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 clearly 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 in a case where admitting the defect would not invalidate the sale.<ref>Pitchei Choshen v. 5 ch. 12 fnt. 2</ref> This is also true even if the merchandise is being sold at a fair price for the condition it is really in. <ref>Sama CM 228:7, Bear Heitiv CM 228:4, 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.</ref> There is an opinion, however, that if the general practice is for the buyer to inspect the merchandise before buying, the seller does not have to reveal the defect and it would be up to the buyer to check the merchandise.<ref>Hilchot Mishpat, Section 1, 245-6</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 clearly 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 in a case where admitting the defect would not invalidate the sale.<ref>Pitchei Choshen v. 5 ch. 12 fnt. 2</ref> This is also true even if the merchandise is being sold at a fair price for the condition it is really in.<ref>Sama CM 228:7, Bear Heitiv CM 228:4, 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.</ref> There is an opinion, however, that if the general practice is for the buyer to inspect the merchandise before buying, the seller does not have to reveal the defect and it would be up to the buyer to check the merchandise.<ref>Hilchot Mishpat, Section 1, 245-6</ref> | ||
#Signs that state: "Clearance sale", "everything for sale", and "major sale" which aren't entirely accurate and honest are 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 "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's intended to trick buyers by causing them to make 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 are 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 "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's intended to trick buyers by causing them to make 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> | #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> | ||
