Q: i've recentally been decline from a wholeseller for reasons that are not listed on website or policys
they claim that i need to be a brick and morter to use there distribution which it is not stated anywhere that i need to be plus they have other options for signing up and i need a distributer for wholeselling which is what my business does but only online and there is no where stating that they are not accepting only online buiness for signing up is there a case here since it is not stated
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- California
- (916) 704-3009
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- Answered
A:
From your description, there could potentially be grounds for exploring this situation further, as businesses generally must clearly communicate their eligibility requirements and policies.
While wholesalers have the right to choose their business partners, California law requires transparency in business practices and prohibits discriminatory practices. If their policies regarding brick-and-mortar requirements are not documented or consistently applied, this might warrant further investigation, especially if you can demonstrate that similarly situated online-only businesses have been approved.
You may want to take these initial steps: First, document all communications with the wholesaler and gather screenshots of their website and application process showing no mention of brick-and-mortar requirements. Second, write to them formally requesting clarification of their policies and the specific reasons for your denial. Third, consider consulting with business attorney who can review your documentation and advise whether this could constitute unfair business practices under California law.
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