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The Shach in YD Siman 117 Sif-Katan 13 writes,

דאין במתנה משום גניבת דעת

With regard to a gift there is no problem of "genevas daas" (deception).

The Shach writes this in regard to selling a not-Kosher piece of meat to a gentile and saying that it is in fact Kosher (since we see from SA Choshen Mishpat Siman 228 Sif 6 that there is a problem of genevas daas in business dealings with a gentile).

What is the reason and source behind what the Shach writes: why is a gift different from selling, that there isn't a problem of genevas daas? As well, is what the Shach writes true also of a Jewish recipient of the gift? (Seemingly it would be if the rule of genevas daas is the same for all people, Jew and Gentile alike.)

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The Shach probably mentions selling meat to a gentile as being a problem with genevat daat since selling non-kosher meat to a jew and telling him it is kosher would have other problems in addition to genevat daat, such as "Lifnei Iver" (which would not apply to a non-Jew) – Menachem Nov 13 '12 at 17:43
    
@Menachem It's speaking about goyim because that's what the Shulchan Aruch is talking about! (Look at the Rema that the Shach is going on.) The question is is how far does this idea extend in general outside of the topic at hand that the Shach is discussing and as well is the same thing true by a Jew (in another case, obviously not this one -- u'pashut.) – Yehoshua Nov 13 '12 at 18:52
    
@Yehoshua If you are so smart why do you not see the shachs sources and answer your own question? – hazoriz Jan 31 at 22:50
    
@haoriz I don't know what you mean about being smart? But, okay.... – Yehoshua Feb 1 at 17:14

It's based on the Gemara on Chullin 94a.

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Welcome to Mi Yodeya. Your answer supplies a location. Can you please explain what is stated in this Gemoro that is relevant to the specific question being asked. Your answer will then be much improved. – Avrohom Yitzchok Jan 31 at 17:01

I understand it like this

When selling you are not allowed to not inform the goy that it is not kosher if you are selling it in a Jewish store (it is bhezkas kosher)(it is as selling a detective item and not informing of the defect)

But if you are giving it for free (gift) from a Jewish store (it is bhezkas kosher) you are not obligated to tell him that it is not kosher (if he did not ask) (a defective gift is still a gift)

even when it is for free (gift) you can not actively inform the goy that it is kosher


why is a gift different from selling, that there isn't a problem of genevas daas?
Since by selling a chazoko obligates,
but by a gift if the recipient decided to trick himself it is not our problem

As well, is what the Shach writes true also of a Jewish recipient of the gift?
Yes ,
the example I was thought if you go to someones wedding out of town (gift) (you where there anyway you are not obligated to say you are there anyway (you did not come just for the wedding),
but if you say you came just for the wedding you are doing genaivas daas

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