III. Specific PoliciesA. POLICY REGARDING ONLINE SALES AND ADVERTISING OF GAMES
WORKSHOP PRODUCTS(Applies to All Retailers)
The following policy regarding online sales and advertising of GAMES WORKSHOP products
applies to all Retailers of GAMES WORKSHOP products.
1. Online Sales Reserved To Games Workshop:For the reasons set forth below, GAMES WORKSHOP believes that its best interests are
served by reserving online retail sales of its products in North America to GAMES WORKSHOP’S
own corporate website. GAMES WORKSHOP does not permit the online retail sale of its products by
Retailers located in the United States or Canada. By way of illustration, but not limitation, North
American Retailers are not permitted to sell GAMES WORKSHOP products on any website, webportal, third-party web-portal or other Internet-based platform of any kind. This prohibition
includes any form of online shopping cart that would enable a Consumer to order or purchase
GAMES WORKSHOP products on-line.
2. Reasons for Policy Prohibiting Online Retail SalesAs referenced above, online sales of GAMES WORKSHOP products by independent
Retailers can have an adverse commercial impact on GAMES WORKSHOP’S distribution and retail
network and its intellectual property portfolio. In light of this impact, and in careful consideration
of GAMES WORKSHOP’S vital interests in the promotion of its products and the hobby they serve,
GAMES WORKSHOP has concluded that the business is best served by: (a) encouraging the instore retail sale of its products by independent brick-and-mortar Retailers; and (b) reserving and
vesting all online retail sales of GAMES WORKSHOP products via GAMES WORKSHOP‘S corporate
website. Among the compelling business reasons supporting this decision are the following:
● In-Store Display and Sales Support: The in-store retail environment provides a
Consumer (whether a first-time customer or game enthusiast) with the ability to see,
touch, and feel GAMES WORKSHOP products before making a purchasing decision. Instore displays of product enhance the retail purchasing experience and help introduce
and grow the hobby.
● Community Support: The in-store retail environment further enhances the hobby by
providing a place for Consumers to interact with one another and the hobby they share.
The hobby is best supported by brick-and-mortar retail locations that allow hobbyists to
interact with each other through playing the games, sharing of painting and modeling
techniques and the formation of face-to-face interactive clubs. Brick-and-mortar Retailers
are the preferred, and in some geographic areas, the only method of such interaction to
sustain and grow the hobby.
● GAMES WORKSHOP’s Online Promotion of the Hobby: GAMES WORKSHOP’S
corporate website provides a number of features and links that serve to promote the
hobby, as well as the products. GAMES WORKSHOP’S corporate website provides an online complement to, not a substitution for, the in-store promotion of the hobby in a way
that is consistent with the company’s brand and Consumer expectations. By reserving
online sales to GAMES WORKSHOPS’ corporate website, GAMES WORKSHOP can present and offer the complete breadth and depth of its product line to online Consumers. The
GAMES WORKSHOP brand represents more than just one or two of its most popular items.
● Uniform Presentation of the Brand on the Internet: It is important that the GAMES
WORKSHOP brand be presented with a single, clear online focus. By reserving online
sales activity to GAMES WORKSHOP’S corporate website, the one site allows GAMES
WORKSHOP to present and develop a uniform online image for the brand that can be more
readily and easily changed as new products are added and the brand evolves.
● Enhance Online Consumer Tracking: By focusing all online Consumers on one sales
website, GAMES WORKSHOP is able to improve tracking and understanding of GAMES
WORKSHOPS’ customer base. Better Consumer information and feedback will enable us
to better predict trends and Consumer preferences, so that we can conform our product
lines to meet Consumer demand.
● Protection of GAMES WORKSHOP Intellectual Property: Online sales and marketing
of GAMES WORKSHOP products by independent Retailers can lead to increased instances
of misuse and infringement of GAMES WORKSHOP’S trademarks and copyrights. By
reserving online retail sales to itself, and providing the guidelines set forth below for online advertising of products available for sale in the retail stores of its Retailers, GAMES
WORKSHOP believes it can maintain better control over its marks and its brand.
● Prevention of Free-Riding: One of the central business considerations supporting
GAMES WORKSHOP’S decision to reserve online retail sales to its own corporate website is
to prevent free-riding by online retailers. Brick-and mortar Retailers committed to the
promotion of the hobby make significant investments including, among other things, a
physical location for Consumers to shop for the products, knowledgeable and well-trained
in-store staffing and, in certain instances, in-store gaming areas for game enthusiasts.
Internet retailers do not make the same investment in promoting the hobby, yet have the
ability to siphon off well-educated and serviced customers and potential customers by
selling the same products over the Internet. Besides the inherent unfairness of this freerider effect, GAMES WORKSHOP remains concerned that if this disparity were permitted to
exist, it would undermine the investment made by our in-store Retailers, discourage
future similar investments by new Retailers, and substantially impair the in-store retail
method of sale most effective for our products.
● Online Privacy: Consumers who are reluctant to purchase online often cite privacy as a
major reason for the reluctance to embrace e-commerce. Focusing Consumers to one
online site will allow GAMES WORKSHOP to have consistent information collection and use
practices that preserve consumer privacy, and communicate those practices, clearly and
persuasively to Consumers. GAMES WORKSHOP believes that this level of privacy
protection will encourage greater participation in the hobby.
3. Permitted Online Advertising by RetailersWhile this Policy reserves all on-line retail sales activity to GAMES WORKSHOP’S corporate
website, it does not preclude authorized Retailers from advertising on the Internet that they carry
and sell GAMES WORKSHOP products. GAMES WORKSHOP understands and appreciates that many
of its Retailers promote their businesses by advertising on their own websites. GAMES WORKSHOP
welcomes and encourages such advertising; provided, however, that: (1) any such advertising by
a Retailer clearly states that such products are available for purchase at the Retailer’s brick-andmortar store location; (2) the advertising is consistent with the GAMES WORKSHOP brand image
and does not dilute or infringe upon GAMES WORKSHOP’S intellectual property rights; (3) such
advertisements use only approved product descriptions, artwork, imagery, insignia, logos and
marks supplied by GAMES WORKSHOP; and (4) complies with GAMES WORKSHOP’s Intellectual
Property Policy which can be found at:
http://www.gamesworkshop.com, or on request.
B. POLICY REGARDING ORIGINAL PACKAGING AND LABELINGAll GAMES WORKSHOP products (including all game kits, sprues, rulebooks, components
and accessories) are only to be resold in their original packaging. The original packaging and
labeling, which bears GAMES WORKSHOP’s trademarks, logos and copyrighted imagery, is
specifically designed to appeal to the Consumer of the product and to inform the Consumer as to
the contents, quality and safety of the product he or she is purchasing. GAMES WORKSHOP’s
packaging and labeling typically contain important information about the proper use, quality, and
safety of GAMES WORKSHOP products.
For the reasons set forth below, Retailers are not permitted to remove GAMES WORKSHOP
product from its original packaging or otherwise break such products into components prior to
resale. In recent years, GAMES WORKSHOP has observed a practice among some Retailers in
which GAMES WORKSHOP products are removed from their original packaging for the purpose of
reselling separately individual, unmarked components. This practice is now prohibited for the
following business reasons:
● Protection of Brand Image: GAMES WORKSHOP’s original packaging, which
bears GAMES WORKSHOP’S trademarks and copyrighted imagery, is specifically
designed to be consistent with GAMES WORKSHOP’s established brand image.
The resale of GAMES WORKSHOP products (or components thereof) in unmarked
or generic packaging is inconsistent with that brand image and can serve to
devalue the product.
● Protection of GAMES WORKSHOP’S Intellectual Property: Through its use of
GAMES WORKSHOP’s trademarks and copyrighted imagery, the original packaging
provides clear and reliable identification of the product as a genuine GAMES
WORKSHOP product. The sale of GAMES WORKSHOP products (or components
thereof) in unmarked or generic packaging, if left unchecked, can be injurious to
GAMES WORKSHOP’s intellectual property rights.
● Avoidance of Confusion: The resale of GAMES WORKSHOP products (or
components thereof) in unmarked or generic packaging also can lead to
confusion as to whether the product being sold is a genuine GAMES WORKSHOP
product or a generic imitation. Such confusion is detrimental to the GAMES
WORKSHOP brand and the intellectual property rights that protect it.
● Ensuring Proper Labeling: GAMES WORKSHOP’s packaging and labeling is
specifically designed to inform the Consumer as to the contents, quality and
safety of the product he or she is purchasing. When GAMES WORKSHOP products
(or components thereof) are sold separately in unmarked or generic packaging,
the Consumer does not receive this valuable labeling information at the point of
sale. Preservation of the original packaging and labeling prior to resale,
therefore, ensures that the Consumer is receiving accurate and reliable product
information.
● Uniformity in Product Configurations: GAMES WORKSHOP products are
packaged and sold in certain configurations designed to appeal to the Consumer
and maximize the marketability of the products. Such configurations are an
integral part of GAMES WORKSHOP’S marketing strategies that drive consumer
expectations. The resale of components in unmarked or generic packaging
undermines those strategies and the ability of GAMES WORKSHOP to offer a
uniform line of products to the marketplace.
To the extent GAMES WORKSHOP, in its sole discretion, should manufacture, package and
label individual product components, GAMES WORKSHOP may make available such individual
components for resale only as originally packaged and labeled by GAMES WORKSHOP. For the
reasons explained above, Retailers are prohibited from removing any individually packaged and
labeled GAMES WORKSHOP components from their original packaging for the purpose of reselling
such individual components to Consumers.
C. POLICY REGARDING DOMESTIC SALES ONLYNorth American Retailers are only authorized to resell GAMES WORKSHOP products
domestically in their respective countries of origin. Accordingly, United States Retailers are
prohibited from exporting GAMES WORKSHOP products for purposes resale to Consumers located
outside of the United States. Similarly, Canadian Retailers are prohibited from exporting GAMES
WORKSHOP products for purposes resale to Consumers located outside of Canada. Foreign sales
of GAMES WORKSHOP products by Retailers can be disruptive to GAMES WORKSHOP’S vertical
distribution networks in other countries.
D. POLICY REGARDING NEW RELEASESFrom time-to-time, GAMES WORKSHOP will schedule New Releases for its products. The
timing and disclosure of New Releases is often accompanied by targeted advertising and
marketing of the New Releases designed to create excitement in the marketplace and to have a
positive impact on sales of the New Releases. To the extent that such New Releases are made
available to Retailers, Retailers are not permitted to: (1) communicate information or make such
products available for resale to Retailers prior to the “Advance Order Date” set by GAMES
WORKSHOP for the New Release; or (2) sell the New Releases prior to the “Global Release Date”
set by GAMES WORKSHOP for the New Release. GAMES WORKSHOP, in sole exercise of its
discretion, may issue updates to this New Releases Policy from time-to-time.
E. POLICY REGARDING AGE-SPECIFIC PRODUCTSCertain GAMES WORKSHOP products are classified (where relevant) as products to only be
sold to Consumers meeting minimum age requirements. Each Retailer is responsible for
ensuring that Games Workshop products are only sold to Consumers meeting the age
requirements specified on the product itself, any associated packaging and local legislative
requirements in the relevant state or province of sale to the Consumer (such local legislative
requirements taking precedence in all circumstances).
