Dumping-like “excessive discount” campaigns are increasingly common in the Turkish market, especially in e-commerce, holiday sales and aggressive promotional periods such as “11.11” or “Black Friday”. For foreign companies operating in or targeting Türkiye, it is crucial to understand when such campaigns may cross the line from legitimate competition into unfair competition under the Turkish Commercial Code (“TCC” – Türk Ticaret Kanunu).
Under Articles 54–63 of the TCC, unfair competition is broadly defined as any deceptive or unethical commercial practice that distorts competition to the detriment of competitors, customers or other market participants. The law does not prohibit price competition or discounts as such. However, it does sanction misleading, abusive or systematically destructive practices, even if they are dressed up as “campaigns”, “flash sales” or “seasonal promotions”.
1. What is “dumping-like” discounting in the Turkish context?
In international trade law, dumping usually refers to selling goods in an export market below their normal value, often linked with anti-dumping duties. In Turkish domestic commercial law, we do not use the term “dumping” in the same technical sense, but certain excessive or predatory discount strategies can be treated as unfair competition where:
- Prices are set at a level obviously unsustainable in the long term,
- The campaign aims to drive smaller competitors out of the market, or
- Consumers are misled as to the real nature or duration of the discount.
For instance, a foreign online marketplace offering products in Türkiye at “90% discount” for months, while the “original price” is artificially inflated and never applied in practice, may be considered to be engaging in unfair competition through deceptive advertising and misleading price indications.
2. Relevant TCC provisions on unfair competition
The TCC contains a general clause and a non-exhaustive list of unfair practices. In the context of excessive discount campaigns, the most relevant categories are:
- Misleading advertising and information
- False or exaggerated “before/after” prices
- Artificially short countdown timers repeatedly reset to create fake urgency
- Use of “limited stock” or “last chance” language where no such limitation exists
- Exploitation of consumer trust and lack of experience
- Targeting vulnerable consumer groups with complex, unclear campaign conditions
- Hiding material terms (e.g., expensive shipping or return costs) behind the “discount” message
- Systematic obstruction or elimination of competitors
- Sustained sales at a level below cost, financed by a global group, in order to capture market share and weaken local competitors
- Exclusivity arrangements combined with deep discounts that close the market to others
The decisive question is not only price level, but whether the overall behavior conflicts with the principle of good faith and distorts competition in a non-sustainable and deceptive way.
3. Practical risk areas for foreign companies
Foreign brands, platforms and marketplaces should pay particular attention to the following risk zones when designing Turkish campaigns:
- Fake discounts and reference prices
Regulators and courts in Türkiye look critically at “inflated” former prices. If the supposed “original price” was never applied, or applied only for a symbolic period, the discount may be deemed deceptive. - Perpetual campaigns
“Campaigns” that are always on can be qualified as misleading. If “50% off” appears all year, authorities may interpret it as a normal price, not a true discount, and competitors may claim unfair competition. - Cross-subsidised predatory pricing
If a multinational group subsidises Turkish sales heavily for a long time with the clear aim of excluding local competitors, this can trigger unfair competition claims, and in some cases also competition law scrutiny. - Lack of transparent terms
Campaign conditions, stock limitations, time frames and exclusions must be clear and easily accessible in Turkish. Ambiguous terms may be seen as abusing consumer trust.
4. Possible legal consequences
If a court finds that an excessive discount campaign constitutes unfair competition, it may order:
- Injunctions: immediate cessation of the campaign or of specific misleading statements;
- Correction and publication: rectification statements, public announcements or website notices;
- Damages: compensation for competitors who can prove financial loss;
- Accounting: disclosure of sales figures linked to the unlawful campaign.
Both competitors and certain professional organisations (chambers, associations) have standing to bring unfair competition actions. In parallel, consumer authorities and sector regulators (for instance in e-commerce or retail) may also impose administrative fines based on consumer protection rules.
5. Compliance tips for foreign businesses
To minimise the risk of unfair competition allegations in Türkiye, foreign companies should:
- Ensure that all campaign communications are accurate, verifiable and not exaggerated.
- Keep internal documentation showing that “former prices” are genuine and applied for a meaningful period.
- Avoid permanent or semi-permanent “mega discounts” that create a distorted picture of the normal price level.
- Conduct a cost and sustainability analysis before launching extremely low prices, especially if they could be seen as predatory.
- Provide clear, Turkish-language terms and conditions, explaining campaign duration, stock, and any important limitations.
- Coordinate unfair competition and consumer law compliance with local counsel, especially for large-scale online and cross-border campaigns.
In short, aggressive pricing and strong promotions are allowed in Türkiye, but must remain within the boundaries of good faith, transparency and sustainable competition set by the Turkish Commercial Code. Foreign companies that ignore these boundaries may face serious reputational, financial and legal exposure.
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