Vicious cross-selling is illegal. Cross-selling can be divided into benign cross-selling, malignant cross-selling and natural cross-selling. If it is malignant cross-selling, it may involve a violation of contract law.

As long as the cross-selling of goods follows formal operations, such as a qualified seller selling to a qualified buyer (and the procedures are formal), it does not violate the Drug Administration Law and the Drug Circulation Management Measures. In order to maintain the regional price sales policy of their products, some pharmaceutical companies are severely cracking down on cross-selling practices, but they mainly target their own dealers, agents and business personnel. Cross-selling is a commercial behavior, and its purpose is to make profits. The conscious sales carried out by dealers across the sales areas covered by themselves are channeled goods. Cross-selling: a vicious marketing phenomenon in which branches or intermediaries in the market network are motivated by profit, causing the products they distribute to be sold across regions, causing market disorder, price confusion, and seriously affecting the reputation of manufacturers. Types of cross-selling goods: vicious cross-selling: dealers deliberately dump goods to non-jurisdictional areas in order to make abnormal profits; natural cross-selling: generally occurs at critical points in jurisdictions or in the logistics process, and is not maliciously done by dealers; benign cross-selling: dealers The liquidity is very strong, and goods often flow to non-target markets. Reasons for cross-selling. Get more rebates to seize the market; suppliers offer different preferential policies to middlemen; suppliers are not sure about the sales of middlemen; sales in the jurisdiction are not smooth, resulting in backlogs, and manufacturers do not allow returns, so dealers have to get Selling on the best-selling market; transportation costs are different, pick up the goods yourself, the cost is lower, and there is room for cross-selling goods; the sales tasks set by the manufacturer are too high, forcing dealers to cross-selling goods; market retaliation: the purpose is to maliciously destroy the other party's market.

Crack the stubborn problem of "crossing goods". The specific measures are as follows:

1. Establish a contract system for channel members to prohibit cross-selling. Cross-selling goods is essentially a breach of contract, and the distribution contract is the basis for investigating and dealing with cross-selling goods. At present, in the milk powder industry, the most upstream manufacturers and distributors basically have written distribution contracts, but downstream distributors and distributors, distributors and terminal stores often do not have written distribution contracts or the content of the signed distribution contracts. Imperfect, sometimes there is only one delivery note, which often leads to superior sellers having no legal basis when punishing lower-level sellers of defective goods;

2. Strict product traceability management to ensure that the responsibility for defective goods can be held accountable step by step. . All major milk powder brands have established product traceability systems, which is of great significance in controlling cross-selling products. However, there are also problems such as lax management of incoming and outgoing goods;

3. Strictly sanction sellers of illegal goods and cut off the profit chain of illegal goods. For sellers of illegal goods who breach the contract, higher-level sellers should impose sanctions on lower-level sellers in strict accordance with the contents of the distribution contract. For sellers of illegal goods who refuse to obey management or even resort to retaliation and confrontation, legal means should be used to severely sanction them. Use legal means to recover the purchase price, liquidated damages, litigation fees, notarization fees, attorney fees, etc., so that the illegal goods become a "loss-making transaction" and cut off the profit chain of the illegal goods;

4. Increase the Strengthen the crackdown on gray market channeling. Channeled products flow to consumers from gray channels. Their behavior is concealed and dispersed, making it difficult to crack down. You can report it to the local market supervision and management department on the grounds of infringement of the exclusive right to register a trademark, or file a trademark infringement lawsuit with the local court. .

To sum up, this is the editor’s answer to whether it is illegal to channel goods and what legal risks there are. I hope it can help you

Legal basis:

Article 255 of the "Criminal Law of the People's Republic of China"

Whoever violates national regulations and commits any of the following illegal business activities and disrupts market order, if the circumstances are serious, shall be sentenced to not more than five years

(1) Operating special items or other restricted items stipulated in laws and administrative regulations without permission;

(2) Buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated in laws and administrative regulations;

(3) Other illegal business behaviors that seriously disrupt market order.

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) fixing the price of reselling goods to a third party; ( 2) Limiting the minimum price for reselling goods to third parties; (3) Other monopoly agreements identified by the anti-monopoly law enforcement agency of the State Council.