Unfair Competition in Zanzibar: Definition and Legal Framework

Under the Zanzibar Industrial Property Act No. 4 of 2008, unfair competition encompasses any industrial or commercial practice that violates principles of honest business conduct. It occurs when a business employs dishonest, misleading, or unethical tactics to gain an unjust advantage over competitors.

Governing Laws on Unfair Competition in Zanzibar

• Zanzibar Industrial Property Act No. 4 of 2008
• Zanzibar Industrial Property Regulations, 2014

These laws establish a foundation to safeguard fair competition in Zanzibar by:

• Protecting honest businesses from deceptive practices by competitors.
• Promoting fair competition based on quality and service rather than dishonesty.
• Fostering trust between businesses and consumers through ethical conduct.
• Safeguarding innovations by preventing unauthorized use of confidential business information.

Examples of Unfair Competition under the Act

The Act outlines several specific forms of unfair competition, including:

• Causing Confusion: Actions that mislead customers into confusing one business or its products/services with another.
  Example: Using a logo or trade name closely resembling that of a competitor to mislead consumers
• Damaging Another’s Reputation: Making false statements that harm a competitor’s image or business standing.
  Example: Spreading untrue claims about the quality of a rival’s products
• Misleading The Public: Providing False or Deceptive Information About One’s Own Goods or Services, Such As Origin, Quality, Price, Or Features.
  Example: Advertising A Product As “100% Organic” When It Is Not
• Discrediting a Competitor: Publishing false information intended to undermine a competitor’s credibility or customer trust
• Unauthorized Use of Trade Secrets: Using confidential business information like secret recipes, designs, or client lists without permission for commercial benefit

Legal Remedies for Unfair Competition

In Zanzibar, those affected by unfair competition can seek relief through the High Court of Zanzibar, which may grant:
• Injunctions: Court orders to stop or prevent the continuation of unfair practices.
• Damages: Financial compensation for losses caused by unfair competition.
• Account of Profits: Recovery of profits earned unlawfully by the offending party (Section 73).
If you want to learn more about unfair competition and how to effectively address these challenges, please feel free to contact us.

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