“Unfortunately, the beauty industry is ripe with “rogue” or unauthorized sellers, which creates a huge problem for a lot of the brands we work with.
Unauthorized sellers often haphazardly ship products without using proper materials. Thus resulting in leaking or broken items, source outdated or expired goods, create listings with improper information or sell incorrect product variations on the wrong listings.
These activities cause harm to the brand’s image and reputation. Unauthorized sellers are essentially stealing sales from these companies. Since our firm has already helped dozens of beauty industry brands solve issues related to unauthorized sellers, CJ, Anthony & I want to make sure all three of us attend Cosmoprof 2022 and are available to speak with anyone facing similar issues.”
Mr. Rosenbaum explained that “Although the First Sale Doctrine can sometimes protect those who are unauthorized, but selling authentic products from claims of infringement, the First Sale Doctrine does not apply when what the law calls “materially different” products are sold by unauthorized sellers.”
Mr. Rosenbaum further explained that “Materially Different products can include those that are shipped and sold without the manufacturer’s required quality controls or applicable warranty or guarantee. This means, for example, when unauthorized sellers ship a bottle of shampoo or hair dye in improper packaging and a brand does not honor their guarantee without proof of purchase from an authorized seller, our firm can argue that they are infringing our client’s trademark and intellectual property rights by selling “materially different” products on Amazon or other e-commerce websites.”
“Beauty and cosmetic items are used almost exclusively on the human body including the face, eyes, hair, skin, nails, etc. That said, ensuring only high quality products that are safe to use reach the hands of consumers is vital to brands, especially in the beauty industry, who wish to maintain their good will reputation amongst consumers as their products are sold online.
Courts around the country appreciate the risk of using unsafe beauty or cosmetic products and regularly recognize that material differences claimed in the way the products are stored, packaged, handled, shipped, and sold all constitute legitimate material differences for products in the Beauty Industry,” explained Managing Attorney Anthony Famularo.
The firm works with each brand on an individual basis to determine the most appropriate ways to implement material differences in their products, update their distribution practices and agreements, and place consumers on notice of any policy, return, recall, warranty or guarantee changes. The firm also uses exclusive access to law enforcement only databases to ensure they can identify and make meaningful contact with unauthorized sellers prior to taking any formal action against them.
The law firm of Rosenbaum, Famularo & Segall has helped hundreds of brands remove tens of thousands of unauthorized sellers from their Amazon listings. Ultimately, brands who work with the firm view their Brand Protection and Intellectual Property Enforcement services as an investment rather than an expense. Typically, clients are able to increase their brand presence and revenue exponentially by working with the firm to solve unauthorized and rogue seller issues.
Rosenbaum Famularo & Segall, P.C., is based in Long Beach, NY & focuses on issues people, companies & brands face when products are sold on Amazon.com
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