12.1.2026

Unfair business practises

Good business practises must be followed in business operations. The aim is to protect entrepreneurs from unfair competition. This means preventing businesses from using questionable tactics to under-mine competitors or unfairly influencing consumers, competitors or distribution channels.

The Unfair Business Practises Act lays down provisions concerning conducts that are contrary to good business practises or otherwise unfair from the standpoint of another entrepreneur. The Act also pro-vides about marketing recognizability, prohibitions of false and misleading claims, comparative advertis-ing, and the right of an entrepreneur to keep their business closed one day a week. The Act also legis-lates about compensations and sanctions resulting from a conduct that violates good business practises.

A false or misleading expression

In business activities, an entrepreneur must not use conduct that is contrary to good business practise or otherwise inappropriate to from the perspective of another business operator. For example, it is inap-propriate to use a false or misleading expression concerning one’s own business or the business of an-other, if the said expression is likely to affect the demand for or supply of a product or harm the business of another. Additionally, it is also prohibited to use an expression that refers to irrelevant circumstances or that is presented or formulated in an unsuitable manner if the said expression is likely to harm the business of another.

Term ”expression” primarily refers to assertions used in the context of marketing, but it can also be any other form of information about entrepreneur’s activities, whether is it in a written, oral or visual form. Slogans, product names, trademarks and sales arguments are also seen as expressions. False or misleading statements can, for example, mean that an entrepreneur presents their claim as a fact or as a research result, even though they are unable to prove the accuracy of their claim. Espe-cially the use of superlatives can prove to be problematic: if the products is claimed to be the best or the most affordable, the claim must be proven to be true.

Marketing restrictions

The commercial purpose of marketing and the party on whose behalf the marketing is done shall clearly appear from the marketing. If discounts, added benefits or other specific benefits are offered in the marketing, or in the marketing involves disposal by lottery, prize contests for the public or games, the terms and conditions related must be clear, understandable and easily accessible.

Comparative advertising

Comparative advertising, from which a competitor can be named directly or indirectly is permitted under certain conditions. Marketing cannot be false or misleading, it must concern goods used for the same purpose and it must objectively compare the prices of goods or of an essential, significant, demonstrable and representative characteristic that must not disparage or degrade the competitor. To be considered as comparative, the marketing does not necessarily have to mention a specific competitor by name. It is sufficient that the advertised good is compared to other similar goods in the market. A comparison is seen as biased, for example, when the comparison only emphasizes the advantageous features of one’s own products or when referring to tests or studies, conclusions are presented that do not correspond to the test results.

Comparative marketing also must not cause a risk of confusion and must not improperly exploit a com-petitor’s reputation, protected trademark or designation of origin of the product. Imitation as such is not prohibited, as long as the products can be distinguished from each other. In case law, taking advantage of another entrepreneur’s reputation or recognition (so called goodwill) has also been considered as unfair business practise.

Consequences of unfair business practises

An entrepreneur can be prohibited from continuing or repeating practises that violate good business practises. The prohibition can be imposed temporarily, and it may be reinforced through a conditional fine, unless this is unnecessary for a special reason. Entrepreneur may also be liable to compensate for damage they have caused. Using a false or misleading expression that causes harm to another entre-preneur may also be an competition procedure offence or -crime.