How do you feel when you find a competitor operating illegally? What do you do to stop it?

Without proper permits, licenses and insurances.  There is a small problem in my area with companies failing to comply with the law.  We get by with our business while these people bank their pockets by not paying to operate legally.  And no one is stopping them.
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Answers (1-10)

Business from Spring Lake, MI
Answered on Aug 27th, 2019
This is always a difficult problem to address, more as a practical matter than a legal matter. The short answer is that you should report the illegal actions to the authorities who enforce those particular laws or regulations. Permits and licensing are industry specific so be sure those businesses fall within the scope of the laws/regulations. Insurance is seldom mandatory, except in very specialized businesses, often in combination with a license. Again, if lack of insurance is a violation of a specific law, ordinance or regulation, report the violation to the enforcement authority.
These issues have been going on forever, there always seems to be a certain number of people that don't believe they have to follow the rules.  Depending on the situation, I may personally report the offenders to the proper authority or if representing a client then other means up to and including litigation would be used.  The bottom line is that these wrongdoers will continue unless "we" stop tolerating the behavior and hold them accountable.  For example, if you are a contractor and are plagued by unlicensed contractors then you should report those you suspect to the Department of Labor who can then investigate and when warranted shut them down. 
if your business is regulated, you good file a formal complaint with the regulatory agency, to bring this illegal activity to their attention, if it is truly illegal and not just shady or unethical, you can contact the commercial frauds unit at the Nassau County District Attorney’s Office 
If it is a local or state licensing provision it is easy to report to appropriate official. Far different than a criminal offense which is obviously also reportable to officials
We report someone acting as an attorney without a license to the "Unauthorized practice of Law" committee.  If we believe a licensed attorney is doing something illegal, we have an obligation to report them to the State Bar of Texas.
There are California laws against "unfair competition," so you could sue.  Operating illegally as you described allowing other companies to make more money while you make less by complying with the relevant laws makes the other companies liable to you.  I suggest contacting a business attorney to see about a potential lawsuit.
It depends on the industry and the type of illegality.  If it is criminally illegaly, the local District Attorney and Sheriff's office should be contacted. If the company is not permitted to operate without a permit, the local enforcement authority should be called (could be a state agency, could be a municipality).
First I'd make sure I'm 100% certain that a competitor is operating illegally.  Shady practices may not be illegal, and a company may be operating under a different name than it's licensed under. 

Once you're 100% sure they're operating illegally, I'd gather together evidence.  At the very least, keep a log of each instance the competitor is doing something you think is illegal, with a description of the act, a date, and a time.

After you've gathered up proof, organize it in an easy-to-follow fashion.  Then contact the appropriate authority.  If it's a licensing issue, contact the licensing agency.  If it's criminal, contact the sheriff.

Complaints get filed all the time.  the more complete your complaint packet, the less work the authority needs to do, and the more likely they'll reach the appropriate conclusion.  Some licensing bureaus are more on-the-ball than others, and are willing to properly investigate every little allegation, other licensing bureaus... let's put it this way - if there's no documented proven harm to consumers, some agencies won't do a thing.
As an attorney, I have not really encountered any opposing counsel operating illegally, although there have been a few whose ethics or judgment I questioned. 

When one of my clients comes to me with a problem with a competitor operating illegally, I generally send a cease and desist letter to the competitor with the threat of a civil suit, but never threaten a criminal prosecution since that could constitute extortion.  I leave the decision on whether to file a criminal complaint to my client since my client has actual knowledge of the illegal acts. If necessary, I file the civil suit and may seek injunctive relief as well as civil damages on behalf of my client.

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