When individuals and businesses need the best grey market and diversion attorney, the Fort Lauderdale area trusts Black Law P.A. to get results! Grey market goods refer to product that is legally manufactured for sale in one region but sold in another region for excess profit. In addition, it occurs when manufacturers intend to distribute their products to limited markets. For instance, manufacturers of perfume or cosmetics who intend that their products are only for salon use or sale fit in this category. Product diversion occurs when their product ends up on the open market like Amazon, Costco, Target, etc., and not the salons they intended. Black Law P.A.’s lawyers in the Fort Lauderdale, FL., area specialize in grey market and diversion issues. We help distributors enforce their rights as it relates to diversion, whether it’s a geographical or limited market scenario. We also help companies accused of diverting products, when they received the product by lawful means through the first-sale doctrine. We’ve assisted clients in navigating this area of law in wholesale grocery distribution, cosmetics, perfume, pharmaceuticals, and products on international and domestic levels in federal and state courts.
The primary market is the first set of retailers and locations where goods are sold. Typically, these are retailers, wholesalers, or distributors who buy goods directly from manufacturers for sale under specific terms and conditions, or when manufacturers sell to customers directly via websites or storefronts. However, not all goods end up being sold on the primary market due to a variety of reasons ranging from pricing inefficiencies to too much or too little demand. Online shopping, distributors, and others contribute to a growing secondary market, also locally called the Fort Lauderdale grey market, where these inefficiencies are rectified by moving goods to areas of higher demand or by selling goods at a discount. As the name implies, the secondary market is where goods are legally sold by a second set of retailers or wholesalers beyond the primary market. Goods sold legally on the secondary market meet demand from consumers that cannot be met on the primary market, whether by a lower price or by moving goods from areas of lower demand to areas of higher demand.
Unlike secondary markets like the Fort Lauderdale grey market, diversion is the illegal practice of diverting goods from legally allowable circumstances into circumstances that are not authorized by the manufacturer. Diversion occurs when a retailer, wholesaler, or distributor violates the agreement they have with the manufacturer. For example, if a distributor has an agreement with the manufacturer to sell goods only in Canada, but then sells goods to an American wholesaler, diversion occurs. At Black Law P.A., we help our clients ensure that seller agreements and licenses are properly enforced.
Contrast this scenario to one where the distributor above legally sells goods to a Canadian wholesaler, as authorized by its agreement with the manufacturer. However, the wholesaler is unable to sell all of the goods via its usual methods and sells them at the end of the season to a third party that specializes in selling off-season goods. That third party selling discounted goods on its website to buyers in America does so legally in the secondary market like the Fort Lauderdale grey market. Unfortunately, manufacturers may try to prevent legal secondary market sales. At Black Law P.A., our Fort Lauderdale based diversion attorney can help protect the rights of resellers on the secondary markets.
Kelsey Black is our leading grey market and diversion attorney in the Fort Lauderdale area. Give her a call to learn more about how Black Law P.A. can help you!