choof.org

Choof.org is Chris Hoofnagle's personal site. You'll find postings from the Federal Register here, interesting Washington regulation tidbits, and my newest feature, the Daily Data Marketing Wake Up Call. Enjoy.

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January 17, 2005

Region Coding Limiting Products

Another beauty from the Journal.

...Some consumer-electronics companies are designing products so they will work only in the U.S. For example, some of the latest printers from Hewlett-Packard Co. refuse to print if they aren't fed ink cartridges bought in the same region of the world as the printer. Nintendo Co.'s latest hand-held game machines are sold in the U.S. with power adaptors that don't work in Europe.

Such measures prevent thrifty foreign consumers and gray marketers -- traders who sell goods through channels that haven't been authorized by the manufacturer -- from taking advantage of the decline of the dollar against the world's major currencies to buy lower-price products in the U.S. In terms of euros, pounds or other strong currencies, U.S. retail goods are much cheaper today than they were two years ago.

U.S. multinational companies want Europeans to continue to buy their goods in Europe, however, rather than seeking out bargains in the U.S. The companies make more money if Europeans pay in euros for their goods at current exchange rates...

Consumer groups are also opposed to the latest region-coding measures. "Manufacturers don't like global commerce when it doesn't line their pockets," says Phil Evans, principal policy adviser at Which?, a British consumer watchdog. "In the long term, it's not a clever thing to do from a customer-relations standpoint."

Posted by chris at January 17, 2005 03:00 PM

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