Business and Misc.Halachos of Infringing on Another’s Income

A.     Taking Customers or Employees

If Reuven decided to transact business with Shimon, it is assur for Levi to make an offer to take away his business[1] רלז, א-ב (even if they did not formally sign an agreement). This applies to offering to buy an item which he is negotiating to sell someone else, poaching a steady client from a competitor[2] רלז, ב , or offering someone else’s salaried employee more money[3] משמעות שו"ע (רלז, ב) ממה שלא התיר אלא במלמד, משום דלא כל המלמדים שוים, כמ"ש סמ"ע (סק"ח). .

It is permitted in any of the following cases:

1.       If there is an accepted industry standard- for example, one may not actively try to take someone else’s customer, but it is permitted to make “cold calls” from the phone book to try to find customers.

2.      This prohibition only restricts a third party from interfering in other’s business. However, if one of the parties actively seeks him out, he is permitted to engage in business with him. For example, if a seller asks a potential buyer if he wants it, the buyer is permitted to make an offer on it, even if he knows someone else has agreed on a price with the seller[4] מהר"ם אלשיך (סי' סז). .

3.      In an arrangement where it is not automatically assumed that one will continue his business relationship after the current term expires, it is permitted[5] הגהות רעק"א (על שו"ע רלז, ב) . For example, one may offer to hire a contract employee after his current contract ends, even though the current employer may want to rehire him.

4.      If the item is unique or a very good deal, he is permitted to make an offer on it even though he knows someone else has already agreed on a price with the seller, although it is preferable not to do so[6] רלז, א. ע"ש הביא מחלקת בזה, ורמ"א כ' העיקר כדעת המקילין . One is permitted to a hire away a teacher from another institution, because every good teacher is unique, with qualities one cannot necessarily find in someone else[7] רלז, ב, ע"פ סמ"ע (סק"ח) .

5.      One is permitted to inform his friend that he can find cheaper prices or better employment elsewhere, if he is solely looking out for his friend’s benefit and receives no benefit for doing so[8] ע' פתחי חושן (חלק ה, פ"ט הע' לב) בשם הליכות ישראל, מעשה באשה שרצתה להשכיר חלק מדירתה, והשתוו על המחיר עם משפחה גדולה, ובינתיים באו חתן וכלה לשכור דירה, והמשכירה העדיפה את הזוג שלא תסבול מרעש של המשפחה הגדולה, ופסק שאין בו משום עני המהפך, שאנו חייבים לעמוד גם על זכויות המשכיר שהשני נוח לו, והביא שם שהחזון איש הסכים שסברתו נכונה, ע"ש. . If one knows that his friend is planning to buy a certain item from a specific store and he knows that there is another store which has a cheaper price, he is permitted to tell his friend. He can tell his neighbor that he can earn more money by working at x employer rather than his current job.

6.      Anyone is permitted to offer the item for free[9] כ"כ פתחי חושן (גניבה והונאה, פ"ט, סוף הע' ז) . For example, if one drives by a bus stop which offers shuttle service to Brooklyn, he may offer a free ride to someone waiting there, but he may not offer to take someone for pay, as this is taking a customer who has already expressed interest in the product.

B.      Competing Businesses or Stores

One may open a competing business in the same area[10] רמ"א כ' במבוי אחר אינו יכול למונעו כיון שנותן מס as a competitor even though it will cause the other business to become less profitable[11] ע' (קנו, ה) אוסר, אא"כ נותן עמהם מס למלך.

ע' שו"ע (קנו, ז, רמ"א שם, וערה"ש יא), דמותר אם יהיה רווח בשביל הקונים. ודוקא אם הקונים יהודים, מותר.

והחילוקים בין אם הוא דר באותו עיר או לא, אינם שייכים כ"כ בזמן הזה, כיון שיש לדון אם כל הסברא שיש יותר זכות למי שדר באותו עיר הוא כיון שהוא משלם מס, וא"כ בזמה"ז שמשלמים מס גם אם יש לו רק עבודה שם, י"ל שכל איש נקרא בן עיר.

וגם כיון שיש עכו"ם שיכולים לפתוח חנותם בלאו הכי אין דינים אלו נוגעים כלל, דהא למה אני לא אפתח חנות, ובמקומי ילך עכו"ם ויפתח חנות (ע' מנחת יצחק ?). .

However, one may not open a business if it will cause another business to become unprofitable and therefore close[12] שו"ת חתם סופר (חו"מ ס' עט), ע"פ דברי הר"י מיגש ואביאסף, והו"ד פת"ש (קנו, ג). וע"ש שהוא גזל דאורייתא. , even if the other business owner has other forms of income[13] פת"ש (שם) .

Even in cases where it is permitted, if it will hurt another’s livelihood, one should consult a Rav whether he should open a competing business or not.

C.      Stealing Another’s Idea

When one person put money and effort into an innovation, one may not copy it because that would cause the other person’s hard work to go to waste[14] ? . For example, if one came up with a new idea for a business and sunk significant investment into starting it, someone else may not copy the idea.

See {Laws of Stealing} for how this relates to copyright law.

If one knows that someone else agreed with a seller to buy a certain item at a certain price, he may not buy it. Even if they did not yet agree on the price but the other person definitely wants it and is still negotiating, it is preferable not to make an offer[15] רמ"א כ' שאם עדיין מחוסר הפסיקה, שהמוכר רוצה בכך והקונה רוצה בכך, מותר אחר לקנותו. וע' פ"ת רלז, ג בשם פרישה, דזה מיקרי השגת גבול, ואין היתר אא"כ כבר הלך ממנו הקונה. וכ' פתחי חושן (חלק ה, פ"ט סע' טז) דלפנים משורת הדין לא יקדים. .

One may not apply for a job after he knows that they agreed to hire a different applicant, or if he knows that if they hire him, they will fire a different employee.

If a customer enters a store intending to buy a certain product, or placed a certain item in his shopping cart, someone else may not come over and offer to sell it to him[16] רלז, א. , or tell him that a different store is cheaper. If a customer already entered a store (even if he didn’t express interest in any particular item), one may not tell him that a different store is better[17] פת"ח (גניבה והונאה פ"ט סע' ד) בשם חת"ס .