Customer Protection is a common clause in foreign trade agency, distribution, or B2B platform cooperation. It means the supplier promises not to sell directly or indirectly to designated customers within a specific region or industry, in order to protect the customer resources and commercial interests of intermediaries, agents, or distributors. Usage scenarios include exclusive agency agreements, distribution agreements, and agreements between platform sellers and suppliers. Precautions: clarify the scope of protection (customer list, territory, product line), duration, exceptions (e.g., customer proactively contacts the supplier), and consequences of breach; avoid confusion with 'Exclusive Dealing,' which usually refers to exclusive purchasing or selling obligations, while customer protection focuses more on the ownership of specific customer groups. Unlike 'non-compete,' customer protection does not restrict intermediaries from serving other customers; it only restricts the supplier from bypassing the intermediary. Reasonable use can incentivize intermediaries to invest in market development, but excessive protection may violate antitrust laws or lead to channel conflicts. It is recommended to specify in writing and seek legal advice.
📝 Examples
1. According to our agency agreement, your company shall comply with the customer protection clause and must not quote directly to our customer Company A in Europe; otherwise, it will be deemed a breach. (Note: The agent requires the supplier to protect its developed customer to avoid being bypassed.)
2. We agree to grant your company a six-month customer protection period. During this period, if the customer proactively contacts us, we will refer them to you. (Note: The supplier promises not to trade directly during the protection period, but still refers the customer to the agent when the customer proactively contacts.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner