FRAI urges govt to intensify crackdown on counterfeit products, illicit trade

New Delhi: The Federation of Retailers Association of India on Wednesday urged the government to strengthen enforcement measures against illicit trade and counterfeit products, saying their proliferation poses risks to consumer safety and harms the livelihoods of millions of small retailers.

The Federation of Retailers Association of India (FRAI), in a seminar held in the national capital, submitted a representation to the Ministry of Consumer Affairs, Food and Public Distribution, seeking stronger policy measures to curb illicit trade and counterfeit products.

The association called for stricter enforcement against illegal products, tougher penalties for repeat offenders, greater accountability of digital marketplaces, enhanced surveillance and market inspection mechanisms, and coordinated action among enforcement and regulatory agencies to protect consumers and promote fair market practices.


It highlighted "alarming rise" of counterfeit and non-compliant products across multiple categories, including food and beverages, groceries, personal care products, cosmetics, tobacco products, cigarettes, e-cigarettes, emerging nicotine delivery products, electronics and household goods.

Speaking at the event, Member of Parliament Praveen Khandelwal said that illicit trade, counterfeit goods and smuggled products directly affect consumers, businesses and families, and stressed the need for collective action involving industry, traders, citizens and enforcement agencies.

"The government is treating this issue with utmost seriousness and is committed to strengthening the legal framework. Technology can become a powerful tool in combating counterfeit products, and public-private partnerships are key to building a transparent and trusted retail ecosystem," he said.

FRAI General Secretary Vinay Kumar said illicit trade has evolved beyond a commercial challenge and has become a major consumer protection and livelihood issue.

"Counterfeit and illegally sourced products expose consumers to unsafe and substandard goods while undermining fair competition. Millions of small retailers are struggling to compete against an ecosystem where illicit products continue to circulate unchecked," he said.

Participants at the seminar titled "Confronting Illicit Trade in Modern Markets" also highlighted emerging challenges arising from the rapid growth of digital commerce and quick-commerce platforms, noting that while these channels have improved consumer convenience, they have also complicated efforts to monitor product authenticity and supply chain compliance.

They called for a balanced regulatory framework that encourages innovation while ensuring accountability and consumer protection.