Warranty Tie-in Sales Provisions Are Generally Illegal, But Could They Also Violate Antitrust Laws?

September 22, 2005

Reprinted with permission from Recharger Magazine (702) 438-5557.

Say you're an original equipment manufacturer, or OEM, of industry-leading copiers or printers, but aftermarket parts and toner supplies are eating into your revenue and profits.  What can you do?  Make your toner more competitive in the marketplace?  Or, pursue an aggressive marketing strategy of bundling your products?  What about using your warranty as a marketing tool?  Is it fair or legal to compete by conditioning the copier's warranty on your buyers' use of your OEM-brand toner?  Could you be sued by a competitor?

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Jeffrey Vesel

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