Nike moves to curb sneaker-buying bots and resale market with penalties

Nike is taking steps to curb the proliferation of sneaker-buying bots and resellers.

The sneaker company added new terms for U.S. online sales this month to prevent resellers from purchasing its products and reselling them on the secondary market using automated technology or software. The Wall Street Journal first reported the changes Tuesday.

Previous versions of Nike’s terms already prohibited buying products for resale. But the new rules allow the company to cancel orders placed with bots. Nike also added that it can decline refunds, charge restocking fees and suspend the accounts of users it suspects of reselling.

The company also said it could reject orders if an account has an excessive amount of returns or exceeds product purchase limits.

Nike did not immediately respond to a request for comment Wednesday.

Earlier this year, Nike took legal action against online resale marketplace StockX for allegedly allowing sales of counterfeit versions of its sneakers. Nike said in May that it bought four pairs of counterfeit footwear from StockX, despite that company’s claim it authenticates the shoes sold on its site. 

In late September, Nike’s shares fell more than 10% after the company said it was taking aggressive steps to lower its overstocked inventory.