Vendors beat up on Grey Market

'Joint education and joint outrage'

  • alert
  • submit to reddit

Compaq and Hewlett-Packard are putting their weight behind an organisation aimed at discouraging consumers from buying grey market products.

The Anti-Gray Market Alliance (AGMA) says it will analyse the structure of the IT grey market, monitor the impact of grey market trading, and improve channel relationships.

It also wants to 'educate the marketplace about grey market activity', encourage people to report unauthorised grey market trading, and create a benchmark 'best practices' for its members.

The other companies behind the non-profit organisation, which held its first meeting last week, are Apple, Nortel Networks, 3Com, and Xerox.

David Colton, executive director of AGMA, says the group will spend its time issuing white papers, holding conferences and Web casts, going out into the field and explaining why grey trading is in league with the devil, and generally being "very pro-active".

"We can never stop the grey market, but maybe we can make a difference," he said today. "At least then when a consumer makes a purchase it should be an informed purchase."

Additional AGMA members are expected to be announced shortly, although Colton declined to comment on whether Microsoft would be on the list. The software giant's name is strangely absent from this anti-grey market movement.

"We are talking to many famous brands," said Colton.

Colton, who hopes to make AGMA an international organisation, added that combining "joint education and joint outrage" would be more effective than companies trying to combat grey trading individually.

Drew Cullen writes. The grey market is a: a valuable safety valve for component makers, disties and resellers, that have miscalculated on inventory and b: good for consumers. By imposing restrictive distribution practices, vendors seek to make customers pay higher prices than would otherwise be the case. We hope the AGMA fails. ®

Related Link

AGMA Web site

Related Stories

MS anti-piracy crew jumps on Basingstoke grey dealers
Grey market resellers hit back at MS 'intimidation'


Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.