Unfair Competition in Colombia: What It Is, Types and How to Protect Your Company (2026)

Unfair competition is any act contrary to honest commercial practices that harms a competitor or the market in general. In Colombia, Ley 256 de 1996 (Law 256 of 1996) defines 12 specific types of unfair acts, in a descriptive and non-exhaustive way, and the Superintendency of Industry and Commerce (SIC) is the authority that investigates and sanctions this conduct.

If your company is a victim of unfair competition, or if you want to make sure your commercial practices comply with the law, this guide covers the types of unfair acts, how to file a claim before the SIC, the legal deadlines, and the sanctions faced by anyone who engages in this conduct.

Legal framework of unfair competition in Colombia

The rule governing unfair competition is Ley 256 de 1996, which transposes into Colombian law the international standards on unfair competition based on the Paris Convention for the Protection of Industrial Property. This law applies to all market participants (companies, merchants, independent professionals) and protects both competitors and consumers.

Competition is not something the law prohibits. On the contrary, free competition is protected by article 333 of the Constitution. What the law prohibits are practices that distort competition dishonestly: deceiving consumers, appropriating someone else’s reputation, or sabotaging competitors.

The 12 acts of unfair competition described in Ley 256

1. Acts of customer diversion (Art. 8)

Diverting a competitor’s customers through means contrary to good commercial faith. This does not refer to legitimate competition for customers, but to the use of deception, bribery, or undue pressure to achieve it, among other acts.

2. Acts of disorganization (Art. 9)

Conduct aimed at internally disorganizing a competitor’s company: massively hiring away its key employees to weaken it, interfering with its suppliers, or sabotaging its production processes, among other acts.

3. Acts of confusion (Art. 10)

Creating confusion with a competitor’s company, products, or services. This includes imitating packaging, corporate colors, product presentation, or any element that makes the consumer confuse the business origin.

4. Acts of deception (Art. 11)

Spreading false indications or statements about one’s own products, their quality, their prices, or their sale conditions. It also includes omitting information that misleads the consumer.

5. Acts of disparagement (Art. 12)

Spreading false or inaccurate information about a competitor in order to damage its reputation. True and well-founded criticism does not constitute disparagement; what the law prohibits are false statements made with the intent to harm.

6. Acts of comparison (Art. 13)

Comparison between products or services is not unfair per se. It becomes unfair when the comparison uses false data, refers to aspects that are not objectively comparable, or aims to discredit the competitor instead of informing the consumer.

7. Acts of imitation (Art. 14)

Imitating a competitor’s products, services, or business initiatives. Imitation is free in principle (competition is based on it), but it becomes unfair when it creates confusion about the origin or when it unduly exploits someone else’s reputation.

8. Exploitation of another’s reputation (Art. 15)

Using distinctive signs, appellations of origin, or the commercial image of a third party to take advantage of its reputation in the market. It is one of the most frequent acts in claims before the SIC.

9. Violation of trade secrets (Art. 16)

Accessing, disclosing, or exploiting a competitor’s trade secrets without authorization. It includes information obtained through former employees, suppliers, or by unlawful means, among other acts.

10. Inducement to breach of contract (Art. 17)

Inducing a competitor’s employees, suppliers, or customers to break their contractual obligations for one’s own benefit.

11. Violation of legal norms (Art. 18)

Obtaining a significant competitive advantage through the breach of legal norms. If a competitor evades taxes, breaches sanitary or labor regulations, and that lets it offer artificially low prices, it constitutes unfair competition.

12. Unfair exclusivity agreements (Art. 19)

Conditioning the sale of one product on the purchase of another (tied sales) or imposing conditions that unjustifiably restrict the buyer’s freedom.

How to file an unfair competition claim

Unfair competition actions are filed before the Delegatura para Asuntos Jurisdiccionales (Jurisdictional Affairs Division) of the SIC. There are two procedural routes:

Declaratory and damages action

It seeks for the SIC to declare the existence of the unfair act, order its cessation, and order the infringer to pay damages. It has a statute of limitations of 2 years from when the entitled party became aware of the act, with a cap of 3 years from when it occurred.

Preventive or prohibitory action

To prevent an unfair act from materializing when there is a concrete threat. It does not require proving actual harm, only the likelihood that the act will take place.

Practical tip: Preserve and document all the evidence. The most effective evidence in unfair competition proceedings before the SIC is dated screenshots, written communications, comparative invoices, customer testimony, and expert opinions. The SIC especially values documentary evidence over testimonial evidence.

Sanctions for unfair competition in Colombia

The SIC can impose fines of up to 2,000 SMMLV per act (the Colombian monthly legal minimum wage; approximately $2,847 million COP in 2026), order the immediate cessation of the unfair conduct, and order the payment of damages that include both actual damages (daño emergente) and lost profits (lucro cesante). In cases of repeat offenses, the fines increase.

Next step

If you suspect your company is a victim of unfair competition or need preventive advice to shield your commercial practices, the corporate law team at SPI Américas can assess your case, prepare the evidentiary documentation, and represent you before the SIC. Contact us at [email protected].