The consumer

What is a warranty?

Seller/ distributor’s formal, written promise that a product is reliable & free of defects

What is a guarantee?

• A manufacturer’s formal written promise that quality & durability of product will comply the standards in the time length

• If product doesn’t comply= money refunded

What are grey goods?

Items a manufacturer did not want to sell in a specific country, imported through unofficial channels.

Are grey goods illegal?

No. They are legal because import duties and taxes are fully paid.

What is the main risk regarding warranties?

Manufacturers will not honor the warranty if the goods break or are defective.

What happens if the supplier also refuses the warranty?

It creates a major problem for the buyer, as they are left with no official repair coverage.

How do some dealers handle broken grey goods?

Some local dealers will repair the goods themselves, though the repair quality can vary.

What is a scam?

A false, dishonest business transaction often linked to organized crime.

What are three common types of scams?

• Internet sales: Fake online deals.

• Phishing: Stealing personal data via fake emails/links.

• Credit card cloning/skimming: Stealing card details physically or digitally.

What is a stokvel?

A savings club where members regularly contribute a fixed amount to a central fund and take turns withdrawing for needs (e.g., funerals, savings, groceries).

Why is an illegal pyramid scheme unsustainable?

It relies entirely on getting paid to recruit new members, rather than selling actual goods or services.

What is a legal "pyramid" scheme (Multilevel Marketing)?

Multilevel Marketing (MLM) is legal because members make money by selling actual physical products (e.g., Tupperware, Golden Products).