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See Chazon Ish Emunah U’Bitachon 3:15 regarding the faith someone who is facing competition should have.</ref>
See Chazon Ish Emunah U’Bitachon 3:15 regarding the faith someone who is facing competition should have.</ref>
#Although permitted, it may sometimes be preferable not to open a competing business.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:1, Mahrashdam C.M. 407, Shulchan Aruch Harav Hilchot Hefker Vihasagat Gevul Seif 13, Chavot Yair 42. The prohibition of being יורד לאומנות חבירו, literally “descending to another’s profession,” or illegal competition, is derived from two distinct verses. Chasam Sofer Bava Basra 21b based on Gemorah Makot 24a </ref>
#Even when competition is permitted, it may sometimes be preferable not to open a competing business.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:1, Mahrashdam C.M. 407, Shulchan Aruch Harav Hilchot Hefker Vihasagat Gevul Seif 13, Chavot Yair 42. The prohibition of being יורד לאומנות חבירו, literally “descending to another’s profession,” or illegal competition, is derived from two distinct verses. Chasam Sofer Bava Basra 21b based on Gemorah Makot 24a </ref>
#See [[Dina D'Malchusa Dina|Dina D'malchusa Dina]] for when the countries laws diverge from Jewish law.<ref>Shut Maharashdam C.M. 407 says that if the local law allows competition, we wouldn't be able to prevent someone from opening a store. Pitchay Choshen Hilchos Genaiva V'Onah 9:1 says this is especially true when it comes to a large city that can support many stores, a city square where people come from all over, or a city is growing. In these cases it wouldn't even be preferable to avoid opening a competing store.</ref>


==General Guidlines==
==General Guidelines==


#It is permissible for a competing business to open near a preexisting business and sell the same products provided that the newcomer lives in or pays taxes to that city.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:2. The Gemara (Baba Batra 21b) addresses a situation whereby one operates a mill in a mavoy (alley), and another wishes to open a similar establishment in the same mavoy. Rav Huna asserts that the owner of the first mill may prevent the newcomer from opening, as the newcomer will interfere with the incumbent’s livelihood. Rav Huna son of Rav Yehoshua argues that the first miller cannot prevent the newcomer from opening as long as the newcomer is from that town or at least pays taxes to that town. Rashi d”h “Shani Dagim” explains that the competitor can claim that “Whoever will come to me will come to me, and whoever will come to you will come to you.” Rif (Baba Batra 11a in pages of Rif), Rambam (Hilchot Shechenim 6:8), and Rosh (Baba Batra 2:12) follow the latter opinion, and this is the ruling of the Tur and Shulchan Aruch C.M. 156:5.  
#It is permissible for a competing business to open near a preexisting business and sell the same products provided that the newcomer lives in or pays taxes to that city.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:2. The Gemara (Baba Batra 21b) addresses a situation whereby one operates a mill in a mavoy (alley), and another wishes to open a similar establishment in the same mavoy. Rav Huna asserts that the owner of the first mill may prevent the newcomer from opening, as the newcomer will interfere with the incumbent’s livelihood. Rav Huna son of Rav Yehoshua argues that the first miller cannot prevent the newcomer from opening as long as the newcomer is from that town or at least pays taxes to that town. Rashi d”h “Shani Dagim” explains that the competitor can claim that “Whoever will come to me will come to me, and whoever will come to you will come to you.” Rif (Baba Batra 11a in pages of Rif), Rambam (Hilchot Shechenim 6:8), and Rosh (Baba Batra 2:12) follow the latter opinion, and this is the ruling of the Tur and Shulchan Aruch C.M. 156:5.  
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#If the newcomer threatens to cut off the income of the original tradesman entirely, many rule that the incumbent has the right to prevent the competitor from opening his business.<ref>See Pitchei Teshuva 156:3 at length. Aviasaf (cited by the Mordechai, Bava Batra 516) rules that it is forbidden for somebody, even if he lives locally, to open a store at the entrance to a mavoy satum (a dead-end alley), if a similar establishment is already located within the mavoy. The reason for this is that opening such a store will bring the original shopkeeper’s business to ruin. Potential customers will see only the new store upon entering the alley, and the original establishment will go unnoticed.
#If the newcomer threatens to cut off the income of the original tradesman entirely, many rule that the incumbent has the right to prevent the competitor from opening his business.<ref>See Pitchei Teshuva 156:3 at length. Aviasaf (cited by the Mordechai, Bava Batra 516) rules that it is forbidden for somebody, even if he lives locally, to open a store at the entrance to a mavoy satum (a dead-end alley), if a similar establishment is already located within the mavoy. The reason for this is that opening such a store will bring the original shopkeeper’s business to ruin. Potential customers will see only the new store upon entering the alley, and the original establishment will go unnoticed.
The Beit Yosef C.M 156 explains that the ruling of Aviasaf follows the opinion of Rav Huna, which is not according to Halacha. Thus, it would seem from Shulchan Aruch C.M. 156:5 that one may not prevent another business from opening nearby even if it will certainly eliminate his own business. This is the ruling of the Beit Ephraim C.M 26. The Rama (Darchei Moshe 156:4) however, explains that according to the Aviasaf, all opinions agree that it is prohibited to open a new business if this will cause the original business (the one inside the mavoy) to collapse. In other words, cases of “definite damage” do not fall into the principles above, and it is forbidden for one business to cause “definite damage” to another.On the other hand, the Pitchei Teshuva 156:3 quotes the Chavos Yair that even the Rama thinks this is only in the opinion of Rav Huna, and we don't follow his opinion. Therefore, even if the incumbent would go out of business, he cannot prevent a competitor from opening.
The Beit Yosef C.M 156 explains that the ruling of Aviasaf follows the opinion of Rav Huna, which is not according to Halacha. Thus, it would seem from Shulchan Aruch C.M. 156:5 that one may not prevent another business from opening nearby even if it will certainly eliminate his own business. This is the ruling of the Beit Ephraim C.M 26. The Rama (Darchei Moshe 156:4) however, explains that according to the Aviasaf, all opinions agree that it is prohibited to open a new business if this will cause the original business (the one inside the mavoy) to collapse. In other words, cases of “definite damage” do not fall into the principles above, and it is forbidden for one business to cause “definite damage” to another.On the other hand, the Pitchei Teshuva 156:3 quotes the Chavos Yair that even the Rama thinks this is only in the opinion of Rav Huna, and we don't follow his opinion. Therefore, even if the incumbent would go out of business, he cannot prevent a competitor from opening.
In a teshuva, the Rama (Shut Siman 10) brings this Aviasaf among other arguments and rules that it is forbidden for a second publisher to publish an already published work (in this case the Mishneh Torah of the Rambam), if this will inevitably bring the first publisher to ruin. Shut Chatam Sofer (61:79) also rules like this Aviasaf on a similar question where the incumbent business would be forced to close down. Rav Moshe Feinstein (Iggerot Moshe C.M. 1:38) brings several arguments including the Aviasaf and concludes that a new shul could not open because they would ruin the income of the rabbi of the existing shul even if the shul will still have a minyan. Pitchei Teshuva 156:3 quotes Shut Masat Binyamin 27 that if there is a law that only allows one store, a second one may not open and force the initial one to close. He notes that the Masat Binyamin doesn’t quote the Aviasaf and must think that this is even for the Rishonim who disagree with the Aviasaf.  
In a teshuva, the Rama (Shut Siman 10) brings this Aviasaf among other arguments and rules that it is forbidden for a second publisher to publish an already published work (in this case the Mishneh Torah of the Rambam), if this will inevitably bring the first publisher to ruin. Shut Chatam Sofer (61:79) also rules like this Aviasaf on a similar question where the incumbent business would be forced to close down. Rav Moshe Feinstein (Iggerot Moshe C.M. 1:38) brings several arguments including the Aviasaf and concludes that a new shul could not open because they would ruin the income of the rabbi of the existing shul even if the shul will still have a minyan. Rav Moshe Feinstein (Iggerot Moshe CM 2:31) wouldn’t allow a second Seforim/Judaica store to open in a place that couldn’t support two. Pitchei Teshuva 156:3 quotes Shut Masat Binyamin 27 that if there is a law that only allows one store, a second one may not open and force the initial one to close. He notes that the Masat Binyamin doesn’t quote the Aviasaf and must think that this is even for the Rishonim who disagree with the Aviasaf.  
Rav Moshe Feinstein (Iggerot Moshe C.M. 1:38) writes that loss of livelihood is not defined by a loss of one’s home or the ability to put food on the table. It means interfering with his ability to afford as much as an average person in his times. </ref>
Rav Moshe Feinstein (Iggerot Moshe C.M. 1:38) writes that loss of livelihood is not defined by a loss of one’s home or the ability to put food on the table. It means interfering with his ability to afford as much as an average person in his times. </ref>
#One business may even advertise and offer incentives to attract customers.<ref>S”A CM 228:18, [http://www.dailyhalacha.com/m/halacha.aspx?id=1465 Rabbi Eli Mansour Dailyhalacha.com], Pitchei Choshen Hilchot Geneva ViHona’a 9:3. However, one may not speak lashon hara about his competitor’s product (Chafetz Chaim Hilchot Lashon Hara Klal 5: Halacha 7). See [http://www.yutorah.org/lectures/lecture.cfm/735658/rabbi-aaron-levine/advertising-and-promotional-activities-as-regulated-by-jewish-law/ Advertising and Promotional Activities as Regulated by Jewish Law] by Rabbi Dr. Aaron Levine </ref>  
#One business may even advertise and offer incentives to attract customers.<ref>S”A CM 228:18, [http://www.dailyhalacha.com/m/halacha.aspx?id=1465 Rabbi Eli Mansour Dailyhalacha.com], Pitchei Choshen Hilchot Geneva ViHona’a 9:3. However, one may not speak lashon hara about his competitor’s product (Chafetz Chaim Hilchot Lashon Hara Klal 5: Halacha 7). See [http://www.yutorah.org/lectures/lecture.cfm/735658/rabbi-aaron-levine/advertising-and-promotional-activities-as-regulated-by-jewish-law/ Advertising and Promotional Activities as Regulated by Jewish Law] by Rabbi Dr. Aaron Levine </ref>
#Whenever the newcomer is permitted to enter the market, he is prohibited to compete in an unfair manner, such as by selling below cost.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:3, Aruch Hashulchan 156:11, Erech Shai 228:18. </ref>
#Whenever the newcomer is permitted to enter the market, he is prohibited to compete in an unfair manner, such as by selling below cost.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:3, Aruch Hashulchan 156:11, Erech Shai 228:18. Rav Moshe Feinstein (Iggerot Moshe Y.D. 3:134) says that if the original store is overcharging, it is not a problem to open a new store and charge the proper (lower) price.  </ref>
#If there is a specific day that is reserved for people to come and shop there, nobody can prevent anyone else from opening.<ref>Shulchan Aruch C.M. 156:7 based on Bava Basra 22a about Yom HaShuk. Rashi explains that on this day people come from all over, so the residents of the city don't have priority. [http://www.workplacehalacha.com/category/choshen-mishpat/hasagas-gevul-unfair-competition/ Rabbi Wasserman] applied this same concept to areas like the diamond district as well.</ref>
#If there is a specific day that is reserved for people to come and shop there, nobody can prevent anyone else from opening.<ref>Shulchan Aruch C.M. 156:7 based on Bava Basra 22a about Yom HaShuk. Rashi explains that on this day people come from all over, so the residents of the city don't have priority. [http://www.workplacehalacha.com/category/choshen-mishpat/hasagas-gevul-unfair-competition/ Rabbi Wasserman] applied this same concept to areas like the diamond district as well.</ref>
#As a customer, some say that one should not buy from an establishment that opened when it was forbidden to do so.<ref>Shut Maharik Shoresh 187. Pitchei Choshen Hilchot Geneva ViHona’a 9:1 quoting from Shut Harama 10</ref> Others argue that once the store is open, a consumer may purchase at either establishment.<ref>Shut Nachalah L'Yehoshua 29</ref>
#Store owners cannot agree to forgo these laws and allow unfair competition.<ref>Pitchei Choshen Hilchot Geneva ViHona’a 9:1 quoting from Shut Chavot Yair Siman 163 that cannot agree to violate this prohibition just like by lending/borrowing with interest or going to secular court</ref>
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##Internet businesses.<ref>[http://www.jlaw.com/Articles/hasagatgevul.html%20Gray%20Matter%20Hasagat%20Gevul:%20Economic%20Competition%20in%20Jewish%20Law Rabbi Jachter]. Similarly, S”A C”M 156:7 based on Baba Batra 22a rules that the restriction on outside competition does not apply to a market day, when people from outside the town come to shop. Rabbi Yehoshua Pfeffer ([http://dinonline.org/2015/08/31/opening-shop-laws-of-hasagas-gevul/ Opening Shop? Laws of Hasagas Gevul] on dinonline.org) applies this in a general sense to malls and large shopping centers, which attract shoppers from out of town. </ref>
##Internet businesses.<ref>[http://www.jlaw.com/Articles/hasagatgevul.html%20Gray%20Matter%20Hasagat%20Gevul:%20Economic%20Competition%20in%20Jewish%20Law Rabbi Jachter]. Similarly, S”A C”M 156:7 based on Baba Batra 22a rules that the restriction on outside competition does not apply to a market day, when people from outside the town come to shop. Rabbi Yehoshua Pfeffer ([http://dinonline.org/2015/08/31/opening-shop-laws-of-hasagas-gevul/ Opening Shop? Laws of Hasagas Gevul] on dinonline.org) applies this in a general sense to malls and large shopping centers, which attract shoppers from out of town. </ref>
##Business districts in which the original business owner would benefit from a new business opening up (i.e. more customers will arrive).<ref>[http://www.jlaw.com/Articles/hasagatgevul.html%20Gray%20Matter%20Hasagat%20Gevul:%20Economic%20Competition%20in%20Jewish%20Law Rabbi Jachter] quoting Rav Moshe D. Tendler and Rav Basri, since the original storeowners benefit from the newcomers. Rabbi Aryeh Lebowitz ([http://www.yutorah.org/lectures/lecture.cfm/736064/rabbi-aryeh-lebowitz/hasagas-gevul-unfair-competition/ Hasagas Gevul - Unfair Competition on Yutorah]) brings the same argument. </ref>
##Business districts in which the original business owner would benefit from a new business opening up (i.e. more customers will arrive).<ref>[http://www.jlaw.com/Articles/hasagatgevul.html%20Gray%20Matter%20Hasagat%20Gevul:%20Economic%20Competition%20in%20Jewish%20Law Rabbi Jachter] quoting Rav Moshe D. Tendler and Rav Basri, since the original storeowners benefit from the newcomers. Rabbi Aryeh Lebowitz ([http://www.yutorah.org/lectures/lecture.cfm/736064/rabbi-aryeh-lebowitz/hasagas-gevul-unfair-competition/ Hasagas Gevul - Unfair Competition on Yutorah]) brings the same argument. </ref>
#Competition is not limited when non-Jews are not observing  
#Competition is not limited when non-Jews are not observing the law anyway.<ref>Shut Maharashdam C.M. 407 and 441 explains that there is no purpose of you losing when the law isn't being observed either way</ref>
#Competition is only limited in retail markets, not wholesale.<ref>Tur C.M. 156 and Beit Yosef 156 explains that this is the nature of the wholesale market and restricting it would destroy the market.</ref>


==Stealing Clients or Employees==
==Stealing Clients or Employees==


#If someone paid for a movable item and didn't yet take it neither the buyer or seller should renege on the sale. If they do chazal enacted a particular curse called "mi she'parah" for engaging in such activities.<ref>Shulchan Aruch 204:1</ref>
#If someone paid for a movable item and didn't yet take it neither the buyer nor seller should renege on the sale. If they do chazal enacted a particular curse called "mi she'parah" for engaging in such activities.<ref>Shulchan Aruch 204:1</ref>
#Someone who verbally agreed to a sale but didn't yet pay, it is proper to keep your word.<ref>Shulchan Aruch CM 204:7</ref>
#Someone who verbally agreed to a sale but didn't yet pay, it is proper to keep your word.<ref>Shulchan Aruch CM 204:7</ref>


#If someone has made an effort to acquire a free item, according to Rashi, it is wrong for someone else to beat him to it and "steal it."<ref>Rashi Kiddushin 59a s.v. ani, Ramban Bava Batra 54b. See also Rashbam Bava Batra 54b</ref> According to Tosfot, it is permitted to take it if there's only one of the kind of that free item.<ref>Tosfot Kiddushin 59a s.v. ani</ref>
#If someone has made an effort to acquire a free item, some say  it is wrong for someone else to beat him to it and "steal it."<ref>Rashi Kiddushin 59a s.v. ani, Ramban Bava Batra 54b. See also Rashbam Bava Batra 54b</ref> Others permit this if there's only one of the kind of that free item.<ref>Tosfot Kiddushin 59a s.v. ani</ref>
#Everyone agrees if the first person put in effort<ref>Masat Binyamin 27 writes that the amount of effort necessary for it to be considered forbidden for the second to take the free item is only if the first person anticipated that he would certainly get it. See Chatom Sofer 79.</ref> to acquire the free item and he anticipated getting it the second one may not take it from him.<ref>Mordechai Kiddushin 524, Ritva Kiddushin 59a</ref>
#Everyone agrees if the first person put in effort<ref>Masat Binyamin 27 writes that the amount of effort necessary for it to be considered forbidden for the second to take the free item is only if the first person anticipated that he would certainly get it. See Chatom Sofer 79.</ref> to acquire the free item and he anticipated getting it the second one may not take it from him.<ref>Mordechai Kiddushin 524, Ritva Kiddushin 59a</ref>


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*Article on [http://www.jlaw.com/Articles/hasagatgevul.html Hasagat Gevul: Economic Competition in Jewish Law] by Rabbi Chaim Jachter
*Article on [http://www.jlaw.com/Articles/hasagatgevul.html Hasagat Gevul: Economic Competition in Jewish Law] by Rabbi Chaim Jachter
*Article on [http://dinonline.org/2015/08/31/opening-shop-laws-of-hasagas-gevul/ Opening Shop? Laws of Hasagas Gevul] by Rabbi Yehoshua Pfeffer
*Article on [http://dinonline.org/2015/08/31/opening-shop-laws-of-hasagas-gevul/ Opening Shop? Laws of Hasagas Gevul] by Rabbi Yehoshua Pfeffer
*[http://www.workplacehalacha.com/wp-content/uploads/2015/09/Hebrew-Hasagas-Gevul-Parts-1-and-2.pdf Sources] and [http://www.workplacehalacha.com/category/choshen-mishpat/hasagas-gevul-unfair-competition/ explanation] from Rabbi Ari Wasserman


==Sources==
==Sources==
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