What is the grey market? What is product diversion? Why are they so dangerous?


The grey market as defined by Investopedia.com, “refers to the import and sale of goods by unauthorized dealers; such activity is unofficial but not illegal.”

Business dictionary.com defines product diversion as: “Practice in which goods intended for a particular market are diverted to be sold in another, usually without the knowledge or permission of the primary vendor.”


Many consumers are unaware that they are buying products from unauthorized dealers. Hair care is a great example. Retailers such as Target, CVS and Walgreens currently sell haircare products that they are not authorized to sell. The buyer, in many cases, is completely oblivious.


Consumers purchasing from unauthorized sources are sometimes unaware they are violating the manufacturers intended use for these products and as such, unaware of how dangerous they can be. In the case of Skin Care products, it is doubtful that grey market sources are storing products in a climate-controlled facility. Nor are they shipping them appropriately.


Products sold in the grey market are often used, sometimes counterfeit, tampered-with, or may be altered in the original packaging due to the nature of the storage or handling once purchased. As such, the product formulas, if mishandled, can be altered and consumers as a result can have adverse reactions.


What happens if Skin Care products are mishandled, improperly stored, or tampered with? There are a several negative and potentially dangerous possibilities:


1)    Most Grey Market products are beyond shelf life or expiration when they are purchased. Active ingredients can become inactive once they exceed the allotted expiration date so your purchase could essentially be worthless.


2)    Active ingredients are potentially harmful to the skin or the body if they have not been stored in climate controlled facilities or are mishandled during shipping. Your skin, your face specifically, is the first thing people see when they meet you. Do you really want to risk this by applying products which can cause skin irritations and infections?


3)    Reputable manufacturers will guarantee their products and offer assistance should you have questions using them. If you buy from an unauthorized dealer, all guarantees are void should you have an adverse reaction and support will be non-existent should you have questions. In other words, BUYER BEWARE…you are on your own.


4)    Supporting Product Diversion and the Grey Market forces manufacturers to raise the costs of production and thus retail costs to absorb the losses of those products sold unethically. Unethical behavior such as this definitely has a negative and long term trickle down effect to the economy.



If this article causes you worry or concern, then we have gotten our message across effectively. It’s important that you know the dangers involved in supporting this market whether knowingly or not. Product Diversion and the Grey Market have existed for years and will continue to exist for many more. But ask yourself, is the money you save buying here really worth the risk to your health and your skin? Do you feel good about purchasing products in an unethical way?


For your safety refer to Thalgo’s discontinued products: http://www.thalgousa.com/products/discontinued.html


To Learn more about Thalgo Authorized Retailers: http://www.thalgousa.com/our-partners.html