Grey Market Goods Law and Legal Definition

Grey market goods refer to trading of goods through distribution channels which are unofficial, unauthorized, or unintended by an original manufacturer. Every retail seller who offers grey market goods for sale should post a conspicuous sign at the product's point of display and affix to the product or its package a conspicuous ticket, label, or tag disclosing any or all of the following:

1.The item is not covered by a manufacturer's express written warranty valid in the U.S.

2.The item is not compatible with the U.S. electrical currents.

3. The item is not compatible with the U.S. broadcast frequencies.

4. Replacement parts are not available through the manufacturer's distributors.

5. Compatible accessories are not available through the manufacturer's distributors.

6.The item is not eligible for a manufacturer's rebate.

The following is an example of the state statute (California) defining grey market goods:

Cal Civ Code § 1797.8 defines grey market goods as consumer goods bearing a trademark and normally accompanied by an express written warranty valid in the United States of America which are imported into the United States through channels other than the manufacturer's authorized United States distributor and which are not accompanied by the manufacturer's express written warranty valid in the U.S.