In a Supreme Court ruling yesterday, manufacturers – or, producers – wrestled more control of their products and the experience the consumer has in shopping and purchasing them.
According to an article in the Times today, “[T]he case involved an appeal of a judgment of $1.2 million against Leegin Creative Leather Products after it cut off Kay’s Kloset, a suburban Dallas shop, for refusing to honor Leegin’s no-discount policy….
“Leegin’s marketing strategy for finding a niche in the highly competitive world of small leather goods was to sell its ‘Brighton’ line of fashion accessories through small boutiques that could offer personalized service. Retailers were required to accept a no-discounting policy.”
Will such a practice impact the consumer? Yes, there is likely a higher price for the goods in question. But a brand should be able to set guidelines when determining to whom it will offer and sell its products for resale.
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