The manufacturing and distribution of grey products is prevalent in the technology, consumer electronics, motor, textile and entertainment sectors.
It is estimated that manufacturers lose about R38 billion a year through this market.
Grey products include genuine products imported without the sanction of the manufacturer or their authorised distributor.
The possibility of these goods having been obtained illegally cannot be discounted, said Samsung.
Goods that are not genuine products but are branded as such can also be classified as grey products.
"For the relevant brand this certainly poses a large risk where products can be seen as inferior and brand perception tainted," said George Ferreira, the chief operating officer of Samsung Electronics SA.
Ferreira said fraudsters were making "great headway" in developing counterfeit products that looked almost identical to the branded goods and selling these as "legitimate" branded items with similar prices.
"Consumers buying these goods are exposed to inferior products, and are not offered the crucial back-end support and customer service associated with genuine products," he said.
Grey goods may be legal, and often cheaper, but consumers have the right to know that they are not imported via authorised channels, and that any warranty offered is not backed by official repair agents, Ferreira said.
Toshiba said all manufacturers had to compete with grey-market players.
Grey-market devices are no longer just ultra-low-cost models; higher-end models are also affected.
Samsung now has a sticker that indicates that the product is destined for SA, and has a genuine Samsung warranty.
Toshiba has "Approved for Sale in Emea (Europe, Middle East and Africa)" stickers, which guarantee the product has come from an authorised dealer.
Source: Business Day
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