Luxury manufacturers can block retailers from selling on Amazon | RetailDetail

Luxury manufacturers can block retailers from selling on Amazon

Luxury manufacturers can block retailers from selling on Amazon

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Protect image

Coty wanted to block German perfume chain Akzente from selling its products on Amazon’s German website and that is when the matter went to court. A judge has now ruled that when a brand collaborate with a small group of retailers, it can say where its products can and cannot be sold, in order to protect the brand’s image, according to the FD.


It is no secret that some luxury brands are not too keen on online sales. Only recently have some companies buckled and accepted online sales, but these companies usually still only sell on their own online platform. This is a way for them to avoid their products’ image being tarnished.


The ruling is not only bad news for retailers intent on using online marketplaces, but also for the marketplaces themselves. Amazon would love to have luxury brands on its platform as a means to attract an even broader audience. This decision prohibits that, unless the online giant can reach an agreement with the brand itself.



German judges had previously ruled, in a court case revolving around sports brands Asics and Adidas, that retailers could choose where the products are sold. The European Commission then claimed that manufacturers should be able to decide, in order to protect their brand’s image.


Asics had told retailers that they could not sell its products on online marketplaces, but had to reverse that decision in Germany following the court ruling. It remains to be seen how that will now change considering the fact that the European Court of Justice’s ruling only applies to luxury brands. 

Questions or comments? Please feel free to contact the editors

Gerelateerde items

Walmart and Microsoft team up to beat Amazon


Two major American companies join forces to try to beat the omnipresent threat of Amazon: Walmart (Amazon's biggest competitor in retail) and Microsoft (Amazon's main rival in cloud services) have signed a strategic partnership for the next five years.

France wants e-commerce tax


If the French government get their way, the Hexagon will soon introduce a tax on e-commerce. Products would become 1 to 2 % more expensive, depending on the distance of the last delivery.

Microsoft builds competitor for Amazon Go


Microsoft is working on its own technology that should render checkouts in stores obsolete. The American company says it wants to be an ally for the retail sector, mostly in its struggle against Amazon Go.

Amazon bans customers who return too much


Amazon is putting a stop to customers that return too many items or that “misbehave” according to the retailer: whoever crosses the line, will be banned. Dozens of customers have taken to social media to complain about this unilateral account removal.

LVMH invests millions in fashion search engine Lyst


French luxury group LVMH, led by Bernard Arnault, will invest millions of dollars in Lyst once again. The luxury fashion search engine wants to expand its global expansion this way.

Amazon Prime members get additional discount at Whole Foods


Amazon Prime members will get an additional discount on hundreds of Whole Foods products, the chain it acquired in June 2017. Specialists claim there is a clear strategy behind these discounts.