Halachos of Marketing: Difference between revisions

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#One is not allowed to use superlatives to present a product if the superlative will likely deceive a reasonable person.<ref>Economic Public Policy and Jewish Law by Rabbi Aaron Levine 1993 p. 76-77</ref>
#One is not allowed to use superlatives to present a product if the superlative will likely deceive a reasonable person.<ref>Economic Public Policy and Jewish Law by Rabbi Aaron Levine 1993 p. 76-77</ref>
#While there is no problem with accurately presenting the positive aspects of merchandise (assuming a reasonable person will not be deceived), sellers are obligated to disclose any defects, deficiencies, shortcomings, or imperfections in their merchandise.<ref>Shulchan Aruch C.M. 228:6, [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2295182 Geneivat Da'at: The Prohibition Against Deception in Today's World], 2002 article by Professor Hershey H. Friedman</ref> This is true even if the merchandise is being sold at a fair price for the condition it is really in. <ref>Maharsha Chulin 94a, The Maharsha poses a case where a seller withholds information about a defect in an object he is selling. Despite the fact that he withholds this information, the seller still sells the object at a lower price (which is fit for the object with the defect). This is still genivat daat even though there is no onaa because the buyer believes he is getting a bargain on the object as he does not know about the defect. This is confirmed by Kuntres Onat Devarim UGenivat Daat p. 13 based on the Divrei Chamudot Chullin 94a.</ref>
#While there is no problem with accurately presenting the positive aspects of merchandise (assuming a reasonable person will not be deceived), sellers are obligated to disclose any defects, deficiencies, shortcomings, or imperfections in their merchandise.<ref>Shulchan Aruch C.M. 228:6, [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2295182 Geneivat Da'at: The Prohibition Against Deception in Today's World], 2002 article by Professor Hershey H. Friedman</ref> This is true even if the merchandise is being sold at a fair price for the condition it is really in. <ref>Maharsha Chulin 94a, The Maharsha poses a case where a seller withholds information about a defect in an object he is selling. Despite the fact that he withholds this information, the seller still sells the object at a lower price (which is fit for the object with the defect). This is still genivat daat even though there is no onaa because the buyer believes he is getting a bargain on the object as he does not know about the defect. This is confirmed by Kuntres Onat Devarim UGenivat Daat by Rabbi Efraim Belisur p. 13 based on the Divrei Chamudot Chullin 94a.</ref>
#Signs that state: "Clearance sale", "everything for sale", and "major sale" which aren't entirely accurate and honest and absolutely forbidden and a breach of genivat daat. For example, if the sale is only for many items in the store and not everything writing that everything for sale is a lie to trick the buyer to enter. Writing an old price and the actual cheaper price is forbidden because of genivat daat. In summary any sign that intentions tricks buyer based on them making false assumptions is forbidden.<ref>Kuntres Onat Devarim Ugenivat Daat p. 14</ref>
#Signs that state: "Clearance sale", "everything for sale", and "major sale" which aren't entirely accurate and honest and absolutely forbidden and a breach of genivat daat. For example, if the sale is only for many items in the store and not everything writing that everything for sale is a lie to trick the buyer to enter. Writing an old price and the actual cheaper price is forbidden because of genivat daat. In summary any sign that intentions tricks buyer based on them making false assumptions is forbidden.<ref>Kuntres Onat Devarim Ugenivat Daat p. 14</ref>
# Paying a newspaper or site or the like to print an advertisement or something positive about one's institution unless it is designated as an advertisement is genivat daat. If the reader is fooled into thinking that it is a regular article and not an advertisement he will be interested and convinced more easily.<ref>Kuntres Onat Devarim Ugenivat Daat p. 15</ref>


==Overcharging in Comparison to the Market==
==Overcharging in Comparison to the Market==

Revision as of 03:43, 3 July 2019

General Marketing Considerations

  1. The marketing profession poses the difficulties of ensuring one does not lie about a product or deceive a potential customer.[1]

False Advertising

  1. One is not allowed to use superlatives to present a product if the superlative will likely deceive a reasonable person.[2]
  2. While there is no problem with accurately presenting the positive aspects of merchandise (assuming a reasonable person will not be deceived), sellers are obligated to disclose any defects, deficiencies, shortcomings, or imperfections in their merchandise.[3] This is true even if the merchandise is being sold at a fair price for the condition it is really in. [4]
  3. Signs that state: "Clearance sale", "everything for sale", and "major sale" which aren't entirely accurate and honest and absolutely forbidden and a breach of genivat daat. For example, if the sale is only for many items in the store and not everything writing that everything for sale is a lie to trick the buyer to enter. Writing an old price and the actual cheaper price is forbidden because of genivat daat. In summary any sign that intentions tricks buyer based on them making false assumptions is forbidden.[5]
  4. Paying a newspaper or site or the like to print an advertisement or something positive about one's institution unless it is designated as an advertisement is genivat daat. If the reader is fooled into thinking that it is a regular article and not an advertisement he will be interested and convinced more easily.[6]

Overcharging in Comparison to the Market

  1. When dealing with overcharging in the marketplace, the main concern is the prohibition of Ona'ah (overcharging). To see more of what constitutes Ona'ah, see the page dedicated to it here: Onaah.

A Buyer's Responsibility

  1. It is a buyer's responsibility to gather relevant information on products the buyer intends to buy.[7]

Telemarketing

  1. A telemarketer who as a desperate gesture insults the consumer is in violation of onat devarim.[8]
  2. Calling at an inconvenient time such as dinner time (all the more so in the middle of the night) such that the consumer will interrupt his dinner to pick up the phone is a violation of onat devarim. Furthermore, the telemarketer who tries to convince consumers who aren't interested to buy the product are in violation of lo tachmod and lo titaveh of the consumer's money.[9]
  3. Negotiating for a discount isn't lo tachmod or lo titaveh since the seller is willing to sell it at the right price and setting a price isn't a final decision rejecting the offer. However, if the seller says he is convinced of the price and isn't willing to lower it, negotiating or convincing that resort to empathy or emotion or the like are a violation of lo tachmod.[10]
  4. Soliciting for a charitable cause even using persuasive tactics isn't a violation of lo tachmod or lo titaveh since you are helping them fulfill a mitzvah. However, persisting and pestering a potential donor are onat devarim.[11]

Unethical Competitive Practices

Undercutting the Competition

Monopolies

Overcharging for a Staple Item

Sources

  1. ↑ Chullin 94a, The gemara discusses the concept of gneivat daat where the owner withholds critical information from the potential buyer. The gemara quotes many different cases regarding cases of gneivat daat.
  2. ↑ Economic Public Policy and Jewish Law by Rabbi Aaron Levine 1993 p. 76-77
  3. ↑ Shulchan Aruch C.M. 228:6, Geneivat Da'at: The Prohibition Against Deception in Today's World, 2002 article by Professor Hershey H. Friedman
  4. ↑ Maharsha Chulin 94a, The Maharsha poses a case where a seller withholds information about a defect in an object he is selling. Despite the fact that he withholds this information, the seller still sells the object at a lower price (which is fit for the object with the defect). This is still genivat daat even though there is no onaa because the buyer believes he is getting a bargain on the object as he does not know about the defect. This is confirmed by Kuntres Onat Devarim UGenivat Daat by Rabbi Efraim Belisur p. 13 based on the Divrei Chamudot Chullin 94a.
  5. ↑ Kuntres Onat Devarim Ugenivat Daat p. 14
  6. ↑ Kuntres Onat Devarim Ugenivat Daat p. 15
  7. ↑ Economic Public Policy and Jewish Law by Rabbi Aaron Levine 1993 p. 77
  8. ↑ Tradition 38:3 2004 article by Rabbi Aaron Levine p. 11-12
  9. ↑ Tradition 38:3 2004 article by Rabbi Aaron Levine p. 11-12
  10. ↑ Tradition 38:3 2004 article by Rabbi Aaron Levine p. 9-10
  11. ↑ Tradition 38:3 2004 article by Rabbi Aaron Levine p. 13
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