Question

When a former employee of a renowned fast-food chain AFK, discloses the secret recipe of its famous herbs and spices to the competitors, in a situation where there was no employment contract warranting non-disclosure, which civil action can be taken?

• A. No civil action is available as there is no contract after expiry of employment. However, the former employee may face criminal charges for theft of property.
• B. The former employee may be charged with copyright infringement for disclosing proprietary recipes without authorization.
• C. An action for breach of confidence is available and an injunction may be granted as the disclosed information provides a competitive advantage to competitors even if there is no contract.
• D. The former employee may be sued under consumer protection laws for compromising the quality of AFK‘s products.

Hint:

Breach of confidence actions protect sensitive information like trade secrets, even without a formal contract.

Answer 1

The Correct Option is C

Even without an employment contract, an action for breach of confidence can be taken if confidential information like trade secrets is disclosed, especially when it provides a competitive advantage.