May a storeowner walk into a competitor's store and attempt to lure customers into his store by offering special discounts and promotions? Is this type of aggressive competition considered within the range of acceptable business practices, or do we consider the storeowner to be unlawfully infringing upon his competitor's business?
The Hatam Sofer (Rabbi Moshe Sofer, Hungary, 1762-1839), in one of his responsa (79), likened this situation to a case where a fisherman spread a net in the water and a school of fish entered the net. Even though he has yet to legally acquire the fish, Halacha nevertheless forbids other fishermen from attempting to lure the fish to their nets. Once the fish have entered the net of one fisherman, others may not infringe upon his enterprise by trying to bring the fish into their own nets.
Similarly, the Hatam Sofer ruled, once a customer enters a storeowner's "net," by walking into his shop, competitors may not interfere by luring the customer away. If the customer has yet to enter one of the stores, then both may equally vie for his patronage. Once, however, a customer stepped into a store to purchase a product, other storeowners may not attempt to attract him to their shops.
A similar case arose in London where a certain bus company posted signs before the school year announcing that their buses would leave from a certain terminal at designated times to the Gateshead Yeshiva. A wily cab driver drove to the terminal a few minutes before the designated times and offered to drive the students who had gathered there for less than the bus fee. The local Bet Din (Rabbinical Court) ruled that the taxi driver acted inappropriately, as the students had already entered the bus's "net" once they assembled by the terminal. The driver was permitted to wait a short distance away from the terminal and offer to drive the students, but it was forbidden for him to attempt to lure students that had already arrived at the terminal.
This Halacha calls into question many of the common telemarketing campaigns, whereby businesses attempt to attract clients of competitors. For example, insurance companies often call people and offer special discounts on insurance policies knowing full well that the people have already purchased a policy with a different company. At first glance, this appears to transgress the aforementioned Halacha forbidding a business from luring customers who have already entered the "net," so-to-speak, of a different company. All the more so, one might argue, it would be forbidden to attract customers who already patronize a competitor. In all such cases, a competent Halachic authority must be consulted for guidance.
Summary: Once a customer has entered a store, competitors may not attempt to lure him to their shops. It is questionable whether Halacha allows telemarketing campaigns that target clients of competing companies; with regard to such situations a competent Halachic authority must be consulted.
See the book- "Pure Money" by Dayan Cohen, pages 185-186.
