1. (a) As used in this section, “gray markets merchandise” means any brand-name consumer product normally accompanied by a warranty valid in the United States which is imported into the United States through channels other than the manufacturer's authorized United States distributor, for sale to the public in this state, and which, by reason of such manner of distribution, may not be accompanied by a manufacturer's express written warranty valid in the United States. Gray markets merchandise shall be limited to products purchased by a consumer for use primarily for personal, family or household purposes.

2. (b) Every retail dealer who knowingly sells or offers for sale any gray markets merchandise shall post conspicuously, on a sign attached to the item itself, on a sign affixed to each cash register or point of sale at which such goods are offered for sale, or on a sign so situated as to be clearly visible to the buyer from the register, that either some of the products or a specific product are not:

   1. (1) Accompanied by the manufacturer's warranty valid in the United States; (2) accompanied by instructions in English; or (3) eligible for a rebate offered by the manufacturer.
3. (c) Every retail dealer or dealer engaged in a mail-order business who offers for sale gray markets merchandise shall include the disclosure required by subsection (b) of this section in any written advertisement relating to such product. Such disclosure shall be made in type of a conspicuous size.
4. (d) Any retail dealer who violates any provision of this section shall be liable to the buyer, for a period of up to twenty days from the date of purchase, for a refund or credit on credit card purchases provided the product purchased has not been used or damaged by the buyer.
5. (e) A violation of any of the provisions of this section shall be deemed an unfair or deceptive trade practice under chapter 735a.
6. (f) It shall be an affirmative defense to any action brought pursuant to this section that the consumer is provided with a written warranty which offers equal or greater protection than the manufacturer's warranty through a warrantor demonstrated to be a financially responsible retailer, distributor, importer or other person capable of fulfilling warranty obligations.

(P.A. 86-302, S. 1.)