So, what I want to know is can you do this safely? Is this considered black hat or grey hat and if so, how is my competitor getting away with it as they have very good traffic indeed.
I'm sorry if this is obvious but I keep reading conflicting informaion on this.
www.widgets-a.com
www.widgets-b.com
Neither of them appear to have a redirect on them but in Google, if you type site:www.widgests-b.com into the search field, it only produces results for www.widgets-a.com.
How does that work then?
Unnatural linking of the added websites might be additional websites with unique content that only link to one (presumably) central or benefiary website or might include websites that link out to other sites (arguably to mask the network affinity) BUT that otherwise lack inbound sites. Other factors might include that manner in which pages between the sites are linked, how the intranetwork links age, etc.
IF it looks like an effort to game the search engine ranking algo (garnering extra "unnatural" links "looks like" such an effort) then you may safely assume someone somewhere is laboring on an algo fix to knock you out of the SERPs. (At least one hopes that there's someone doing that work.)
Frankly I'd counsel to invest more effort in making websites that have value, which value is reflected in people naturally linking to your website.
I hope you're correct about the algo in development to change this, because I will continue to be white hat and hope it will favour me one day over my competitor, who also uses doorway pages (to their success)