Some manufacturers intend to distribute their products in limited markets.
Examples include manufacturers of professional hair care and beauty products who intend their products only for salon use and sale, or other manufacturers who intend their products to be sold only by select full service retailers. Because the products usually cannot be obtained outside of the authorized distribution channels through any legitimate means, diverted products are often acquired by deception and fraud. Discount and warehouse retailers such as PriceCostco and Target Stores, supermarket chains such as Kroger and American Stores, and drug store outlets such as Drug Emporium, Fred Meyer and CVS, are often eager to handle diverted merchandise so that they can profit from the efforts of the manufacturers and authorized distributors to develop and support the market for their products. The diverters' conduct harms manufacturers, distributors, retailers and, ultimately, consumers. We bring unfair competition actions against the participants, to remedy the wrongful acts involved in product diversion.