Legal Question in Business Law in California

Re: Business Threats and Intimidation

I wouldn't recommend posting such a notice on your website when you have a much better option. What they are doing is illegal, an anti-trust violation, and if you have their emails, they've been caught with their hand in the cookie jar.

We are not allowed to put phone numbers in our answers (too much shameless self promotion happens, I guess) but it you go to the Department of Justice website, and navigate to the anti-trust section, you can find your way to the toll free number to call. Report what they are doing and follow instructions from the DOJ from there.

If you post statements on your website, you risk a civil action, which you will have to defend even if you are right. If you turn it over to the feds, you are a witness, but otherwise uninvolved.

Good luck.

Re: Business Threats and Intimidation

There are federal antitrust and California unfair competition laws proscribing this sort of conduct. Those laws also give rise to a private action against the CA based company. That means you might decide to sue here in California. You should consult a California attorney in the area where this company is based.

Good luck.

Re: Business Threats and Intimidation

Although posting the threats on your Web site might escape a successful civil action for commercial libel due to truth being a defense, defending might be expensive and a hassle, and you could perhaps face the additional possibility of being charged with extortion, although it seems to me that as things stand now, it is your company that could be victimized by extortionate threats....but don't get trapped into retaliating.

There could be some legal justification for the California company's posture on the pricing issue; for example, maybe you are both selling under representation or dealership agreements that give the product manufacturer or distributor some control over retail pricing and other retailer practices. Such arrangements can be legal (but not in all circumstances) and if this or something like it is the case here, your possible unfair competition suit would not be winnable.

On the other hand, absent any such facts, you would seem to have an excellend case for a private suit against the competitor. A California lawyer should look at both the email threats and the arrangements under which both companies (or at least your company) obtain and sell the items in dispute.

Re: Business Threats and Intimidation

You may have a case for antitrust violations. Further, there are California laws prohibiting providing services or goods at a business loss. You may want to consider sending a well drafted cease and desist letter. That may work. Also, don't play their game and pubish any sort of notices on your website.

Re: Business Threats and Intimidation

Stick to the absolute truth with no opinion added to 'minimize' the risk of slander lawsuit. It's not a good idea to do this, since you will risk getting sued. Instead, have counsel intervene in this and resolve the situation somehow. You may have grounds to sue them for their conduct, discuss it with counsel in CA local to them. Feel free to contact me if serious about doing so, and if the company is in SoCal.