Legal Question in Business Law in California

I I did not sign a non-compete or confidentiality agreement with employer. Want to go into business in competition with former employer. Business is food distribution. Have found conflicting advice on soliciting business of former employer. Is it o. k. to send out flyers to customers of former employer announcing that I am no longer employed by him and starting my own business? The conflict for me seems to be that I am aware of what my employer is charging his customers for product, and since his prices are not known to competitors unless a customer shows them to a competitor, the prices are a trade secret. thanks


Asked on 2/23/11, 10:10 am

3 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Once you no longer work for this employer, you are free to compete. Sending our fliers before you leave would be improper. You can take anything with you like computer files or printouts, but the prices are really a trade secret and your memory is not a protected trade secret either. I would advise against using specific prices in your advertising materials, but you could certainly offer to meet or beat the prices they are currently paying.

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Answered on 2/23/11, 10:25 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Sending out announcement flyers is a tested practice and has been upheld in the courts, but do it after your departure is final. Taking any materials with you is chancy; I would certainly not grab the sales manager's Rolodex on your way out! Competition is encouraged by the law; misappropriation (theft) of trade secrets is not.

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Answered on 2/23/11, 10:56 am
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. If the customer list is truly the employer's proprietary information, then even sending out announcement flyers to this list would put you in legal jeopardy. Same goes for pricing information. Consult with a good intellectual property or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 3/06/11, 8:15 am


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