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Can a competitor place fraudulent orders on an e-commerce site in attempt to cause damages to the business?

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    If the orders are fraudulent, then the competitor is, by definition, committing fraud, which is illegal.
    – Nate Eldredge
    Commented Mar 9, 2016 at 4:51

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Of course they can place fraudulent orders, it's just a very bad idea.

They are a business, not a consumer. Any order would be legally binding. In other words, they can place as many orders as they like, but they have to pay on delivery. If they refuse to accept the ordered goods, they will be liable for damages.

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  • Isn't it illegal for a competitor to place multiple orders just for the sake of espionage and tying up customer service, later canceling the orders or returning them?
    – Breakskater
    Commented Mar 9, 2016 at 19:02
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    They are a business. An order for a business is legally binding. They can't just cancel it; they are not consumers protected by consumer protection laws. The e-commerce site delivers, sends a bill, and the bill must be paid.
    – gnasher729
    Commented Mar 18, 2016 at 0:41
  • @gnasher729 well if the site has a return policy maybe not. Plus a large firm could sink a small one in legal fees.
    – Viktor
    Commented Apr 8, 2016 at 19:37
  • @Viktor: There are laws against that. The specific method that you use to interfere with a competitor's business doesn't matter.
    – gnasher729
    Commented Apr 10, 2016 at 13:30
  • @gnasher729 sure there are laws. But in the end the case is whether or not there is sufficient evidence to establish wrongdoing.
    – Viktor
    Commented Apr 10, 2016 at 13:31

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