My competitors are using blackhat. What should i do.?
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Best you can do is report the website for 'cloaking' via Webmaster Tools:
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My guess is there are probably other factors causing their ranking over you. Keyword stuffing in divs is so 2001,,,
You can report them as RangeMaketing suggested, sure. I would review other on-page areas to see if there are ways you can improve on the basics. I would also see if there are any links passing link equity that you can acquire that match their profile. If your page is better across the board for SEO than theirs, you have more PA/DA, etc., you may want to consider getting some co-citations to appear as an equal to them PLUS your better on-page metrics.
Hope this helps.
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having gone that road, never mess with black hat. Keep it nice and clean, work on your website, improve your on-page optimization, report them to be on the safe side, and wait...
the worse thing someone could do is fight fire with fire. Let them burn and stay clear. The only issue is if you are in a non competitive industry.. Is that the case?
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I reported them but nothing happens (i reported a week ago)
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Yes i am in non competitive industy( mp3 download).
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Thanks for your reply. How can i contact you as i can't post urls here.? (New to moz)
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When you in a such low volume or non competitive industry, is important to know that Google may allow someone with low quality even someone using grey hat SEO to rank just because that someone maybe better than the rest..
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According to you what should i do.??
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concentrate on your on-page SEO, try to get  UGC on your website, since it should match well with the industry you are in and in few months you will see a difference!
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MP3 downloads aren't competitive? I would have thought they were quite competitive and there being fairly cutthroat competition.
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