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I'm never sure if I'm posting in the correct category, but I did see some other private label posts in this area.

 

I know that we're supposed to be very careful about making product claims with our cosmetics. What I'm wondering is what (if any) liability we have if our resellers (either private label or retailers who have purchased wholesale product) make claims about our products while they are marketing them? We can control what appears on our labels, but once our products have left our facility we have little control over how they are marketed. Are we responsible if the final user of the product is misled by the "middle man" or do they take that responsibility?

 

Is there legal language that is added to wholesale agreements/contracts that deals with this? I'd love to know what others do or if it isn't necessary to do anything!


Thanks so much!

Tags: claims, label, liability, private, product, wholesale

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Emily,

This is an amazingly insightful question. I have taken the liberty of re-posting it to IBN's members only private networking site because some people may feel more comfortable discussing this there.

Everyone can feel free to continue the discussion here if they'd like as well. I just know that some members are sensitive about sharing some things that their customers can see so it's nice in those instances to have a choice.

dM

Hi dM,

 

I tried all my user names and passwords that I have and none of them gave me access.  Now I am locked out.  Can you please send me the info I need to access the networking site?

 

Thanks.  Please send it to the email you have on file for all of my indie news.

Hi Katherine,

Just emailed information to you. Thank you, and I apologize for the inconvenience.

dM

dM, I appreciate that. I wasn't sure if this was even an issue or where to post it, so I'm glad to have you re-post it!

@dM, CEO.  I'm having trouble logging in to the private networking site.  Can someone send me my log in info in an email? I've misplaced the user name and password I submitted and my brain is on vacation from remembering at the moment...LOL. I can't even remember if I ever signed up for it. This is so embarrassing!

 

Oops, just saw where I can request it.  Scratch this.  Man, I need an Advil for this headache.

LOL! We all have those days. Glad you got in, Ginger! Now, I'm thinking about cornbread ...

dM

LOL! Yes we do and oh my, the cornbread recipes that come out of this festival. There are cook-offs and recipe contests..many of the recipes end up on Martha White's bags of corn meal, in their cookbooks and website..I'm gonna have to take some major carb blockers before this show! Or exercise some much needed restraint!  NAW! Bring it on!  I'll save ya' a bite..maybe!

This goes on all the time re reselling and regulated claims. Some sellers have a load of paperwork and investigate whom they sell to to make it like they could never have anything to do with it, and other sellers just wash their hands of it with no paperwork at all.  In the middle ground is a simple disclaimer that many use that just says the product is sold as is, and that any further details are the purchaser's responsibility.  I have a friend who runs vitaminlawyer.com where they deal with a lot of such issues regarding dietary supplements (but the principles are the same with cosmetics and other products) and there may even be some free advice on them at his site, possibly even a standard form.

 

There's a legal catch here.  Theoretically you can be responsible if it is believed you had, or "should have had", knowledge in advance of what the reseller was going to do, because then that can be imputed as your intention.  However, steps you take to ascertain what a reseller might do can be taken as evidence that you "should have known"!  It's like the way clearing your sidewalk of snow can increase your liability.  It can be tricky between appearing "wilfully blind" on one hand and assuming all liability on the other.

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