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Glossary of terms

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Unauthorized business

Legal consequences of the fact that a person  carries a business illegally:

  • A person carries a business without authorization
  • His/her business was forbidden (e. g. disqualification by judgment of the court, decision on suspending trade by Trade Office)
  • The person has a license to do business, but his / her activity is beyond the scope of such authorization

Unfair competition

Practices of a trader in respect of other competitors are deemed to be unfair if they are contrary to the requirements of professional diligence, may be detrimental to other competitors or consumers. Unfair  competition is prohibited.

The prohibition of unfair competition affects legal offenses that do not act against the existence of competition but abuse it by distorting competition rules in order to harm competitors in an unfair manner.

Unfair competition is especially:

  • Misleading advertising.
  • Misleading labeling of goods and services,
  • Creating the likelihood of confusion,
  • Free riding on the reputation of the products or services of other competitor,
  • Bribery
  • Detraction,
  • Comparative advertising,
  • Violation of trade secrets,
  • Endangering the health of consumers and the environment
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