It's black and white: don't buy grey

That's according to online retailer Digital Planet, which has taken a strategic stance not to sell so-called 'Grey Products', even though these might enter the market at a lower price.

According to general manager Warren Moss, customers should not be lured by the promise of cheaper prices: "All too often, consumers are tempted into buying a grey product that has entered the market through unofficial channels. While it is the same product, should any problems occur, that customer risks having the warranty or guarantee on the product waived by the manufacturer and its representatives."

Moss says grey product is an ongoing problem in South Africa, with a significant proportion of electronic goods being imported and sold at cheaper prices, which is adversely affecting legitimate pricing structures: "Digital cameras and Apple iPods account for a large proportion of the grey goods; however, any customer considering buying unauthorised product must understand that the concept of 'caveat emptor' - buyer beware - applies.

"These products are sold at a lower price point because the applicable duties and taxes have not been paid, while the so called 'International Warranty' will not be supported
since the product wasn't bought from a locally authorised dealer."

Malcolm Ryan, general manager of Teltron, which imports a range of photographic equipment, notes that the authorised channel cannot honour international warranties on grey products: "Equipment that has come into the country through the grey market has effectively avoided the duties and taxes that must be paid when importing goods. It is illegal for us to repair such products, so customers are advised to avoid acquiring such goods. If there are faults or the product breaks, they may well have an expensive but useless piece of equipment."

Digital Planet has assigned a 'Stamp of Approval" to all products on its Web site which are certified to have been procured through the recognised suppliers and includes almost 100% of the merchandise on offer. This initiative is in an effort to help consumers to rapidly recognise legitimate goods. Digital Planet will be partnering with local representatives of the major brands to put together an advertising campaign to promote using products imported through the correct channels.