QUESTION: Unauthorized authentic shoes (“UA Shoes”) are produced by shoe factories when they produce excess pairs of shoes beyond what the brand companies have ordered. After fulfilling the brand's quota, the excess leftover shoes remain in the factory - physically identical to the "authentic" shoes, however they have not been authorized for sale by the brand. Third parties often acquire and sell UA Shoes below the retail price of the authorized shoes.
May one purchase or sell UA Shoes since they lack the authorization from the brand to do so?
ANSWER: The Smah (Choshen Mishpat 228:16), Ramah (Choshen Mishpat 331), and Rav Elyashiv's rulings suggest that UA Shoes are Halachically (according to Jewish law) permissible when there is:
- Clear labeling on the shoes that says, "Unauthorized Authentic," "Factory Surplus," or similar;
- Appropriate Discount Pricing reflecting their unauthorized status;
- Market understanding that these are not authorized retail items; and
- No false claims about brand authorization or warranty.
The principle from the Smah (ibid) mentions that marketplace customs are very important - as UA Shoes become more understood and regulated in the market, disclosure requirements may evolve and there may be other conditions added to the above to meet changing marketplace guidelines.
However, following the Shaarei Teshuva's (3:181) strict stance on the prohibition of Geneivas Da'as (deception), any attempt to present UA Shoes as an authorized pair of shoes would be absolutely forbidden. This effectively means that even if all of the conditions above were met, one would still not be allowed to sell or buy UA Shoes if there is a reasonable possibility that one’s counterparty to the transaction does not understand the nature of UA Shoes.
