Samsung terms gray market as illegal

In a mail circulated to IT associations across the country, Samsung has declared the gray market business as an illegal activity and has indicated that legal action against dealers involved in it. While the vendor insists that the move is to educate partners about gray products, the channel is questioning its move to term ‘parallel import’ as illegal trade.

R Zutshi Deputy MD, Samsung India

“Gray market products of Samsung are being distributed in the Indian market without any authorization. It is our duty to inform the channel community on the issue of gray-market imports,” said Sanjay Sharma, VP—DIS, Sales and Marketing, Samsung Electronics India in a mail circulated to partners.

While New Delhi-based PCAIT has clarified that it fully supports ethical business and discourages any illegal activity, the association has requested Samsung to mention the acts or laws that partners will violate if they deal with gray.

Meanwhile dealers in Kolkata said that the company couldn’t declare parallel import as an illegal business. “We will hold a formal meeting on this issue. We will definitely discourage this business if Samsung is able to convince our partners that it is illegal,” said Sanjay Chaudhary, Secretary, Compass.

Members of the newly formed Tamil Nadu IT association Confed-ITA said that if dealers import original and genuine Samsung products by paying all taxes, the business couldn’t be termed illegal. “If Samsung has any problem with gray market then they should go for uniform pricing rather than creating panic in the market,” said S Karthikeyan, President, Confed-ITA

Reacting to partner accusations, R Zutshi, Deputy MD, Samsung India, said, “There could be various legal remedies available to the manufacturer, including, but not limited to the Trademark Law.”

Amrita Tejasvi