But I think lying by omission can indeed be very bad, if you are using the lie of omission to defraud the other party, and that seems to be what is occurring in the scenario in question.
Generally speaking, we are not obligated to inform random people walking down the street of the facts. That would be active assistance, which we do not owe to random strangers. In contrast, telling random strangers active lies puts them at risk, because if they act on those lies they may be harmed. So there you have a moral distinction between failing to inform people of the truth, and informing them of lies. But if you are already interacting with someone, for example if you are buying life insurance from them with the intention of killing yourself, then they are no longer random strangers, and your obligations to them increase.
I am not arguing that lying by omission cannot be bad. Neither am I arguing for a specific policy toward lies of omission. I am arguing that folk ethics sees them as consistently less bad than lies of commission with the same consequences, and that a general discussion of the ethics of honesty ought to reflect this either by including reasons to do the same or by accounting for non-ethical reasons for the folk distinction. Otherwise you’ve got a theory that doesn’t match the empirical data.
But I think lying by omission can indeed be very bad, if you are using the lie of omission to defraud the other party, and that seems to be what is occurring in the scenario in question.
Generally speaking, we are not obligated to inform random people walking down the street of the facts. That would be active assistance, which we do not owe to random strangers. In contrast, telling random strangers active lies puts them at risk, because if they act on those lies they may be harmed. So there you have a moral distinction between failing to inform people of the truth, and informing them of lies. But if you are already interacting with someone, for example if you are buying life insurance from them with the intention of killing yourself, then they are no longer random strangers, and your obligations to them increase.
I am not arguing that lying by omission cannot be bad. Neither am I arguing for a specific policy toward lies of omission. I am arguing that folk ethics sees them as consistently less bad than lies of commission with the same consequences, and that a general discussion of the ethics of honesty ought to reflect this either by including reasons to do the same or by accounting for non-ethical reasons for the folk distinction. Otherwise you’ve got a theory that doesn’t match the empirical data.