Brand Bidding

What is unfair competition and how to shield your brand

branddi · Published on October 01, 2024 · Updated on April 10, 2026

2023 and 2024 were years marked by several discussions regarding Brazilian import taxes, both on the part of consumers and retailers. This is because one of the market's main concerns is the diversion of consumers brought about by below-price sales, accusing this practice of unfair competition. After all, what can be classified as unfair competition and what is the difference between the concept and brand bidding?

Come with Branddi and understand more about what it is and how to prevent this issue from negatively affecting your brand!

What is, after all, unfair competition?

The classification of unfair competition causes a lot of confusion because it is of an umbrella term for various unfair business competition actions. But before talking about them, we need to define what this type of competition is, also known as parasitic.

Included in law No. 9,279 on rights and obligations linked to industrial property, the concept encompasses unfair practices used by a company (or individual) to harm direct competitors.

Therefore, here they fit:

• Brand bidding: unauthorized use of the name or elements of a brand by third parties in online advertising seeking to mislead the consumer or take advantage of the credibility and authority of the competitor;
• Diversion of customers or undue commission: practices that seek to steal organic conversions from the main brand;
• Sales below the cost: offering products or services at extremely low prices, with the aim of eliminating competition and subsequently increasing prices abusively;
• Disclosure of industrial secrets: unauthorized disclosure or access to a competitor's confidential information, such as formulas, production processes or customer data.

Why your brand should take assertive actions against the competition unfair?

Unfair digital competition is a silent enemy, capable of causing major impacts on your company if it is not combated in a structured and objective way. Still, because it is such an invisible factor to common online surveillance standards, many companies end up encountering parasitic advertising only when it is too late.

That is, when these practices have already profoundly affected the brand's relationship with its consumer, the organization's image and even its revenue. Therefore, the time and costs involved in restructuring reputation and regaining public trust end up limiting business growth.

In addition, we still need to consider legal risks. After all, these unfair competition practices can result in fines and litigation involving not only the malicious company, but also the original brand in costly disputes for both sides.

In other words, investing in the prevention and resolution of cases of parasitic competition is also ensuring the health and solidity of your company.

How to protect your brand from competition unfair?

Now that you understand more about what unfair competition is and what the impacts are, it is understandable that you want to know how to prevent it from reaching your business. After all, unfair competition is a constant threat to companies, especially in the digital scenario.

To protect themselves, it is essential that brands adopt a multifaceted approach that combines prevention, detection and response.

Let's understand a little more about each step?

Prevention actions

Prevention is the first step to protecting your brand from competition unfair. This is because by adopting preventive measures, companies can minimize the risk of violations and strengthen their position in the market.

Continue reading to understand some examples.

Brand registration

Brand registration is the first fundamental step to protecting your visual and textual identity in the market. This is because when registering your brand, you acquire an exclusive right of use, which means that only you or anyone who has your authorization can use it.

This legal protection makes it easier to identify violations and allows you to take legal action against anyone who misuses your brand. Which, as a result, guarantees the exclusivity and appreciation of your company.

Brand usage policy

A well-defined brand usage policy is essential to avoid misunderstandings and ensure consistent use of your visual identity. Therefore, in this policy, the rules for the correct use of the brand in different communication materials, products and services must be established. Educating your team is crucial to protecting your brand. Thus, by training your employees to identify possible cases of unfair competition, you create a surveillance network within your company. Early detection is crucial to minimizing damage and taking timely legal action.

Below, we'll explore key strategies and tools for detecting unfair competition, allowing you to act quickly and effectively to protect your interests.

Brand Monitoring Tools

To identify unauthorized mentions and other suspicious activity related to your brand, use tools monitoring is essential. After all, they allow you to track the use of your brand across various online channels.

When you identify any misuse of your brand, you can take action to remove it and protect your reputation.

Social Listening

Social listening is a fundamental practice for following online conversations about your brand. So, by monitoring social networks, forums and other online channels, you can quickly identify any signs of unfair competition, such as negative comments, rumors and attacks on your reputation. the actions of your competitors is crucial to identify possible unfair practices. This way, by analyzing the marketing strategies, products and services offered by your competitors, you can identify possible copyright violations, plagiarism and other illegal practices. investigated is an unfair practice. To do this, your brand must:

Extrajudicial notification

The first measure to be taken when identifying a case of unfair competition is to send an extrajudicial notification to the offender. To do this, in this document, you must detail the illegal practices that are being carried out, the damage caused to your company and request the immediate cessation of these activities. id="">In addition to legal action, it is important to report cases of unfair competition to consumer protection bodies and the competent authorities. This measure aims to prevent the practice of illegal acts and protect other consumers from being harmed. offender. This way, it is possible to prevent this occurrence from deepening and causing more problems.

Shield your brand against unfair competition with Branddi

Branddi is the ideal partner to cover all stages of your digital protection, from prevention to response actions. This is because our continuous monitoring of Google allows us to quickly identify unfair competitors and partners.

In this way, we achieve an agile and friendly resolution of cases, reducing the CPC of your institutional terms by up to 70%, increasing your organic clicks by 20% and reducing spending on legal actions by more than 90%.

Get in touch and understand how we can protect your brand!

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