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Legal Liability When Reselling Products

Written by Jared Staver

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Jared Staver is a Personal Injury Lawyer based in Chicago, Illinois and has been practicing law for over 20 years.

Jared Staver

CATEGORY: Personal Injury


Reselling products, such as clothing, shoes, home appliances, and household supplies to make extra cash is a common practice. Although it is legal, many individuals involved in reselling products do not understand how liability works and can sell products that lead to serious injuries.

If you sustain an injury after purchasing a resold product, you should reach out to a Chicago personal injury attorney at Staver Accident Injury Lawyers, P.C. Call us at (312) 236-2900 to determine whether you are eligible for recovering compensation for your damages during a free consultation.

Selling Expired Products

When resellers store their products in questionable locations, such as their storage shed or garage, they may go bad. Just as grocery stores undergo investigations for safe practices every time an outbreak arises with a specific food they carry, resellers may be investigated and sued for poorly handling any products they sell.

Therefore, it’s essential that resellers ensure that their storage methods are entirely safe. If they must sell a product that was stored in a questionable location, they should warn customers with a label or sign that discusses any concerns regarding expiration dates. A warning can significantly reduce any liability.

Reporting Profits

The IRS states that individuals must report any cash earned from side jobs, barter exchanges of goods or services, awards, prizes, and gambling proceeds. Any reseller who makes more than $400 a year must report their profits to the IRS. Failing to do so may lead to hefty fines or an audit.

Resellers may be excused from this rule if they do not have any other source of income or are not married to someone who generates an income and jointly files taxes.

Marketing Products

Many resellers are unaware that it’s illegal to use a company’s logo or trademark to market their product. If a reseller does so, they increase their risk of getting sued for trademark infringement, especially if they make a substantial amount of money.

It’s important to note that it is legal to use the brand name in the copy when marketing the product. For example, if a reseller is selling Nike shoes, they can include “Nike” in their advertisement.

Donating Products

In some cases, it may be better for an individual to donate their products instead of reselling them. Charitable organizations and those in need will be happy to receive donations, and the reseller can benefit by reporting their contributions to the IRS as a tax deduction. To make money from donations, individuals should keep a record of each item, to whom it was donated to, and its estimated worth. When it’s time to file taxes, they should fill out a Form 8283 and attach it to their return.

Injured by a Resold Product? Call Staver Accident Injury Lawyers, P.C.

If you have suffered an injury from a product purchased from a reseller, you should contact a personal injury attorney at Staver Accident Injury Lawyers, P.C. today for help. We can determine who is liable and your next best steps. Contact us at (312) 236-2900 to learn about your legal options during a free case review.

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(312) 236-2900
(312) 236-2900
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