...

Combatting Product Diversion and Unauthorized Online Sales

Authorized distributors for various industries often contract to sell a companies’ products on an exclusive basis. Today, however, the proliferation of diverted products to unauthorized sellers on the internet on sites such as eBay, Amazon, etc., which often sell at prices significantly lower than those at which authorized distributors must charge, poses a threat to authorized distributors’ sales and the company/distributor relationship itself.  Companies in this situation must deal with these issues with their distributor network and must also confront the facts that product diversion directly harms companies’ bottom lines by reducing prices and diverting revenue, and unauthorized sales also damage companies’ brands and their reputation with customers.

Ally Law Unauthorized

Historically, strategies to combat this problem have involved using technology companies to identify unauthorized product sales, and litigation to deter the diversion of products. Ally Law member firms are identifying new approaches to handling unauthorized online sales, integrating legal, technology and investigation-based techniques to efficiently and effectively stop unauthorized sales and to avoid the time and money expense of litigation.

If your business is impacted by the issue of product diversion, consult an attorney at an Ally Law member firm to determine a solution.  Ally Law member firms around the globe have attorneys experienced in all aspects product sales and distribution agreements and enforcement, as well as online marketing and sales. For more information about our services in this area, contact us at yourally@ally-law.com.

For the complete article, click here.

By Vorys, Seymour and Pease, LLP.