Foto Distributors, distributors of Nikon in South Africa, wins landmark case against grey goods importer. A victory for consumers and end users in terms of the Consumer Protection Act.
South Africa, Johannesburg, 15 February 2012 – Foto Distributors (Pty) Ltd, the sole distributor of Nikon products in South Africa and Sub-Saharan Africa, recently brought a case in the North Gauteng High Court against Digital World, an online digital goods supplier based in Nelspruit, which had been involved in the importing and sale of “grey goods”.
Section 25 of the Consumer Protection Act (CPA) 68 of 2008 stipulates that suppliers must disclose to consumers when goods are grey imports, because generally these goods don’t enjoy the same warranties or after-sales back-up offered by the official South African distributors. This disclosure is known as a “conspicuous notice”. Suppliers who fail to comply can receive a fine of R 1,000,000.00 or 10% of the supplier’s turnover (whichever is higher).
Digital World had been importing Nikon products from alternative sources and was distributing these products to consumers without providing the required conspicuous notice. In the order, given on 1 February 2012, the court instructed Digital World to apply said notice to all grey goods that bear the Trade Mark “Nikon”. This notice would need to clearly state that the products had been imported without the approval or licence of the registered owner of the Nikon trade mark and that no guarantee and warranty of the products would be honoured by the official distributor in South Africa (Foto Distributors). According to the ruling, in terms of online retailers, the conspicuous notice has to in future appear on their website attached to each product to which it applies, as well as on the actual product packaging or in the event of a retail store clear signage next to each product.
“Grey-product importing has a negative impact on our country’s economy, as well as on job creation in South Africa. This is a potential victory for all official distributors and consumers against grey imported goods,” said Stefan van der Walt, CEO of Foto Distributors. “This is the first case of its kind won by a distributor in South Africa. It should have consequences for anyone attempting to sell grey products in this country, as it proves that the courts are not reluctant to act against non-compliance in terms of the CPA,” van der Walt said.
In Nikon’s case, consumers will be able to make more informed decisions when buying photographic equipment, in the knowledge that grey photographic goods do not carry local warranties, firmware updates, access to repairs, free training or any other value added services. They will be protected against exploitation by grey-goods importers and be able to enjoy all the benefits offered by Nikon in South Africa.
First Grey Goods case won under CPA! « Consumer Act South Africa