Can I Stop People Reselling My Business’ Products? (2025 Updated)

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Business owners often ask us whether there’s anything they can do to stop people from reselling their products. Ultimately, you want to ensure your revenue streams remain secure and legitimate, and that your liability for any defects in resold products is clearly defined.

The simple answer is no.

If an individual has legitimately purchased your product, there is little you can do to stop them from reselling it.

Under the Australian Consumer Law (ACL), attempts to restrict a customer’s right to resell a product can be viewed as anti-competitive behaviour, which is strictly prohibited. In today’s competitive market in 2025, the ACL maintains that any measures significantly lessening competition will likely be rejected by regulators.

However, having exclusive Supply and Reseller Agreements in place can help you exercise greater control over how your products are marketed and resold, ensuring that your revenue streams are secure and your liability for product defects remains limited. You might also consider reviewing additional business terms and conditions to further refine these arrangements.

We understand that it can be frustrating having little control over your products once they have been purchased. If unauthorised reselling is causing headaches for your business, here’s what you need to know.

Laws On Reselling Products

Buying and reselling legitimately bought products is legal in Australia. As of 2025, the legal framework remains supportive of consumers and independent resellers while balancing the need for healthy competition within the marketplace.

Reselling businesses continue to rise. For many resellers in 2025, the initial investment and financial risk remain low. And thanks to online marketplaces such as Gumtree, Facebook Marketplace, and emerging platforms highlighted in our Building an Online Marketplace guide, reselling has never been easier.

The basic structure of a reselling business looks like this:

Jim legitimately purchases a product from Jeff’s business.
Jim becomes the legal owner of the product.
Jim resells the product to Kerry.

This process is completely legal. Once Jeff’s product has been lawfully sold to Jim, there is little control his business has over the subsequent resale to Kerry.

Even without a formal Reseller Agreement in place between Jeff and Jim, Jim retains the right to resell the product under Australian law.

Stopping People Reselling Your Products May Be Considered Anti-Competitive Behaviour

So, in the above example, why can Jim legally resell the product to Kerry?

The key reason is that the ACL protects the free flow of commerce by prohibiting anti-competitive behaviour. Any practice that aims to restrict market competition—such as preventing the resale of a legitimately bought product—can inadvertently violate these principles.

Put simply, anti-competitive behaviour is any act or practice that reduces competition in the market.

Contracts, agreements, understandings, or concerted practices that seek to limit market competition are strictly prohibited by the ACL. As a business owner, this means that any attempt to stop resellers from operating freely could be viewed as infringing upon these regulations.

What does this mean for you as a business owner?

Because of the ACL’s rules on maintaining competitive markets, there’s not much you can do to stop resellers from selling your product once it is legally purchased. Any attempt to enforce such restrictions could be challenged as anti-competitive.

Types Of Resellers

As noted, it is entirely legal for individuals to purchase items from your business and resell them on their own terms. However, some businesses choose to authorise specific parties to resell their products. These authorised resellers must adhere to guidelines set out in a formal agreement, which helps to protect your brand’s image and preserve revenue integrity. For instance, Apple authorises select stores to resell its products, ensuring consistency in customer experience.

Common Commodities That Are Resold

In today’s dynamic market, nearly anything can be resold. Some of the most common commodities include:

Coffee
Oil
Gas
Petrol
Sugar

Can People Resell Items That Contain Copyrighted Material?

Generally, reselling items that contain copyrighted material is not considered an infringement, provided the material was lawfully created and the product was legitimately acquired. This means that copyright law in Australia does not grant copyright owners an exclusive right to control the sale or resale of their work.

However, copyright owners and distributors can exert some control over the sale of such material through carefully drafted commercial Distribution Agreements. If you need a Distribution Agreement, we recommend seeking proper legal advice to ensure that the Agreement complies with the ACL and other relevant regulations.

Do You Have To Honour Warranties If Someone Resells Your Product?

If your business has a Supply Agreement in place with the manufacturer, specific warranties may be tied to the sale of your products. These warranties often exist alongside the automatic consumer guarantees provided by Australian law.

Legal complications can arise for resellers if they attempt to transfer a warranty that is only intended for the original purchaser.

For example:

Jim legitimately purchases a product from Jeff’s business.
Jeff’s business offers a 12-month warranty on the product.
Jim then resells the product to Kerry.

In this scenario, unless there is an authorised Reseller Agreement between Jeff’s business and Jim allowing the warranty to transfer, Kerry would not be entitled to the 12‑month warranty. Generally, warranties provided on products are for the original purchaser only.

Ultimately, as a business owner, your responsibilities decrease once a product is resold, because your warranty obligations typically extend solely to the original sale.

So, Is There Anything Your Business Can Do To Control Resellers?

Although you have little legal control over the resale of products once they’ve been purchased, there are strategic legal arrangements available to help protect your business. Implementing robust Supply Agreements and Reseller Agreements can provide structure to authorised resale channels.

Where possible, it is beneficial to have a formal Reseller Agreement with parties that you trust to resell your products. Such an agreement can:

Help secure and stabilise your revenue streams
Limit your liability for defects in resold products
Clearly define the rights and responsibilities of each party, ensuring a smoother reselling arrangement

In 2025, with the growth of digital commerce and global online platforms, it has become even more critical to protect your brand and legal interests. Clear digital Terms and Conditions and detailed product warranty policies incorporated within your Supply and Reseller Agreements can go a long way to mitigating risks and ensuring compliance with updated Australian law.

Need Help?

As a business owner, there’s little you can do to stop people from reselling products they’ve legitimately purchased. We know this can be frustrating!

If you need help navigating your situation, our team is here to support you. We can guide you through your legal rights, help draft comprehensive Supply or Reseller Agreements, and ensure your business remains compliant with the latest updates to Australian Consumer Law. For additional insights, check our Business Startup Checklist which covers essential legal steps for protecting your business in 2025.

For a free, no-obligations chat, please reach out to us at team@sprintlaw.com.au or call 1800 730 617.

Bella Duncan

Bella has experience in boutique and large law firms with particular interest in privacy and business law. She is currently studying a double degree in Law and Psychology at Macquarie University.

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