Competition is essential for capitalism to work. People compete for resources and offer competing goods and services to consumers. Competition drives innovation and helps keep prices fair. A competing business can help you energize your workforce and push you to try new things.
Unfortunately, competition sometimes isn’t fair and appropriate. Other businesses may engage in unfair competition. The three behaviors below are all examples of unfair business competition that could hurt your business and lead to civil court proceedings.
If another business wants your client list or your secret recipe, they should negotiate with your company for rights. Unfortunately, there are those who will try to steal from your business. There are multiple ways to engage in corporate espionage, ranging from outright burglary to having someone infiltrate the company as an employee.
If two or more of your competitors work to artificially affect the prices in your industry, they could shrink your market share and potentially push you out of the industry. Businesses should not cooperate to manipulate pricing to damage someone else’s business.
Digital review platforms can help consumers talk about their experiences at a business. They can also give your competitors an opportunity to unfairly disparage your company. False reviews or even allegations against your company made online could have real-world consequences for your business’s financial future.
If your company has been the subject of unfair competition, you may need to consider taking legal action to hold the other party accountable for their misconduct. Knowing the basics of business law makes it easier to defend your company from the misconduct of others.