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Illegal selling of genuine products

Posted By Admin on 06 Nov 2017

Many brand owners face a typical challenge of their genuine products meant for specific OEM/ institutional customers or exports landing in the retail market. These products are generally available at much lower costs and disturbs the normal channel sales.

The issue with such material is not only that, it disrupts the existing channel sales & creates confusion in the minds of the customers but also creates a potential threat to the organization’s business continuity. Since these goods which are otherwise meant for institutional sales (or exports) are sold at much lower costs than the cost at which brand sells it to the retail channels, there are much lower (or no taxes) which have been paid to the government. So, if these issues are not addressed, there is always a potential threat that the government agencies may actually launch an action/ investigation against the brand itself for willfully evading taxes. This can also be potentially used by competition to put the regulators behind an otherwise complying brand, which itself is a victim of unfair practices by customers & channels.

It is very important that all such cases are dealt with provisions of the various statutes including that of unfair trade practices, tax evasions and causing revenue losses to the government.  The economic offences wings of the police, DRI, Taxation departments etc can be very innovatively used for getting over these issues. Generic education & campaigns in the trade channels for sanitizing them on the illegality involved also helps.      

The  platform helps brand owners to fight this unfair trade practice and helps keep the trade channels motivated & healthy. The professional expertise of the eco-system of legal & other domain professionals, help undertake effective actions against these violators, which bring material not meant for retail in the retail channels.

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