Bava Metzia, chapter 4, Mishnah 12 - the final Mishnah of the chapter - continues to deal with the restrictions the Sages placed on deception in commerce.
"Hattagar notel mechamesh gorenos venosen lesoch megurah achas" - a merchant may take from five threshing floors and place into one storeroom:
"Mechamesh gorenos... lesoch megurah achas" - a merchant is permitted to collect grain from five different threshing floors. A goren is the place where grain is threshed, meaning we are talking about five different fields and five different suppliers, and he is permitted to put all this grain into a single megurah - a storage place, like a grain silo.
"Mechamesh gittos venosen lesoch pitas echad" - similarly, he may bring his wine from five different winepresses, and store it all in one pitas, a large receptacle where wine is stored.
This permission is based on the fact that buyers naturally understand that the produce purchased from the merchant does not necessarily come from his own fields or winepress, but rather from various fields in the area from which he obtains his merchandise. Therefore, there is no deception here, even though the produce is mixed from different sources.
"Uvilvad shelo yehei miskaven le'arev" - provided that he does not intend to mix:
The permission is conditional upon his not intending to mix, akin to the prohibition taught in the previous Mishnah that one may not mix fruits with other fruits. Two explanations are offered to define this prohibited intention:
According to Rashi and the Bartenura: When the buyers think they are receiving produce exclusively from his own vineyard and winepress - for example, someone who manages a vineyard and they come to the winery he manages - but in practice, other produce is mixed in, this constitutes deception and is prohibited.
According to the Rosh: When he intentionally adds inferior produce, and in this case, inferior wine, in order to increase the volume at the expense of his high-quality grapes - this is certainly deception and is prohibited.
"Rabbi Yehudah omer lo yechalek hachanvani kelayos ve'egozim letinokos" - Rabbi Yehudah says a shopkeeper may not distribute roasted grain and nuts to children:
Kelayos are roasted grains, similar to the roasted snacks common today, and egozim are nuts - in other words, treats for small children. Rabbi Yehudah prohibits the shopkeeper from distributing them, "mipnei shehu margilan lavo etzlo" - because he accustoms them to come to him - since by doing so he will draw the children specifically to his shop, and they will drag their mothers along with them, leaving the other shopkeepers unable to earn a living. This, in his opinion, is an unfair sales tactic.
Although the Torah in principle adopts a free market economy and a fair commercial approach, there are reservations, established to ensure that people can earn a living honestly. However, the halachah follows the Sages who disagree and permit this, for if one shopkeeper distributes roasted grain and nuts, his fellow can distribute his own produce and compete with him. This type of competition is not considered unfair, and therefore it is permitted.
"Velo yifchos es hashaar" - and he may not lower the price:
According to Rabbi Yehudah, a seller is forbidden to sell below the fixed market price and thereby undercut the market for his competitors, even by selling a product at a loss. The reason: This forces the competitors to lower their prices, prevents them from earning a respectable living, and puts unfair pressure on them.
However, the Sages say, "Zachur latov" - he is remembered for good, and in their opinion, this is a positive thing, as lowering prices brings down the general market rate. It is worth noting that the reasoning here is not identical to the accepted capitalist approach in the 21st-century free market, according to which competition lowers prices for the benefit of the consumer. The concern here is of future exploitation: the worry is not that everyone will obtain the cheapest grain, but rather that there will be grain available for everyone, that every stomach will be full, and that everyone will be able to support themselves with dignity.
We must remember that in the time of the Mishnah, grain was produced once a year at the end of the harvest season, and there were speculators who hoarded grain and kept it for later in the year, for a time when people needed it and it could not be found in the market, at which point they would demand exorbitant prices. Lowering prices thus encourages the public to buy grain now, and deters hoarders from stockpiling goods, since they do not foresee making a profit from doing so. The result is not necessarily an immediate price reduction, but rather the prevention of unjust price gouging later in the year. Because this is beneficial to the consumer, providing bread for everyone, it is a good thing, and the halachah follows this view.
Sifting crushed beans:
Abba Shaul holds that it is forbidden to sift crushed beans. To illustrate: a shelled peanut has a light brown color, and an outer red skin that nobody wants to eat, so it is convenient to sift it out and leave only the nice nut. According to Abba Shaul, it is forbidden to sell produce from which all the waste has been sifted out, because buyers will think that this merchandise is superior to that of the competitors due to its nice appearance, and they will pay a high price that is not proportional to its true value. This constitutes deception, and therefore it is forbidden.
However, the Sages permit this, for two reasons:
The buyers know and understand what sifted produce looks like, and they knowingly pay a higher price for it.
And even if one were to argue that the difference in value between the sifted and unsifted produce does not justify the price increase - people do not want to bother sifting out the waste themselves. Once the seller takes upon himself the work of removing the waste, he is doing a service for the buyers, and they are willing to pay for it.
Nevertheless, the Sages concede that it is forbidden to sift only the top layer, at the opening of the vessel in which the merchandise is sold. The buyer purchases the entire quantity thinking that it is all sifted, and upon reaching the bottom of the vessel, he discovers that the quality is poor and he was deceived. The appearance is nicer than reality, and the expression of the Sages regarding this is: "Eino ela k'gonev et ha'ayin" - it is nothing but stealing the eye, meaning that there is absolute deception here. The concern here is of fraud, and therefore the matter is forbidden.
"Ein mefarkesin lo et ha'adam velo et habehemah velo et hakeilim" - one may not beautify a person, an animal, or utensils:
The term "mefarkesin" means beautifying - making the item appear better than it is and hiding its flaws, which inherently involves forbidden deception. Three cases are listed in the Mishnah:
"Lo et ha'adam" - not a person. This refers to a slave being sold in the market. He is an older man with white hair, and buyers do not wish to purchase an old man, so his owner dyes his hair black to make them think he is forty years old rather than sixty. This is complete deception, as he is truly an old man.
"Velo et habehemah" - nor an animal. They feed the animal large amounts of water mixed with bran, causing it to bloat and look plumper and healthier than it really is. The buyer is misled, and when the animal arrives at his home, it returns to its normal state, revealing that he was tricked.
"Velo et hakeilim" - nor utensils. One may not apply a new coat of paint to utensils being sold to cover up their flaws. This does not apply to new utensils, which are obviously permitted to be polished and beautified, as this is what a buyer expects to see with any new purchase, such as a new car. However, an old, used car that was involved in accidents and underwent repairs, to which one applies a coat of paint so that it looks new - this is deception and fraud, and it is forbidden. For used utensils, one may not beautify them in a way that disguises their existing flaws and defects.
In summary: In this Mishnah, we discussed the boundaries of the permitted and the forbidden in commerce. A merchant is permitted to collect produce from various threshing floors and winepresses and store it together, since this involves no deception, provided he does not intend to mix them. Rabbi Yehudah and the Sages disagree regarding distributing roasted grain and nuts to children and lowering the price below the market rate, and the halachah is that fair competition is permitted. Lowering the price is even "remembered for good" because it prevents hoarding and price gouging. Sifting crushed beans is also permitted, but sifting only the top layer of the vessel is forbidden, as it is nothing but "stealing the eye," and any beautification - of a person, an animal, or utensils - that masks the true flaws of the item being sold is also forbidden.