Question:
Hello Rabbi,
I read somewhere that it’s against the law to steal other customers from the same store.
So what happens if there is a person in the area selling a product. For example Jacob suppose sells beds but Michael starts selling beds that are slightly different. This can take Jacob out of business. But if Michael doesn’t do it then the people in the area won’t get the added benefit of a better product.
What is the solution to this?
Answer:
Your question is correct
There is indeed a controversy in the Gemara as to whether it is forbidden to open another store in the city that appeals to the same customers of the first store, in Halacha it was ruled that there is no prohibition to open another store, especially when the second store offers slightly different products that are in the best interest of the customers to have two stores.
However, when the opening of the additional store causes complete bankruptcy and the cessation of the first store owner’s livelihood, it is forbidden to open the same store for the first time, because this is called the cessation of the life of the first store owner.
Notwithstanding the above, the ‘poskim’ wrote that the natural development of industry and commerce is permissible even when it results in bankruptcy for the first store owner. Because it is inconceivable that there would be a ban on selling computers because by doing so we are losing the livelihood of the scribes, and it is inconceivable that there would be a ban on producing cars because in doing so we lose the livelihood of the wagon drivers. However, in order to use this permit, it is necessary to hear more details than those mentioned in the question.
Therefore, in fact, insofar as the opening of the additional store does not cause bankruptcy to the first store, it is permissible to open a second store selling the same idea of products.
In the event that the opening of the second store causes bankruptcy to the first store, on the face of it this is prohibited, unless it is at all the natural development of trade and industry, and it is necessary to hear more details in order to use this permit.
Sources and reasoning
