Posted in Marketing and Strategy Terms, Total Reads: 1450
Definition: Full Line Forcing
Full line forcing can be defined where the producer or supplier insist that the dealer must carry the full range of products in the line. This policy may not be considered illegal if it can be proved that it serves a legitimate business need.
Third line forcing is a form of exclusive dealing which involves the supply of goods or services on the condition that the purchaser should buy goods or services from a particular third party or else no supply because the purchaser did not agree to that condition. In a full line forcing arrangement, distributors are contractually obligated to sell a supplier’s product line completely. Here, distributors are also able to carry the products of competing sellers as well.
It can be said that asking a customer to buy an extraneous good in order to procure a second desired good is not only a disfavored practice, but also is an unlawful one. At its core, full line forcing requires dealers to stock a manufacturer’s entire product line, but these provisions are not subjected to scrutinization unless any additional harm occurs from the competitors, such as having a requirement that the dealer must obtain inventories of the products at certain minimal levels.