You’ve put time (and money) into developing your product, building a brand, and getting your pricing right. Then you spot someone reselling your products online - sometimes at a higher price, sometimes discounted in a way that undercuts your retail partners, and sometimes with your branding used in a way that just feels… wrong.
It’s a common problem for New Zealand businesses, especially with the growth of online marketplaces and social selling. This 2026 update reflects the current reality: resale happens fast, publicly, and at scale - so you need a practical legal strategy that protects your business from day one.
So, can you stop people reselling your products? Sometimes yes, sometimes no - and the answer depends on who is reselling, how they got the goods, what they’re doing in the listing, and what your contracts and IP protections say.
Can You Stop Customers From Reselling Your Products?
In most cases, if a person buys a genuine product from you (or from an authorised retailer) and then later decides to sell it, it’s difficult to completely prevent that resale.
That’s because, generally speaking, once someone owns a physical product they bought lawfully, they can usually sell that item again (for example, on Trade Me, Facebook Marketplace, or through a second-hand store).
When Resale Is Usually Hard To Stop
You’ll often struggle to stop resale where:
- the product is genuine (not counterfeit);
- the reseller bought it legitimately (not stolen, not a breach of contract); and
- they are simply reselling the product as-is without misleading claims.
This is why “no resale” wording on packaging or a website checkout page often doesn’t achieve what business owners hope it will - especially if you’re trying to enforce it against everyday customers.
When Resale Can Cross The Line
Even if you can’t stop resale in principle, you may still have options if the reseller is doing something unlawful along the way, such as:
- misleading buyers (for example, claiming they’re an authorised stockist when they’re not);
- selling “new” goods that are actually used or not as described;
- using your brand in a way that suggests endorsement or affiliation;
- repackaging or tampering with goods (which can raise quality and safety issues);
- selling into restricted territories (if they’re a distributor bound by contract); or
- selling confidential bundles or promotional stock that was supplied on special terms.
In New Zealand, misleading conduct can trigger issues under the Fair Trading Act 1986. If the reseller’s listing creates a false impression about who they are, what the product is, or what rights the buyer has, you may have a clearer pathway to request removal and take enforcement steps.
What If The Reseller Is Another Business (Or Your Stockist)?
If the reseller is a business - especially if it’s your retailer, distributor, wholesaler, or an online marketplace seller you supply - you’re in a much stronger position to control resale behaviour.
Why? Because businesses you supply are usually governed by contract. And contracts are where resale controls actually become enforceable in a practical way.
Use Strong Supply, Wholesale, And Reseller Terms
If you want to manage how your products are resold, your first line of defence is a well-drafted agreement that clearly covers:
- where the reseller can sell (e.g. in-store only, or approved online channels only);
- how they can advertise your product (brand guidelines, product images, approved copy);
- whether they can sell on third-party marketplaces;
- product handling requirements (storage, expiry management, packaging);
- what happens if they breach the rules (termination, chargebacks, injunctive relief, etc.);
- how returns, warranties, and customer complaints will be dealt with; and
- audit rights (so you can check compliance if something seems off).
For many growing product businesses, these terms are rolled into a broader set of Business Terms that you use consistently across sales channels.
Be Careful With Minimum Resale Price Rules
A lot of business owners ask if they can force resellers to stick to their RRP, or stop discounting.
Pricing controls can raise competition law risks, particularly if you try to enforce a fixed or minimum resale price across independent retailers. In New Zealand, this can potentially intersect with the Commerce Act 1986 and general competition principles (the exact risk depends on how the arrangement is structured and implemented).
That doesn’t mean you’re powerless - it means you should get advice before rolling out pricing clauses, especially if you have multiple resellers or a strong market position.
Online Marketplaces And “Unauthorised Sellers”
If you sell through authorised channels, you might also want to define:
- who counts as an “authorised reseller”;
- what proof is required to claim authorised status; and
- what trademark/brand assets the reseller is allowed to use (and what they must not use).
This matters because many disputes aren’t about the physical product - they’re about the impression created by the listing and branding.
There isn’t one magic legal switch that stops all resale. In practice, you usually combine a few legal tools so you can respond quickly depending on what’s happening.
If the person reselling is in your supply chain, contract is your strongest lever. Your agreement should be tailored to your product, your industry, and how you sell.
Depending on your business model, this might be a:
- wholesale agreement,
- reseller agreement,
- distribution agreement, or
- online store/stockist terms.
If you’re scaling quickly, you’ll often need additional documents too - for example, if you run a platform or online store you may also need Website Terms and Conditions so your customers understand purchase conditions, acceptable use, and limitations around misuse of your content.
2) Trade Marks (To Tackle Brand Misuse And Confusing Listings)
If someone uses your brand name, logo, or other distinctive branding to sell products in a way that misleads consumers or implies affiliation, your trademark rights become very relevant.
A registered trademark can make it much easier to:
- prove you own the brand;
- issue takedown requests to marketplaces;
- stop others using confusingly similar branding; and
- enforce against counterfeiters and “lookalikes”.
Many marketplaces have “brand registry” tools that work best when you can show registration evidence. If you’re not sure whether you should register, it’s worth getting clarity early - especially before your brand grows and the stakes get higher.
3) Copyright (For Photos, Product Descriptions, And Marketing Content)
Even when someone is allowed to resell a genuine product, they’re not automatically allowed to copy and paste your work.
In New Zealand, copyright can protect things like:
- product photos you’ve created (or commissioned, if your contract assigns the rights properly);
- written product descriptions and marketing copy; and
- graphics, layout designs, and other creative assets.
If a reseller is using your images or written copy without permission, you may be able to request removal or negotiate licence terms.
4) Consumer Law Positioning (So Resellers Don’t Shift Liability Onto You)
Another practical issue is this: resellers sometimes tell buyers “the manufacturer will handle refunds/warranties,” even when that’s not accurate.
New Zealand consumer law (including the Consumer Guarantees Act 1993 and Fair Trading Act) sets expectations around product quality and representations. If a reseller makes misleading statements about returns, warranties, or who the buyer should contact, that can create reputational damage for you - and in some cases legal risk, depending on the circumstances.
Clear reseller terms and brand guidelines help reduce this confusion.
Are There Any “Workarounds” Like “No Resale” Policies Or Product Restrictions?
Business owners often ask whether they can put “Not for Resale” on packaging, add a policy to their website, or refuse to supply people they suspect will resell.
These approaches can help in certain situations, but they’re not always enforceable - and they can create customer-service headaches if they’re not rolled out carefully.
“Not For Resale” Labels
Labels can be useful where the product was supplied on special terms (for example, promotional items, PR samples, employee-only stock, or heavily discounted bundles). But for general retail products sold to the public, labels alone won’t necessarily stop a lawful owner from reselling.
Limiting Sales (And Refusing Orders)
You can usually choose who you do business with, but you should apply policies consistently and be careful about:
- making statements that could be considered misleading (for example, promising “exclusive” access then widely supplying elsewhere); and
- discrimination issues (this can arise in certain contexts if refusal is based on protected characteristics).
If you want a clean, scalable approach, you’re typically better off building a wholesale/reseller program with clear rules than trying to police individual customer behaviour.
Using Technology Controls
Some businesses use serial numbers, authentication codes, or warranty registration to track products and discourage grey-market resale. These can be effective operationally, but they also create privacy considerations if you’re collecting personal data from end users.
If you collect customer data through warranty registration, mailing lists, accounts, or analytics, you’ll usually need a clear Privacy Policy that explains what you collect, why you collect it, and how you store and disclose it (in line with the Privacy Act 2020).
What If Someone Is Reselling Counterfeit Or Grey Market Products?
This is where things get more serious. If the reseller is selling counterfeit goods (fake versions of your products), you may have strong enforcement options - and you’ll usually want to act quickly, because counterfeits can harm your brand and customer trust.
Counterfeit Products
Counterfeiting can involve:
- unauthorised use of your brand name or logo on fake products;
- copying your packaging and presentation; and
- passing off goods as “authentic” when they’re not.
Potential legal angles can include trade mark infringement, misleading/deceptive conduct, and other civil enforcement pathways. Practically, you’ll often start with evidence gathering and takedown requests, then escalate if needed.
Grey Market / Parallel Imports
Grey market goods are usually genuine products, but imported and sold outside your authorised distribution network (for example, stock meant for another country being sold into New Zealand).
Parallel importing can be lawful in New Zealand in many situations. Where businesses get traction is often not by arguing “resale is illegal,” but by focusing on issues like:
- misleading claims (e.g. saying they are authorised NZ stockists);
- different specs, compliance markings, or instructions that don’t match NZ expectations;
- warranty confusion; and
- use of your copyrighted marketing assets.
This is also a good moment to tighten your contracts with authorised partners so they don’t “leak” stock into unauthorised channels.
How Do You Set Up Your Business To Protect Your Products Long-Term?
If you’re constantly fighting resale issues, it’s usually a sign you need stronger foundations - not just a one-off takedown request.
Here are the legal building blocks that make resale control much easier as you grow.
Protect Your Brand And Product Assets Early
Make sure your brand ownership is clean and documented, especially if you have co-founders, contractors, or external creatives involved.
If you’re running a company with multiple owners, it’s worth getting the decision-making and IP ownership rules clear in a Shareholders Agreement (so there’s no dispute later about who controls the brand, who can license it, or what happens if someone exits).
It can also be helpful to have governance rules clearly set out in your Company Constitution, particularly if you want consistent control over major decisions like appointing distributors or changing brand strategy.
Have A Clear Online Sales Framework
If you sell online (either directly or through a platform model), your legal framework should cover:
- how customers can use your site and content;
- prohibited conduct (including copying listings/images);
- refunds and returns processes; and
- dispute handling and limitation of liability (where appropriate).
That’s where strong Online Shop Terms and Conditions can make your expectations clear and give you a stronger basis to act when people misuse your material.
Train Your Team And Set Up Internal Processes
Resale problems often get worse when staff respond inconsistently. For example, one team member might approve an “authorised reseller” request informally, while another refuses - and suddenly you’ve got a reputational dispute on your hands.
Even small teams benefit from:
- a documented authorised reseller process;
- template communications for cease-and-desist / takedown requests;
- brand guidelines you can send to stockists;
- a central record of approved sellers and their territories/channels; and
- clear contracts for the people doing the work.
If you’re hiring staff to manage customer service, marketing, or supply relationships, an Employment Contract can help set expectations around confidentiality, IP created at work, and how brand assets are handled.
Don’t Rely On DIY Templates For Core Agreements
It’s tempting to grab a free reseller agreement online, change a few words, and hope for the best. But resale disputes usually happen when there’s real money involved - and vague clauses can be very hard to enforce.
Well-drafted legal documents should match your exact model: direct-to-consumer vs wholesale, exclusivity vs non-exclusive, local vs international, regulated products vs general retail, and what you’ll do if someone breaches the rules.
Key Takeaways
- It’s often difficult to stop everyday customers from reselling genuine products they legally own, but you may be able to act if the listing is misleading or misuses your brand or content.
- If the reseller is a stockist, distributor, or other business you supply, you can usually control resale more effectively through clear, enforceable contract terms.
- Trade marks and copyright are practical tools for dealing with brand misuse, confusing “authorised seller” claims, and copied photos or product descriptions.
- Be cautious with minimum resale price rules - pricing clauses can raise competition law risks, so it’s worth getting tailored legal advice before enforcing strict price controls.
- Counterfeit and grey market situations are different: counterfeits often justify fast enforcement, while parallel imports may require a strategy focused on misleading conduct, warranties, and IP misuse.
- Strong foundations (clear reseller terms, online terms, privacy compliance, and clean ownership documents) make it much easier to protect your products as your business grows.
If you’d like help setting up reseller terms, protecting your brand, or responding to an unauthorised reseller, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
