Legal Question in Business Law in California
Did not sign a non-compete or confidentiality agreement with employer. After I quit, can I solicit customers that I delivered to for former employer face to face? Even though I will not take any records from employer, I still will have a general memory of what he is charging his customers. I have read and heard that prices that are not generally known are considered a trade secret. I"ve also read that I can send out flyers announcing that I"m opening a new business to the customers that were on my former delivery route. Can I contact them directly, or do I have to use flyers? thanks
3 Answers from Attorneys
Customer lists and pricing that is not public information are generally trade secrets. What Safeway charges for milk is not a trade secret because that is public information. The safest way to proceed is to send fliers and hope that these potential customers call you. You send fliers to a larger group than just former clients you recall, but to all similar potential customers. Good luck.
You can't violate the CA laws on unfair competition without risking a lawsuit, whether you signed anything or no. Learn those rules and avoid legal problems. If you target the company's customers, you violate the rules. You need to consult in detail with an experienced attorney about what you can and can not do.
As a Franchise Attorney I basically agree with the other attorney answers. What's public information is one thing; what you learned through the course of your employment, like the identity of customers that were on your delivery route, etc. is an entirely different issue. If customer identity information is proprietary to your employer, you can (and probably will) get sued. Consult with a good business 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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