Generally speaking, once a manufacturer sells to a retailer or a distributor (the resellers), the manufacturer no longer has control over the products sold. There can be contractual agreements that change this a bit. For example, a contract between the manufacturer and a reseller can include a condition that the reseller will not sell the manufacturer's product below a certain price.
But, as a general rule (and with some notable exceptions), once the product is sold, the purchaser (be it a distributor, a retailer or a consumer) can do with it what s/he pleases. This means that a manufacturer can sell at his usual discount to a distributor and the distributor can sell at the price that will make him a profit.
For example: The manufacturer sells product X to the distributor for $5 and the manufacturer's suggested retail price for product X is $10. The distributor can then, under the First Sale Doctrine, sell product X for $10 or $12 or, to perhaps undercut his competition, he can sell product X for $6. The distributor/retailer can even decide to take a loss on the sale and sell product X for $3, to draw in consumers. This is assuming there is no contract with the manufacturer that limits the price.
Then, when a consumer comes along and purchases product X at the bargain price of $3, this consumer can then resell product X (on eBay or at a garage sale) for $5 or $10 or $20.
Again generally speaking, the price that a retailer/distributor will sell product X for will largely be determined by the manufacturer's suggested retail price and by the discount from the manufacturer offered the retailer/distributor. Large retailers/distributors may get a larger discount and can, therefore, sell at a lower price.
If all was legal and aboveboard, the Bill's employer has already legally purchased the Gillette products (at a discount) and, under the First Sale Doctrine, the distributor is allowed to resell these products at the price set by the distributor (not by Gillette), absent any contract between the distributor and Gillette which could limit the sales and sales prices.
Legal problems can come from breach of contract, advertising, product packaging, IP violations, counterfeits, stolen items ... there are other possibilities.
I suspect here that Gillette is seeing a violation where none exists - but I could be WAY off. Bill says that a personal review by an attorney in New Jersey is set for Tuesday. We might know more then.