In recent weeks there has been a lot of talk about the cell phones of the gray market and that these would be blocked in Mexico by brands like Samsung, Motorola and Xiaomi. But what is this phenomenon about and what do the authorities say about it?
What is the gray market
The gray market is one that occurs when a person buys a product legally manufactured abroad, but it is imported without going directly through the brand’s local distributor. In the case of cell phones, for example, it is when you buy a phone from a store in the United States on Amazon and it arrives directly to you without going through, say, Telcel.
Manufacturers such as Samsung, Motorola and Xiaomi announced that phones coming from the gray market would be blocked starting October 27.
Let’s see how to identify your cell phone and what the brands’ position has been in response to the authorities’ response.
How to identify if your cell phone is manufactured by the gray market?
The easiest way to know if your device is part of this market is to know where it was purchased.
Your cell phone is from the gray market if:
- It was not purchased from official distributors.
- It was purchased from an official distributor from another country.
- The seal of the Official Mexican Standard (NOM) is not printed on the equipment box.
- Chargers with voltages different from those used in Mexico.
- Cell phone without warranty valid in Mexico.
- In the About Smartphone section in Samsung, click on Regulatory Labels and it appears that the device is not compatible with Mexican regulations.
- As for Xiaomi devices, it is distinguished by bringing a charger different from the national ones.
Profeco and IFT ask brands to stop blockages
Given these possible operating problems, the Federal Consumer Prosecutor’s Office (Profeco) and the Federal Telecommunications Institute (IFT) called on device manufacturing companies to suspend blocking campaigns immediately.
Both entities indicated that the blocking of these equipment violates the rights of Mexican consumers. They recognized that the gray market can affect manufacturers. However, they indicated that, in accordance with the regulatory frameworks, “the actions of blocking devices must be suspended and while analyzing appropriate measures that contribute to addressing the regulatory, commercial and legal challenges that the gray market brings with it, prioritizing the rights of consumers.”
What did the brands respond?
At the moment, the main cell phone brands in Mexico, They have “backed down” with the blockade before Profeco and the IFT.
Samsung said in a press release that “we will suspend the blocking of cell phones coming from the gray market. Likewise, we express our willingness and interest in participating in the work tables, in order to find, together with the authorities and other participants in our sector, the best solution to address the problems generated by the gray market in Mexico.”
For its part, Xiaomi pointed out in its official position sent to the media that the information about the blocks is false.
“We started an information campaign through which users who have purchased this type of equipment receive notifications with information about the risks of buying Xiaomi cell phones through unauthorized channels. With the above, we clarify that Xiaomi does not intend to block any equipment.”
Finally, Motorola told Xataka that will carry out awareness campaigns around the gray market, but will not stop the use of the devices.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.