Goods such as steroids sold on the black market are considered illegal. The grey market, also known as a dark market or a parallel market, is not illegal like the black market. However, it involves the sale of goods via a non-traditional market.

Manufacturers of products being sold do not usually intend for their items to be sold in this type of marketplace.

How Does a Sale in the Grey Marketplace Occur?

A business or private person buys the product from the following places:

  • Retail store
  • Wholesale store
  • Discount shop
  • Online

The purchase is at a discounted price. The individual then tries to resell the item at a legal higher price, meaning that the transaction is happening on the grey market.

What Are the Type of Products Sold on This Non-Traditional Market?

There are an endless number of products that can be sold on the grey market. The most popular items are:

  • Electronics
  • Cigarettes
  • DVDs
  • Photographic equipment
  • Alcohol

Does the Term “Grey Market” Only Apply to Tangible Goods?

No. Securities, such as stocks, debentures, and bonds, can also be involved in grey market transactions.

Is There Anything Wrong with a Grey Market Sale?

There are a number of problems associated with grey market sales. One problem with selling items on the grey market is that it is hard for the products to be tracked once they are sold. Another problem is with the warranty of the product. Often because the sale is considered by the manufacturer as unauthorized, the issued warranty is invalid.

Where Are Grey Markets Located?

This market can pop up anywhere. Examples of this market include:

  • Snack stands at school sports games
  • Online auctions
  • Garage sales
  • Flea markets
  • Outlet stores

Should I Talk to a Lawyer about Products Sold on the Grey Market?

Talk to a defective products lawyer if you have been injured by a product sold on the grey market. The lawyer will inform you of how to proceed with the case.