I don't think it has much to do with hobbiests selling frags at all. It would have been brought up in the past if it was a problem with the paying vendors.
I do think it has to do with people that are running "mini businesses" out of their house. These in my opinion are the people who make a living by undercutting lfs's prices and end up putting them out of business and a paying sponsor/vendor should have every right to get upset.
Just my opinion but guys selling frags is not the issue..
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