New Law Against Unfair Competition in Ecuador: Key Points and Scope

As of August 29, 2025, Ecuador has established a new legal framework with the Organic Law on the Regulation Against Unfair Competition, published in the Official Gazette. This regulation seeks to ensure that market practices are conducted under the principles of transparency, loyalty, and consumer protection, sanctioning any conduct that undermines commercial good faith and affects both consumers and businesses acting in compliance with the law.

The law has a broad scope, applying to natural and legal persons, whether public or private, national or foreign, as long as they engage in activities in the Ecuadorian market or are affected by unfair practices. Prohibited behaviors include deceptive strategies that mislead consumers, unlawful imitation of products or services, unfair comparisons with competitors, and unauthorized use or disclosure of trade secrets.

The Superintendency of Economic Competition is the authority responsible for enforcing the regulation. This body has the power to investigate, sanction, and impose corrective measures in cases of unfair competition. Proceedings may be initiated either ex officio or based on complaints filed by parties with a legitimate interest, thereby strengthening institutional oversight of market fairness and competition.

Regarding sanctions, the law provides strict measures for non-compliance. Fines may reach up to 12% of the infringing company’s gross income for unfair competition practices, and up to 10% of gross income for non-compliance with resolutions or failure to cooperate. Coercive fines of up to 200 unified basic salaries may also be imposed, and sanctions prescribe after eight years.

Finally, the law allows investigated companies to propose cease-and-desist commitments to halt the challenged practices before a final resolution is issued. Affected parties may also pursue judicial actions such as a declaration of unfairness, cessation of the conduct, or removal of its effects, always within the legally established timeframes. Overall, this law seeks to strengthen trust in the Ecuadorian market, ensuring fair conditions for consumers and companies that operate in compliance with the law.

At Quevedo & Ponce, we have extensive experience in competition law and regulatory compliance. We advise our clients on the prevention, identification, and management of practices that may be considered unfair, providing strategic support in administrative investigations and judicial proceedings.