Song Ji-won Lawyer
Choi Ji-hyun Lawyer
jwsong@sayulaw.com
jhchoi@sayulaw.com
Recently, there's been a surge in what's known as "zombie resellers." These are domestic resellers who use computer programs to copy various online products and list them for sale at slightly lower prices, typically around 10 cents cheaper than the original items. This practice allows the reseller's products to become the lowest-priced options, thus gaining top exposure in search rankings due to algorithms.
Resellers sometimes take products from official malls and sell them to their own consumers. They also act as order proxies for official malls. This process often leads to damage for the suppliers and official malls. In cases where rapid delivery is required, delays caused by resellers may result in decreased product quality. Additionally, since resellers' customer service is often subpar, consumers may mistakenly blame the official mall for any issues, leading to reputational damage. Furthermore, resellers can diminish the profit margins of official malls.
Our office frequently receives complaints from various clients who have suffered due to resellers. Even when the official mall directly requests resellers to cease their sales via a formal notice, resellers either ignore it or skillfully avoid punishment. As a result, officials often come to our office, hoping for a solution to the reseller problem and inquiring about the possibility of seeking damages or criminal penalties against them.
However, resolving the reseller issue through negotiation between lawyers and platforms is possible. Specifically, you can ask the platform to remove reseller products. Zombie resellers often violate multiple laws, which lawyers can easily identify. If the platform knowingly allows this illegal behavior (which they become aware of through negotiation with lawyers), it could be seen as aiding and abetting criminal activities. Therefore, the platform would have no choice but to comply with the requests from clients and lawyers.
We hope those struggling with zombie resellers seek legal assistance promptly for a swift resolution to their problems.
Song Ji-won Lawyer
Choi Ji-hyun Lawyer
jwsong@sayulaw.com
jhchoi@sayulaw.com
Recently, there's been a surge in what's known as "zombie resellers." These are domestic resellers who use computer programs to copy various online products and list them for sale at slightly lower prices, typically around 10 cents cheaper than the original items. This practice allows the reseller's products to become the lowest-priced options, thus gaining top exposure in search rankings due to algorithms.
Resellers sometimes take products from official malls and sell them to their own consumers. They also act as order proxies for official malls. This process often leads to damage for the suppliers and official malls. In cases where rapid delivery is required, delays caused by resellers may result in decreased product quality. Additionally, since resellers' customer service is often subpar, consumers may mistakenly blame the official mall for any issues, leading to reputational damage. Furthermore, resellers can diminish the profit margins of official malls.
Our office frequently receives complaints from various clients who have suffered due to resellers. Even when the official mall directly requests resellers to cease their sales via a formal notice, resellers either ignore it or skillfully avoid punishment. As a result, officials often come to our office, hoping for a solution to the reseller problem and inquiring about the possibility of seeking damages or criminal penalties against them.
However, resolving the reseller issue through negotiation between lawyers and platforms is possible. Specifically, you can ask the platform to remove reseller products. Zombie resellers often violate multiple laws, which lawyers can easily identify. If the platform knowingly allows this illegal behavior (which they become aware of through negotiation with lawyers), it could be seen as aiding and abetting criminal activities. Therefore, the platform would have no choice but to comply with the requests from clients and lawyers.
We hope those struggling with zombie resellers seek legal assistance promptly for a swift resolution to their problems.