I’m following up on the question that was recently answered below. The new store is not a little local store but rather a new branch of a large competing chain. Does this psak still apply? Perhaps it is still unfair competition as the new store still has to establish itself? Thank you for answering these questions.
27 Sivan 5772
The Question:
There’s a large chain store in my area that is trying to close down a new competing store by selling their products at below market prices.
Is it permissible to buy at this chain store?
Answer:
Assuming that the new store is local, the lowering of price by the chain store is not legitimate in halachah, because the local store will not be able to compete, and will therefore go out of business.
This halachah is based on the opinion of the Aviasaf, which is mentioned by the Rema, and cited by the Chasam Sofer and others.
Although there is no formal prohibition to buy at the chain store, it is therefore better to avoid buying there.
This answer assumes that both stores are of Jewish ownership, and that there is a large enough market for both to operate in competition with one another.
Answer:
If the competing store is not local, the defense offered by halachah will not apply.
Having said this, it might remains “unfair practice” to compete in a manner that doesn’t allow the competitor a chance, but it is not protected in halachah.
This is true the more so for a chain store, where nobody is going to actually go out of business.
Best wishes.
