First, a disclaimer. I am not a lawyer, nor am I even American, so all of this should be taken with the understanding that I'm really not qualified.
I don't know how you found these violations and, for all I know, you may not even be in the United States, but if you are, I would consider speaking with an attorney (preferably one with experience working cybercrime cases) to make sure that you aren't going to stumble into CFAA territory.
If I were your competitor, if I happened to find out that it was you, one option would be to call, "HACKER!! EVIL HACKER!!" And, looking at some recent cybercrime prosecutions (ie - aaronsw), if your competitor happened to catch the ear of the right prosecutor, you could be in heaps of trouble.
I hope that you do report this - your competitor honestly sounds like a scumbag. But, because he/she sounds like such a scumbag, they may not fade gracefully into obscurity. Protect yourself accordingly.
I don't know how you found these violations and, for all I know, you may not even be in the United States, but if you are, I would consider speaking with an attorney (preferably one with experience working cybercrime cases) to make sure that you aren't going to stumble into CFAA territory.
If I were your competitor, if I happened to find out that it was you, one option would be to call, "HACKER!! EVIL HACKER!!" And, looking at some recent cybercrime prosecutions (ie - aaronsw), if your competitor happened to catch the ear of the right prosecutor, you could be in heaps of trouble.
I hope that you do report this - your competitor honestly sounds like a scumbag. But, because he/she sounds like such a scumbag, they may not fade gracefully into obscurity. Protect yourself accordingly.