I want to restrict my resellers to brick and mortar stores in New Zealand only and prohibit all online selling so I can build my global business online via a multi-level marketing platform. I want to know if any of my present online resellers can take me to court via the commerce commission under any retail restrictions impose if I stop supplying them?
Trade NZ and Commerce commission
Hi Welcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
The restrictions in the Commerce Act prevent having a dominant position in the market, and also having re4tricted trade practices by setting prices by agreement between other wholesalers. Beyond this, you can sell the product to your resellers on any terms you want. The sales agreement would have a provision that they must not sell online, as a condition in your supply agreement. This is not illegal or contrary to the Commerce Act
Thanks Chris, that's all I really need to know. I wont be restricting the price that retailers sell at, but only that they must not sell online. Many thanks.
LLB MMgt FAMINZ 32 years qualified as lawyer
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