Selling branded clothing items on ecommerce website - is it legal?

nobodiez

Hi folks,

I have an ecommerce shop open, we sell various women's fashion items bought in wholesale markets in Eastern Europe. I am visiting a big wholesale outlet in Poland, and they have outlets for big brands like Vero Moda, Puma etc.
These outlets specialize in selling cheaper items at wholesale prices.
Does anyone know if permission needs to be given by the manufacturer to sell their products? Anyone can sell a pair of Nike runners bought in a store that doesn't suit them on eBay etc. So us buying these items & selling them in Ireland would be 'second hand' I suppose. Any advice??

Thanks in advance,
Regards,
V

jimmii

If there are any conditions on where the clothes can be sold then the supplier will have the information a lot of our suppliers insist that buyers don't sell their stuff on ebay and other online marketplaces and thats included in the T&Cs when buying. There are plenty of wholesalers around who sell designer stuff I have bought a few watches and boots in the past and there were never any conditions attached. As long as the clothing is genuine then I can't see you running into any problems.

nobodiez

jimmii wrote: »

If there are any conditions on where the clothes can be sold then the supplier will have the information a lot of our suppliers insist that buyers don't sell their stuff on ebay and other online marketplaces and thats included in the T&Cs when buying. There are plenty of wholesalers around who sell designer stuff I have bought a few watches and boots in the past and there were never any conditions attached. As long as the clothing is genuine then I can't see you running into any problems.

Thanks for your input jimmii, that's what I thought as well. As long as they're genuine, and I will have invoices for all of them too, I assume I should be ok.
It's just the fact that I'm making a profit on their brand, but if they sell it for that price in one EU country, it's their own business I suppose.
Thanks again.

Peterdalkey

You can sell NEW branded products that are in free circulation within the EU but you cannot import them directly from outside the EU. If they have been illegally imported by your supplier, you may find that you are too in bother!.
Tesco, I think it was, some years ago brought in Levi Jeans from outside the EU and were sued sucessfully and stopped from selling such branded goods not sourced throufgh the brand owners EU trading channels.
You need to make sure your supplier's sources are legit.

Peterdalkey

My post above refers to the civil law regulations. Many brands do clear out old/redundant/end of season lines to discounters/wholesalers and companies such as TK Maxx etc. It is unlikely, but not impossible, that any of the brands would bother chasing a small operation even if they were selling "grey imports" but on a small scale.
If however the goods were deemed to be counterfeit, then it becomes a criminal matter. You just need to be careful and do your homework properly.

A2LUE42

Small trader in Limerick had €30k of stock destroyed because he wasn't authorized to sell it.

http://www.limerickleader.ie/news/local-news/abercrombie-and-ditch-clothing-sold-unlawfully-in-limerick-to-be-destroyed-1-4391086

Peterdalkey

A2LUE42 wrote: »

Small trader in Limerick had €30k of stock destroyed because he wasn't authorized to sell it.

http://www.limerickleader.ie/news/local-news/abercrombie-and-ditch-clothing-sold-unlawfully-in-limerick-to-be-destroyed-1-4391086

This would be in line with the position of unauthorised "grey imports " from outside the EU as outlined in my first post.

jimmii

A2LUE42 wrote: »

Small trader in Limerick had €30k of stock destroyed because he wasn't authorized to sell it.

http://www.limerickleader.ie/news/local-news/abercrombie-and-ditch-clothing-sold-unlawfully-in-limerick-to-be-destroyed-1-4391086

Different situation from OP. He is getting his stock via an authorised source.

Peterdalkey

jimmii wrote: »

Different situation from OP. He is getting his stock via an authorised source.

That is not clear from the original post, if however you are correct, then OP is sqeeky clean.

nobodiez

Thanks for your input, so since I am buying it from the manufacturer outlet that is within the EU, it is legal for me to resell the items, at my own chosen price? Very interesting article indeed, the only difference between myself & the person in article is that we're buying it in different countries.

wmpdd3

http://www.yourlocal.ie/company/380344974991360

Bestseller Wholesale Ireland sell Vero Moda etc in Ireland and always have done. Not sure if they have the sole rights of distribution from Bestseller.

nobodiez

wmpdd3 wrote: »

http://www.yourlocal.ie/company/380344974991360

Bestseller Wholesale Ireland sell Vero Moda etc in Ireland and always have done. Not sure if they have the sole rights of distribution from Bestseller.

My question actually was do they need ANY distribution rights at all?
They most likely don't buy their products from outlets directly so it's probably a different story though.

Peterdalkey

nobodiez wrote: »

Thanks for your input, so since I am buying it from the manufacturer outlet that is within the EU, it is legal for me to resell the items, at my own chosen price? Very interesting article indeed, the only difference between myself & the person in article is that we're buying it in different countries.

And that is the key. Official source within EU...Happy Days.

Under EU law you can sell at the price of your choice, despite them perhaps having a recommended retail selling price.

RUDOLF289

wmpdd3 wrote: »

http://www.yourlocal.ie/company/380344974991360

Bestseller Wholesale Ireland sell Vero Moda etc in Ireland and always have done. Not sure if they have the sole rights of distribution from Bestseller.

It is not permitted to sign "exclusive rights" contracts for any company in any EU country with another EU based manufacturer. That would be an anti competitive contract and would run foul of both Irish and EU competition law.

Once the product is legitimate and not counter feit, if it is sourced in the EU from the original manufacturer, there is nothing to stop you from selling it, regardless of the channel, including E-bay or any other e-commerce website or shop etc.

Cheers,
Rudolf289

RUDOLF289

Peterdalkey wrote: »

You can sell NEW branded products that are in free circulation within the EU but you cannot import them directly from outside the EU. If they have been illegally imported by your supplier, you may find that you are too in bother!.
Tesco, I think it was, some years ago brought in Levi Jeans from outside the EU and were sued sucessfully and stopped from selling such branded goods not sourced throufgh the brand owners EU trading channels.
You need to make sure your supplier's sources are legit.

Hello Peter,

The Tesco case you refer to is mentioned in the attached article. This article gives a good outline as to what is permitted in terms of parallel trade

Cheers,
Rudolf289