is it illagal to spy on your competition or does it just even the playing field?

Question

hi, iv recently went into partnership manufacturing and selling wooden products, a few people do the same sort of stuff on ebay and in the papers etc.

we are looking to expand and have a few good ideas on what we want to do, however i was wanting to go round some compeditors and see how they make their products and get some ideas on how to build similar products and also check there prices and hopefully be able to sell them cheaper than they do

is doing this ilagal - as i wouldnt be copying there products just getting ideas from them to make better products - and as for checking the price, is that not the same as tesco's price checker website

i just wanted to find out before i went to the competition as my partner dosen't want to risk getting caught if its not lagal,

thanks all in advance

Answer 1

Obviously you are quite new to business, look at the adverts for supermarkets. These items cost £20 in Morrisons, £21 in Asda and we sell them for £19. Everybody does it, no it's not illegal and it's good for the consumer as competition drives prices down. Good luck with your business.

Answer 2

This really depends what you mean by spy.

If you pay someone to get hired on at your competitor's company and steal secret information, it's illegal, and there have been a number of large-scale lawsuits over corporate espionage of this type.

If you're comparing prices, that's not illegal. If you're taking a tour and you're honest about who you are, that's not illegal.

But I'm pretty sure if you lie about who you are to get the information then it's likely illegal.

Lastly I wish to point out a flaw in your thinking. You think undercutting the competition is the best way to go. But if people want cheap, they go to Wal-Mart. In other words cheap and undercutting isn't always best, and often because companies look so much at putting out the cheapest possible product, quality drops at the same rate. The idea of building a quality brand that gives quality goods at fair prices is an idea that seems to have fallen by the wayside in the past few years, but seems to be making a resurgence.

Again if people want cheap, they can go to Wal-Mart, but what you should strive for is the highest quality in your price point.

In other words cheaper isn't always better. You may actually risk losing money by having too low of a price point and people being turned off because they feel it's inferior product, and again if they want cheap and inferior they can just go to Wal-Mart.

Answer 3

Most companies have been doing this for years but you would never know it. Your not necessarily spying on your competition, your making sure you product can be equal or better than theirs. Also if they have a shortcut that they use or material you have never thought to use that would be completely fair. Some companies have it in writing with their employees not to discuss these things which is where the legality comes in. You could actually approach this in two ways. One as a consumer who is interested in knowing some of the details as to what goes into a certain product. The other approach is to go in and talk with them directly. You can do this and get the information you need because good companies like having the competition.

Let your partner know this and maybe compromise on how you will approach it. Do not think of it as spying because it really isn't.

Answer 4

You can gather any information that is 'in the public domain' i.e. anything they tell you freely (for example, if you ring them up and ask for prices) or that they publish to others (eg price lists that they put on their web site etc).

If they run 'factory tours', or they freely agree to allow you to tour the factory, and don't ask you to keep anything secret (eg. you don't sign a NDA = Non Disclusure Agreement) you can use that too.

It is illegal to :-
Break into their factory or computers and steal information
Use any technique or process that they have under Patent, Copyright or Trade Mark (unless they license it to you)

Answer 5

Compeditors? Lagal?

I am sure looking what your COMPETITORS are doing is completely LEGAL. It is only ILLEGAL when you use nasty methods, then it becomes industrial espionage.