Govt plans law to take on counterfeit products

NEW DELHI: In a bid to crack down on the Rs 15,000-crore market for counterfeit and fake products, the government is mulling an integrated law on counterfeit, fake, spurious and contraband products. The Act will contain adequate penal provisions and detailed procedures to check the growing menace of fake products.

Taking a cue from the developed world, the government is also contemplating setting up of a Better Business Bureau by industry associations, to protect the interest of consumers across the country.

The recommendations have been made by the working group on counterfeit, fake, spurious and contraband products under department of consumer affairs joint secretary Jayashree Gupta. In its final report, the working group has pointed out that illegal activities relating to counterfeit and fake products result in a loss of Rs 30,000 crore to the industry and Rs 15,000 crore to the government annually.

The group has emphasised the need for the enactment of a comprehensive Act on counterfeit, fake, spurious and contraband products by the ministry of home affairs.

At present, action against fake products is being taken by various enforcement agencies on the basis of provisions in different Acts such as Copyright Act, 1957; Trade Marks Act, 1999; Customs Act; Central Drugs and Cosmetics Act; Prevention of Food Adulteration Act; and the BIS Act among others.

The working group in its report has also urged industry associations to set up a Better Business Bureau to protect the interest of consumers. In the US and other developed countries, such organisations have been playing an effective role in protecting consumers from industry-related problems, the report has said.