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Overcharging: Difference between revisions
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# There is a Torah prohibition to overcharge (as a seller) or underpay (as a buyer) when the other party is unaware of the market value for such an item.<ref> Vayikra 25:14 states “וכי תמכרו ממכר לעמיתך או קנה מיד עמיתך אל תונו איש את אחיו” “And when you make a sale to your fellow Jew or make a purchase from the hand of your fellow Jew, you shall not wrong one another.” The Rambam in Sefer Hamitzvot Lo Taaseh 250 as well as in Mishne Torah (Mechira 12:1) considers it to be one of the 613 mitzvot. This is also the opinion of the Sefer HaChinuch (Mitzvah 337). The Mishna Bava Metsia 51a says that this prohibition applies both to the buyer or seller. The general prohibition of onaa | Cheating a customer or a seller by overcharging is a serious sin. Sometimes the sale is halachically null and void, while in other cases it is still valid. | ||
</ref> This is split into three categories: | ==Prohibition of Overcharging== | ||
# There is a Torah prohibition to overcharge (as a seller) or underpay (as a buyer) when the other party is unaware of the market value for such an item.<ref> Vayikra 25:14 states “וכי תמכרו ממכר לעמיתך או קנה מיד עמיתך אל תונו איש את אחיו” “And when you make a sale to your fellow Jew or make a purchase from the hand of your fellow Jew, you shall not wrong one another.” The Rambam in Sefer Hamitzvot Lo Taaseh 250 as well as in Mishne Torah (Mechira 12:1) considers it to be one of the 613 mitzvot. This is also the opinion of the Sefer HaChinuch (Mitzvah 337). The Mishna Bava Metsia 51a says that this prohibition applies both to the buyer or seller. The general prohibition of onaa is codified by Shulchan Aruch C.M 227:1, Kitzur Shulchan Aruch 62:1, Halichot Bein Adam Lachavero 10:30, and Pitchei Choshen Geneva Vihonaa 10:1.</ref> This is split into three categories: | |||
# More than 16% above market price - this amount is considered onaa and the buyer can invalidate the sale. | # More than 16% above market price - this amount is considered onaa and the buyer can invalidate the sale. | ||
# Exactly 16% above market price - the sale is valid, but the extra money that the buyer paid must be returned. | # Exactly 16% above market price - the sale is valid, but the extra money that the buyer paid must be returned. | ||
# Within 16% above market price - the sale goes through and the extra money that the buyer paid need not be returned.<ref> Gemara Bava Metzia 50b, Halichot Bein Adam Lachavero 10:31. Rambam Mechira 12:3 explains that the reason that the sale is valid if the price is less than 1/6 above market price is because most people willingly forego such a small difference. Rosh Bava Metzia 4:20 writes that it is because it is impossible to be perfectly precise. Although Sefer Hachinuch (Mitzva 337) writes that charging that little above market price is totally permissible, the Ramban in his commentary on the Torah (Vayikra | # Within 16% above market price - the sale goes through and the extra money that the buyer paid need not be returned.<ref> Gemara Bava Metzia 50b, Halichot Bein Adam Lachavero 10:31. Rambam Mechira 12:3 explains that the reason that the sale is valid if the price is less than 1/6 above market price is because most people willingly forego such a small difference. Rosh Bava Metzia 4:20 writes that it is because it is impossible to be perfectly precise. Although Sefer Hachinuch (Mitzva 337) writes that charging that little above market price is totally permissible, the Ramban in his commentary on the Torah (Vayikra 25:14) writes that one still violates the prohibition even though he need not return the difference. Shulchan Aruch CM 227:6 quotes both opinions without conclusion. Pitchei Choshen Geneva Vihonaa 10:2 also doesn’t rule conclusively but says that a God fearing person should be strict. </ref> | ||
==Nowadays Fluctuating Prices== | |||
# Nowadays, most items don’t have a set price. Therefore, one would only be allowed to cancel a sale if there is a set price for that item in every store in the area and he was charged more than 16% above that set price.<ref>Halichot Bein Adam Lachavero 10:32, Rav Asher Weiss (Kovetz Darkei Horaa Tammuz 5765 2 pg. 124). See Pitchei Choshen Geneva Vihonaa 10:1 who discusses practical applications for nowadays and seems to conclude that one calculates it from the median price in that area.</ref> | # Nowadays, most items don’t have a set price. Therefore, one would only be allowed to cancel a sale if there is a set price for that item in every store in the area and he was charged more than 16% above that set price.<ref>Halichot Bein Adam Lachavero 10:32, Rav Asher Weiss (Kovetz Darkei Horaa Tammuz 5765 2 pg. 124). See Pitchei Choshen Geneva Vihonaa 10:1 who discusses practical applications for nowadays and seems to conclude that one calculates it from the median price in that area.</ref> | ||
==When Onaah Does Not Apply== | |||
# Somebody who invents something unique, such as if he got a patent, may sell the invention or the copyright for whatever price he wants. However, retail stores which sell that item cannot sell it for more than 16% above what it is sold for in other stores.<ref> Halichot Bein Adam Lachavero 10:36, Hilchot Mishpat pg. 294. This is based on the Rosh BM 4:20 that the whole basis for onaa is if you can acquire the item somewhere else for cheaper.</ref> | # Somebody who invents something unique, such as if he got a patent, may sell the invention or the copyright for whatever price he wants. However, retail stores which sell that item cannot sell it for more than 16% above what it is sold for in other stores.<ref> Halichot Bein Adam Lachavero 10:36, Hilchot Mishpat pg. 294. This is based on the Rosh BM 4:20 that the whole basis for onaa is if you can acquire the item somewhere else for cheaper.</ref> | ||
# If a store which is well known for its high prices because of its high quality, its convenience, or its customer service, charges higher than usual prices, the laws of onaa will not apply.<ref> Halichot Bein Adam Lachavero 10:37, Mishpitei Hatorah 2:1, since people are willing to pay extra for this convenience</ref> | # If a store which is well known for its high prices because of its high quality, its convenience, or its customer service, charges higher than usual prices, the laws of onaa will not apply.<ref> Halichot Bein Adam Lachavero 10:37, Mishpitei Hatorah 2:1, since people are willing to pay extra for this convenience</ref> | ||
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==Sources== | ==Sources== | ||
<references/> | <references/> | ||
[[Category:Business Halacha]] | |||
