Question:

In the context of fair and unfair competition practices under commercial law, which of the following scenarios best describes unfair competition?

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Unfair competition involves deceptive practices like spreading false information to harm a competitor.
  • Company A introduces a new product with superior quality and increases its prices compared to that of its competitors.
  • Company B spreads false rumours about the safety of Company A‘s products to dissuade customers from purchasing their products.
  • Company C advertises its products using catchy slogans and creative marketing techniques to attract more customers than its competitors.
  • Company D reduces its prices temporarily in a predatory way to match those of its competitors during a seasonal sale event.
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The Correct Option is B

Solution and Explanation

Spreading false rumors about a competitor’s products constitutes unfair competition, as it misleads consumers and harms the competitor’s reputation.
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