They're defrauding retailers by manipulating the results of their trial runs, resulting in larger buys and wider distribution than they would have obtained othe

They're defrauding retailers by manipulating the results of their trial runs, resulting in larger buys and wider distribution than they would have obtained otherwise. I would be surprised if the retailers didn't have language in their agreements prohibiting this type of behavior. If the product ends up having high sell-through rates, this is just a clever growth hack, and it's a win-win. However, if the product doesn't sell after they tricked a retailer into putting a large quantity of product on shelves nationwide, it could easily end in litigation. Especially if these test runs and subsequent retail orders were material to the investment decisions of their backers. Also: if they engaged in these practices, it probably isn't the only unscrupulous thing they've done. A fish rots from the head/where there's smoke there's fire/etc.