French law does not have a specific text listing the types of behaviour that constitute unfair competition. It is a praetorian construction: the courts determine on a case-by-case basis whether behaviour crosses the line. The reference text is the\u2019article 1240 of the Civil Code<\/strong> This is supplemented by article 1241, which imposes liability for simple imprudence or negligence. Supplemented by article 1241, which imposes liability for simple imprudence or negligence, this basis means that a fault of unfair competition does not require the intention to harm. An entrepreneur who launches a product without checking that it does not create confusion with an existing competitor may be held liable, even if he had no intention to cause harm.<\/p>\n An action for unfair competition presupposes that three cumulative conditions have been met: a fault<\/strong> (behaviour contrary to fair trade practices), a damage<\/strong> (material, commercial or moral) and a causal link<\/strong> between the two. These three conditions must be proved by the plaintiff - except in the case of denigration, where the Cour de cassation now presumes prejudice (see next section).<\/p>\n The freedom of trade and industry, inherited from the d'Allarde decree of 2-17 March 1791 and recognised by the Constitutional Council, authorises everyone to seek to attract the customers of their competitors. No-one owns their customers outright. Losing them to a more efficient or cheaper rival is not a fault.<\/p>\n There is a limit to this freedom: fairness. Competition must conform to honest commercial practices. Without this requirement, companies would be reluctant to invest or innovate, since their efforts could be copied or discredited with impunity. It is to preserve a fair business environment that the law sanctions behaviour that goes beyond the bounds of normal competition. The dividing line is never absolute - it depends on the sector, the nature of the practices and the degree of proximity between companies.<\/p>\nFreedom of competition and its limits<\/h3>\n