New policy against online fakes may lower prices of genuine products

Industry experts and online sellers have hailed the recent anti-counterfeiting measures released in the recent draft national e-commerce policy. The experts and sellers said that the government’s anti-duplication policy would help in preventing the sale of duplicate products online.

The government in its draft has proposed that the online retailers must give trademark owners the option to approve the sale of every product that carries its trademark. In the case of cosmetics and luxury products, it should seek the trademark owner’s authorisation to sell such products on their platforms.

Generally, e-commerce companies do not share the details of fake products but according to some studies, the percentage of fake products sold online is as high as 20%. An expert highlighted that the sale of counterfeits has increased the product price but the cut down in the sale of fake products will bring down the costs of original products. He added that the technology

He added that the technology needed to enable this would not be hard to build and while the removal of low-cost counterfeit options from online marketplaces might hurt sales temporarily, it would eventually recover as brands begin enjoying better economies of scale and pass on the benefits to the consumer.

According to a member of All India Online Vendors Association, “The solution proposed by the government is good, but we feel some of this power being given to brand and marketplaces could be misused. For this, we believe that an appeals process to help sellers needs to be prescribed.”

Source: Economic Times