Govt looks to check sale of fake goods online

The government is considering a mechanism to compensate consumers who happen to get a counterfeit product from an online platform, an official said on Monday. The talks for such a system, which may be called ‘cashback’, is at a conceptual stage, the official, who did not wish to be named, said.

The discussions for this are going on between e-commerce companies, the Department of Industrial Policy and Promotion (DIPP) and the Consumer Affairs Ministry. “We need more stakeholder consultation on the matter as the aim is to restrict sale of counterfeit products in the domestic market,” the official added.

The mechanism which the government is considering would be voluntary in nature.


The issues which are under discussions including the mechanism to file a complaint for a counterfeit product and to establish whether the product is counterfeit. According to the Commerce and Industry Ministry, counterfeiting has grown considerably to a point where it has become a widespread phenomenon with a global impact.

Counterfeiting, other than causing an erosion on the brand value, reputation and goodwill of the manufacturers and owners of intellectual property (IP), leads to social and economic consequences resulting in huge economic losses in terms of lost taxes and revenues.

It also leads to diversion of funds to other illegal activities and such products put a threat to consumers' health and safety as well.