Q: If a product I am selling has a defect, is there a requirement for me to point it out to the customer? Is there a difference in the halachic ruling if the defect is clearly visible to my customer?

A: According to the Shulchan Aruch, it is prohibited to cheat people in business or mislead them in any way during a business transaction. For example, if there is a defect in an item being purchased, the vendor must inform the customer before the sale is made (Shulchan Aruch, Choshen Mishpat 228:6).

The SM"A (#7) adds another point to this rule: even if the seller will offer a discounted price on a defective item so that he is not actually cheating the purchaser, he still must inform him that the item is imperfect. The reason for this is that otherwise the seller would be misleading the buyer into thinking that he is getting a bargain.

However, if the defect in question is something that the purchaser can clearly see on his own, some say that there is no need to point it out to him.