Can my competitor approach my customers and direct them to ask for a refund sothe he/she may sell them a similar cheaper product?

UPDATED: Feb 9, 2011

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Can my competitor approach my customers and direct them to ask for a refund sothe he/she may sell them a similar cheaper product?

We sell trinkets and souvenirs on public sidewalk. Our competitor who is located 20 steps away can observe our sale and when our customer walks in their direction he/she offers a similar product for much much cheaper causing our customer to get upset. Note: The product is not exactly the same and lacks much quality that enables them to sell for a cheap cost. We have a no refund policy but to not refund when the customer has only walked 20 steps away makes us look unprofessional and other words. This is a constant happening and we feel that there could be a law in place to not harass or medal.

Asked on February 9, 2011 under Business Law, California


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I believe what you mean is an interference with business claim.  I am assuming that you have a license for the sale of goods on the sidewalk, correct?  I would say that you need to speak with an attorney in your area on the matter.  Not many courts like to interfere with free trade and the value of competition runs our country.  So I might see if either you can get a restraining order as to what they say against you or block their view or rather, how far you can comment on THEIR products before you are considering interfering with their business.  Maybe move to a new location?  Good luck.

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