Several companies including Apple have announced the formation of a new group called the Anti-Gray Market Alliance, or AGMA. The new alliance hopes to put a dent in the business of diversion of brand name merchandise outside authorized channels.
AGMA’s founding members include 3Com, Apple, Compaq Computer, Hewlett-Packard, Nortel Networks and Xerox Corp. AGMA said that membership is open to all technology companies in the U.S. and abroad.
Diversion of brand-name merchandise outside authorized distribution and retail channels can lead to the sale of damaged or obsolete products, products with rebuilt or counterfeit parts, or products delivered without support or warranty, according to AGMA. AGMA said that this could ultimately damage brand integrity and hurt customer satisfaction.
AGMA, a 501(c) not-for-profit trade association, is affiliated with the Information Technology Association of America (ITAA) in Arlington, VA, which provides management services to the group.