Genuine is not the same as legal: three regulated products and the European rules that decided the deal
A distributor search can be run perfectly and still be worthless, because the question it answers — who could sell this — sits downstream of a question nobody asked: whether the product can be sold at all, in that form, by that party, in that country. Three cases where the second question decided everything.
An enquiry arrives. A European company wants to bring an American consumer product into the EU, has identified real demand, has worked out the fulfilment, and wants help finding verified wholesalers at origin. The commercial reasoning is sound. The customer need is real. Everything about the brief is competent.
And the product, as formulated for the United States, cannot lawfully be sold to a consumer in the European Union. Not because it is counterfeit — the whole point of the project was authenticity — but because a European rule caps an ingredient at a level the American version exceeds.
That is a hard thing to put in a reply. It is also the most valuable thing we could have said, and it is the reason this piece exists. Across markets and sectors, the pattern repeats: the distributor search is the easy part, and the regulation is what decides whether the search was worth running.
Three cases below. The first is one we were asked about directly. The other two are categories we are asked about often enough that the pattern is worth setting out, because each fails in a different way, and knowing which failure you are exposed to tells you what to check before you spend anything.
- The product that was genuine and still illegal
- The second wall: authentic goods, unauthorised route
- Cosmetics, and the person who owns your market access
- Nicotine pouches, and the Europe that is not one market
- Three failures, three different shapes
- Testing a product before you look for a partner
- What this means for a distributor search
1. The product that was genuine and still illegal
The category was tooth whitening — peroxide strips, a large and entirely legitimate American consumer product, sold at retail across the United States without difficulty.
In the European Union, tooth whitening is regulated as a cosmetic, and the Cosmetics Regulation caps hydrogen peroxide in Annex III. The structure is three tiered and unusually blunt:
0.1% or less
Hydrogen peroxide present or released. This may be sold directly to consumers. It is also a level at which the product does comparatively little, which is why the American formulations sit well above it.
Above 0.1% and up to 6%
Sold only to dental practitioners, not at retail. First use has to be by a practitioner or under their supervision, the concentration must be stated on the label, and it must carry the warning that it is not to be used on anyone under eighteen.
Above 6%
Not permitted as a cosmetic in the EU at all.
So the question “where do we buy genuine American stock” has no useful answer, because the formulation that makes the American product work is the formulation that puts it outside consumer retail in Europe. There is no supplier anywhere in the United States who solves that. The constraint is not in the supply chain. It is in the product.
Authentic answers a question about provenance: is this the real product, made by the real manufacturer. Compliant answers a question about the destination market: is this product, in this formulation, with this labelling, permitted to be placed on that market. A brief can be entirely focused on the first and never touch the second, and the first is useless without the second.
None of this is a criticism of the company that asked. The rule is not intuitive, it is buried in an annex, and the product is sold openly in the market where they saw the demand. An American manufacturer doing nothing wrong, a European buyer doing nothing wrong, and a regulation between them that neither party's commercial instinct would surface.
2. The second wall: authentic goods, unauthorised route
Suppose the formulation problem were solved — an EU-compliant variant exists, or the category changes. A second rule sits behind the first, and it catches a great deal of cross-border consumer trade that looks entirely clean.
Trade mark rights in Europe are exhausted on a regional basis, not a worldwide one. When a trade mark owner puts goods on the market inside the European Economic Area, or consents to that, it can no longer use the trade mark to stop those particular goods being resold. Goods first sold outside the EEA do not exhaust anything. Importing them into the EEA without the owner's consent is an infringement, however genuine they are.
The European Court settled the principle in Silhouette, and then settled the harder question in the Zino Davidoff and Levi Strauss cases: can consent be implied? It can, but only where the importer proves the owner unequivocally renounced the right to object. Three things that are specifically not enough:
- The owner said nothing about imports into the EEA.
- The goods carry no marking prohibiting EEA import.
- No contract restricted the buyer, or any later buyer, from reselling into the EEA.
And the burden sits on the importer, not the brand. Silence is not permission; the absence of a prohibition is not permission. For a business whose entire proposition is that its goods are verifiably genuine, this is a difficult shape of risk, because authenticity is the thing being proven and authenticity is not the thing in dispute.
The practical consequence is that sourcing moves from a question of availability to a question of authority. Not “who has stock” but “who can give, or evidence, the rights-holder’s consent for these goods to be placed on this market”. That is a different search, with a different and much shorter answer set, and it is worth knowing which one you are commissioning.
3. Cosmetics, and the person who owns your market access
The second case is the broader cosmetics category, and here the trap is not what the product is. It is who holds the right to put it on the market.
Under the Cosmetics Regulation, no cosmetic may be placed on the EU market unless a Responsible Person established in the Union is designated for it. The Responsible Person is named on the label. They notify the product through the CPNP portal before it goes on sale. They hold the Product Information File and the safety report, and produce them for authorities on demand. They carry the obligation to act — including withdrawal — if the product turns out to be non-compliant.
Now the part that catches brands. A manufacturer outside the EU can appoint a Responsible Person by written mandate, and that party accepts in writing. But if no Responsible Person has been appointed, the importer becomes it automatically for the products it places on the market. Nobody has to decide this. It happens by operation of the regulation, in the absence of a decision.
Appoint a European distributor who imports for you, make no arrangement about the Responsible Person, and your distributor is now the legal owner of your European market access. The notification carries their name. The file sits with them. If the relationship ends, what you are negotiating is not a supply agreement — it is your right to keep selling.
Readers of our piece on who holds your product registration will recognise the shape exactly. It is the same trap wearing European clothes: a market-access asset that must be held by a local entity, handed to a commercial counterparty by default because nobody treated it as an asset.
The fix is unglamorous and cheap, which is why it is annoying to miss. The Responsible Person does not have to be your distributor. It can be your own EU entity if you have one, or an independent regulatory services firm whose business is holding exactly this role for brands that would rather not hand it to a seller. Either keeps the commercial relationship and the regulatory relationship in separate hands, which is the whole objective.
And Europe does not stop at the EU border
One further point that surprises brands more than it should: an EU Responsible Person does not cover Great Britain. Since Brexit a product placed on the GB market needs a Responsible Person established in the UK, and notification through SCPN rather than CPNP. Northern Ireland follows the EU position. So “Europe” in a distribution agreement can mean two regulatory regimes, two notifications and two Responsible Persons — and a distributor who is excellent across the EU may hold nothing that helps you in Britain.
4. Nicotine pouches, and the Europe that is not one market
The third case is the one most likely to catch a principal who assumes the single market does more than it does.
Tobacco-free nicotine pouches are a genuinely large and fast-growing European category. They are also, at the time of writing, not covered by the Tobacco Products Directive, which was last revised in 2014, before the products existed commercially. What that means is not light-touch regulation. It means there is no European position at all, and twenty-seven national positions instead — which currently range from ordinary regulated retail to outright prohibition.
The spread, as it stands:
| Position | Markets | What it means for a distributor search |
|---|---|---|
| Prohibited | Belgium, the Netherlands, Lithuania, Luxembourg, France (from April 2026, with parts of the decree under legal challenge); Norway outside the EU | There is no partner to find. A distributor offering coverage here is offering something that cannot be delivered lawfully. |
| Permitted, tightly constrained | Denmark (nicotine cap and flavour restrictions from April 2026), Finland (pharmacy channel only), Austria (licensed outlets under the tobacco monopoly), Poland (flavour restriction pending) | The channel is the constraint, not the border. A partner with the wrong channel licence is no use whatever their national coverage. |
| Regulated and open | Italy, Czechia, Spain, Estonia, Latvia, Switzerland, the UK | A conventional search, with excise and age-verification capability as qualifying criteria. |
Two things follow. The first is that a single “European distributor” for this category is close to meaningless as a concept: the territory has to be enumerated country by country, and several countries have to be excluded outright rather than optimistically included. Our piece on when a multi-country distributor makes sense makes the general argument; this is the sharpest European example of it.
The second is that this is a moving target. A revised Directive is in development, intended to bring pouches and related products into a European framework, but harmonisation is not expected before 2027 at the earliest and the detail is unsettled. Any territory definition written today should assume the rules will change within the term of the agreement, and should say what happens when they do.
For any category under active regulatory reform, a distribution agreement should name what happens when a market closes: whether that country simply falls out of the territory, whether minimum volumes are adjusted, and who carries the cost of stock that can no longer be sold there. Settled in advance it is an administrative step. Settled afterwards it is a dispute.
5. Three failures, three different shapes
Set side by side, these are not three versions of the same problem. They fail at different points, which is why a single compliance question does not catch all three.
| What breaks | When you find out | Can it be fixed? | |
|---|---|---|---|
| Tooth whitening | The product itself. The formulation is outside what the market permits at retail. | Before anything, if you look; otherwise at the border or on a trading-standards visit. | Only by reformulating or changing channel. No supplier solves it. |
| Cosmetics | Ownership of market access. The Responsible Person is a counterparty rather than you. | When you try to change distributor, which is the worst possible moment. | Yes, trivially, before signing. Expensively afterwards. |
| Nicotine pouches | The territory. Some of the countries in it do not permit the category. | When a shipment is stopped, or a partner quietly never sells there. | Yes, by enumerating countries rather than naming a region. |
Put another way: one is a question about what the product is, one about who owns the right to sell it, and one about where the border actually falls. A brief that covers only the first will miss the other two, and most briefs cover none of them, because all three sit outside the commercial frame in which a distribution decision is usually made.
6. Testing a product before you look for a partner
This does not require a regulatory department. It requires four questions asked in the right order, before money is committed to a search.
What is this product, legally, in the destination market?
Not what it is called in your market. A category that is a cosmetic in one jurisdiction can be a medical device, a medicine, a food supplement or a tobacco-adjacent product in another, and the classification decides every rule that follows. This is the question that would have caught the whitening case in an afternoon.
Does our formulation, as it stands, comply with that classification?
Ingredient limits, prohibited substances, labelling, language, pack size, claims. Where the answer is no, establish whether a compliant variant exists before you look for anyone to sell it. The supply chain cannot solve a formulation problem.
Who must legally hold our market access, and can it be us?
The Responsible Person, the authorised representative, the registration holder, the licence holder — the name differs by regime and the function is the same. In most cases it must be a locally established entity. The decision worth making deliberately is whether that entity is your distributor or somebody with no commercial interest in your product.
Which specific countries, and is the category permitted in each?
Named countries, not regions. For any category under reform, check each one rather than assuming the bloc behaves as a bloc — and write the agreement so a market can be added or removed without renegotiating the whole thing.
7. What this means for a distributor search
We run distributor identification and selection, not regulatory affairs, and we are careful about the line. We are not a substitute for local regulatory or legal advice, and on any specific product you should take it.
But there is a version of this work that treats the brief as given and simply returns the best available partners, and a version that asks what the product is before asking who could sell it. The first is faster and occasionally produces an excellent shortlist for a deal that cannot happen. The second sometimes ends with us telling a prospective client that the project as described does not work — which is a worse outcome for us in the short term and the only defensible one.
Where a regulatory constraint does exist, it usually reshapes the search rather than ending it:
- A formulation limit changes the channel. The whitening category still has a European market; it runs through dental professionals rather than retail, which is an entirely different partner profile and a search worth running on its own terms.
- A market-access holder requirement changes the qualifying criteria. “Can act as Responsible Person” and “will accept that we appoint an independent Responsible Person” are both screening questions, and they separate partners faster than most commercial criteria.
- A fragmented territory changes the structure. Enumerate the markets that are open, appoint properly in those, and take a time-limited option on the ones that may open later.
In each case the useful output is not a longer list. It is a shorter list of partners who can actually execute, and a clear statement of what has to be true for the deal to work at all.
General commercial guidance, not legal or regulatory advice. The positions described were researched against regulatory and institutional sources current in October 2026; the nicotine category in particular is changing quickly at national level and a European framework is under development. Requirements vary by product within a class and by country within a bloc. Take local regulatory and legal advice on any specific product and market before relying on any of this.
We run distributor search and selection across 40+ countries, including regulated consumer categories in Europe. Establishing what the product is, legally, in each destination market is part of how we scope a search — before anyone builds a list.