Contacted by manufacturer about our website

[chicagodiveguy]

Hi Everyone,

I am starting a thread that is sure to see many opinions! It goes back to the old "grey market" issue again.

Here is the story. Last year a couple of us got together when a local LDS was closing, and bought a bunch of their inventory, then shortly after saw a public auction of scuba gear items that were for sale and bought some more!

Long story short, we have a web site in which we sell these items. (We only have a couple regs, everything else is masks, snorkels, boots, lights, etc.) All the items are brand new in original manufacturer packaging with labels.

So yes... this would be considered grey market I assume. On the first page of the site, we clearly state where we got the merchandise. We do NOT claim to be authorized dealers of the equipment.

Over the weekend we were contacted by a manufacturer requesting us call them to discuss becoming an authorized dealer, OR to remove all the items from our site or face full legal action.

We have sent the info to our lawyer, but have removed their items for now.

Having been in the dive business for 20 years we know the effect, that the big grey market guys have had on the industry (Although, it seems they are not grey market any more since most manufacturers opened them up. You know who I'm talking about )

We are not huge buyers, importers, etc. of gear, and are not interested in starting a dive shop. We purchased gear to help a closing store out, and increased our inventory via a sale we found.

But now, we are getting some heat.

Unfortunately in todays economy we are seeing dozens of shops around the country closing, and dumping their inventory, selling below manufacturers MAP Pice on their websites, etc.

So... am I the bad guy for trying to make some vacation money, and help a store out that needed the income? Do I risk legal action now from the manufacturers whose stuff I have listed??

Keep in mind the prices we are selling for are slightly less than what most dive shops are selling for (i.e. MAP Prices) But anyone who buys online, via mail order or phone KNOWS, you can usually get a better price, package deal, etc. if you ask - Check the scubaboard discount most people advertise, too.

So, thoughts anyone?

 

[keesmon]

How about posting the link to your site?

 

[Jim Lapenta]

If you bought the stuff at an auction or from a store going out of business and are not claiming to be an authorized seller and are stating where the stuff came from SCREW EM AND TELL US WHO THEY ARE! This is like me buying a few items in package at the local flea market and putting them up for sale on ebay. I am the one who sets the price. I know what I paid and how much I want to make off of them. You bought them at a discounted price from a dealer. You did not sign a contract with the mfg. Tell em to go to hell and tell me what kind of prices you have. I may be interested in buying some stuff myself if it's items I can't get from my local shop.

 

[ptyx]

Do I risk legal action now from the manufacturers whose stuff I have listed?

That's what your lawyer will answer, but I'd be really interested in what he has to say. If there is any basis to the manufacturer claim, that's scary.

 

[Peter_C]

My interpretation and I am not a lawyer.

They were purchased from an authorized dealer, and sold to you. Now it is your decision to do as you please with them as the owner of a product. People sell unused stuff on scubaboard and other websites all the time.

I would say if you plan to start posting your website and advertising stuff here, you contact Pete and pay for a vendor rating out of fairness to the board owners.

 

[chicagodiveguy]

Thanks for the replies so far. I intentionally did not include our website or the vendors name.

I have been on this forum for years, and being in the dive business for so long, just wondered what folks though about the situation. I am not trying to spam the board just to get traffic to the site.

I may start to offer the stuff here in the future, too. Havn't yet, but you never know!

 

[MXGratefulDiver]

Unfortunately, this is America ... and anybody can sue you for any reason at any time. And even if the case is without merit it will cost you money to defend yourself.

My guess is their intention is to use their greater resources to bully you into a favorable (to them) business position whether or not what you are doing is legitimate.

The question you have to ask yourself is whether or not it's worth it (to you) to take 'em to the mat ... even if your lawyer comes back and tells you that they don't have a legitimate complaint.

... Bob (Grateful Diver)

 

[TSandM]

If you have no vendor agreement with the manufacturer, you can sell the goods for whatever you want. They may not honor any warranty, but as long as your buyers know that you are not an authorized dealer and no warranty is implied or stated, as far as I'm aware, the manufacturer has no legal grounds to do anything to you.

They're trying to scare you, and it's working.

On the other hand, anyone can FILE a lawsuit about anything, and it costs money to defend one, even if it is baseless. But this is just plain bullying, and it's really ugly.

 

[Meng_Tze]

Dump it all on eBay as an individual entity. Not a company. If you legally own the products, no-one can stop you from selling your own property. If you sell it as a company, i can see how this can be 'morphed' into trying to sell it 'as' an authorized reseller.

 

[vladimir]

I agree with the consensus that they are using their legal muscle to intimidate you. Why not? The lawyer is either on staff or on retainer, so they might as well use his services. Fortunately, you have weapons too--a sort of asymmetric warfare, if you will. By publicizing the manufacturer's name here (we can probably narrow it down to two ourselves) you can up the ante for them. I'd consult a lawyer beforehand though. Keep us posted.