There are no clear legal provisions on the penalties and penalties for cross-selling. It mainly relies on the parties to clearly stipulate the responsibilities for diversification when signing the contract, such as agreeing on liquidated damages, forfeiture of deposits, etc. Manufacturers will punish dealers, fine them or cancel their business qualifications. They may even have to compensate the manufacturer for economic losses, of course, provided that a contract is signed.

Common illegal phenomena in cross-selling goods:

1. Polishing product trademarks, logos, and product codes

According to lawyers, according to Article 1 of the Trademark Law Article 38 Anyone who commits any of the following acts shall infringe upon the exclusive right to use a registered trademark: (1) Using a trademark that is identical or similar to the registered trademark on the same or similar goods without the permission of the owner of the registered trademark.

(2) Selling goods that are knowingly counterfeit registered trademarks.

(3) Forging and manufacturing registered trademarks of others without authorization or selling forged or unauthorized registered trademarks.

(4) Causing other damage to others’ exclusive rights to registered trademarks.

2. Selling counterfeit products

Reliable source of goods is the main criterion to ensure that the products are genuine. When sources are unreliable, counterfeit products can easily emerge. According to legal provisions, selling counterfeit and shoddy products requires criminal liability.

The relevant laws and regulations are as follows. According to Article 140 of my country's Criminal Law: Anyone who commits the crime of producing or selling counterfeit and inferior products, with a sales amount of more than 50,000 yuan but less than 200,000 yuan, shall be sentenced to fixed-term imprisonment of not more than 2 years or Criminal detention, and concurrently or solely a fine of not less than 50 but not more than twice the sales amount; if the sales amount is not less than 200,000 yuan but not more than 500,000 yuan, he shall be sentenced to fixed-term imprisonment of not less than 2 years but not more than 7 years, and shall also be fined not less than 50 but not more than twice the sales amount; If the sales amount is more than 500,000 yuan but less than 2 million yuan, he shall be sentenced to fixed-term imprisonment of not less than 7 years and a fine of not less than 50 but not more than twice the sales amount; if the sales amount is more than 2 million yuan, he shall be sentenced to 15 years' fixed-term imprisonment or life imprisonment and shall also be fined the amount of sales. A fine of more than 50 but not more than 2 times or confiscation of property will be imposed.

Legal basis: Article 14 of the "Anti-Monopoly Law of the People's Republic of China" prohibits operators from entering into the following monopoly agreements with counterparties: (1) Fixed resale of goods to third parties Price; (2) Limiting the minimum price for resale of goods to third parties; (3) Other monopoly agreements identified by the Anti-Monopoly Law Enforcement Agency of the State Council.