Is it illegal to rebrand and sell Walmart shampoo for wigs?

Question

I want to know if it's illegal to buy an inexpensive shampoo from Walmart, then resell it as-is in a bottle with my business label, marketing it specifically for use on wigs and not human hair. I have not checked for any trademark or patent issues related to the original shampoo, nor have I reviewed labeling regulations.

James L. Arrasmith · Answer

Yes, this would be illegal for several reasons. You cannot simply rebrand and resell someone else's product without permission, as this violates trademark laws and intellectual property rights of the original manufacturer. The original company invested in developing, testing, and marketing their formula, and taking their product to sell as your own constitutes infringement. 
 
Beyond trademark issues, cosmetic products like shampoos fall under FDA regulations that require proper ingredient listing, manufacturing information, and safety data. When you rebottle and relabel a product, you become the manufacturer in the eyes of regulators and assume all the legal responsibilities that entails, including product safety, accurate labeling, and potential liability for adverse reactions. 
 
You might think that marketing it for a different purpose (wigs vs. human hair) creates a loophole, but it doesn't exempt you from these legal requirements. If you're interested in creating your own wig care products, you could consider working with a legitimate contract manufacturer to develop a custom formula, or pursue becoming an authorized reseller of existing brands. This approach would allow you to build a legitimate business without the significant legal risks of unauthorized repackaging and reselling.

Q: Is it illegal to rebrand and sell Walmart shampoo for wigs?