Supply chain

[Compostella]

Can a manufacturer legally dictate to its distributers who they can & can't sell to?

[cassa333]

I would have thought that if it is in the contract with the distributor then yes.

Gucci wouldn't want their stuff sold in the pound shop and would put an imbargo on it.

I think it depends on what the product is and the market place for said items.

[buildersmate]

No they can't, but the manufacturers invariably find ways around it.
If a supply chain comprises manufacturer - main distributors - retailers - customers, then the manufacturer can seek to make sure that the retailer is properly trained to advise the customer. This happens with upper-end electrical products (hi-fi's etc.) where the manufacturer doesn't want to find a cheapo retailer undercutting severely the other retailers.

[Ethel]

Levis did it with Tesco, if you remember

[buildersmate]

Tescos were buying through the 'grey' market - legal products sold into another country intended for sale in that country at a differential pricing policy, which Tescos were legally importing into the UK, paying the required duty (if any) then still selling more cheaply and making a profit. Levis somehow demonstrated that Tescos didn't have the right to do this.

[Ethel]

Yes, BM - because Levis wouldn't sell to Tesco in the proper way

[redcrx]

yes they can if they have contracts.

Just as a major pram maker like Bugaboo can stop all its retailers selling bugaboos at a discount.

[Compostella]

Surley that smells a bit like a cartel doesn't it?

Or at least breaches anti competition laws.

[Oneeyedvic]

Yes, this ebay case (not the bit about counterfeit goods, but about genuine stuff) http://news.bbc.co.uk/1/hi/business/7481241.st m

shows that the French courts allowed some French perfume houses to force ebay to stop selling genuine items.

[buildersmate]

Requiring dealers to have "training", "specialist dealers", it's all part of the same game - finding a way around the strict anti-competition laws.