Parallel importing involves a retailer bypassing a product's official New Zealand distributor by buying the goods overseas, importing them, and selling them here.
The goods must meet all our laws and standards for safety, they cannot be counterfeit, and retailers are still bound by the Consumer Guarantees Act and Fair Trading Act.
Before parallel importing was introduced in 1998, official distributors had a monopoly on their goods in New Zealand and the law defended this monopoly. Parallel importing was legalised because the government wanted to increase competition in prices and product ranges.
Now prices have fallen and some businesses specialise in selling parallel imported goods. They buy their stock wherever it is cheapest, while official agents are forced to buy from the manufacturer at a fixed price.
International businesses often set different wholesale prices in different countries. For example, Japan's recession saw many manufacturers reduce prices in Japan to keep their market share. Parallel importers were able to undercut local distributors and retailers by buying stock in Japan.
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