distinctive signs (logo, trade name, shop sign)
• Reproduction of product presentation features
• Adoption of a similar company name
• Copying of advertising or marketing concepts

Disorganisation

Disorganisation (désorganisation) is the organised diversion of a competitor's customers or staff. The most frequent practices include:

• Systematic poaching of key employees
• Breach of non-competition obligations
• Use of stolen customer files
• Strategic geographical location chosen to cause harm

Free-riding

Free-riding (parasitisme) consists in benefiting from the efforts and investments of others without compensation. It is characterised by:

• Imitation of successful advertising campaigns
• Reproduction of innovative concepts
• Exploitation of a competitor's reputation
• Copying of effective commercial strategies

How can unfair competition be proved?

Proving unfair competition requires demonstrating the three constituent elements. Practical advice for building a solid file follows:

Gathering material evidence

• Time-stamped screenshots of websites
• Photographs of the advertising materials in dispute
• Recordings of telephone conversations (in compliance with the regulations)
• Statements from customers or suppliers
• Account statements showing the financial impact

Use of bailiff's reports

A commissaire de justice (bailiff) can draw up reports that constitute particularly strong evidence before the courts. These reports fix the situation at a given point in time and establish beyond dispute the reality of the facts complained of. The means of proof and the procedure for establishing acts of unfair competition are set out in our article on this question.

Technical expert opinion

In certain complex cases, in particular counterfeiting or imitation, a technical expert opinion may be necessary to demonstrate the similarities or differences between products or services.

What remedies are available in cases of unfair competition?

Action for cessation

An action for cessation aims to stop the unfair practices immediately. It can be brought in summary proceedings (référé) to obtain a rapid decision, which is particularly useful where the conduct causes continuing and urgent damage.

Action for damages

This action allows compensation to be obtained for the damage suffered. The amount of damages may include:

• Proven loss of profit
• Loss of customers
• Harm to image and reputation
• Costs incurred to stop the conduct

Additional measures

The court may order specific measures such as:

• Publication of the judgment in the specialist press
• Display of the decision on the offender's premises
• Restoration of items unlawfully altered
• Destruction of the advertising materials in dispute

Within what time limits must proceedings be brought?

Time limits are a crucial issue in unfair competition actions. Article 2224 of the French Civil Code sets the ordinary limitation period at five years from the day on which the holder of a right knew or should have known the facts enabling them to exercise it.

Advice on meeting time limits

• Act as soon as the practices complained of are discovered
• Do not wait until the damage has been precisely quantified
• Keep all evidence as soon as it is discovered
• Consult a lawyer promptly

Interruption of the limitation period

Certain acts interrupt the limitation period and start it running afresh:

• A formal notice sent to the offender
• Service of a writ of summons
• Filing of a criminal complaint

How to defend against an accusation of unfair competition

Being accused of unfair competition calls for a structured and reasoned defence. Several strategies may be used depending on the circumstances.

Disputing the constituent elements

The defence may rely on the absence of one of the three constituent elements:

• Show the absence of fault by proving that the practices are lawful
• Dispute the existence of damage or its quantification
• Challenge the causal link between the acts and the damage

Invoking freedom of trade

Freedom of trade and industry, a constitutional principle, protects companies in their legitimate strategic choices. This defence may be invoked in particular where free-riding or disorganisation is alleged. On how economic free-riding is established and how it relates to unfair competition, see our article on these two notions.

Relying on good faith

Good faith is an important factor in assessing fault. Proving that the practices complained of result from a legitimate commercial approach and not from an intention to harm can considerably reduce liability.

Unfair competition online: the specific features of the digital environment

The growth of e-commerce has created new challenges in relation to unfair competition. Unfair practices have adapted to digital tools, requiring particular vigilance.

Common practices on the internet

• Abusive use of competitors' keywords in paid search advertising
• Creation of fake customer reviews to discredit a competitor
• Diversion of similar domain names
• Unauthorised use of content or visuals

Solutions specific to the digital environment

Companies that are victims have remedies adapted to the digital environment:

• Reporting to the platforms concerned
• Domain name dispute resolution procedures
• Legal action in summary proceedings for rapid cessation
• Requests for de-listing from search engines

Preventing unfair competition: good practice

Prevention remains the best protection against unfair competition. A few measures help secure a company's position on the market. The legal means of protecting a company's intangible assets, whether trade marks, creations or know-how, are covered separately in our dedicated article.

Protecting intangible assets

• Register trade marks and designs
• Protect creations through copyright
• Secure know-how through confidentiality agreements
• Monitor the use of distinctive signs

Documenting investments and innovations

Keeping evidence of creative and financial efforts facilitates any later legal action. This documentation includes invoices, market studies, development reports and statements.

Training teams

Making staff aware of the issues raised by unfair competition helps avoid risky practices and detect third-party conduct more quickly.

When to instruct a lawyer?

The complexity of the law on unfair competition often justifies recourse to experienced legal advice. Certain situations require professional assistance.

Urgent cases

• Discovery of practices causing immediate damage
• Need for an action in summary proceedings
• Situations requiring bailiff's reports at short notice
• Management of a reputational crisis

Assessing the prospects of success

A lawyer can objectively assess the prospects of success of an action and advise on whether it is advisable to bring proceedings. This prior analysis avoids unnecessary costs and optimises strategy.

Unfair competition is a major issue for all companies, regardless of their size or sector of activity. These frequently asked questions illustrate the variety of situations encountered and the need for a suitable legal approach. Faced with such problems, do not hesitate to seek the assistance of a business law professional who can help you defend your commercial interests.