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What Is The Gray Market, And Why Should I Care? – Consumerist

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Check out some of our greatest hits below, explore the categories listed on the left-hand side of the page, or head to <a href="https://www.consumerreports.org/cro/index.htm" target="_blank" rel="noopener">CR.org</a> for ratings, reviews, and consumer news.</p> <p class="full-width"><a class="notice-cr-logo" href="https://www.consumerreports.org" target="_blank" rel="noopener"><img src="https://cdn.consumerreports.org/etc/designs/cr/images/common/footer-logo.svg" alt="Consumer Reports" /></a></p> <div class="clear"></div> </div> <!-- end .wrap --> </div> <!-- end #notification-area --> <div id="inner"><div class="wrap"><div id="content-sidebar-wrap"><div id="content" class="hfeed"> <article class="lf-post"> <header class="lf-post-header" style="background-image: url('../../../../consumermediallc.files.wordpress.com/2016/01/19187548916_7ac7d7ae37_b.jpg');"> <h1> <p class="lf-post-tags"> <a href="../../../../tag/gray-market/index.html" class="post-tag" rel="tag"> gray market </a> </p> <span>What Is The Gray Market, And Why Should I&nbsp;Care?</span> </h1> <span class="lf-credit">Image courtesy of <a href="https://www.flickr.com/photos/lucyrk/19187548916/in/pool-consumerist/">Lucy Rendler-Kaplan</a></span> </header> <div class="article-wrap"> <div class="lf-post-meta"> <p>Updated: <span class="date modified time" title="2017-05-10T14:45:50+00:00">5.10.17</span> <span class="date modified time" title="2017-05-10T14:45:50+00:00">2:45 PM EDT</span> By <span class="author vcard"><span class="fn"><a href="../../../../author/consumerlaura/index.html" title="Posts by Laura Northrup" class="author url fn" rel="author">Laura Northrup</a><a href="https://twitter.com/lnorthrup" title="lnorthrup" class="twitter"><i class="fa fa-twitter"></i>@lnorthrup</a></span></span></p><p class="lf-post-tags lf-post-header-tags"><a href="../../../../tag/gray-market/index.html" rel="tag">gray market</a> <a href="../../../../tag/warranties/index.html" rel="tag">warranties</a> <a href="../../../../tag/warranty-and-repair/index.html" rel="tag">warranty and repair</a> <a href="../../../../tag/50-shades-of-gray-market/index.html" rel="tag">50 shades of gray market</a> <a href="../../../../tag/parallel-imports/index.html" rel="tag">parallel imports</a></p> </div> <p>Back in February, we posted the story of<a href="../../../03/25/samsung-if-you-want-us-to-fix-your-mp3-player-you-have-to-fly-to-hong-kong/index.html" target="_blank"> a reader who got a great deal from an online discount vendor on a Samsung MP3 player</a>, but learned that there was a reason why the deal was so fab. It had been manufactured for the Chinese market, not the United States market, and made its way to her pocket through gray market channels. That meant that it didn&#8217;t have a warranty through Samsung USA: if she wanted to fix it, she had to send it for repair in Hong Kong. Okay, but what&#8217;s the &#8220;gray market?&#8221; <span id="more-10127667"></span></p> <p>The black market is where people traffic in goods that are strictly controlled or illegal. The gray market consists of people selling things that aren&#8217;t really illegal, but that haven&#8217;t been imported legally, either. The official term is &#8220;parallel imports.&#8221;</p> <p>Let&#8217;s say, for example, that there is a particular Nikon camera that you want, but that model is only sold in Japan. How would you get it? You could have a friend visiting Japan bring one back for you. Perhaps a camera store or a third-party vendor here in the U.S. has obtained a few and can sell it to you. Once you&#8217;ve got the camera in hand, though, you&#8217;re assuming certain risks.</p> <p>The biggest problem, as our reader with the Chinese MP3 player learned, is that your camera will not be covered by the same warranty that covers cameras imported through Nikon U.S.A. That&#8217;s fine if you happen to need a repair while on vacation there, but means that it&#8217;s all on you when the camera breaks while you&#8217;re at home.</p> <p>We used Nikon as an example here because they have a detailed article about this on their web site. They spell it out for their customers: <a href="http://support.nikonusa.com/app/answers/detail/a_id/331/~/what-is-gray-market%3F" target="_blank" target="_blank">you&#8217;re on your own if your gray market item breaks</a>.</p> <blockquote><p>Nikon Inc. USA cannot provide any technical support or warranty service on Gray Market items. Additionally Nikon Inc. USA cannot perform any fee-based repair work on Gray Market items. Please do not contact Nikon Inc. USA for help with any Gray Market products. Please contact the reseller or importer of your Gray Market items for warranty and service information as well as software updates and downloads.</p></blockquote> <p>The gray market isn&#8217;t just for electronics, either. Gray market textbooks imported from the developing world were the subject of a recent Supreme Court decision. Wiley v. Kirstaeng. In <a href="../../08/macys-doesnt-want-you-stockpiling-lip-gloss-cuts-you-off-at-six/index.html" target="_blank">yesterday&#8217;s post about quantity limits on cosmetics at Macy&#8217;s</a>, a customer who was stockpiling her favorite color of lip gloss ran up against limits meant to keep people from buying huge amounts of pricey makeup items and perfumes and selling them elsewhere.</p> <p>How can you stay away from gray market goods? Ask a lot of questions. If a deal seems too good, it&#8217;s possible that it is. If you&#8217;ve purchased an electronic item that&#8217;s supposed to have a warranty but it doesn&#8217;t come with registration paperwork, be wary. Perhaps call the company and verify the serial number <em>before</em> anything goes wrong. You may be able to return the item for a full refund if you learn about its warranty status only after purchase.</p> <p>The Better Business Bureau offers s<a href="http://www.newyork.bbb.org/gray-market-goods/" target="_blank" target="_blank">uggestions for questions you ought to ask when you know or suspect that you may be buying a gray market item</a>. Ask: does this item have a warranty in the United States? If not, is an extended warranty or protection plan that actually applies to this item included or available for purchase? If I have a problem, where can I take it for repair?</p> <p><a href="http://support.nikonusa.com/app/answers/detail/a_id/331/~/what-is-gray-market%3F" target="_blank" target="_blank">What is Gray Market?</a> [Nikon]<br /> <a href="http://www.newyork.bbb.org/gray-market-goods/" target="_blank" target="_blank">Gray Market Goods</a> [New York BBB]</p> <blockquote><p>Want more consumer news? Visit our parent organization,<strong> <a href="https://www.consumerreports.org/cro/index.htm" target="_blank" target="_blank">Consumer Reports</a></strong>, for the latest on scams, recalls, and other consumer issues.</p></blockquote> <footer class="lf-post-footer"> <div class="lf-post-meta"> <p><span class="lf-post-footer--dates">5.9.13</span>By <span class="author vcard"><span class="fn"><a href="../../../../author/consumerlaura/index.html" title="Posts by Laura Northrup" class="author url fn" rel="author">Laura Northrup</a><a href="https://twitter.com/lnorthrup" title="lnorthrup" class="twitter"><i class="fa fa-twitter"></i>@lnorthrup</a></span></span></p><p class="lf-post-tags"><a href="../../../../tag/gray-market/index.html" rel="tag">gray market</a> <a href="../../../../tag/warranties/index.html" rel="tag">warranties</a> <a href="../../../../tag/warranty-and-repair/index.html" rel="tag">warranty and repair</a> <a href="../../../../tag/50-shades-of-gray-market/index.html" rel="tag">50 shades of gray market</a> <a href="../../../../tag/parallel-imports/index.html" rel="tag">parallel imports</a></p> </div> </footer> </div> </article><!-- .lf-post --> <div class="wpcom-related-posts widget widget_related_posts" id="wpcom-related-posts-10127667"> <div class="widget-wrap cs-related clearfix"> <h3>Related</h3> <ul> <li> <a href="../../../../tag/car-shopping/index.html" class="cs-tag" rel="tag"> car shopping </a> <a href="../../../../2015/04/17/chinese-luxury-car-buyers-shop-the-very-unglamorous-gray-market/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2015/02/cars.png%3Fw=360&);"></div> <span class="cs-related-title">Chinese Luxury Car Buyers Shop The Very Unglamorous Gray Market</span> </a> </li> <li> <a href="../../../../tag/get-em-on-the-hook/index.html" class="cs-tag" rel="tag"> get 'em on the hook </a> <a href="../../../../2017/10/20/california-accuses-retailer-of-using-bait-and-switch-tactics-to-lure-in-customers/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2017/10/curacao_store_front.png%3Fw=360&);"></div> <span class="cs-related-title">California Accuses Retailer Of Using Bait-And-Switch Tactics To Lure In Customers</span> </a> </li> <li> <a href="../../../../tag/no-poppies-here/index.html" class="cs-tag" rel="tag"> no poppies here </a> <a href="../../../../2017/05/12/7-things-we-learned-about-the-thriving-american-heroin-industry.1.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2017/05/syringerocks.jpg%3Fw=360&);"></div> <span class="cs-related-title">7 Things We Learned About The Thriving American Heroin Industry</span> </a> </li> <li> <a href="../../../../tag/is-there-a-pattern/index.html" class="cs-tag" rel="tag"> is there a pattern? </a> <a href="../../../../2016/12/28/customers-claim-samsung-s7-camera-glass-unexpectedly-breaks/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2016/12/unnamed-e1482943866183.jpg%3Fw=360&);"></div> <span class="cs-related-title">Samsung Galaxy S7 Owners Say Camera Glass Shatters Unexpectedly</span> </a> </li> <li> <a href="../../../../tag/why-are-you-here/index.html" class="cs-tag" rel="tag"> why are you here? </a> <a href="../../../../2017/03/01/why-is-samsung-sending-a-dish-network-tech-to-fix-my-washing-machine/index.html"> <div class="cs-related-image-cover" style="background-image: url(../../../../consumermediallc.files.wordpress.com/2017/02/displaydocument-1.jpeg%3Fw=360&);"></div> <span class="cs-related-title">Why Is Samsung Sending A Dish Network Tech To Fix My Washing Machine?</span> </a> </li> </ul></div></div><div class="navigation next-previous-post"> <div class="alignleft"> <a href="../irish-snack-fans-cant-get-enough-cheese-and-onion-potato-chip-flavored-chocolate-bars/index.html"> <span class="pagination-previous-label">Previous </span> Irish Snack Fans Can&#8217;t Get Enough Cheese And Onion Potato Chip-Flavored Chocolate&nbsp;Bars </a> </div> <div class="alignright"> <a href="../../08/adobes-creative-suite-now-only-for-rent-not-for-sale/index.html"> <span class="pagination-next-label">Next </span> Adobe&#8217;s Creative Suite: Now Only For Rent, Not For&nbsp;Sale </a> </div> </div><div class="after-post-ad"><div id="text-5" class="widget widget_text"><div class="widget-wrap"> <div class="textwidget"></div> </div></div> </div><!-- end .after-post-ad --></div></div><script type='text/javascript'> var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-10697639-1']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 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