After spending thousands of dollars building and promoting our site here on Shopify I was notified by a "risk" officer from Shopify that they are requiring me to receive letter of authorization to sell my authentic pre-owned "name brand" products or my Shopify payment gateway will be removed. Shopify can then charge you 2% on everything you sell since you will be required to use a third party gateway.
The TOS he reference to us was:
Counterfeit or unauthorized goods: Unauthorized sale or resale of brand name or designer products or services; sale of goods or services that are illegally imported or exported
All of our LV, chanel, etc. name brand products were legally purchased by our company and owned by us. LV or any other brand cannot give us authorization to sell something we already own.
A short google search found 30 other consignment stores selling Louis Vuitton pre-own product on the Shopify platform. He would not tell me if they are allowed to use the payment gateway. One store did email me back confirming they were using the shopify gateway. They would not tell us why we were being singled out. We have never had a charge back or other dispute.
This is a huge blow to us and will require us to build a new site somewhere else where we won't be required to give a company 2% of all our sales for not being allowed to use their required payment service.
If you are thinking of setting up shop here on Shopify to sell anything pre-owned you might think twice since they aren't goint to tell you this until it is too late. It is no where to be found in the TOS.
Our store is licensed by the city and the state specifically allowing second hand sales.
There is absolutely nothing in the terms of service about what brands are ok and not. The Risk guy here first told me to me to take down my Louis Vuitton and Chanel products. Then after several days of back and forth I took them down to comply. Then he said take down the Rolex and Tiffany products.
It is so arbritrary and wrong. I asked him for a list of banned products but he ignores me. How in the world can you build a business not knowing what is allowed and not?
If I continue to sell those items I am forced to pay 2% on every sale FOR NOT BEING ALLOWED TO USE THEIR APPP. Seriously how is that legal or fair. 25 pages of TOS and not one mention of a designer name they won't allow.
The Supreme Court has ruled and it is very common knoweledge "The First Sale" doctrine makes it legal to sell copyrighted material that you legally own.
Of course there are hundreds of businesses selling pre-owned goods on Shopify platforms. The question is if I'm being singled out by some rogue risk officer or are they coming for all of them next?
Since I've already sunk about $10,000 into this site with build and marketing I honestly don't know what to do.
BEWARE VINTAGE SELLERS
This just happened to our store. They mentioned LV, Gucci, Adidas, Coach, and Burberry but could not provide a definitive list.
We had just switched over to Shopify Payments and were excited for the new POS setup at our retail store in Montreal. I was told on Tuesday that in order to keep accepting Shopify Payments at my store I would have to provide resellers authorization from the brand's mentioned above.
As far as I know selling used authentic clothing is not illegal nor does it infringe on any copyrights.
How about buddy, Etsy is no better I got kicked off of there and yet thousands of people get away with it?? Why would Louis Vuitton single me out for vintage items? I smell fish. I was selling like crazy and I think that is the problem. If I am making them money why the issue? So frustrating. Thanks I will steer clear of shopify as I was considering them . . . NOT ANY MORE!