It’s a different ball game if you intend to start a reselling business in the UK. At the very least, you need to register the company, obtain a few licences and sign some agreements depending on the type of commodity you want to deal in. 

Here, we’ll be discussing if reselling is legal in the UK and all the things that make it so. Hence, we’ll examine a breakdown of all the laws and codes surrounding the UK retail industry. 

But first, let’s start by defining who a reseller is before going into the legal talk.

Who is a Reseller?

From a commercial angle, a reseller is a business person who purchases a commodity, markups its price and sells it to another to make a profit. From a broader perspective, a reseller is simply someone who exchanges items they own for money. 

A kid in elementary school can be a reseller simply by trading a few of their sweets for cash. 

Commercial resellers create value by making commodities easily accessible to consumers in a local community or target market. To that end, they often purchase items in large quantities from manufacturers or distributors and sell them in smaller units to the market they serve. 

So, as a reseller, you provide easy access to certain commodities for your customers and make a profit in the process.

As a UK reseller, you can operate a walk-in shop, an ecommerce business or a mix of both. Of course, there are a few legalities surrounding how you run them. But many of the rules are more guidelines than constraining factors. 

But of course, not all instances of commodity resale are for profit. For example, an individual may have a yard sale to get some items they no longer need off their hands. Or, another may resell an old item to purchase a new one. 

Others may resell items to raise funds for social or humanitarian purposes like charity. For these instances, there isn’t usually much legal constraint around reselling such commodities in the UK.

Generally, reselling commodities in the UK is a 100% legal business. There’s no law against opening a retail shop or reselling products online in the UK. However, some legalities may pop up depending on the commodity. 

• You can resell everyday items in the UK without legal constraints. However, contrabands or restricted goods are often subjects of constitutional scrutiny.

• Then again, the manufacturer may put some conditions or restrictions on the resale of certain items. These cases are rare and are usually common with intellectual properties like books, music and other literary works. As such, they’re part of the makeup of the items you can get sued for reselling in the UK.

• For example, the UK government strictly restricts the production or sale of controlled drugs. Additionally, they don’t allow the sale of endangered animals and plant species. Hence, reselling such items is illegal in the UK. 

In more detail, let’s examine the legal implications of reselling in the UK.

Legalities Surrounding the Reselling Business in the UK

Our country has laws for almost everything, even how long you can stay for a funeral or how you should position the British stamp. So, you must play by specific rules to avoid legal issues while growing your UK reselling business. 

We’re referring to laid-down constitutions determining what is legal or not for a reselling enterprise.

• The first and most important rule you must obey is legally registering yourself as a reseller and your business with the appropriate authorities. The UK constitution requires you to register your company appropriately before conducting business operations. 

• Additionally, you’ll need to obtain a resellers’ licence to operate a business reselling items in the UK. This permit allows you to work as a government-recognized reseller. 

• Depending on the type of good you intend to resell, you may also have to obtain additional licensing to possess and trade such a commodity. 

• Obtaining a licence also comes with other benefits aside from making you a government-accredited reseller. You also get a free pass on sales tax when you stock up on inventory. Plus, it’s easier to avoid unnecessary legal actions from customers or manufacturers when you have a licence authorising you to do the business.

Fortunately, you can quickly obtain a resellers’ licence from the appropriate quarters. For example, you can get a peddler’s licence, which allows you to sell stuff out of your car boot or on a door-to-door basis from a local police station. 

Of course, you’ll have to research the entire process for obtaining a licence, as it varies depending on the region. But generally, you’ll need to register your business and present a few documents to prove your eligibility.

With your business registered and licence in hand, you’ve fulfilled all legal requirements to resell goods in the UK. 

But, of course, a permit doesn’t exempt you from the constraints of the law. You must abide by the following legal provisions when reselling products in the UK.

Laws Guiding Reselling in the UK

UK laws regarding reselling focus on the aspect of the business involving customer interaction. There are rules on what to sell, where, and when. 

Fortunately, the rules are pretty straightforward, as you will see below.

The Consumer Rights (2015)

This statute is an essential legal provision you must abide by when operating a reselling business in the UK. The act is a more comprehensive replacement to the 1979 sales of Goods Act. It covers all commodities, services and digital content sales within the UK. 

The parliament enacted this act to protect consumers by granting them certain rights when purchasing goods, services or digital content. For example, it allows the buyer to return goods that don’t meet specific criteria based on a few conditions. 

Most notably, the Consumer Rights Act mandates a seller or reseller to provide goods that fit the purpose described and check all quality boxes. Additionally, it requires sellers only to sell goods that maintain the same appearance as portrayed on the promotional materials and are free of defects. 

Customers acting under this statute can reject or return a product if it violates any of the stated criteria. 

The Consumer Rights Act allows the sale of defective commodities under certain conditions;

• The buyer learns of or discovers the defect and purchases the product anyway while informing the seller they’re aware and will take the item as it is.
• The buyer obtains and uses the item to a point where restoring it to its original state is impossible.
• The buyer had the item for a long time without notifying the seller of their intention to return it.

Additionally, the statute allows a seller to refuse a return or customer refund request under the following conditions.

• The buyer bought the item despite being aware of its defects
• The defect is insignificant and doesn’t reasonably necessitate a return or refund demand. 
• The buyer has done additional damage to the product through use or while attempting to fix the initial fault.
• The return isn’t related to any defect but rather a personal preference. For example, a buyer returning an item because they “just don’t want it anymore.”

While this law specifically deals with manufacturers and sellers, it also applies to retailers and others engaged in reselling businesses in the UK. Hence, you must take note of it. 

Marketing and Advertising Law

The UK has additional laws to prevent business owners from tricking buyers into purchasing items using false information. Essentially, these laws necessitate you to provide accurate information about a product at all times. 

And failure to do that gives a customer the right to sue you for non-disclosure or misleading information.

You’d agree that without such regulations, many marketers won’t have problems deceiving buyers into purchasing things that aren’t what they intended to buy. As a result, be meticulous with your marketing language, promotional antics and how you present your goods to the customers. 

Additionally, ensure you can back up all claims while promoting your products. So, if you say your goods are the best, you must be able to prove it.

More importantly, these laws require you to be clear about the products’ prices and delivery charges where applicable. Of course, that includes disclosing all the conditions involved while conducting promotional sales.

The Consumer Contracts Regulation (2013)

This legal Act, along with the Electronic Commerce Regulation 2002, is primarily for those reselling online via different ecommerce outlets. It covers all forms of distance selling and transactions facilitated through electronic means. 

The Consumer Contracts Regulation empowers consumers purchasing items online to cancel an order within 14 days and demand a refund if the items sold don’t match the description. Hence you must ensure your online reselling business operates in full compliance with the provisions of this Act. 

• That includes using acceptable web design features and clearly documenting the terms and conditions of transactions. 
• It also necessitates you to have a comprehensive privacy policy that complies with the Data Protection Act.
•  Additionally, it regulates crucial aspects of ecommerce businesses, such as website design, payment modes and delivery fees.

This statute is very similar to the Consumer Rights Act in that it grants certain rights to consumers. However, the primary difference is that it’s restricted to only purchases that occur via electronic means.

Data Protection Act

Customer data is a premium commodity in this information age. It’s dangerous material for nefarious ends in the wrong hands. 

That’s why the government stepped in to ensure web owners protect user information in their custody. That’s why the government created the data protection act.

This statute necessitates a justifiable reason for collecting and keeping customer data. Then, it also ensures you have a data protection policy to safeguard the data in your custody adequately. The policy should clearly explain your process for collecting, storing, and using the customer’s data. 

Can a Company Take Legal Action Against me For Reselling Its Products?

Ideally, a company should appreciate you for reselling their products because, ultimately, you’re helping them increase their reach. Well, thanks for the good work, but brands can and often do take resellers to court for several reasons.

The most common reasons are copyright and trademark infringement. This is a case whereby someone or a company uses a brand’s patented item for profit without due authorisation. 

For example, Cloud Solutions Provider Oracle filed a lawsuit against a British reseller for copyright infringement in 2021. They claimed the reseller exchanged their intellectual property for money with a third party without authorisation. Microsoft also did something similar in 2020, albeit against a US-based firm. 

Admittedly, most of these lawsuits are from some large corporations to other prominent players in the market. However, it doesn’t change the fact that the companies on the receiving ends of the lawsuits engage in the resale business.

How to Not Get Sued for Reselling Items

You may think it’s unlikely that you’ll ever do something terrible enough to warrant legal action, especially if you’re only reselling to a local market. 

You’ll be fine if you don’t infringe on copyright. But a copyright infringement case can include many things, and sometimes you may be committing the crime without realising it. 

Below are the common things you should note to avoid legal action from other brands.

Get Familiar With the Copyright Law and How It Applies To Your Business

The UK Copyright, Designs and Patent ACT 1988 gives creators of intangible goods, such as content and literary items, the right to control the broadcast and distribution of their creations. Essentially, it gives the creator the right to identify as the author and object to distortions in their works.

Generally, the copyright doesn’t apply to commodities; hence it doesn’t affect most resellers. 

However, it applies to the use of brand trademarks. And this is where you need to be careful as a reseller. A company can serve you a lawsuit for using their trademark signals like slogans, symbols or logos without authorisation.

Hence, at the very least, you need to consider this aspect of the law while reselling products in the UK. Overall, you can easily prevent unwanted attention to your business by noting and avoiding any violations of copyright law.

Never Sell Trademarked Items Without Permission

Coming off the previous point, it’s easier to avoid violating copyrights if you don’t deal in trademarked items; you’ll save yourself much trouble that way. Plus, unbranded goods are typically not as expensive as trademarked brand items. So, people looking for a bargain will be more willing to settle for them. 

Admittedly, several people will be willing to pay more for branded commodities. So, you may sacrifice some profitability opportunities by avoiding branded goods. However, it may be a reasonable sacrifice if it means you get to avoid trouble. 

Nevertheless, if you must resell trademark brand items, ensure to obtain permission from the manufacturers before selling their products. You can easily recognise trademark brands from their popularity. However, if you’re not sure if a brand has a trademark, you can verify by checking online or on their official website.

Then again, some brands don’t engage in ecommerce and don’t permit resellers to sell the items online. So, the problem here is that you may attract legal action if you start reselling such items online. 

Lastly, don’t risk your personal and business reputation by selling counterfeit trademark items. Reselling fakes is illegal in the UK, and the original manufacturers can pursue legal action against you when they discover it. In a worst-case scenario, the court can order you to shut down your business.

Don’t Use Brand-Patented Items for Marketing 

Most trademark infringement lawsuits usually involve one party using the trademark signals of another for marketing without the owner’s authorisation. Therefore, you primarily want to avoid the following while reselling branded products. 

• First, avoid intentionally or unintentionally claiming a commodity to be of your design. You’re only reselling the product; it’s not legal to give the impression you manufactured it.

• Secondly, never use another brand’s trademarks for advertising your products, even if you’re selling items from that brand. For example, don’t use the “Just Do It!” phrase for marketing your sneakers, even if they’re Nike products. You only get the right to do so when the Nike brand management consents.

• Avoid the impression that a company has authorised you as their official reseller or distributor when you’re not. If a brand hasn’t appointed you as a vendor for their products, don’t tell customers you’re a registered reseller for the company.

• Ensure the manufacturer permits you to sell the goods to your target market. Primarily, you want to avoid taking commodities to a market the manufacturer has yet to explore unless you have express permission.

Keep to Manufacturer Instructions

Some manufacturers specify instructions regarding how they want retailers to handle and sell their products. Not obeying such instructions may upset the manufacturers and cause them to seek reparations against you. 

This situation is usually common with products that come in multipacks. Some manufacturers may instruct you shouldn’t sell the items separately. They typically do this to keep the discounts on the multipacks and encourage consumers to buy more. 

Additionally, specific storage conditions may be necessary to keep the items in good shape and ship items successfully to customers. 

The manufacturers will typically state such on the packaging for the goods. So, not abiding by such instructions may result in you selling damaged goods to customers. 

If a company gets wind of such an occurrence, they probably won’t sweep it under the carpet or let you off easily.

Don’t Default on Tax Payments

No individual will drag you to court over unpaid tax. Instead, you have the government to deal with in this case. 

Reselling products is legal in the UK, but that’s only if you abide by the rules. And one of the core rules is to pay your taxes when due. 

It’s Legal to be a UK Reseller 

Operating a reselling business is 100% legal in the UK. Of course, that’s as long as you’re not dealing in restricted or banned goods. Admittedly, learning about the legalities of reselling in the UK can be pretty boring. However, it’s necessary to know how to stay away from trouble.

Consider the legalities discussed above on your way to becoming a UK reseller. That way, you can rest assured you won’t have any legal issues in your business. 

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