Why Many Manufacturers Choose Not To Sell To Consumers

I hate to start another thread, but read warranty regulations imposed on all businesses that choose to sell to consumers. You avoid all of these regulations with a healthy channel partner program.

https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law


Thanks Thomas. Good read. Happy Thanksgiving to you, your family.

Thanks Mr. Thomas.

I may be missing something, but since commercial sales as well as items for resale are specifically exempt I'm don't see how it would apply in the case of an end-user buying for his company, like stated in Cutting Out The Integrator - Why Shouldn't I Be Able To Buy My Hardware Directly?

In addition, most of the regulations apply to the warranty writer, i.e. the warrantor, not the seller.

So, in the case of selling bona-fide consumer products to consumers, say a Dropcam, the law requires that only that the seller is required to have the warranty available for inspection. Which would assumedly be in the box.

Sorry, I overlooked the title of the discussion and thought we were continuing from the other discussion and speaking about distributors selling direct.

But you were speaking about manufacturers.

As to your statement "all these regulations can be avoided with a healthy partner program", I can't say I see it.

I do see a exemption that looks promising namely,

Finally, the Act does not apply to warranties on products sold for resale....

but that would only apply to claims made by the reseller, not the consumer.

Otherwise, very few warranties would ever be affected by this act, as the vast majority of consumer product is sold "for resale" at some point before purchase.

This is spelled out here:

What Manufacturers Must Do

If you are a manufacturer and offer written warranties, you must provide retailers of your product with the warranty materials they will need to meet their requirements as described above.

So, I don't see how a channel program or not obviates this manufacturer duty.

Business to Business sales isn't considered retails sales regardless if you collect tax on the sale. Selling via the web, or store front to anyone that walks in the door is subject to these requirements. As a B2B transaction, we can chose to limit or expand any aspect of a warranty period in the purchase agreement. Residential installations can be treated in much the same way because of the written proposal that can define the T/C's and the purchaser agrees in advance of the sale. Note how CNB protects itself against unnecessary warranty claims by "outing online resellers" offering consumer sales. This might not be enough if challenged, unless they have this clearly marked on packaging, and materials....

Warranty Disclaimer

Andrew, the discussion title is "Why Many Manufacturers Choose Not To Sell To Consumers", where your claim is "You avoid all of these [warranty] regulations with a healthy channel partner program."

I believe this statement to be unfounded, since manufacturers warranties are subject to all these regulations whenever the product is ultimately sold in the consumer market, regardless of whether a 'healthy partner program' exists or not.

Can you respond directly to this?