Legal Question in Consumer Law in Pennsylvania

Is it legal for a retail store to deny my ability to purchase their products for resale on eBay? There is no stated policy forbidding this posted in any of their stores or outlets that I have shopped in. However, I have received a letter from their Loss Prevention investigator stating that they have denied me the right to purchase any item in any of their stores. In essence, they have blacklisted me. The letter states, "The volume of your purchases along with your habit of buying duplicate items suggests that you are purchasing Coach product for resale...we must advise you that no one is authorized by Coach to resell product purchased from our stores, website or accounts." Furthermore, they also state that not only am I no longer permitted to purchase their products but they will also not sell to anyone whom they believe is acting on my behalf.

Is there any case law that supports their attempt to control what I do with my possessions, regardless of brand?

I'm not claiming in my eBay listings to be authorized by Coach to sell their products. In fact, I state that I am not affiliated with Coach in any way. I use my own seller name and I am selling something that I paid for and own. The items I sell are identified with the brand name as are many other name-brand products sold on eBay.

I have paid their asking price; it's now mine; and I should have every right to do with it as I choose.

Thank you for whatever light you can shine on this situation for me.


Asked on 6/25/10, 7:08 pm

2 Answers from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Yes, it is perfectly legal for a store to prohibit the transactions of a potential consumer. The goods are yours until they allow you to purchase them and as long as they are not using an unlawfully discriminatory reason to deny you then there is no cause of action.

In many cases what they are doing could be required by their contracts with the manufacturer or distributor. There are a number of technical reasons why this is good policy for the outlet store, the manufacturer or distributor and the public at large. None of which will matter to you except for the fact that the store can prohibit sales to you or anyone acting on your behalf.

Regards,

Roger

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Answered on 6/26/10, 1:50 pm
Rachel Hunter

Yes - there obviously are limits and Coach does not want you competing as a distributor of their products as they have a limited distribution system. Coach can market and sell their products in any manner they choose. They are not discriminating against you because of race, sex, gender, religious beliefs or alienage/nationality. They are discriminating against you for a legitimate business purpose.

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Answered on 6/28/10, 5:26 pm


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