GS1, the global standards organization for barcodes, does not endorse the practice of buying Universal Product Codes (UPCs) from third-party resellers and explicitly prohibits the resale of its Global Trade Item Numbers (GTINs). They maintain that ob
GS1's Stance on UPC Resellers:
A Clear Position Against the Resale Market
GS1, the global standards organization for barcodes, does not endorse the practice of buying Universal Product Codes (UPCs) from third-party resellers and explicitly prohibits the resale of its Global Trade Item Numbers (GTINs), the unique numbers that form the basis of UPC barcodes. The organization maintains that the only way to ensure a UPC is unique, authentic, and properly licensed to a specific brand is to obtain it directly from GS1.
GS1's position on the resale market is unequivocal: they are the sole legitimate source for GS1 GTINs and UPC barcodes worldwide. This stance is rooted in the need to maintain the integrity and accuracy of the global supply chain. When a company obtains a GTIN from GS1, that number is licensed to them and linked to their company information in the GS1 database. This ensures that when a product is scanned, it can be traced back to the correct brand owner.
The resale market for UPCs operates outside of this controlled system. Third-party resellers often acquire blocks of UPCs that were originally issued to other companies, sometimes decades ago. When these barcodes are resold, the new user's information is not reflected in the GS1 database. This can lead to a host of problems, including:
- Data Inaccuracy and Confusion: The UPC may still be associated with the original licensee in the GS1 database, creating conflicting and inaccurate product information. This can cause issues for retailers, distributors, and consumers who rely on this data.
- Rejection by Major Retailers: An increasing number of major retailers, including Amazon and Walmart, are verifying the authenticity of UPCs against the GS1 database. If the company using the UPC does not match the information registered with GS1, the product listing can be rejected, or the seller may be penalized.
- Lack of Exclusivity and Potential for Duplication: While resellers may claim their UPCs are unique, there is a risk of duplication and no guarantee of exclusivity. This can lead to logistical nightmares in the supply chain if two different products end up with the same UPC.
- Limited Scalability and Global Recognition: UPCs from resellers may not be recognized or accepted by all retailers, particularly as a business grows and seeks to expand into new markets or with larger retail partners who have strict GS1 compliance requirements.
GS1 actively educates businesses about these risks, emphasizing that the initial cost savings of purchasing from a reseller can be far outweighed by the potential for future complications, lost revenue, and damage to a brand's reputation. Their official guidance consistently directs businesses to their local GS1 member organization to obtain legitimate and properly licensed UPCs.