Parasitism and Unfair Competition 2026 — Complete Legal Guide, Examples and Prevention

Unfair competition and parasitism undermine commercial loyalty, punishable by article 1240 of the French Civil Code for fault causing harm.
These practices harm innovative companies by exploiting their reputation or efforts without their own investment.
Mastering these concepts protects commercial interests in B2B and allows you to quickly take legal action.

Definition of unfair competition

Unfair competition includes acts contrary to competitive good faith, forming a civil fault.
It aims to protect the fair market against excesses that distort competition.
Basis: article 1240 Civil Code, requiring fault, harm and causation.

Four main types of unfair competition

• Confusion : imitation of packaging, logo or name creating a risk of error for the customer, such as a product based on a competitor down to the dominant color.
• Defamation : dissemination of false reviews on social networks tarnishing the reputation of a rival.
• Disorganization : massive poaching of employees or embezzlement of customer files disrupting adverse activity.
• Parasitism : undue profit without effort from the investments or know-how of others, aggravated form.

Differences and similarities: parasitism and unfair competition

Technical distinction

Although they share a common goal — the loyalty of economic relationships — parasitism and unfair competition present significant differences.

Jurisprudential illustration

A brand condemned for having set up its business in the immediate vicinity of a competing chain, using the latter's visual codes and slogans, was sanctioned on the double basis of confusion (unfair competition) and parasitism (profit from advertising investments).

The various cases of unfair competition

The confusion

Example:
A distributor launches a product modelled on that of its competitor, reproducing the packaging down to the dominant color and the layout of the logos, creating a risk of confusion for the consumer.

The denigration

Example:
Dissemination of fake reviews on social networks aimed at tarnishing the image of a competitor and diverting its customers.

Disorganization

Example:
Massive poaching of employees from a competing company, compromising its ability to continue its activities or exploiting its business secrets.

Parasitism (aggravated form)

Example:
The reproduction by a player in the food sector of the concept, packaging and merchandising of a leading product, without assuming the costs of innovation and marketing.

The legal regime of parasitism and unfair competition

Legal grounds

• Article 1240 of the Civil Code : Engages in criminal liability in the event of fault, damage and causal link.
• Case law complements this regime by identifying prohibited practices.

Litigation procedure

• Subpoena before the judicial (or commercial) court.
• Possibility to request urgent measures to put an end to acts and damages.
• Frequent judicial expertise (assessment of harm, characterization of efforts copied).

Examples of actions and measures:

• Cessation under penalty of unfair or parasitic acts
• Judicial publication of the decision
• Award of damages covering material and moral damage

Example of a non-competition clause

“A former employee is prohibited, for a period of 12 months following the cessation of his duties, from directly or indirectly exercising a competing activity within a radius of 50 kilometers around Paris, under penalty of payment of compensation.”

Parasitism and restrictive competition practices

Restrictive practices and unfair competition

Restrictive practices (e.g. market disorganization) can be added to acts of unfair or parasitic competition and give rise to specific sanctions (example: significant imbalance in the commercial relationship, abuse of economic dependence).

Non-competition benefits: a practical framework

Non-competition compensation may be provided to compensate for the impossibility of exercising a post-contractual competing activity, provided that it is proportionate and limited in time and space.

Can we sit next to a competitor?

Settling near a competitor is not in itself prohibited. Only unfair maneuvers (slavish copying, customer solicitation, confusion in presentation, etc.) are condemned. Thus, freedom of trade remains, subject to respect for loyalty.

Concrete examples — Recent case law

• Candia/Lactel case (2025) : Conviction for unfair competition through parasitism, the Paris Commercial Court having considered that the buyer had taken advantage of the reputation of a packaging without its own innovation.
• Judgement CA Paris, October 3, 2002 : A non-franchised merchant was convicted for having reproduced the visual identity and network policy of a brand, to the detriment of the originality of the franchise concept.

Educational framework:
A service provider who creates a website that reproduces the navigation and design of a competitor identically, without added value or differentiation, is exposed to a conviction for parasitism, including in the absence of a situation of direct competition.

Penalties: cessation, compensation, publication

• Immediate cessation of work of breach
• Damages equivalent to undue gains or loss of turnover
• Judicial publication (to inform the market of the illicit nature of sanctioned practices)

Prevention and best practices

• Avoid any impersonation that serves the sole purpose of taking advantage of a competitor's investments
• Systematically bring added value or differentiation to the right concepts
• Give preference to well-written non-competition and confidentiality clauses in contractual relationships
• Monitor the coherence of your visual identity and the protection of your creations (INPI repository, copyright, NDA)

FAQ on parasitism and unfair competition

What is the difference between parasitism and unfair competition?

Parasitism is one of the branches of unfair competition, but it can occur without a situation of direct competition. It specifically aims at the appropriation of the efforts, investments, or reputation of an economic agent, while unfair competition encompasses all unfair behaviors in the customer race.

What are the 4 cases of unfair competition?

• Confusion (example: copy of the logo)
• Defamation (example: false criticism)
• Disorganization (example: massive debauchery)
• Parasitism (example: copying the economic model or communication model)

What is the difference between competition and parasitism?

Competition (fair) is a fundamental principle of the market, promoting innovation and economic development. Parasitism, on the contrary, punishes the fact of taking advantage of the efforts of others without investment, distorting the game of competition.

What is parasitism in competition law?

In law, parasitism is a set of behaviors by which a company or an individual takes unfair advantage of the efforts, know-how or reputation of a third party, without compensation for equivalent personal efforts or investments, regardless of whether there is direct competition or not.

What contractual precautions should be adopted?

• Integrate effective and limited non-competition clauses
• Protect your know-how via NDAs and confidentiality clauses
• Monitor the market and respond quickly to any impersonation deemed illicit

Article written by Guillaume Leclerc, lawyer in commercial contracts and commercial litigation in Paris.

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