Money Matters - Simplified

resellers

Is Costco Courting Disaster?


This article is part of our Rising Stars Portfolios series. Costco's (Nasdaq: COST) claim to fame is its ability to offer extremely high-end merchandise for low, low prices. Unfortunately for Costco and other discount-oriented retailers, a U.S. Supreme Court ruling left intact a law that could dry up those bargains. The ruling upholds manufacturers' ability to use copyright law to block discounters from reselling deeply discounted merchandise obtained from "gray market" secondary sources.