Commercial bribery is a form of
bribery
Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Co ...
which involves corrupt dealing with the agents or employees of potential buyers to secure an advantage over business competitors. It is a form of
corruption
Corruption is a form of dishonesty or a criminal offense which is undertaken by a person or an organization which is entrusted in a position of authority, in order to acquire illicit benefits or abuse power for one's personal gain. Corruption m ...
which does not necessarily involve government personnel or facilities.
One common type of commercial bribery is the
kickback. For example, a seller of goods or services from "Company A" who offers the
purchasing manager of "Company B" a payment to his own account to help him secure a contract for Company B's continued business is engaging in a form of commercial bribery.
Other related offenses are
payola in the
entertainment industry
Entertainment is a form of activity that holds the attention and Interest (emotion), interest of an audience or gives pleasure and delight. It can be an idea or a task, but is more likely to be one of the activities or events that have dev ...
,
match fixing
In organized sports, match fixing is the act of playing or officiating a match with the intention of achieving a pre-determined result, violating the rules of the game and often the law. There are many reasons why match fixing might take place, ...
in sports, corruption of
labor union officials, and
bid rigging in non-governmental contracts.
United States law
There is no
federal statute
In the law of the United States, the Code of Laws of the United States of America (variously abbreviated to Code of Laws of the United States, United States Code, U.S. Code, U.S.C., or USC) is the official compilation and codification of th ...
that by its terms expressly prohibits commercial bribery generally though it is mentioned as part of the definition of
aggravated felony for the purposes of
US immigration law and is prohibited to induce sales of alcoholic beverages through commercial bribery. It is usually punishable as a
felony
A felony is traditionally considered a crime of high seriousness, whereas a misdemeanor is regarded as less serious. The term "felony" originated from English common law (from the French medieval word "félonie") to describe an offense that res ...
under
state law, depending on circumstances, but only 36 states have laws specifically prohibiting commercial bribery. Among them are
California
California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the ...
,
Delaware
Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacen ...
,
,
New Jersey
New Jersey is a U.S. state, state in the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. It is bordered on the north and east by the state of New York (state), New York; on the ea ...
,
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
, and
Texas
Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
. However, the federal
mail and wire fraud
Mail fraud and wire fraud are terms used in the United States to describe the use of a physical or electronic mail system to defraud another, and are federal crimes there. Jurisdiction is claimed by the federal government if the illegal activit ...
statutes can be used to prosecute commercial bribery as a "scheme or artifice to defraud" if the mail or interstate wire facilities are used. In addition, use of the mails or interstate travel or communication in furtherance of a violation of state commercial bribery laws may be prosecutable in
Federal court under the
Travel Act.
As the penalties under the federal statutes may exceed the state penalties, and the federal investigative and enforcement agencies may have superior resources, often federal prosecution is favored.
New York's law against commercial bribery is contained in Article 180 of the state's penal code.
It is one of the most extensive state laws against commercial bribery in the United States, and includes prohibitions against bribing labor officials, fixing sports contests, and rent gouging.
See also
*
Secret profit
References
{{Corruption
Bribery
Commercial crimes