Net enforcers

From Wikipedia, the free encyclopedia

Net Enforcers is a corporation that provides intellectual property and brand protection services for manufacturers and to a lesser indirect extent, retailers. Manufacturers who are concerned with retailer profit margins and creating exclusivity hire Net Enforcers to target retailers who are selling a product too cheap or below the minimum advertised price they have set. These retailers are able to purchase goods on the wholesale market through the distribution channels of a manufacturer. These distributors are often lax in enforcing a manufacturer's policy or do not have the resources to check each retailers selling price.

[edit] Justifications and legality

Because it is perfectly legal to sell a product for any price, Net Enforcers cannot prevent a retailer from selling a product through legal means. Net enforcers can hinder a retailer effort to sell a particular product by not allowing the retailer to use the manufacturer's picture and description.

Net Enforcers and manufacturers justify these efforts by saying that by rooting out unauthorized dealers, a more reputable dealer is able to support the product with knowledgeable staff who study the manufacturer's product. In addition to retaining the services of Net Enforcers, many manufacturers promote purchases from authorized dealers by featuring them on their website and by not honoring warranties for products purchased from unauthorized dealers. The legality of the latter act is questionable in many instances.^{[citation needed]}

[edit] Industries

Net enforcers has become a major force^{[citation needed]} in the consumer electronics industry as well as other industries which includes:

• Automotive Performance parts
• Consumer Electronics Manufacturers
• Mobile Electronics Manufacturers
• Software Manufacturers
• Hobby Toy Manufacturers
• Pharmaceuticals Manufacturers
• Clothing Manufacturers
• Accessory and Apparel Manufacturers
• Luxury Goods & Jewelry
• Footwear Manufacturers
• Sporting Goods Manufacturers

[edit] Controversy

Net Enforcers is controversial on many fronts.^{[citation needed]} Firstly, retailers and consumers contend that such policing of the internet leads to higher prices for consumers and interrupts the statutes of free trade. In addition, Net Enforcers only has limited success in achieving their goals. Retailers are now taking their own product pictures and writing their own descriptions of products. Many authorized retailers contend that their interest in establishing decent margins can be better served by forming better supply chains and by selling direct to established retailers.