Is It Legal to Resell Branded Food Products Like Chocolate Online?

saddybedangdang on 17/10/2017 - 13:48

My friend and I are looking at starting a small online business. The big crux before we investigate further into our idea is the legality behind reselling branded products.

Not to give too much away but if I was to resell say, a jar of nutella, on an online store, could I get into legal trouble?

Finally, would this also apply to international products like MI-goreng?

Thank you for any help. I've already reviewed the following:

https://www.business.gov.au/info/run/goods-and-services/sell…

https://www.business.gov.au/Info/Run/Advertising-and-online/…

Food & Grocery

Comments

  • spackbace on 17/10/2017 - 13:51

    Doubt it, if you're looking at Grey-Import food you'd be an online version of Reject Shop… or like the many American Food Importers

    Doesn't sound like a wise business venture though, I can't think of a food group that's not covered by other businesses

    • saddybedangdang on 17/10/2017 - 14:33

      Sounds good! thanks spackbace

    • bobbified on 17/10/2017 - 15:50
      +2

      Doesn't sound like a wise business venture though, I can't think of a food group that's not covered by other businesses

      Business ventures don't necessarily require unique ideas. My mates who's families own Asian grocery stores have all done pretty well over the years. A huge chunk of their products are international foods that are either imported through a distributor or they've taken to importing themselves.

      • AlienC on 18/10/2017 - 08:59

        Hehe just bought some myself online as most asian grocery stores don't deliver very expensive but we'll worth it imho especially where I live.

  • [Deactivated] on 17/10/2017 - 14:10
    +1

    So your business model is to purchase loss leader items from the big stores and then resell below RRP for profit?

    Eg. Cardury dairy milk on special @ ColesWorth for $2 and resell online for $3.95

    • saddybedangdang on 17/10/2017 - 14:32

      Just using this items as examples. There is a lot more to it but just wanted to overcome this legal question. thanks for the help :)

  • samfisher5986 on 17/10/2017 - 14:25

    As long as it doesn't say not for resale on the product its fine.

    But I really don't see how you can make any money from this.

    • saddybedangdang on 17/10/2017 - 14:32

      sweet. cheers!

    • djsweet on 17/10/2017 - 14:57
      +2

      Not a lawyer, but I doubt a company simply writing "Not for Resale" or "Not for Individual Sale" on an item would actually make it illegal for you to resell it.

      • samfisher5986 on 17/10/2017 - 15:16
        -1

        No but they won't have barcodes and it might raise questions with the customers.

      • [Deactivated] on 17/10/2017 - 15:17
        +3

        Often items marked as not for individual resale that came as part of a larger package are missing things like nutritional information, safety information, etc so it is indeed often illegal to sell them individually.

        It's illegal not because of the writing on the packaging but rather what is legally required to be there but is not.

        • [Deactivated] on 17/10/2017 - 15:20

          Surely if you made that information available by other means (eg. online, emailed with order confirmation, included with shipped goods) it wouldn't make the venture unlawful…?

        • [Deactivated] on 17/10/2017 - 15:22
          +2

          @KaptnKaos:
          No, the information needs to be on the packaging.

          The venture itself is not unlawful.

          You'll see many imported foods from overseas have new nutritional labels stuck over the original ones so they are in English and comply with the law.

          Hint. Manufacturers don't print the information on the packaging because they are nice people and want you to know what's in their food.

        • whooah1979 on 17/10/2017 - 22:20

          package are missing things like nutritional information, safety information,

          https://imgur.com/a/smYgv

        • konradthecat on 18/10/2017 - 09:07

          @whooah1979: you conveniently left out where he said "often"

        • whooah1979 on 18/10/2017 - 10:04
          +1

          @KonradTheCat:
          Not a problem.

          Often items marked as not for individual resale that came as part of a larger package are missing things like nutritional information, safety information, etc so it is indeed often illegal to sell them individually.

          https://imgur.com/a/smYgv

    • [Deactivated] on 17/10/2017 - 15:18

      As long as it doesn't say not for resale on the product its fine.

      Not worth the paper it's written on.

      • hell0 on 17/10/2017 - 15:24

        Yep. Agreed. Not for Resale is nearly meaningless though I believe the reason they say this is that smaller packs do not have the mandatory food labelling on the individual packs, hence that is the only issue.

  • wei13 on 17/10/2017 - 16:05
    +3

    Many / most of the small food businesses I know (ie. takeaways) buy their water and coke in bulk from Coles / Woolworths and then resell them in their store from their fridge.

    Also, isn't that what school canteens do basically?

    • AlienC on 18/10/2017 - 08:56

      Yes this is what I thought. I am sure most festivals type arrangements and food stalls also do something like this.

  • Seraphin7 on 17/10/2017 - 16:46
    +1

    I'm more interested in the customer value proposition here … why would I buy from you?

    • AlienC on 18/10/2017 - 08:57
      +1

      Same reason you buy from a food stall in the middle of nowhere? Location location.

      Oh wait I misread that.

      OP is probably thinking of bulk buying items on special or lowest historical prices and then selling them later when prices are back up essentially taking advantage of timed sales.

      We have all missed deals or great specials on items and I am sure OP is planning to capitalize on that.

      Can't say I never had the same idea a long time ago but yeah worry legality issues and such always stopped me from doing it.

      But thinking now I am sure this is not illegal as then where do the countless of online resellers and retailers of random items get all their inventory from.. I mean it all can't be from just one place?

      TL;DR imagine the last deal you missed out on now imagine OP's new store has that deal but at a more expensive price than said missed deal but still lower than everybody else.. from who would you now currently buy from? The more expensive normal online retailers or OP's new undercut the rest of the market and buy inventory from major retailers at historical low prices to resell later shop?

      Essentially OP wants to be the new bad gearbest of groceries lol.. which I am all power to him/her/them.. we always need more competition :)

      • saddybedangdang on 20/10/2017 - 12:48

        Hahahhaha thanks for the faith alienc but my idea is a lot simpler and probably far worse. just thinking of a candy subscription box in australia in perfect honesty

        • AlienC on 20/10/2017 - 21:57

          Lol haha ok. Hmm candy subscription store hmm yeah that could work.. aim it at kids or for kids and you will get tonnes of adults clamouring towards it lol or at least the big kids.

  • citygal on 17/10/2017 - 22:09

    More likely that it is legal to resell. But if there's something wrong with the food (e.g. people got allergy / seriously sill from food that you resell), you can get into a lot of trouble.

    • whooah1979 on 17/10/2017 - 22:23

      But if there's something wrong with the food (e.g. people got allergy / seriously sill from food that you resell), you can get into a lot of trouble.

      the manufacturer or the importer

      • citygal on 18/10/2017 - 00:33

        Both can be liable because the customer buys it from importer and have a trade with importer (i.e. legal contract with importer) so importer can be liable too. It's a by-contract with manufacturer. Usually customers will sue party that has more money

  • whooah1979 on 17/10/2017 - 22:32

    is the legality behind reselling branded products.

    ip would be the one of the main issues. another one is reselling items containing restricted or controlled materials.

    • [Deactivated] on 17/10/2017 - 23:15
      +2

      How is intellectual property an issue here?

      Please explain. I'll wait.

      • [Deactivated] on 18/10/2017 - 01:31

        Are you still waiting or have you moved on?

        Maybe by ip they meant Internet Protocol or Investment Portfolio

      • whooah1979 on 18/10/2017 - 06:42
        +1

        How is intellectual property an issue here?

        some companies are very protective of their brand names, especially their tm and artwork.

        rights holders can have listings removed using ebay's vero program http://pages.ebay.com/seller-center/listing/create-effective…, while amazon have an easy to fill out form page https://www.amazon.com.au/gp/help/reports/infringement. even aliexpress have an ip policy with penalty points. http://activities.aliexpress.com/adcms/help-aliexpress-com/i…. a c&d letter can be used for websites that doesn't actively police ip.

        i don't know the history behind this image https://files.ozbargain.com.au/d/70/6670l.jpg?h=85487faa. my guess that mcd used the merchant take-down requests or sent scotty a c&d for using their tm or artwork.

        • [Deactivated] on 18/10/2017 - 12:34

          So I don't think you quiet understand Intellectual Property. You may want to read your own links, particularly the ebay one.

          Let me help you….

          Items that bear the rights owner's trademark—such as a logo—but weren't made by the rights owner

          There is no IP issue if you are selling/reselling/distributing/importing/exporting/whatever an original product.
          The issue is if the product is not original…

          OZB issue with McDonalds graphics/screenshots is different because Ozbargain isn't actually selling their product.

        • whooah1979 on 18/10/2017 - 13:20

          @Drew22:

          So I don't think you quiet understand Intellectual Property.

          Ip laws doesn't only apply to counterfeit items. The right holders can legally stop any advertising on printed media or online media that bear their tm or artwork.

        • whooah1979 on 18/10/2017 - 13:23

          @Drew22:

          There is no IP issue if you are selling/reselling/distributing/importing/exporting/whatever an original product.

          Op may advertise these items on their website and sell them, but this doesn't mean that they're free to do what they like in regards to displaying the tm and artwork.

        • [Deactivated] on 18/10/2017 - 13:34

          @whooah1979:

          Within reason, but they cannot impede you from selling the good and advertising their goods for sale.

          They cant stop you from taking a photo of the product and using that in the ad.

          We don't live in communist Russia here you know.

  • HeWhoKnows on 18/10/2017 - 12:19

    You can resell anything

  • dasher86 on 18/10/2017 - 13:55
    +1

    If they're grey imports of food products you need to ensure that the food labelling is in line with Australian standards, this is why you see other importers putting their own sticky label on imported goods.

  • ant meal on 18/10/2017 - 15:41

    I wouldn't think so, considering that schools ask children to sell chocolate in order to raise funds.

  • Baysew on 20/10/2017 - 12:31

    Not to give too much away but if I was to resell say

    …Baby Formula?

    • saddybedangdang on 20/10/2017 - 12:49

      More like Candy Subscription Box like bocandy.com or munchpak

  • PVA on 20/10/2017 - 12:54

    stores do this all the time.
    I see people with trolleys full of say Coke , when its on sale, and they are buying it for their shop to onsell because its cheaper than at a wholesaler.
    You are fine as long as the plans not to relabel it as your own brand I guess.

    Importing is a different matter though.

  • chumlee on 20/10/2017 - 12:56

    Better chance if you use photos/pictures of the item and any wording in a basic font - don't use logos or trademarks as that's when you can be requested to remove those items from sale

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