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Unfair Competition: Difference between revisions

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==Source==
==Source==


#Some say encroaching on someone's livelihood is a Torah Prohibition<ref>The Gemara in Makkot (24a) derives the prohibition from the verse “he did not perform evil with his neighbor” (Tehillim 15:3), whereas the Gemara in Sanhedrin (81a) derives the same idea from the verse “he defiled his neighbor’s wife” (Yechezkel 18:6). The Gemara Yevamot 76b compares one who takes the livelihood of someone else away to a murderer. Shut HaRambam 273 and Shut Mahrshal Siman 89 base it on Devarim 27:17. Shut haRashba 1:664 says it is included in the prohibition of stealing.</ref> while others say this is a rabbinic decree.<ref>Terumas HaDeshen (Pesakim U'Kisavim 128)</ref>
#Some say encroaching on someone's livelihood is a Torah Prohibition<ref>The Gemara in Makkot (24a) derives the prohibition from the verse “he did not perform evil with his neighbor” (Tehillim 15:3), whereas the Gemara in Sanhedrin (81a) derives the same idea from the verse “he defiled his neighbor’s wife” (Yechezkel 18:6). The Gemara Yevamot 76b compares one who takes the livelihood of someone else away to a murderer. Shut HaRambam 273 and Shut Mahrshal Siman 89 base it on Devarim 27:17. Shut haRashba 1:664 says it is included in the prohibition of stealing.</ref> while others say this is a rabbinic decree.<ref>Terumas HaDeshen (Pesakim U'Kisavim 128)
 
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, S”A 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. </ref>,


==When Does It Apply==
==When Does It Apply==
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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> However, 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>
#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> However, 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>
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#There is a lot of discussion in the poskim regarding opening a competing business.<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, S”A 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. </ref>,  ,  
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