Grey Market Goods

Chapter 4 of Title 1.7 of Part 4 of Division 3 of the Civil Code deals with great market goods and consumer warranties.

Section 1797.8 defines the terms “grey market goods” and “sale.”

Section 1797.81 provides that every retail seller who offers grey market goods for sale is required to post a conspicuous sign at the product’s point of display and affix to the product or its package a conspicuous ticket, label, or tag disclosing any or all of the eight items specified, whichever is applicable.

But the disclosure is not to be required to be made by a retail seller with respect to grey market goods that are accompanied by an express written warranty provided by the retail seller, provided that each of the four specified conditions is satisfied.

Section 1797.82 states that every retail dealer who offers for sale grey market goods is required to disclose in any advertisement of those goods the disclosures required, and the disclosure must be made in a type of conspicuous size.

Section 1797.83 states that the retail seller may use reasonably equivalent language if necessary or appropriate to achieve a clearer, or more accurate, disclosure.

Section 1797.84 explains that nothing in this chapter is to be construed to authorize any sale of goods which is specifically prohibited by a federal or state statute or regulation or a local ordinance or regulation, or to relieve the seller of any responsibility for bringing the goods into compliance with any applicable federal or state statute or regulation or local ordinance or regulation.

Section 1797.85 requires any retail seller who violates this chapter to be liable to the buyer who returns the product for a refund, or credit on credit purchases, if the product purchased has not been used in a manner inconsistent with any printed instructions provided by the seller.

Section 1797.86 states that any violation of this chapter constitutes unfair competition, grounds for rescission, and an unfair method of competition or deceptive practice.