The Gray Market and Distribution
The gray market is ill-defined and can range from legitimate goods intended for sale elsewhere sold in an unauthorized area, to outsourced manufacturers who generate more product than that ordered by an OEM, to goods that are remanufactured after use, to pure piracy. Here's a look at a recent case between a manufacturer and distributor.
Recently, Hewlett-Packard resolved a gray market" lawsuit that it filed in a federal district court in Tennessee against one of its by-then terminated distributors and one of the distributor's customers.
In essence, HP claimed that its distributor violated the terms of its authorized reseller agreement by purchasing products at deep discounts and then selling the products to a customer not authorized by HP.
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.