Local parallel or "grey" importers can sell branded goods - as long as they indicate clearly that the products are not covered by a manufacturer's warranty
The department of trade and industry has declared it an unfair business practice for retailers not to tell consumers that they're not authorised by the manufacturer to sell these goods. A notice declaring this business practice unlawful was published in the Government Gazette last week.
Retailers of parallel imports must now include a prescribed warning, in all their advertising, websites and brochures, saying:
"The authorised South African distributor of this product is under no obligation to honour the manufacturers' guarantees/warranties or to provide after-sales service."
Consumer Affairs' Committee vice-chairman Bonke Dumisa stressed in the committee's report on parallel imports that the committee's sole function was to protect consumers from exploitation.
He said: "Protecting licensed importers by a total ban on unlicensed imports could be more harmful to the economy than the importation of products that do not match local conditions.
"This would deprive consumers of their right to choose."
Dumisa said the committee's biggest concern was that in most cases consumers were not informed who was responsible for any warranties or after-sales service. He said it was a consumer's right to be informed and if relevant information was withheld, they were misled.
Local parallel motorcycle importer Robbie Perold, however, welcomed the new provisions, saying he hoped it would put the "ongoing joust" between authorised and parallel importers to bed once and for all.
He said: "Mr Dumisa's comments reinforce the right of parallel importers to trade in the SA economy.
"In the motorcycle market we deal with a sophisticated customer who's well aware of the pros and cons of buying a 'grey' or parallel product - but he must have the right to choose.
"Were it not for the grey importers the motorcycle market would no doubt reflect the situation in the automotive industry where SA consumers are still paying 20 - 30 percent more for motor vehicles than in most comparable markets despite the strength of the rand."
No qualms
Perold has no qualms about displaying the required warning in his advertising; he contends it is the individual dealer who provides the customer with acceptable service - or not - and that the authorised distributor has very little, if any, control over what the dealer does in this regard.
He advises consumers, no matter what they buy, to choose their supplier ("official" or "grey") carefully and to establish a relationship with his staff - that way they'll soon find out whether he can support the product.