LUXEMBOURG: UNFAIR COMPETITION, BUSINESS ABUSE, COMMERCIAL PARASITISM

The misappropriation of customers constitutes an act of unfair competition.

It is one of the main faults following which unfair competition proceedings may be initiated. This practice leads to the disorganisation of the competitor's business, by capturing its clientele using unfair procedures.

In other words, it is a "theft" of customers, as was the case in this case pleaded by Maître DEKHAR before the Luxembourg Criminal Court. A former employee was summoned by direct summons by her ex-employer (represented by Mr. DEKHAR) for having misappropriated the customer file for the benefit of her new employer and direct competitor:

https://lequotidien.lu/police-justice/poursuivie-pour-violation-du-secret-professionnel-elle-a-siphonne-le-fichier-clients/

There are 4 types of unfair competition:

Parasitism :

When a competitor takes advantage of his competitor's work and know-how in order to divert the clientele of a targeted company.

Ex: Creation of a website that is almost identical to that of a competitor.

Imitation:

When a company induces (voluntarily or not) confusion in the mind of customers by using a logo, a shop window similar to that of another company acting in the same field.

Disorganisation:

Prospecting for a competitor's customers, spying on them to learn secret manufacturing methods, or poaching their staff.

When an employee leaves a company to work for a competitor, he or she should no longer be covered by the non-competition clause in the employment contract. Otherwise, it is possible that the company that has poached the employee is guilty of disorganisation.

Denigration:

When a company or an employee publicly criticises the company's services/products and management/ or employees,

Denigration also applies indirectly if a company openly claims to be the only one that can produce a certain service or possess a certain quality.