Accusations are flying with the discovery that a local courier could be selling "grey market" Movado watches - in direct competition with Crissons who claim to have exclusive rights to the upscale line.

And Internet shoppers may have to live by the slogan "buyer beware," after Peter Crisson of Crissons Fine Jewellers cried foul after Movado watches were offered for sale through International Bonded Couriers (IBC) new retail website www.zipx.bm.

Mr. Crisson became suspicious of products for sale on the website after seeing an advertisement in The Royal Gazette which showed a picture of a Movado brand watch.

Mr. Crisson contacted Movado about the watches and confirmed that the watches sold on the internet could not have a warranty, they could be fakes, and were at best, "grey market watches". In addition he has received assurances in the past that Movado will not sell its product over the Internet and any "Movado" watch sold that will not have a valid warranty.

Mr. Crisson explained grey market watches are sold to an agent who for some reason, such as too much stock, or outdated models, sells them on to another retailer who may not be licensed to sell the watch.

"This is frowned upon in the watch industry," explained Mr. Crisson.

Warranties become null and void to the manufacturer if merchandise is sold on the grey market.

He said there was no way to guarantee that the watch was not old or counterfeit, and that Movado nor Crissons could guarantee authenticity or comply with the conditions of the warranty.

The website advertised a full warranty with the watch which Mr. Crisson said was impossible according to Movado. And he said: "The public has been misinformed."

A letter from Everett Rashotsky of the Movado group to Mr. Crisson claims: "This letter is to confirm that H.S. & J.E. Crisson Ltd. is currently the sole agent for Movado watches in Bermuda.

"It is the policy of the Movado Group Inc. not to sell its watches on the Internet and the factory warranty for any Movado watch sold in this way is invalid. In particular, Movado watches currently being offered on the website www.zipx.bm and its affiliate, www.itswholesale.com have not been supplied by our company to these vendors. We can in no way vouch for the authenticity of these watches and the possibility exists that these watches may be illegal counterfeit or used watches which have been reconditioned.

"We strongly recommend that anyone interested in purchasing a Movado watch do so only through our global network of authorised fine jewellers. This is the only way to ascertain that you own a genuine, new and fully warranted Movado watch."

IBC introduced ZipX Wholesale, their online shopping service in October and said that a broad range of quality brand name products at wholesale prices could now be purchased from an internet shopping site that was developed with Wholesale.com Inc. specifically for ZipX members.

All orders purchased from ZipX Wholesale are delivered to the New York ZipX office then forwarded to Bermuda through ZipX Express using a dedicated plane that flies to the Island on a daily basis.

Rick Craft, Marketing Manager for IBC said that the ZipX website is just a portal for the US based website www.itswholesale.com.

He also said that a search on the internet for Movado watches produced about 12,000 hits, and many of the sites selling the watches offered full warranties.

Mr. Craft contacted President of itswholesale.com, Robert E. Helmer, who responded to concerns about the Movado watches on the internet site saying: "All of the Movado Watches posted for sale on our website are new.

"All sales of the watches are sold by ItsWholesale.com Inc. and or affiliate companies located in the United States. The written warranty condition for Movado watches does not restrict Internet sales but does state that, 'the warranty card must be embossed with the name of the Authorised Movado Dealer, as well as dated and signed by that dealer'."

Mr. Helmer added: "All Movado products sold through our internet programme are new with full factory warranty including an embossed warranty card signed and dated by an authorised dealer.

"The sale of all products on the ItsWholesale.com/ZipxWholesale.com website through any portal is a domestic transaction with shipment to a New York address. The delivery of the product to Bermuda is per the request of the buyer and is covered under a separate agreement and charge. Therefore, we are selling the product domestically in the US not as an export sale."

Mr. Helmer added: "Any attempt by a third party to discredit the offering of any products sold on our website or to mislead the general public, interested in purchasing product from ItsWholesale.com, ZipxWholesale.com or any affiliated company will be considered as gross interference and damage to our marketing effort and therefore will be dealt with accordingly by our attorney."

Mr. Crisson responded to these comments by saying that if itswholesale.com does not have a deal with Movado, then they are indeed selling grey market watches and therefore the warranties are null and void.

Mr. Crisson said that his view of the matter was quite simply: "buyer beware!"

And he questioned what other unauthorised products may be for sale on the internet site.

He said: "We are concerned of course with protecting our assets, one of which is the Movado Watch agreement, and we don't want to bring the brand into disrepute."

Mr. Crisson said he was not afraid to compete with other retailers, but said that fair is fair, and the watches being sold on the internet was not fair.

Attempts to get clarification from the Movado head office in the US were unsuccessful as Genie Massaro, Vice President of the Movado Media Department in Lyndhurst New Jersey did not return calls made by The Royal Gazette.