So, I really like nail polish. And I recently found out that OPI, probably the most famous maker of nail polish, has gone after pretty much all online boutiques selling OPI for sub-retail price. (Often 50% or less of retail).
None of these online boutiques are selling OPI nail polish anymore, or they are still in the process of liquidating their stock. I can't understand why. There are a few online threads on the topic, like this
, but I don't get it.
There is something about 'diverted' stock. I assume this means either it fell off the truck - which I doubt, selling of this product is so widespread it had to be more systematic than a bit of stealing - or it's being bought pretty early in the wholesale supply chain so they can sell it for much less at a profit.
If I have something in my hand, I thought I was allowed to sell it. For what I wanted to. Don't want to buy my couch for 5 grand? Fine, but I'm still allowed to sell it despite the fact that I didn't make it or get the manufacturer's consent to make it. Right? No?
So why can't these e-tailers sell the nail polish for whatever point they want? Why is this not allowed but sales in general are?
I could see OPI controlling their supply chain more so the online retailers are unable to secure the polish for such a low price and must raise prices accordingly. But it seems here that OPI is threatening these e-tailers, either under threat of lawsuit or maybe cutting off their access to the product. What kind of lawsuit would that be? What are the e-tailers doing illegally here?
Also, it was mentioned that many of these retailers had filed off the serial number. Why? Are they not authorized to sell it?
Sorry for such a wordy post for such a simple question. I feel like there is something I'm missing here, or maybe I'm just clueless on the rights of the manufacturer. But this issue confuses me. Mefi! Help?