Most beauty and cosmetics companies have at some point wondered how to stop unauthorized resellers. Few things are more frustrating than seeing your products resold on websites, or even at flea markets, while you struggle to regain control of your brand. Whether the products end up there due to leaks in your supply chain or even robbery, makeup and skincare companies are often fighting a constant battle against resellers who cut into profits, undercut pricing, and damage their brand image.
Unfortunately, U.S. intellectual property law doesn’t always make it easy to stop unauthorized resellers. In fact, one crime ring that targeted Ulta and Sephora made millions of dollars over the span of a decade before they were stopped. Despite this, there are still several smart and proactive steps that cosmetic and makeup brands can take to protect their trademarks, product images, and reputation.
At the heart of why it is so hard to fight unauthorized resellers is the “First-Sale Doctrine”, so let’s take a closer look at that to learn more about how to stop unauthorized resellers.
The first hurdle in How to Stop Resellers – the First-Sale Doctrine
The First-Sale Doctrine is a legal rule that limits what brand owners can do after their genuine products enter the market. The law says that, once you sell a product, even to a distributor or retailer, you lose the right to control its resale. This means that authentic makeup products can legally be resold by third parties, even without your permission.
This doctrine is what allows secondhand shops, consignment websites and platforms like Amazon or eBay to operate. While it may help the platforms and resellers, it can wreak havoc for beauty companies trying to control their image and pricing.
Luckily, there are exceptions to the First-Sale Doctrine.
Exceptions to the First Sale Doctrine for Makeup and Skincare Brands
1. Material Differences
If a reseller modifies or repackages your product, removes safety seals, or combines it with other items, it may no longer be considered “genuine.” This can trigger trademark infringement and counterfeiting claims.
2. False Affiliation
Resellers who use your brand name, logo, or product photos in a way that confuses consumers into thinking they’re affiliated with your company can be held liable under Lanham Act trademark law.
3. Health and Safety Concerns
Selling expired, opened, or tampered cosmetics, even if authentic, can damage your brand reputation and potentially violate FDA regulations. This gives you grounds to take action.
4. Gray Market Goods
If a reseller is selling international versions of your product not intended for U.S. sale, you may be able to stop them, even if the items are technically authentic.
If none of the exceptions apply to your situation, there are still strategies to stop unauthorized resellers.
Legal Tools: How to stop reSellers and Protect Your Brand
Even if the First-Sale Doctrine is blocking your options, there are powerful strategies you can use to stop unauthorized resellers and protect your makeup and cosmetic brand:
1. Register Your Trademarks
Get federal trademark protection by filing a trademark application to the United States Patent and Trademark Office (USPTO) on your brand name, product names, logos, and even packaging design. This gives you legal standing to issue takedown notices and enforce your rights. With registered trademarks, your cease and desist letters will be much stronger and are more likely to be taken seriously by the reseller. For more details on the entire registration process, check out our article: Trademark Registration Process: How to Register a U.S. Trademark. For more reasons to register your trademark, check out our “listical”: 18 Reasons to Register Your Trademark with the USPTO.
2. Record Your Trademark with U.S. Customs
Once your trademark is registered with the USPTO, you can enroll in the U.S. Customs and Border Protection (CBP) trademark recordation program. This helps block the import of counterfeit or gray market goods – the CBP will search imports and confiscate or destroy fakes. Only brands registered at the USPTO can get this benefit.
3. Send a Demand Letter
Sending a well-articulated demand letter, even if your case against them is weak, can be very effective to stop unauthorized resellers. Since resellers making a living off of selling products online, they are cautious about breaking the platform’s rules and potentially getting banned. Like most people, they also would rather not risk legal action.
4. Use “Not for Resale” Labels Where Applicable
Including a “Not for Resale” or “For Promotional Use Only” warning on certain products, like samples or influencer PR kits, can support future enforcement actions.
5. Takedown Notices: Monitor Online Marketplaces
Enroll in brand protection tools like:
These platforms offer expedited takedown processes for trademark and copyright owners. These tools won’t always be available because of the First-Sale-Doctrine. However, if there is a false affiliation with your brand, counterfeit products or copyright infringement, a takedown should be honored.
6. Use Copyright Protection Over Your Product Photos
If the reseller uses photos of your products from your website, you may have recourse under copyright law. You would be able to submit a takedown notice directly to the reseller platform. This takedown notice will be sent through the platform’s Digital Millennium Copyright Act (DMCA) takedown policy. Most major platforms like eBay, Etsy, or Instagram have a takedown policy. Under the DMCA, if they ignore your takedown, you may even have grounds to sue the platform itself.
While works (like photographs) are copyrighted the moment they are created, actual Copyright registrations are required to file a lawsuit. Even if you never sue, Registrations mean you get more damages against the reseller, so it creates a bigger threat to them.
7. Test Purchases for Counterfeits
If the item turns out to be fake or tampered with, you have stronger grounds for takedown notices, enforcement, or litigation. Counterfeit or tampered-with products are not protected by the First-Sale Doctrine. So, if you discover fake products, a Cease and Desist Letter would be much more effective. If the items are counterfeit, your takedown notice to the platform would likely be honored immediately. Even though buying one of your own products from an unauthorized user is the last thing you want to do, the fastest way to confirm whether a product is counterfeit is simply by ordering it yourself and examining it.
8. Convert Them into Authorized Sellers
You may consider converting repeat unauthorized sellers into authorized resellers, but only under a strict distribution agreement. By making them sign the distribution agreement, you can control pricing, sales channels, and branding. Not only that, but if they violate the contract, you’ll be able to take them to court. Going into business with the very people who you feel are unfairly competing with your business is another counter-intuitive method, but there are benefits.
9. Educate Consumers and Distributors
Include resale restrictions in distributor contracts. Use your website and social media to warn consumers about the risks of buying from unauthorized sellers. You can include information about the risk of using expired or tampered cosmetics.
10. Report Stolen Goods to Federal Trade Commission
If you discover that your goods are stolen, report this to the Federal Trade Commission (FTC). They have a specific fraud reporting website. While this may not help you right away, it will alert them to trends, and help consumers avoid scams.
Final Thoughts: You Have Options To Stop Unauthorized Resellers
Fighting unauthorized resellers can feel overwhelming, especially when the law seems stacked against you. But by registering your trademark and copyright assets, monitoring marketplaces, and using brand protection tools strategically, you can take back control and protect the brand you’ve worked so hard to build.
If you’re a makeup brand owner struggling with unauthorized sales, and need more help, our law firm specializes in intellectual property protection for beauty and cosmetic brands, and we’re here to craft a strategy that works for you.
Have questions about protecting your cosmetic or makeup products? Stemer Law (Stemer, P.A.) is a Denver trademark law firm serving clients across the U.S. and abroad. With 1,000+ trademarks filed, we make brand protection simple, affordable, and effective. To speak with a trademark attorney contact us at hello@stemerlaw.com or (303) 928-1094.
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