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What to do if a supplier uses the threat of legal action to get you to do what they want

I heard yesterday of a long standing newsagent supplier threatening a newsagent with legal action if they sought to break the relationship with the supplier.

The threat was made face to face, in the back of the shop, without witnesses, by the managing director of the supplier.

The newsagent was left shaking and fearful. They decided to continue in a relationship with the supplier because of the threat of legal action. They felt that was best for the business, to let the contract they have run its course, and have as little contact with the supplier as possible.

If what I have been told is true, the threat is something that could be reported to the police or at least challenged in court. However, I suspect the person making the threat knows the newsagent would not do this, I suspect they would know the newsagent does not have the resources to fight such a fight.

The newsagent knew the meeting was happening., They knew it would not be pleasant. My advice to them on hearing the story after the meeting was that they should have recorded the meeting for their own records and that they should have had someone else there as a witness.

If a supplier threatens you with legal action to force you to stay with them or to do things that you know will not help your business, consider calling their bluff. It could be that the last thing they want is their business put under the scrutiny of a court, where the would have to defend how they deal with you, what they provide you and explain the value of this for your business.

I understand the fear of court action. I suspect that is what this specific supplier preys on. I suspect they make the threats I am told they make because they know no newsagent will call their bluff and say okay, take us to court – get out of my office and take us to court.

I know of another supplier to newsagents who made a similar threat of legal action, but with less intimidation than the first story. In this second situation, the newsagent said, okay, if you think you have a case, take us to court. The supplier did not take them to court. I suspect the directors decided against this because of the possible can of worms such court action would have exposed about their business.

Bullying does not only happen in the school yard. Sadly, it happens in business, particularly in situations on inequity such as the two stories I have shared here.

Shame on any party threatening legal action against a newsagent to get the newsagent to stay in a relationship that is not commercially appropriate or valuable too their business.

If you have a story of such legal threat, consider calling phew bluff and consider sharing the story, discretely, with fellow newsagents. Tell the truth of what happened and what it caused you to do.

If nothing is done, these bullies continue to get away with it.

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Ethics

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  1. PAT. E

    “face to face,in the back of the shop,without witnesses”
    I would have dropped one on his chin.

    8 likes

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