Unfair Competition and Unfair Commercial Practices

Question 1

What convention deals with unfair competition?

Answer 1

Paris Convention for the Protection of Industrial Property.

Question 2

What are the goals of the directives on unfair commercial practices?

Answer 2

`- Ensure consumers are not misled.

• Claims are clear and substantiated.
• Allow meaningful choices.

Question 3

What is an average consumer?

Answer 3

A person that is reasonably critical, conscious, circumspect.

Question 4

What are some examples of misleading practices?

Answer 4

• Limited time offer.
• False advertising.
• Hotel room bookings saying “one room left” when there is more.
• Misleading price comparison.
• Volkswagen diesel scandal.
• Paying for Facebook with personal data.

Question 5

How have the directives on unfair commercial practices adapted?

Answer 5

Aggressive commercial practices – modernization, online markets.

Question 6

Why are cartel damages awarded?

Answer 6

Competition is good.

Question 7

What are some antitrust rules?

Answer 7

• Cartel prohibition.

- Abuse of dominant economic position.

Question 8

What is a cartel prohibition?

Answer 8

Preventing price fixing.

Question 9

What is horizontal price fixing?

Answer 9

Between competitors.

Question 10

What is vertical price fixing?

Answer 10

Along the supply chain.

Question 11

Can price fixing be done with one organization?

Answer 11

No, takes two.

Question 12

What are two examples of abuse of dominant economic position?

Answer 12

• Monopoly charging too much.

- Driving competitors out with low prices.

Question 13

Where is private enforcement more likely?

Answer 13

United States of America.

Question 14

How has Europe responded to the need for private enforcement?

Answer 14

Directive on Action for Damages for Infringement of Competition law – full compensation for infringement of competition rules.

Question 15

What are follow-on cartel damage claims?

Answer 15

Also known as piggyback litigation, allows third parties to jump onto a claim that has already been brought.

Question 16

What is required for evidence to be disclosed?

Answer 16

• Relevant.
• Specified (not fishing).
• Cannot produce themselves.

Question 17

What is the passing-on defence?

Answer 17

Claimant passing on costs to consumers or another party, so therefore they cannot claim from the seller.

Question 18

What are limitation periods?

Answer 18

Period of time that starts to run when there is knowledge of harm – typically two years. The period of time does not start in cases of repeated harm. After this, one cannot bring claim.