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0 pointsanigbrowl14y ago0 comments

I'm not on the list of authorized distributors. I can sell a shit ton of Chanel merchandise.

How? According to Chanel's corporate website, they only sell through their own boutiques and authorized retail partners. This is known as a selective distribution agreement, and here is a 2008 report on internet sales models (prepared for Chanel) which articulates the differences from normal wholesale-retail models: http://www.crai.com/ecp/assets/Selective_distribution_Caffar...

My whole point is that no, you can't just go into business as a Chanel retailer, and you'll find the same is true for Hermes, LV, and a variety of other luxury brands. A great many high-value manufacturers make use of selective or exclusive distribution agreements to maintain price discrimination and market positioning for their brand across a global market.

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bobwaycott14y ago

Oh, I'm quite familiar with sales models, and they don't really matter much here. Authorized distribution is a glorified honor system.

I can buy Chanel, Hermes, LV, or other luxury products and resell them at any super-low, cheap-as-dirt price I wish. There is no arrangement in which you can determine "by definition" that the products I'm selling at a ridiculously low rate are knockoffs.

I could be a moron business person and lose my ass. I could have decided to violate my retail agreement and do what I wish. I could have received a box of the stuff from a friend & resell it for $20 a pop. I could have stolen a shipment of goods or procured them in some other non-authorized fashion and yet still be selling, by definition, the genuine article.

I was taking issue with the erroneous assertion one could tell, by definition, that a cheap luxury product was a knockoff. There is no way to reliably determine by price alone. A dirt-cheap luxury good can certainly heighten one's suspicions of its authenticity, but the price alone is no defining factor in judging a knockoff from the real thing.

anigbrowlOP14y ago

...which is why the manufacturer has had to put up a $20,000 bond for each website it alleges in selling counterfeit goods, lest some of the operators contest this determination and come to court with evidence that they are actually legitimate purveyors of used goods. I have a strong hunch that they won't have to pay out on those bonds.

Of course you could, but the probability that you actually are is sufficiently remote to be set aside. In the unlikely event that such a claim turns out to be true, you'll be compensated.

I could have stolen a shipment of goods or procured them in some other non-authorized fashion and yet still be selling, by definition, the genuine article.

Insofar as you are marketing and selling to Us customers from a US-registered website, that in itself would be sufficient justification to shut your website down. Convicting someone requires proof beyond a reasonable doubt, but putting a halt to self-evidently criminal activity does not.

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