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-   -   Is it illegal to share current pricing w/vendor? (http://ism.ws/bulletin/showthread.php?t=397)

394637 07-31-2013 04:40 AM

Is it illegal to share current pricing w/vendor?
 
I got into a debate with a work peer recently regarding this topic and wanted to know if there are any legalities that play into this topic. I know that this would be highly unethical; though I am curious if it is considered illegal for the following to occur:

Let's say Martha wants to move all her current business away from Jimbo's company and onto Ella's company. Is it illegal for Martha to take Jimbo's negotiated price sheet (negotiated and custom to Martha's business; considered confidential and not something shared with the public) and give it to Ella's Company and tell Ella's Company to match it or "do better" so that she can move the business over to Ella's Company?

I know this is highly unethical, and I would never engage is such behavior. Is it considered illegal. If yes, what laws does it violate?

Thanks!

TheMicah 11-13-2013 01:13 AM

It's not illegal (as in the police aren't going to kick your door in and drag you to jail), but if you signed a confidentiality clause then you can be sued. Without a signed confidentiality clause, there wouldn't be much of a case, so you're left with the fact that you burned a supplier which means you might not be able to go back to them. It will also plant the knowledge into your new supplier that you are the type of person who will do that, so they might not be as cooperative with pricing.

Another reason why I don't do that is that it's not the best way to get the lowest price.

ahrani82 12-11-2013 07:30 PM

The selling price (quoted/bid price) is considered "Trade Secret" which means it is protected by law regardless of signing of confidentiality agreement.

This concept of quoted price being considered trade secret is one of biggest reason for careful bid handling - all bids are deemed confidential document and disclosed on need to know basis only.

polpro 12-23-2013 03:03 PM

As has been said - it is not illegal, but it is clearly unethical. Supplier and customer relationship must be based on trust. The minute that trust is violated it dramatically affects the relationship. Even though the idea is to exit the supplier completely, it establishes that it is OK to do this. That starts the organization down a very slippery slope.


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