Can A Company Ban Retailers From Selling Its Products On eBay?
from the bad-for-your-market dept
Right on the heels of the awful court decision in France saying that eBay can be barred from selling even legitimate products, it appears some companies in England are shooting for a similar ruling. Jon Pyser writes in to let us know that a bunch of baby stroller companies in the UK are pushing hard to stop retailers from selling their legitimately purchased products on eBay. Effectively, they’re trying to put EULAs on baby strollers suggesting that the retailer buyers don’t actually have the right to resell what they’ve legally purchased. Not only is this questionable from a legal standpoint, it’s dumb from a business standpoint. A healthy secondary market for products increases the value of the product itself, since buyers intrinsically recognize the potential resale market in determining the value of purchasing the original. In fact, one retailer notes that in taking away eBay sales, it’s made selling that brand of stroller unprofitable. You would think, after 200+ years of economists explaining how protectionism hurts your own market, that people would understand this concept by now.