Unveiling the Risks: Grey Market Goods in UK Hair Salon

May 20, 2024

Grey market cosmetic products are items that are sold through unauthorized channels, often outside the official distribution network or in countries where they haven't been officially approved for sale. The legal issues stem from potential health and safety risks because these products may not have undergone proper testing or quality control measures.

Unveiling the Risks: Grey Market Goods in UK Hair Salon

How do you know you are buying grey market goods?

You might be buying grey market goods if the seller doesn't have authorisation from the manufacturer or if the product's price seems unusually low compared to authorised retailers. Also, check if the product lacks a warranty or comes in non-standard packaging.

People selling these types of goods often have market stalls, private Facebook groups and sell via direct messages. They seldom provide receipts or invoices and never extend credit terms. If they do offer an invoice, it may have a legitimate appearance, as they might operate a small business concealing fake accounts and documents by employing identical or similar logos and information but processing them on a separate system.

How can this affect me?

In the UK, the government typically deals with sellers of grey market cosmetic products through enforcement actions such as fines, seizures, or legal injunctions. Consumers who purchase these products might face health risks, and the government may educate them about the dangers and discourage such purchases through public awareness campaigns. Additionally, they may impose penalties on individuals found to be knowingly selling or distributing these products.

If hair salons in the UK are caught using grey market goods, the government may take several actions depending on the severity of the violation. This could include issuing warnings, fines, or legal penalties. The government might also conduct inspections or audits to ensure compliance with regulations regarding the use of safe and approved products in salons. In extreme cases where public health is at risk, the government may revoke licenses or close down establishments until they demonstrate compliance with regulations.

Businesses selling grey market goods may not always declare their sales to the government for tax purposes, which could lead to tax evasion. Additionally, using grey market goods in your salon could potentially void your insurance coverage, as insurance policies often require businesses to use legitimate and approved products to mitigate risks. It's essential to review your insurance policy carefully and ensure compliance with regulations to avoid any legal or financial repercussions.

Is it worth jeopardising your business, reputation, and facing prosecution to save money while inadvertently supporting fraudulent individuals who benefit from your cash? If the price is too good to be true or not from an official stockist then think about it first.