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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

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