Law Commons^™

Competitive Process And Gray Market Goods, The , Jacqueline Nolan-Haley

Faculty Scholarship

Although it has the appearance of benefiting the consumer, the phenomenon of gray market goods is, for the most part, a species of unfair competition. Where an exclusive distribution contract between foreign and domestic entities enhances interbrand competition and satisfies a rule of reason analysis, it should be considered a protectable property interest. There is little justification for permitting gray market imports to interfere with that interest by taking advantage of the good will associated with the distribution, marketing, warranties and servicing provided by the United States distributor. The antitrust goal of promoting long-run consumer interests is not advanced by …