Several legal issues occur during the management of the different marketing channels; some of them are as follows:
Dual Distribution: Any manufacturer is given the right to use two different types of marketing channels for the same target market. The only difference is that any use of unfair practices or tricks to kick other independent businesses out will lead to some legal issues and severe penalties.
Restricting Sales Territories: The exclusive sales territory rights to the distributers are given only if those rights do not prevent trade practices.
Full-Line Forcing: It means when the member of any marketing channel is required to carry all the product line of a particular supplier.
Exclusive Deal: When a particular company does not let a channel carry a competitor’s products is considered a legal issue.
Refusal to Deal: It is the decision of a supplier or a manufacturer to choose their distributors, and this could be done by analyzing a lot of conditions. However, this should not be done out of competitiveness with the distributor otherwise, it could be a legal issue.
Regulations in the Retail Marketing Channel
In retail, the customer and their interests are kept in mind while creating the laws and the regulations. Violations of the rules in retail can also lead to penalties and other strict actions that could be taken if the laws are breached. Some such issues are given below:
Advertisement Truthfulness: Whenever a product is being advertised, the advertisement should not have any false claims in it, and if found guilty, then the company could be charged for false claims. The influencers or brand ambassadors used by the company should also mention in their social media accounts that they are being paid for the promotion of the particular brand.
Pricing Limitation: The company’s price decided by the company should also be by the market policies. Any unfair pricing practice is a violation of federal law and will be charged accordingly. Retailers cannot sell products below the pricing range to get rid of the competitors from the market. This is also known as predatory pricing.
Consumer Protection Laws: Every state in the country has different consumer protection laws, where a consumer can file a complaint against a company if they have been mistreated or misinformed about a product. Any false claims and the violation of the consumer rights by a retailer could lead to the violation of laws, and thus an action can be taken against them.
Legal Issues in Digital Marketing
Digital marketing is the latest and also the future of marketing. However, some issues are faced by digital marketers. This is a new area of marketing, and thus much knowledge of it is not available; some of the legal issues are mentioned below:
The Obligation of Privacy Laws: Privacy of data is the biggest concern on the internet, and it is the company’s responsibility to keep the data of their users safe. If the personal data of the clients is collected, the reason for mentioning it should be provided along with the type of information that is being collected.
Terms and Conditions: The terms and conditions of the services being provided should be mentioned clearly, and an agreement with the details is necessary to be mentioned. The terms and conditions should contain the marketing strategies, goals, and the services to be provided along with timelines, payment of fees, confidentialities, dispute resolution, and limitations to legal regulations.
Intellectual Properties: If an artist’s piece of art, such as painting, music, or video snippet, is used, it is important to have permission and licenses from the artist or the company.
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