PART 6; Manufacturers’ Policies that are Threatening the Health of the Cosmetic Industry

Over the next few weeks I will post each policy that is the greatest concern to the industry. Below is one such policy.  

 If you would like to read the entire article, please go to www.ACBA.expert

No Support of Secondary Market Parts and Service

In the US, most – if not all – energy-based device manufacturers will not sell parts to end users. Furthermore, they do not sell parts to independent service techs and they will not allow independent organizations to service devices. There is one significant loophole here: The manufacturers do sell parts to independent distributors and service organizations in small to mid-sized international markets where the customer base or market share is not large enough for direct manufacturer distribution and support.

If manufacturers sell parts and offer training to independent distributors and their technicians in these markets, why don’t they do the same in yours? The arguments range from “the FDA forbids it” to “it’s a safety issue” to “these complicated devices require skilled technicians.” None of these arguments can detract from one ultimate, glaring conclusion: Manufacturers want to create a monopoly in any marketplace where it can be financially justified. But even if a practice is financially justified from the perspective of the manufacturer – indeed, especially if it is so justified – it might be unhealthy to the competitive market as a whole, and depending on the specifics of the case, subject to regulatory or private actions for injunction and damages.

About the authors:

David Engelhardt is an attorney from Washington, DC, who was trained in one of the country's foremost business litigation firms. He has devoted his career to taking on the world's largest manufacturers of capital equipment, to protect the reasonable expectations of their customers and the operation of the free market.

Scott Patrick Carson is managing partner of Healthcare Investment Advisors. HIA buys, invests in, and develops growth businesses, partnering with world-class management teams to build value for its investors through operational improvements, growth initiatives, and strategic acquisitions. Carson has 30+ years of marketing, business development, sales and management experience primarily in healthcare transactional platforms.  

David L. Engelhardt, Esq.

Themis, PLLC

2305 Calvert Street, NW

Washington, DC 20008

dengelhardt@themis.us.com
202-412-7078

Scott Patrick Carson

Partner 

Healthcare Investment Advisors 

scottpcarson@gmail.com

(435) 200-5378