Is Sharing Competitor's Offer Details a Crime or Just Unethical? What Could Happen?

I have one question. One of my colleagues is receiving information on commercial offers submitted by their competitor. This information has been shared by a consultant who is receiving a handsome sum of money from my friend. A few days ago, this information came to the attention of a senior person from the competitor's company. As a result, my friend is now worried that a case may be brought against him, as the person claims that the emails shared by the consultant with my friend are related to his offers.

Is This a Crime or Just an Unethical Practice?

So, my question is: is this a crime or just an unethical practice? If it is, what will be the consequences? The competitor is a multinational corporation, and they have the power to take any action. What extreme scenarios could happen to him? Please assist me and my friend.

Regards,
Samartha

There are different ways of looking at the situation you mentioned.

Corporate Espionage: Unethical Practice or Crime?

This is a clear case of corporate espionage. From one angle, it is definitely an "unethical practice." From another angle, regarding your query of whether it's a "crime," it will be if it's proved in a court.

You haven't mentioned whether your friend was involved in this arrangement on his own or if he was fronting for your company. Frankly, if push comes to shove, your company—most likely—will pretend absolute ignorance and push your friend forward to take the blame—even if he was doing this on behalf of the company.

Potential Consequences for Your Friend

To answer your query—"what extreme can happen to him"—to put it mildly, this is a very risky business your friend got into. As long as things don't come out into the open, it could be fine. But when that happens, frankly, anything can happen—it would depend a lot on the valuations arrived at with regard to the information passed on to him.

You haven't explained the role of the consultant—who is he and what's his role in the whole affair?

Regards,
TS

Thank you very much. Well, this consultant is a Building Service consultant and is pushing my friend's company products in all project designs. A trip has been arranged abroad (three times at the friend's company's expense). In return for that, he is pushing their products and also providing/sharing the prices/offers of their competitors. After that, he is also charging some margin on the sale of products. So, in both ways, i.e., sharing the info and also on selling, he is charging a huge amount of money.

Legal Implications of Sharing Competitor Information

So, the most important point is, what will happen if the competitor's senior person takes legal action?

Regards,
Samartha

To answer your query, "What will happen if the competitor's senior person took legal action?" in a single line, he will be in deep trouble if things are proven by any of the competitors.

Did your friend (frankly, is it you?) do any checking at any point to see how he was managing to get all the competitor info? For all you know, he could be stealing, or he could be bribing someone there—any way you look at it, the modus operandi definitely can't be above board. After all, who will officially share such info?

Also, how did the senior person from the competitor get the emails the consultant sent to your friend? Was there any rift or tiff between your friend and the consultant? If yes, maybe it was the consultant himself who shared with the senior person and put your friend in trouble.

Since a lot of this issue could go legal, I have also requested a few senior lawyers in this forum to respond—let's wait for their responses/suggestions.

Regards,
TS

Agreeing with Mr. Tajsateesh, I would add that the company's confidential information must not be revealed, even to your closest family member.

Legal Consequences of Breaching Confidentiality

Including espionage, the company can file charges against you for fraud, cheating, unethical employment practices, breach of employment contract and principles, conspiracy (email transactions), undue enrichment, anticipated malafide acts, and also unexpected charges both under IPC as criminal activity as well as under civil wrongs for compensation and damages. These charges may appear similar, but each has its own impact and differences. Do not underestimate the reputable legal advisers of the company; they know how to prove the case, and technology is far ahead. Compoundable charges will not let you off easily, even if they do not stand alone.

In any case, you are in deep trouble. Personally, engaging in unethical practices may seem enjoyable (no offense), but remember, when it backfires, it can jeopardize your bright future and have a significant impact on your career.

Steps to Rectify the Situation

I would suggest surrendering and coming to an amicable agreement to rectify the significant mistake you have made. This might entail listening to harsh words from your employer, but it is always better to acknowledge mistakes and protect your reputation and career path. Doing so may not only save you but also reduce the severity of charges and shift the blame to the true beneficiary of the wrongdoing.

Thanks a lot. And @ TS sir, well it is not me. I was earlier working in the same company where my friend is working now. But yes, indeed, it is a grave mistake he made, and it can surely damage his future.

Hope he will make the right decision after considering the legal opinion.

Thanks and Regards,
Samartha

Dear Anoop,

Legally speaking, this will be more of an unethical practice than a crime. Please answer my few questions to gain more clarity on this and to understand the legal risks involved:

1. What is the status of your friend in the company?
2. Do the company's top bosses officially or unofficially know about this beforehand?
3. Has your friend's company signed any agreements with the company they are supplying goods to, with an anti-bribery clause or any clause related to anti-corrupt practices?
4. Is any government organization involved as a party?
5. How did the consultant have access to the data he sold to your friend?

Please answer these questions, and I will be in a better position to explain the gravity of the situation. Undoubtedly, it is a very wrong practice because every business has some ethics that should be followed.