Grey-market and diversion checks
Evidence of where stock leaves authorised channels, territories or price bands, and who is responsible.
Tracking stock that leaves authorised channels, territories or price bands.
Diversion happens when genuine stock leaves the channel it was sold into: export stock returns to the domestic market, institutional or scheme stock reaches retail, or a distributor sells outside its territory. Prices fall, authorised partners lose margin, and expired or unsuitable stock can reach customers.
We trace batch and serial codes from the plant to the point of sale, check distributor and dealer stock and records, and monitor prices across territories. Where codes show stock outside its intended channel, we follow it back to the partner who released it.
Distribution restrictions must themselves respect competition law, so findings are framed against the contracts you hold and the advice of your counsel.
Stock is leaving authorised channels, territories or price bands.
Signs we see most often
- 01Prices collapse in one territory without a promotion.
- 02Products meant for export, institutions or schemes appear on retail shelves.
- 03Authorised dealers complain of unfair competition.
- 04Batch codes found in the market do not match the territory they were shipped to.
- 05Scheme or discount claims rise without matching sales.
Scoped in writing, run by one accountable team.
Every engagement starts with agreed questions, a reporting line and a confidentiality protocol. The steps below are how this service usually runs; we adapt them to your matter.
- 01BaselineMap authorised channels, territories and price bands.
- 02SampleCollect products and codes from the market and online.
- 03TraceMatch batch and serial codes to shipment records.
- 04CheckReview distributor and dealer stock, invoices and scheme claims.
- 05IdentifyPinpoint the partners and routes involved.
- 06ActRecommend contractual, commercial or legal action with counsel.
Evidence of where diversion happens and who is responsible.
- Code-tracing results from plant to point of sale
- Price monitoring by territory and channel
- Distributor and dealer stock-check reports
- Identification of diverting partners, with evidence
- Control recommendations for codes, schemes and contracts
The law and frameworks this work is aligned to
- Trade Marks Act, 1999 s.30(3) and (4) on the limits of exhaustion of rights
- Competition Act, 2002 s.3(4) on vertical restraints in distribution agreements
- Legal Metrology (Packaged Commodities) Rules, 2011 on declarations required for retail sale
- Indian Contract Act, 1872 for distribution and territory clauses
References show the standard the work is built to. They do not imply accreditation or endorsement by the bodies that publish them.
This is a summary of the service. For a deeper understanding of how it would work for your organisation, please reach out to us.
Talk to a BDI partnerWhere this service meets BDI's technology.
The platforms below record, monitor or act on the work this service produces.
Questions clients ask before we start.
Is grey-market stock counterfeit?
No. It is genuine product sold outside its intended channel. It can still harm customers and partners, for example through expired stock or products made for another market.
Can we stop distributors selling outside their territory?
Contracts can set territories, but some restrictions raise competition-law concerns. Counsel should review the clauses, and our evidence supports whatever action they advise.
What if our products have no unique codes?
Batch codes and shipment records often still narrow the source. We also recommend coding and authentication measures that make future diversion easier to trace.