Flux of fake goods
Will the new Consumer Protection Act make any difference?
Brand India is under threat. From life-saving drugs to LED bulbs and FMCG products, the market is flooded with fake and unsafe goods that don't comply with quality, price or safety norms. Many don't carry even such mandatory information as manufacturers' names, production and expiry dates. Prices are not printed. They are often pasted separately on packs. While the latest study revealing malpractices in India's fast-growing LED bulb market by internationally-acclaimed research firm Nielsen is practically mind-boggling, a KPMG report earlier on the counterfeit FMCG market showed how easy it is to fake and market branded products in India.
The Nielsen report said 76 per cent of LED bulb brands don't comply with safety norms. Counterfeit and smuggled products now account for more than a fifth of the FMCG market. Going by the FICCI-KPMG report, the size of the counterfeit FMCG market at the end of 2014 stood at Rs 68,000 crore. This was around 65 per cent of the total market of counterfeit products, which was worth Rs 1.05 lakh crore. This market has grown by at least 10 per cent over the last two years. At the end of 2014, the overall FMCG market in India was valued at Rs 3.2 lakh crore.