Vendors' new champion on the defensive

Manufacturers' group insists it has widespread backing

Vendor group Anti-Grey Market Alliance (AGMA) has defended itself after resellers criticised its formation last week [CRN, 17 September].

AGMA said it is gaining widespread vendor backing, and will offer legal assistance to any customers who feel they suffered buying through the grey market.

AGMA, which was formed after 12 months of negotiation between 3Com, Apple, Compaq, Hewlett Packard, Nortel and Xerox, said it will sign up two new vendors next week. It is in talks with another four firms.

The alliance also said it will compile a database of known grey-market users, which customers will be able to use if they are forced to take a particular firm to court.

It already provides educational initiatives on the sector, and has a hotline and email link for reporting grey-market activity and law enforcement guidelines.

Resellers have criticised the group, saying the grey market only exists because of vendor inventory mismanagement and inconsistent pricing, and claim it is a valuable resource.

David Colton, acting executive director at AGMA, defended the group.

"Using the grey market risks substandard equipment being passed on to customers, and they must be protected. AGMA will educate end-users on the dangers of this sector and support them in every way possible," he said.

Mark Lambert, sales manager at reseller Repton, said: "[AGMA] is not living in the real world. The grey market is inevitable; how do you stop economies [and therefore prices] being different? That is what the grey market is built on."

Hedley Dickson, sales manager at VAR Sinergie, agreed. "It is admirable but naive. [AGMA] is down a certain creek without a paddle, and it will be very hard for it to find one," he said.