BUYING PARALLEL IMPORTS
Buying Parallel Imports…
When someone imports goods from overseas and sells them in Australia, it is known as a parallel import. It often happens without permission from the manufacturer. Hence, it puts the importer into competition with the local distributors. Parallel imports create competition in the Australian market. It often lowers product prices. Thus far, the parallel importer may sell the product more cheaply than an Australian seller. This disparity happens for various reasons. However, it may be at the cost of warranties. It may affect the product quality too.
In fact, the overseas manufacturer may have lower costs because of cheaper labour costs and infrastructure costs. The importer relies on the brand reputation or the Australian distributor’s marketing efforts. Thus, they do not spend any funds to market the product or the brand.
Consumer rights
The Australian Consumer Law seeks to protect consumers. Thus, when you are buying a parallel import your rights as a consumer remain the same. It is exactly like if you were buying any other product. Hence, the seller has the obligation to honour certain guarantees. The seller must ensure that the goods are of acceptable quality. Otherwise, they have to arrange for a repair, replacement, or refund for the sale.
Buyers risks
The main risk associated with buying a parallel import is lacking customer support. It is difficult to enforce the rights. The product may be of lower product quality too. Many buyers who purchase parallel imports believe they are entitled to the warranties. Thus far, this customer support promise by the manufacturer may not apply in Australia. The same may apply to the warranties too. So, the local manufacturer or distributor is not responsible for fixing your product. They may not offer you any product support.
Despite the Australian Consumer Law consumer guarantees, an Australian consumer may have difficulties. Since the brand owner or manufacturer is overseas, there may be difficult to enforce these rights. This may be the case because the seller may be outside the Australian courts’ jurisdiction.
A consumer may be of the belief the parallel import they are purchasing is exactly the same as the local distributor’s product. However, it may manufacture with different specifications.
Australian standards
The product may look the same. However, it may not meet Australian standards. It means that it may not pass Australian inspections. Thus, it may be of lower quality. It is in comparison to the products local distributors may sell. In fact, the products manufactured overseas for foreign use may not work in Australia. There may be various reasons for these. They may have voltage restrictions, geo-blocking, or may have instruction manuals in a foreign language.
Furthermore, when a parallel import is of lower quality, it will cause many challenges. The warranty may not be enforceable. Thus far, the benefits are minimal. Therefore it may not be worth purchasing the good at a lower price than the Australian distributor. Thus far, consumers should do thorough due diligence. In fact, analyse the benefits and disadvantages of purchasing parallel imports. It is particularly important when there is an authorised local dealer.
Consumer protection
Consumers need to be aware. They need to protect themselves when buying a parallel import. When unsure if you are buying a parallel import, ask the seller or manufacturer. So, when you know you are buying a parallel import ask the seller if it would work in Australia. Thus, one should read the terms and conditions of sale carefully. Especially ensure warranties will be valid in Australia.
So, if an authorised local distributor is offering the same product, establish if the price difference is worth the risk. It is often worthwhile to buy the product from an approved local dealer. Especially when parallel import does not include guarantees. It is always advisable to read the fine print when you wish to buy a parallel import. Your research may be crucial particularly when you invest in an expensive purchase. Thus, you need to ensure, it may carry enforceable warranties.
