Unauthorized sellers

[kpepperz]

What is the name of your state? IL, but company incorporated in WI

We manufacture a product and sell to catalog companies and individuals. If someone wants to be a distributor, we have a contract for them to fill out.

We have found several websites that are selling our product, and they are purchasing the product they are selling from one of our catalog companies, mark it up and sell it for a profit. The problem is this: the website owners are not authorized distributors, there is no contract filled out and WE get the calls from the customers when they don't receive their order (or have a problem with billing). We, of course, have no record of the sale because we didn't process it.

Can we tell these unauthorized sellers they can no longer sell our product unless they complete a distributor agreement and purchase the product from us? It doesn't seem right that someone can sell our product without our authorization.

 

[CraigFL]

Why would you want to stop sales of your product? You should look for a way to include the sales or maybe at the least, be sure the reseller in no way implies that they are selling directly for you.

 

[JETX]

Can we tell these unauthorized sellers they can no longer sell our product unless they complete a distributor agreement and purchase the product from us?

You can tell them anything you want... but they don't have to abide by your wishes. You really need to approach this problem from the end of your distributors who are selling your product to them. I would suggest you make a 'distributors agreement' that prohibits retail sales... and sells only TO retailers (and not end users).

As long they (the end users) purchase the product at retail, it is theirs to do as they wish... including selling to others.