A federal lawsuit that Amway and parent company Alticor filed in June against an Oregon couple has been dropped, Mlive reports.
The Grand Rapids direct-sales giant accused Brian and Natalie Schirle, of Bend, Ore., of acquiring Amway and Alticor products from employees and distributors, then reselling them on eBay.
Among Amway’s grievances were: the products allegedly sold through the couple’s online auctions came with a limited return policy; products were repackaged; and buyers were encouraged to send proof of purchase tabs to get free product from the company.
According to the suit, customers “indicated that they were confused as to whether products sold by the Schirleses were genuine or not,” and disgruntled customers associated their frustration with Amway.
In addition, Mlive reported, “Amway contended the eBay sales aren’t protected under first-sale doctrine because the products were acquired from employees and distributors in violation of company policy. First-sale doctrine gives people who make a legal purchase the right to resell a product without obtaining the permission of the rights holder.”
Terms of the settlement are confidential.
In other eBay-related news, the online auction giant’s new logo is boring.