By Rabbi Yair Hoffman An irate individual was upset with El Al’s pricing on tickets to Eretz Yisroel.  Since El Al is the only game in town and the tickets are several thousand dollars more than ever before – does this constitute predatory pricing that would be actionable in a Beis Din?  When someone responded that the price is only $1140 – the individual answered that this is not a l’maaseh price (practically available)  and that actual bookings are much, much higher.   I am not sure whether this assertion is correct – but even if it is, the odds are that the irate individual would not win in a Bais Din.  Here is why. DOES HALACHA PERMIT SUCH OVERPRICING? The question is, does halacha permit such pricing? May stores , or an airline, just price products or tickets as high as the market will tolerate – or is there some sort of upper limit? Also, does it matter if some people just seem to accept and pay it, regardless of the price? The Torah (VaYikra 25:14) speaks of Onaah, financial and verbal oppression. “When you make a sale to your fellow or make a purchase from the hand of your fellow, you shall not oppress one another.” Our sages (Bava Metziah 58b) state that this oppression refers to oppressive pricing. There is a further verse that also discusses oppression – which the sages state refers to verbal or psychological oppression. It is fascinating to note that many authorities (See Minchas Chinuch 67 and Dibros Moshe BM 53:1) write that one who financially oppresses an individual is also in violation of the second verse because whenever there is financial oppression there is also a psychological oppression since being taken of financially is also a form of psychological oppression. What is Onaah all about and does it apply in the above situation? The general rule is that if a store charges above the market cost – this is considered financial oppression, Onaah. It makes no difference if the purchaser was aware of the over-pricing or not (Ramah 227:7 based on the Mordechai 307:7). The laws of Onaah apply to sales, purchases, and even rentals (SA 227:32). It applies to precious stones as well (SA 227:15). THREE TYPES There are three different types of Onaah: A] If the overpricing is within 16.67 % of the market price B] If the overpricing is exactly 16.67% above the market price C] If the overpricing is above 16.67% of the market price. There is a debate among the Rishonim whether one is fully permitted to charge within 16.67% of the market price (Sefer HaChinuch and Baal HaMaor) or whether it is prohibited to do so, but if one did it the sale remains valid (Ramban). If it is exactly 16.67% more, then the sale remains valid but the overcharge must be returned. If the overcharging is over 16.67% then the victim may reverse the validity of the sale if he so wishes (227:4). HOW IS MARKET VALUE DETERMINED? There are two situations in which market value is determined: (1)If there is a set market price for the item and (2) if there is a range of prices. If there is a set market price for the item in that neighborhood, some Poskim hold that there is […]