Passive Sales

Regulatory Freedom

Competition authorities draw a sharp line between active marketing and passive responses. While a supplier can forbid a distributor from launching targeted ad campaigns in a neighbor’s exclusive zone, they cannot force the distributor to reject unsolicited orders from that zone. This distinction ensures that some level of cross-border competition remains active, which keeps pressure on regional pricing.

If a manufacturer attempts to penalize a distributor for fulfilling these incoming orders, they risk severe antitrust fines.

Channel Impact

The flow of unsolicited orders can still frustrate regional distributors who invest in local marketing and service. When customers use local showrooms to evaluate a product but buy it from a cheaper out-of-territory distributor, it creates a free-rider problem. This dynamic can discourage authorized dealers from investing in high-quality customer service.

Inbound Logistics

Sellers must ensure that their digital storefronts are structured to accept international inquiries without violating the active marketing ban. Setting up a website that is available to everyone is generally permitted, provided it does not target specific protected territories. This passive digital presence is the primary route for modern cross-border sales.