As a professional styling tool company, FHI Brands, LLCís policy is to sell our products exclusively to and through professionally licensed salons, either directly or through our distributors. With the increasing popularity of our brand, we are seeing more attempts by distributors to direct our products to non-authorized retailers. FHI Brands views diversion as a serious problem, which creates a number of unfortunate consequences. For instance, we cannot guarantee the authenticity of products purchased at non-authorized retailers. Furthermore, consumers who purchase products from non-authorized retailers deprive themselves of their stylistís advice and guidance regarding the proper use, and the features and benefits, of our products.
FHI Brands is committed to eliminating diversion of its products, and we have employed a number of tactics to combat this problem including:
- The termination of distributors against whom credible evidence of diversion has been obtained.
- Enhanced scrutiny prior to the appointment of new distributors.
- A clear policy voiding warranty service (and other after sales service) on products purchased from non-authorized resellers.
- Educating consumers on the problems associated with diversion.
Through these efforts we have made significant advances in controlling the channels of distribution for our products. However, we recognize that the war against diversion is ongoing, and FHI Brands is committed to employing progressive methods to stop the unauthorized sale of its products.