Over the past four decades, we've earned a reputation as a trusted partner in storing the world's most valuable data. This trust is built on our core value of integrity. As such, we’re committed to addressing an important issue that has been affecting our customers: the proliferation of misrepresented products in the second-hand market.
While we cannot share details of our ongoing investigation, we suspect these drives were new products that Seagate sold to business customers who later sold them on the second-hand market. We believe that somewhere in the second-hand market supply chain, bad actors are acquiring used drives and falsely advertising them as new.
To meet this challenge, we’ve developed resources to help you understand the dynamics of the second-hand market and also tell the difference between authorized, OEM, authentic and counterfeit products. Additionally, we offer tools to help you detect unauthorized products and report them to us to aid our investigation.
Understanding the Second-Hand Market
The increasing complexities of the downstream supply chain require that we all work together to mitigate challenges with fraudulent drives. This issue does not just affect hard drives. Counterfeit products are an issue in all industries, costing companies and consumers billions of dollars annually. The second-hand market for hard drives is particularly complex, as it includes both legitimate and fraudulent activities. These activities are typically categorized into four main types:
- Gray Market Drives
Gray market drives are new drives sold outside the region or application of intended use. These drives are not eligible for warranty or return in regions other than where they were originally sold. Drives that were originally purchased by OEMs for integration into systems also are not eligible for warranty protection.
- Pulled Drives
Pulled drives are used drives that have been removed from systems or otherwise taken out of service. These used drives are often resold in the second-hand market and can be acquired by bad actors who resell them as new.
- Outright Fraud
Outright fraud involves counterfeit labels and drives. Customers may receive drives with fake labels, drives of a lower class marketed as higher-end models, or even drives with no internal components.
- Legitimate Second-Hand Products
Numerous companies legitimately refurbish and resell drives as used products, including Seagate. Seagate is committed to environmental sustainability and supports a legitimate second-hand market through our circularity initiatives. We recertify drives that still have useful life, clearly labeling them as “recertified” at the bottom of a green-bordered, white label. Additionally, both the word “recertified” and the unique serial number are etched into the drive to match “recertified” and serial number as they’re printed on the label. These drives come with a six-month limited warranty, providing customers with a reliable option for purchasing second-hand drives.
Ensuring Safe Purchases
We want to help you navigate the second-hand market safely. It’s crucial to know who you’re buying from, what you’re buying, and how to validate your purchase.
Here are some tips to help you identify genuine Seagate products:
- Check the Packaging: Genuine Seagate products come in high-quality packaging with clear labeling and branding. Verify that the outer retail box or ESD packaging is not damaged or unsealed. Ensure there are no signs of tampering – no marks, scratches.
- Warranty Verification: Drives purchased from different regions may not carry the same warranty. Use Seagate’s warranty-checking tool to verify whether the products you’ve purchased are as advertised by sellers. https://www.seagate.com/support/warranty-and-replacements/
- Third-Party Activity: It’s important to buy from reputable sellers and understand who the third-party is. We always recommend that you buy from Seagate-authorized sources to ensure the product is legitimate. For information on where to buy authentic Seagate drives, visit our website.
Reporting Suspected Fraudulent Products
If you suspect that you have received a counterfeit or grey market Seagate product, we encourage you to report it to us. You can report anonymously through our ethics hotline. Additionally, you can report to us directly at fraud@seagate.com.
Our Commitment to Brand Protection
At Seagate, we take this matter very seriously and have established policies and practices to mitigate the introduction of fraudulent products into the marketplace. Our dedicated teams work proactively with resellers to investigate cases, often initiated by anonymous tips and reports from partners and customers and collaborate with local authorities to take necessary legal action. These measures are designed to protect Seagate partners and end customers in an increasingly global marketplace.
We are committed to protecting our customers and ensuring the integrity of our products through continued transparency and education. By working together, we can combat fraudulent products and continue to provide reliable, high-quality data storage solutions. Thank you for your continued trust and support.
