Unfair competition lawyer - how can a specialist help you?
In a competitive market, the difference between aggressive competition and unfair competition can be hard to spot at first glance. A company has the right to promote its services, attract clients, hire specialists and compete on price, quality or innovation. The problem arises when the methods used breach good faith, use confidential information, disparage a competitor or destabilise another firm's business.
Unfair competition can directly affect sales, reputation, business relationships, client portfolio and a company's position in the market. Sometimes the damage appears quickly: loss of clients, poaching of a team, spreading of false information or use of trade secrets. At other times, the effects are slower but just as serious: a decline in brand trust, confusion among clients or the blocking of important business relationships.
In such situations, the assistance of an unfair competition lawyer is essential. A lawyer can assess whether the act falls under Legea nr. 11/1991 (Law no. 11/1991), can gather the necessary evidence, draft notifications and complaints, bring court actions and seek urgent measures to stop the damage.
At Buju, Stanciu & Asociații, we provide legal assistance in unfair competition cases, commercial disputes, protection of trade secrets, conflicts between companies, non-compete clauses, diversion of clientele and disputes involving employees, former collaborators or business partners.
6
main types of unfair competition acts
3
levels of liability: civil, administrative, criminal
1991
Law no. 11 - the legal framework for fair competition
What is unfair competition?
Unfair competition means the use of commercial practices contrary to fair usage and the principle of good faith, which cause or may cause damage to other undertakings. In other words, the law does not penalise competition itself, but the improper conduct by which a company tries to gain market advantages through illegitimate means.
A company may offer better prices, faster services or superior products. This is normal competition. But it cannot lie about a competitor, use its trade secrets, divert its clients through unfairly obtained information, or create confusion between its products and services and those of another firm.
Legea nr. 11/1991 privind combaterea concurenței neloiale (Law no. 11/1991 on combating unfair competition)
Legal framework
Legea nr. 11/1991 (Law no. 11/1991) aims to protect fair competition, in compliance with fair usage and good faith. This protection operates on several levels: civil, administrative or criminal, depending on the seriousness of the act.
→ Read the full text of Law 11/1991
Types of unfair competition acts
Click on each category to see concrete examples from practice:
1. Disparagement of a competing undertaking
Disparagement occurs when a company or a current or former employee communicates or spreads untrue information about a competing undertaking, or about its products or services, where that information is likely to affect its legitimate interests.
Examples: a company falsely claims that a competitor's products are unsafe; a former employee tells clients that the previous firm is insolvent, although this is not true; a competitor spreads false messages about the quality of another firm's services; a firm publishes materials suggesting that a competitor does not comply with the law, without evidence.
Disparagement is dangerous because it affects reputation and client trust. In some industries, false information can quickly lead to significant commercial losses.
2. Diversion of clientele through the use of confidential information
One of the most common forms of unfair competition. It occurs mainly when a former employee, collaborator, manager or business partner uses information obtained within a previous relationship to move clients to a competing firm.
Not every client departure amounts to unfair competition - clients are free to choose the supplier they prefer. The problem arises when they are attracted through the use of trade secrets or confidential information: client lists, negotiated prices, commercial strategies, special terms, contract data, commercial margins, development plans.
Examples: a former employee copies the client database and uses it at the new firm; a consultant uses information about the former client's internal prices to win contracts; a former director contacts clients using information obtained while in office.
In such cases, evidence is essential: it must be shown what information was used, how it was obtained and what damage it caused or may cause. A well-drafted non-compete clause significantly reduces this risk.
3. Discrediting a competitor's business
Discrediting differs from disparagement, although in practice the two may overlap. It involves actions intended to cause a competing undertaking to lose reputation or credibility, through means other than the mere spreading of untrue information.
Examples: coordinated campaigns of fake reviews; repeated, unfounded complaints to the competitor's business partners; abusive complaints made solely to block its activity; intimidation of its clients or suppliers.
These acts can be difficult to prove, as the perpetrator often tries to present them as mere opinions, feedback or normal commercial conduct. A specialist lawyer can assess whether the actions exceeded the limits of permissible competition.
4. Use of trade secrets
A trade secret is information that is not publicly known, has commercial value precisely because it is secret, and has been protected by reasonable measures taken by its holder. Not every piece of internal information automatically qualifies as a trade secret - the company must have taken steps to protect it: confidentiality clauses, restricted access, internal policies, passwords, NDAs, confidentiality markings.
Examples of trade secrets: customer lists; recipes, formulas, production methods; algorithms or source code; pricing strategies; launch plans; internal financial data; technical procedures; supplier information; in-house developed commercial solutions.
Disclosure, acquisition or use of trade secrets may give rise to civil, administrative or even criminal liability, depending on the circumstances.
5. Creating confusion with a competitor's company name, packaging or products
Another serious form of unfair competition is the use of a company name, emblem, packaging, presentation or commercial elements liable to create confusion with those legitimately used by another trader.
Examples: packaging nearly identical to that of a well-known product; a trade name imitating a competitor's name; a website designed to appear affiliated with another company; use of similar visual elements to capture another brand's customers.
In such cases, the rules on trademarks, intellectual property rights and misleading advertising may also be relevant.
6. Exploitation of a superior bargaining position
The current legislation also covers situations in which an undertaking exploits a superior bargaining position over another undertaking with which it has or has had a commercial relationship. This is not the same as a dominant position under competition law, but it may arise where the relationship between the parties is unbalanced.
Examples: unjustified refusal to supply or purchase goods or services; failure to comply with contractual terms on payment or delivery; imposition of unjustifiably onerous conditions; unjustified modification or termination of the commercial relationship; exploiting a partner's commercial dependence to obtain disproportionate advantages.
This category is important in relationships between suppliers, distributors, platforms, retailers, manufacturers and companies dependent on certain commercial partners.
Quick test: fair or unfair competition?
Test your legal instinct on four real-life scenarios. Choose an answer for each scenario:
Scenario 1: A competitor launches a campaign with prices 30% lower than yours and hires two of your specialists, who left voluntarily, without non-compete clauses.
Fair competition. Lower prices and recruiting employees who leave freely, without non-compete clauses and without taking confidential information, amount to normal competition - however unpleasant it may be commercially.
Scenario 2: A former sales director opens a competing company and contacts your clients using the negotiated price list and special terms he knew from his previous position.
Unfair competition. This is poaching of customers through the use of confidential information obtained while in office - one of the most commonly sanctioned acts under Legea 11/1991 (Law no. 11/1991). The key to the case is evidence of the information used.
Scenario 3: A competitor tells your shared clients that your company
Unfair competition. This is disparagement: communicating untrue information about a competitor that is liable to harm its legitimate interests. You can seek an injunction and damages, and in urgent cases the court may order interim measures.
Scenario 4: A major client leaves for a competitor after the contract expires, saying it received a better offer. There is no indication that anyone used internal information.
Fair competition. Clients are free to choose their supplier. Without proof of the use of confidential information or other unfair means, there is no wrongdoing - a claim based on emotion, without evidence, will be dismissed.
Unfair competition vs. aggressive competition
Not every unpleasant behaviour amounts to unfair competition. A company may make better offers, attract clients, hire people from competitors and advertise comparatively, provided it complies with the law. Competition becomes unfair when means contrary to good faith are used:
Behaviour | Aggressive competition ✓ PERMITTED | Unfair competition ✗ SANCTIONED |
|---|---|---|
Prices | Better offers, promotions, discounts | Prices built on stolen trade secrets |
Employees | Recruiting specialists who leave freely | Poaching the team together with the customer database |
Clients | Attracting clients through offer and quality | Poaching through confidential information or lies |
Communication | Fair comparative advertising, verifiable facts | Disparagement, false information, fabricated reviews |
Identity | Own brand, clear differentiation | Imitating the competitor's name, packaging or website |
The distinction matters for your case
A wrongly formulated claim may be dismissed. Before accusing a competitor of unfair competition, it must be assessed whether the act, the evidence, the damage and the causal link exist.
What can you do if you are a victim of unfair competition?
The path of an unfair competition case
- Gathering evidence
Without evidence, a case of unfair competition is difficult to sustain. Useful evidence includes emails, messages, screenshots, contracts, statements, internal reports, technical documents, access logs, notifications, marketing materials, offers sent to clients or proof of lost contracts. - Legal analysis
The lawyer checks whether the act falls under Legea nr. 11/1991 (Law no. 11/1991) or whether another legal avenue must be used: trademark action, copyright protection, misleading advertising, contractual liability, non-compete clause, breach of confidentiality or a classic commercial dispute. - Notifying the opposing party
In some cases, a well drafted notification can quickly stop the act and lead to an amicable solution - without the costs and duration of a trial. - Court, the Competition Council or a criminal complaint
If the damage continues, one can proceed to court, to the Competition Council or, in serious cases, towards filing a criminal complaint.
Notifying the Competition Council and court action
Notifying the Competition Council
The Competition Council may intervene within the limits of its powers, where the unfair competition practice affects the public interest and the proper functioning of the market. The notification must contain indications, available evidence, an explanation of the legitimate interest and a description of the damage caused or imminent. Not every private conflict between two firms will be taken up by the Council.
Court action
A person who has a legitimate private interest may apply directly to the court for the cessation or prohibition of the practices, as well as for compensation for material and moral damage. In urgent cases, the court may order provisional measures to stop the practice until the case is resolved - essential where clients are being contacted or confidential information is being used right now.
What sanctions may apply?
Unfair competition may give rise to liability on three levels, which may coexist in the same case:
Civil liability
Cessation of the act, prohibition of its continuation, compensation for the damage caused and, in certain cases, publication of the court decision.
Administrative liability
Fines imposed by the Competition Council, including significant fines for legal entities.
Criminal liability
In serious situations: use of elements that create confusion with those of another trader, use or disclosure of trade secrets under certain conditions, or false statements regarding intellectual property rights, origin or characteristics.
Economic cases branch out quickly
In practice, a commercial dispute can also reveal other legal risks for the companies involved - from the use of fictitious documents to tax issues. See also our guide on tax evasion to understand where these areas intersect.
The role of an unfair competition lawyer
A specialist lawyer can help you in several ways:
Correct qualification of the act
Analyses whether the act is unfair competition or another type of dispute and identifies the necessary evidence - the step that determines whether the action has a chance of success.
Notifications and complaints
Drafts notifications to the opposing party and formulates complaints to the Competition Council, with the evidence correctly structured.
Court actions and urgent measures
Prepares court actions, requests provisional measures for the immediate cessation of the practice and calculates and supports the claim for damages.
Preventive protection
Protects trade secrets, drafts confidentiality clauses and non-compete clauses, assists the company in conflicts with former employees, collaborators or competitors.
Speed of reaction determines the size of the damage
If the client base is already being used by a competitor or if confidential information has been disclosed, delay can increase the damage. Contact us from the first day you notice the problem.
Preventing unfair competition
The best strategy is prevention. If the company does not protect its information, it will be harder to later argue that it was a trade secret. Check the measures your company has already implemented:
Checklist: how protected is your company?
- Well drafted employment contracts, with clear obligations regarding company information
- Confidentiality clauses in contracts with employees and collaborators
- NDAs signed with business partners
- Non-compete clauses, where legal and necessary
- Internal policies on data access and the limitation of access to sensitive information
- Monitoring the departure of key employees (handover of access, accounts, devices)
- Protection of client databases
- Registered trademarks for names, logos and core products
- Digital security procedures (passwords, role-based access, logs)
Fewer than 7 out of 9? You are vulnerable
Each missing measure is an open door for the diversion of clientele or the leak of trade secrets - and one less argument in a potential lawsuit. We can quickly audit and complete your company's documentation: schedule a discussion.
Unfair competition in technology, IT and crypto
In digital fields, unfair competition can take more sophisticated forms: copying source code, using databases, unauthorised access to accounts, transferring clients to a competing platform, using information about users, imitating an application's interface or using technical strategies obtained confidentially.
In the crypto and fintech space, situations may arise concerning digital wallets, trading platforms, investor data, listing strategies, smart contracts or communications to user communities. These cases require a combined analysis: corporate law, intellectual property, data protection, penal and technology.
At Buju, Stanciu & Asociații, our experience in digital projects and complex commercial litigation allows us to approach these cases with a genuine understanding of the technical and economic mechanisms involved.
Why Buju, Stanciu & Asociații?
We provide legal assistance in cases of unfair competition, commercial litigation, protection of trade secrets, disputes between associates, non-compete clauses, poaching of clientele and disputes between competitors.
Our approach is practical: we quickly analyse the facts, identify the evidence, establish the appropriate legal course of action and act to stop the damage. Depending on the case, we may recommend notification, negotiation, referral to the Competition Council, court action or a criminal complaint.
"For companies, unfair competition is not just a legal issue. It is a business issue: it affects clients, contracts, reputation and market stability. That is why the response must be fast, consistent and well documented."
- Marius Stanciu, Partner, Buju, Stanciu & Asociații
Frequently asked questions about unfair competition
What is unfair competition?
Unfair competition is the use of commercial practices contrary to fair dealing and good faith, which cause or may cause harm to other undertakings, according to Legea nr. 11/1991 (Law no. 11/1991).
Is any attraction of clients unfair competition?
No. Clients are free to choose their supplier. The problem arises when attracting them involves confidential information, trade secrets, lies, pressure or other unfair methods.
Can I sue a competitor for disparagement?
Yes, if you can prove that untrue information was communicated or disseminated that affected your legitimate interests.
What evidence is useful?
Emails, messages, screenshots, contracts, offers, databases, access logs, statements, advertising materials, invoices and evidence of lost clients or contracts.
Can I go directly to court?
Yes. If you have a legitimate private interest, you can go directly to court to stop the practice and recover damages, including through interim measures in urgent cases.
Does the Competition Council intervene in every case?
No. The Competition Council intervenes within the limits of its competence, especially where there is a public interest and an impact on the proper functioning of the market. Strictly private disputes go directly to court.
Can unfair competition be a criminal offence?
Yes, certain acts may be criminal in nature, especially in cases involving confusion with another trader's firm or products, trade secrets or false statements about products or services.
Conclusion
Unfair competition can seriously harm a business: it can cause the loss of clients, reputation, contracts and commercial advantages rightly obtained. The law protects companies against practices contrary to good faith, but the success of a case depends on evidence, strategy and speed of reaction.
. If a competitor disparages your company, uses your confidential information, diverts your clients or creates confusion in the market, it is important to act quickly. A lawyer specialising in unfair competition can analyse the situation, stop the damage and build a strategy for recovering losses.
At Buju, Stanciu & Asociații, we provide legal assistance to companies affected by unfair competition, with a clear, fast approach adapted to current commercial realities.
Is a competitor playing dirty?
Disparagement, diverted clients, trade secrets used against you - the longer you wait, the greater the damage. Send us the details and receive a confidential assessment of your case.