A member asked
over 9 years ago
Need legal advice on dropshipping (pharmaceuticals)
We need legal advice on our manufacturing / logistics process. Currently, a manufacturer in the US produces the supplements. We then send these in bulk to freelancers who take them out of the manufacturers packaging, and put them into our own.
We then sell these from our web
Researchers at LawAdvisor
Hi there. Your business arrangement raises a number of legal issues. First, purchasing products from a manufacturer and then reselling them in your own packaging may amount to ‘passing off’. Passing off refers to a legal action which protects goodwill and reputation built up by the use of a trade mark or business name of a product or service. Depending on the arrangement you have established with the manufacturer (if any), they may have a legal claim against you for passing off their products as your own, especially if done without the manufacturer’s consent.
Switching the packaging of the products may also raise a number of other issues under Australian law, such as possible claims for misleading and deceptive conduct and infringement of intellectual property rights.
Second, the supplements you are trading may be considered therapeutic goods. This means they must be registered with the Therapeutic Goods Administration before they can be lawfully supplied in or exported from Australia. There may also be advertising restrictions on how the product is marketed.
Third, if the products are being imported into Australia, you will need to consider whether the goods are prohibited or restricted. You can find out more information about importation controls at www.border.gov.au. Importation of goods may also have duty and tax implications for your business.
Suggested way forward
Your business arrangement raises a number of legal issues that could pose significant risk for your business. You should consider speaking to a lawyer who can advise you on your legal obligations and how your business can be protected against potential claims. By pressing the “Take Action” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.
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