Amway India v 1MG Technologies

• Amway operates an exclusive direct selling model through authorized independent business owners (IBOs)
• IBO agreements prohibited resale through unauthorized channels including e-commerce
• Amway products appeared on 1MG sourced from unauthorized sellers
• Amway could not guarantee product authenticity or storage conditions for diverted goods
• Amway filed suit for permanent injunction

1. Whether a selective distribution brand can restrain e-commerce platforms from unauthorized sales
2. Whether the exhaustion doctrine applies to products diverted outside authorized channels

• Amway's selective distribution model is legally valid
• 1MG's listing constitutes tortious interference with distribution contracts
• Product quality concerns justify channel restrictions
• Exhaustion does not override contractual resale restrictions
• 1MG restrained from listing Amway products

A brand owner's right to control distribution channels is enforceable against third-party platforms enabling unauthorized sales. The selective distribution model serves legitimate quality purposes. Platforms cannot claim immunity for facilitating sales breaching the brand's contractual structure.