Grey Market Goods - Consumer Warranties - Civil Law - CA

Section § 1797.8

This law defines 'grey market goods' as products with a trademark that usually come with a U.S. warranty but are imported without the manufacturer's approval and don't have the manufacturer's U.S. warranty. It also clarifies that a 'sale' can also mean a lease lasting more than four months.

(a) As used in this chapter, the term “grey market goods” means consumer goods bearing a trademark and normally accompanied by an express written warranty valid in the United States of America which are imported into the United States through channels other than the manufacturer’s authorized United States distributor and which are not accompanied by the manufacturer’s express written warranty valid in the United States.

(b) As used in this chapter, the term “sale” includes a lease of more than four months.

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Section § 1797.81

If you're selling grey market goods, which are unofficial imports, you must let customers know about any limitations or differences, like lack of a US warranty or instructions in English, by using clear signs or labels. However, if you offer your own warranty that's at least as good as what the manufacturer provides in the US, and follow specific laws and guidelines, you don't have to make these disclosures. But, this exception doesn't cover other necessary disclosures. The key is clear communication to potential buyers to ensure they understand any special conditions affecting the products.

(a) Every retail seller who offers grey market goods for sale shall 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 following, whichever is applicable:

(1) The item is not covered by a manufacturer’s express written warranty valid in the United States (however, any implied warranty provided by law still exists).

(2) The item is not compatible with United States electrical currents.

(3) The item is not compatible with United States broadcast frequencies.

(4) Replacement parts are not available through the manufacturer’s United States distributors.

(5) Compatible accessories are not available through the manufacturer’s United States distributors.

(6) The item is not accompanied by instructions in English.

(7) The item is not eligible for a manufacturer’s rebate.

(8) Any other incompatibility or nonconformity with relevant domestic standards known to the seller.

(b) The disclosure described in paragraph (1) of subdivision (a) shall not 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 following conditions is satisfied:

(1) The protections and other benefits that are provided to the buyer by the express written warranty provided by the retail seller are equal to or better than the protections and other benefits that are provided to buyers in the United States of America by the manufacturer’s express written warranty that normally accompanies the goods.

(2) The express written warranty conforms to the requirements of the Song-Beverly Consumer Warranty Act, (Chapter 1 (commencing with Section 1790)), including, but not limited to, the warranty disclosure standards specified in Section 1793.1, and the standards applicable to service and repair facilities specified in Section 1793.2.

(3) The retail seller has posted a conspicuous sign at the product’s point of sale or display, or has affixed to the product or its package a conspicuous ticket, label, or tag that informs prospective buyers that copies of all of the warranties applicable to the products offered for sale by the retail seller are available to prospective buyers for inspection upon request.

(4) The retail seller has complied with the provisions on presale availability of written warranties set forth in the regulations of the Federal Trade Commission adopted pursuant to the federal Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (see 15 U.S.C.A. Sec. 2302(b)(1)(A) and 16 C.F.R. 702.1 et seq.).

(c) Nothing in subdivision (b) shall affect the obligations of a retail seller to make the disclosures, if any, required by any other paragraph of subdivision (a).

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Section § 1797.82

If you're a retail dealer selling grey market goods, you must clearly include specific disclosures in any ad for those products. These disclosures need to be clearly noticeable.

Every retail dealer who offers for sale grey market goods shall be required to disclose in any advertisement of those goods the disclosures required by Section 1797.81. The disclosure shall be made in a type of conspicuous size.

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Section § 1797.83

This law allows retail sellers to use different words, as long as they say the same thing, to make information clearer or more accurate when giving required information to customers.

In making the disclosures prescribed by this chapter, the retail seller may use reasonably equivalent language if necessary or appropriate to achieve a clearer, or more accurate, disclosure.

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Section § 1797.84

This law says that if there's a rule or law forbidding the sale of certain goods, nothing in this chapter allows you to break that rule. It also means sellers aren't off the hook; they're still responsible for making sure what they sell follows all pertinent laws and regulations.

Nothing in this chapter shall 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.

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Section § 1797.85

If a store breaks the rules of this chapter, and you return your unused item, they owe you either a refund or a credit if you paid with credit. However, this only applies if you followed the printed instructions that came with the product.

Any retail seller who violates this chapter shall 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.

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Section § 1797.86

If you break the rules in this chapter, it's considered unfair competition and could be treated as deceptive practice. This might lead to undoing a contract or facing other legal consequences.

Any violation of this chapter constitutes unfair competition under Section 17200 of the Business and Professions Code, grounds for rescission under Section 1689 of this code, and an unfair method of competition or deceptive practice under Section 1770 of this code.

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