Definition for: Channel stuffing
"Channel stuffing" is the practice of a company or its sales force in artificially inflating its sales figures by selling more products through its distribution channels than what the channel is able to really sell. Channel stuffing occurs when the company is trying to show better sales figures for its financial presentations. Channel stuffing has sometimes resulted in investigations by the SEC and litigations against some companies on the theory that the company has engaged in misleading practices.
