Unfair Competition
Also known as: Unfair Trade Practices, Unfair Competition Action, Haksız Rekabet, TCC Article 54, TCC Article 55
Author Ali Gül
In short
Misleading conduct or commercial practices otherwise contrary to good faith that affect relations between competitors or between suppliers and customers.
Unfair competition is a general legal institution prohibiting conduct contrary to good faith in commercial life. Under Article 54 of the Turkish Commercial Code No. 6102 (TCC), its purpose is to ensure fair and undistorted competition in the interest of all participants. Misleading conduct and commercial practices otherwise contrary to good faith that affect relations between competitors or between suppliers and customers are unfair and unlawful.
Typical Acts (TCC Article 55)
- Disparagement: Disparaging others or their products with false, misleading or unnecessarily hurtful statements
- Misleading statements: Making false or misleading statements about oneself, one’s products or prices
- Causing confusion: Taking measures likely to cause confusion with another’s goods, work products or business; see Passing Off
- Unfair comparison: Untrue, misleading or unnecessarily disparaging comparisons; see Comparative Advertising
- Inducing breach of contract: Inducing customers or employees to breach their contracts
- Unauthorised use of work products: see Misappropriation of Work Product
- Disclosure of production and business secrets: see Trade Secret
- Failure to comply with working conditions and use of unfair standard terms
The list is illustrative; any conduct contrary to the general principle in Article 54 may be unfair competition.
Claims (TCC Article 56)
A person whose customers, credit, professional reputation or economic interests are harmed or threatened by unfair competition may seek:
- A declaration that the act is unfair
- An injunction to stop it
- Removal of its effects, correction of misleading statements and, if necessary, destruction of the means and goods used
- Material and moral damages where there is fault
An interim injunction may be sought before or during proceedings (TCC Article 61). Unfair competition cases are heard by the commercial courts; see Commercial Case.
Criminal Sanctions
Anyone who intentionally commits one of the acts in Article 55 faces imprisonment of up to two years or a judicial fine, upon complaint by a person entitled to sue (TCC Article 62).
Relationship with Other Areas
Unfair competition provides complementary protection where trademark and copyright do not apply; unregistered packaging or product appearance, for example, may be protected against passing off. For unfair competition in advertising see Unfair Commercial Practice. Competition law, by contrast, regulates restrictions of competition in the market; see Anti-Competitive Agreement.
Frequently Asked Questions
Must the parties be competitors?
No. The Turkish Commercial Code covers conduct affecting relations between suppliers and customers as well as between competitors. Conduct by a non-competitor, such as a media outlet or a consumer, may also be unfair competition where it has commercial effect.
When does an unfair competition claim become time-barred?
It must be brought within one year of the claimant learning of the facts giving rise to the claim and in any event within three years of their occurrence. If the act is also a crime subject to a longer limitation period, that period applies (TCC Article 60).
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