Can I refuse to supply a potential distributor?

 

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21. Can I refuse to supply a potential distributor?

You can refuse to supply a potential distributor for normal commercial reasons: for example, if you cannot agree the price or the terms and conditions of your supply contract with them.

However, if you deliberately limit the number of distributors, or require distributors to meet particular qualifying criteria, you will have created 'selective distribution'. This has implications under competition law. In particular, it is illegal to prevent selective distributors from selling competing products.