Working group for norms to limit fake products sale

A working group set up by the government to suggest ways of tackling the menace of sale of spurious and counterfeit products has recommended the setting up of an independent authority for this purpose, with wide ranging powers to initiate suo-moto action against culprits.

The group has estimated that the industry was losing about Rs 30,000 crore and the government, an additional Rs 15,000 crore annually, due to the sale of spurious products in the market.

The Working Group on Counterfeit, Fake, Spurious and Contraband Products was set up by the consumer affairs department of the food and consumer affairs ministry under the chairmanship of the department's Joint Secretary Jayashree Gupta.

It has 20 members representing various ministries and departments with one representative each from Assocham, Ficci and CII. The nominee of the Bureau of Indian Standards (BIS) is the member secretary of the working group.

The report of the committee refers to the findings of the International Anti-Counterfeiting Alliance which indicated that counterfeit automotive parts worth about Rs 20,000 crore were sold in India annually. This constituted nearly 35 per cent of the total market share.

A survey conducted by the BIS had shown that when tested, about 88 per cent of gold jewellery was found to be of much less purity than claimed.

The Mashelkar Committee on drugs set up by the health and family welfare ministry had reported that the extent of adulteration in drugs ranged from 0.5 per cent to 35 per cent.

In the light of all these findings, the working group has suggested that the proposed authority should have control of investigation as well as enforcement and should be given effective powers to protect consumers from grievances. It lays stress on critical areas affecting consumer health, like provision of safe drinking water, milk, food and drugs.

It also underlines the need for all ministries and departments concerned to join hands and launch a vigorous campaign for enhancing consumer awareness on the problem.

Simultaneously, appropriate infrastructure facilities should be provided to consumers to get dubious products tested to pursue further action, the report suggests.

The working group has said the industry will have to take the onus of protecting consumers from fake products sold in the market by imitating their brands, through the latest technology or through an extensive public awareness campaign in addition to holding periodic exhibitions.

Industry should also review its pricing policy and bridge the gap between fake and genuine products as far as possible.

Industry associations should jointly set up a "Better Business Bureau" to protect the interests of consumers as a similar institution has been found effective in the USA for countering the menace.

It has suggested the government tackle the problem through the joint action of various wings of enforcement authorities and the use of modern technology coupled with advanced training. Use of the services of voluntary organisations and the media has also been recommended for combating this problem.

Meanwhile, the consumer affairs department is contemplating setting up of a national consumer protection authority which would incorporate the best features of the US consumer products safety commission and the Federal trade commission dealing with products and services respectively.