Sneakerheads Will Be Happy: Nike Is Ready to Penalize Accounts Reselling Its Products
Nike is cracking down on sneaker-buying bots and users reselling their innovative products.
The shoe brand recently updated its terms this month for U.S. online sales, adding restocking fees, account suspensions, and other penalties to prevent buyers from reselling its products through a secondary market. Purchasing Nike products with the intentions of flipping them has already been prohibited by the sneaker company in its previous terms.
According to Sole Retriever, the multinational corporation’s updated policy now states, “If NIKE determines that a purchase or order is intended for resale, NIKE reserves the right… to (1) suspend the application of any NIKE policy that provides a right or benefit intended for direct to consumer purchases.”
Nike has reportedly kept the latest amendment to it’s Terms of Sale vague when determining who is solely purchasing products for resale purposes. Accounts that reflect excessive amounts of product returns or those exceeding product purchase limits can have their orders rejected by the company.
The outlet provides part of the updated Nike policy with prohibitions referencing the use of bots. Part of the policy states, “Sale of products and fulfillment of all orders at a NIKE Store is subject to availability and our discretion in managing inventory. We explicitly reserve the right to limit, decline or reject any sales and orders for any reason without being liable for any damage or costs other than repayment of any amount received from you in relation to such sale or order…”
CNBC reports that Nike took legal action against StockX, an online resale marketplace, earlier this year, alleging that counterfeit versions of the sneaker were being sold. The company reported in late September that its shares fell by more than 10% as a result of having an overstocked inventory. The company addressed that it was taking necessary steps to lower the inventory.