Legal Question in Business Law in Massachusetts
Can one retail store legally accept a competitors gift cards, gift certificates, or store credit without the competitors consent? Furthermore, can the competitor legally stop the retail store from accepting their gift cards, etc?
We own a small Resale store that buys and sells used video games and systems among many other things non related. We are advertising that we now accept GameStop's gift cards.
We simply confirm the balance on the card on their website and issue our own store credit for the exact amount. We then use the Gamestop gift card at their store to buy inventory (video games, systems, and accessories).
There has been no slander or false information about Gamestop from our store. We simply beat their prices.
Their customers have PURCHASED these gift cards and given revenue to Gamestop.
Due to customer feedback and my own instincts, I feel that there may be a possible legal conflict with Gamestop in the future. Do they have a case?
I simply want to have the correct legal information if faced with this issue.
Can they legally make me stop.
1 Answer from Attorneys
I would first look at the terms of gamestop's giftcards. If it bars the customer from assigning rights, gamestop could have a basis to seek an injunction you.
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Can my store accept a competitor's gift certificate? Asked 6/27/11, 1:17 pm in United States Massachusetts Business Law