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HOME  |  LEGAL
Selective distribution rights

LEGAL

Selective distribution rights

"Selective distribution raises difficult issues because of the range of products it is used for and the differing scope of restrictions. The Commission is conside
ring whether the same rules should apply for products as diverse as luxury goods such as perfumes, complex electronic equipment and football shirts, as well as whether they should be able to apply to any other products as well.

“For manufacturers and suppliers of complex or luxury products, the ability to impose core restrictions required by the nature of the products or the prestige of the brands (e.g. requirements for training, requirements for display, prohibitions on sale to resellers outside the network) is unlikely to be unaffected by the Commission's review. However, numerous other restrictions that have become a standard feature of selective distribution arrangements (i.e. in relation to stock levels or the volume of sales concluded over the internet) will be less likely to be permitted.

“Under the new regime all existing selective distribution systems are likely to need review but, as now, there will be no real hard and fast rules because ultimately the assessment will always depend on the businesses and the products involved."

For further information please contact andrewchandler@eversheds.com

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