Carahsoft Probe Should Cause Vendors to Rethink Incentives

Federal probe into tech distributor highlights growing scrutiny of channel pricing. rebate, and incentive practices.

The situation surrounding the investigation into public-sector distributor Carahsoft Technology Corp. should prompt vendors to revisit their partner incentive programs and pricing policies. Federal regulators and investigators are increasingly scrutinizing the economics behind how products and services are sold.

The details of the federal criminal and civil investigation into Carahsoft remain unclear. However, it is known that FBI and U.S. Department of Defense officers raided the federal channel distributor's headquarters in Reston, Virginia. The investigation reportedly involves allegations of price fixing aimed at overcharging government agencies, and it includes another vendor selling through Carahsoft.