STOP DIVERSION NOW
WHAT IS DIVERSION?
Diversion is when professional salon-only products are found for sale in unauthorized retail outlets. For example, genuine DermOrganic® products are sold exclusively by your hairdresser and licensed hair and skin salons. But every once in a while you might see a professional product for sale in a retail store or discounter. These are what we call "diverted" products.
WHY IS DIVERSION BAD
Simply stated, nobody can guarantee the source or authenticity of diverted products. Diverted products may be counterfeited bottles sold as real, like fake watches. Or, diverted products may have been diluted, or previously used and then refilled and sold as new. They may be old bottles with expired formulas that have sat around in warehouses for years. Because they are being sold outside of the usual method there is no telling how or when diverted products got to the shelf.
DermOrganic® products are guaranteed only when purchased from an authorized salon. If you buy our products from a drug store, supermarket, discount outlet or unauthorized online store we cannot guarantee that it will be fresh, new, authentic DermOrganic® product that will perform as intended.
HOW CAN I FIND AN AUTHORIZED SELLER
An authorized seller is any salon you can walk into that performs hair or skin care services. If your salon doesn't carry DermOrganic® - ask them to! Or, send us an email with the name of your hair stylist and salon address, and we will send your stylist a free hair and skin care sampler package in your name!
Otherwise, a good rule of thumb is 1) if the retailers offers hair cutting and coloring services and 2) they offer a 100% money-back satisfaction guarantee on your purchase, then they are probably an authorized outlet. If you have any questions about a retailer feel free to contact us.
CAN I BUY DERMORGANIC® ONLINE
Yes. In addition to this website, you may also purchase DermOrganic® product from your salon's online store. Another approved online retailer is Ulta Beauty .
However, online stores like Amazon, Target, and other general merchandis stores are not authorized sellers.
ARE YOU IN DANGER?
Since diverted products may be used, repackaged, old or counterfeited products they could become spoiled. Applying spoiled hair or facial care products to the skin is probably not dangerous, but not a good idea, either.
HOW DOES DIVERSION HAPPEN?
We manufacture DermOrganic® products in California and then ship it in large quantities by truck to our network of professional salon distributors all over the world. The distributors in turn provide the products to salons or to other sub-distributors for sale to end-users. Somewhere along this chain of custody, the product may becomes "diverted" into an unauthorized outlet.
Often it happens without the distributor's knowledge. There are people called "collectors" who go around to many salons to buy product - especially when it is on sale - and when they collect enough bottles they put it on store shelves. Sometimes a salon might make a deal with collectors to supply them with product every month because both parties can make profit. But even in these cases there is no assurance that the product being sold was genuine, unadulterated product.
Recently a sales person from another brand was discovered making up orders on behalf of large salons. When the product was delivered he told the salon it was a mistake and that he would "personally take it back", only to deliver that product to a collector and pay the distributor with the proceeds. On paper it looked like a legitimate transaction but secretly two people got away with diverting truckloads of product. When there is demand for products, people will find ways to get it.
Collectors don't just shop in the USA, either. Collectors will buy product from Canada, Mexico, Europe, Australia - anywhere they can. Some collectors set up phony offshore companies posing as distributors in the attempt to fool manufacturers. One famous professional company was purportedly tricked into selling millions of bottles to a Chinese collector who simply shipped the product back to the USA. When company executives went to China to see for themselves, the collector devised an elaborate scheme that tricked the executives into believing that the product was widely available when in truth the collector simply had the same product displays moved from salon to salon while they escorted the executives around town.
Because they can make a lot of money. Demand for professional products is high, and because professional products sell for higher prices they make more profit for the retailers than drug store brands. Drug stores, supermarkets and other retailers want this market share for themselves by making it convenient for shoppers to buy professional products without having to go to the salon, or when the salon may be closed. And unfortunately, every salon cannot carry every product. This leaves a void that these retailers can exploit.
No, it isn't. In the USA we have a legal principle called the First Sale Doctrine. In short, this means that if you buy something, you have the right to re-sell it. Many companies have tried to stop diversion by suing distributors and retail stores. One company went all the way to the US Supreme Court. In the case Quality King v Lanza the Supreme Court held that "once the copyright owner places a copyrighted item in the stream of commerce by selling it, he has exhausted his exclusive statutory right to control its distribution."
The Mastey Family has been in the salon industry for 4 generations. Stephen's father, grandfather, great grandfather, aunts, uncles and cousins all earned their living behind the chair. He understands first hand how diversion hurts a salon and is unfair to consumers everywhere. In order to protect DermOrganic® salons and to ensure that consumers only receive the highest quality DermOrganic® products appropriate for their specific hair needs, DermOrganic® continues in its commitment to aggressively combat diversion:
-A team of dedicated people with a combined 100 years experience in the Salon industry developed the strategies and oversees the implementation of DermOrganic®'s anti-diversion program.
-Product coding is used to track the movement of DermOrganic® products. While diversion is legal, tampering with the batch codes is illegal. DermOrganic® have devised a method whereby each bottle has a unique ID number embedded within the batch code. By tracking sale of product by batch code, we ca find out where the leaks may be coming from and crack down from there.
-DermOrganic® representatives undertake regular shelf sweeps at unauthorized retail outlets in the U.S. These products are subsequently decoded in an effort to identify diverters.
-Diversion information can be communicated to DermOrganic®'s Security Department by calling the DermOrganic® Diversion Hotline at 1-800-662-7839 or by e-mailing us at NoMore@StopDiversionNow.com
Don't risk it, don't buy it! And tell your friends about the potential danger of diverted products! If you see a DermOrganic® product for sale outside a salon, please take a picture of the product lot code with your phone and e-mail it to NoMore@StopDiversionNow.com. Please include the store name, city and state of the location where you saw the products.
WHERE IS THE BATCH CODE?
The lot code is a 9, 10, or 11 digit code printed directly above or next to the UPC code on the back of the bottle. If you spot a diverted product, snap a pic with your phone and then email it to us at NoMore@StopDiversionNow.com with the location and store name. We will take it from there.
If you have any other questions or concerns about diversion please contact us.