How does gray marketing increase the risk of counterfeit product being sold to end customers?
When product leaves the authorized channel, manufacturers lose the ability to ensure through its contracts with channel partners that the highest possible standards of product quality and reliability are maintained. Thus, products moving through the gray market are at risk for modification use in counterfeit products. Also, there is a risk that the product may be tampered with. For example, component parts are removed and sold separately, then replaced with counterfeit parts that could fail.
