The growing challenge of counterfeiting in the FMCG industry

Of late, the FMCG sector has been suffering from the problem of counterfeiting. As per a report by FICCI CASCADE around 35% of FMCG items are fake. The study also reveals that around 80% of consumers believe that they are buying genuine goods.

The growth of fake goods in the FMCG sector has had an impact on both consumers and producers. While the manufacturers suffer from a tarnished brand image and low sales the consumer is at the risk of losing money and a bad impact on his or her health. He also says that unscrupulous manufacturers are also detrimental to the national economy.

Counterfeiters also repackage fake goods to make them visually similar to the genuine ones. It has been seen that old plastic water bottles are being repackaged and sold in the market, the same is the case with many other goods. Such deceptive duplication leads to a loss of consumers and brand owners as well.

In India, a large number of the population settled in rural parts of the country suffer from rampant counterfeiting of FMCG goods. With a little check of authorities and poor regulation and manufacturing guidelines counterfeiting is easily slipping in the pockets of the common man.

Advancements in technology and easy procurement of the same have made it possible for counterfeiters to establish little backyard factories and hubs for the manufacturing of duplicate items. It has also been observed that counterfeiters are making fake labels and packaging to dupe consumers. In the year 2014-2015 sale of FMCG, tobacco and alcoholic beverages constituted 65 percent of the total sales.

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FICCI & National Law School jointly organizes seminar against counterfeiting

While speaking at a seminar on ‘Communication, coordination, and collaboration-strengthening the fight against counterfeiting and smuggling organized by FICCI CASCADE, Justice Pratibha M Singh a Delhi High Court Judge said, “India needs to strengthen the enforcement and have better national and international cooperation against counterfeiting”.

She also emphasized on the need for education and awareness among the consumers, especially the youth to mitigate the problem of counterfeiting and piracy. The seminar laid emphasis on increasing the awareness on the hazards of counterfeiting and smuggling.

Ullas Kamath, Chairman, Karnataka State Council, FICCI said that the menace of counterfeiting negatively affects the industries, consumers, government and economies. It is important to understand the need for securing the rights of genuine industry in developing competitiveness in different sectors of the economy” he said

Najib Shah, former Chairman, Central Board of Indirect Taxes and Customs & Think Tank Member, FICCI CASCADE said, “”The realization of the damage counterfeiting causes is not appreciated. On the other hand, smuggling results in generation of unaccounted wealth and is the immediate trigger for criminal activities. We should aim to work towards creating an environment where people will want to be innovators and manufacturers and importers without fear of their work being plagiarized or having to compete with smugglers.”

The seminar was organized in collaboration with National Law School of India University, Bengaluru. The Vice-Chancellor also extended his support and ensured that the University will work with FICCI CASCADE in its fight against smuggling and counterfeiting.

According to a recent FICCI report, ‘Illicit trade: Fueling Terror Financing and Organized Crime’, counterfeiting is the second largest source of income for criminal activities such as terrorism, globally.

The report highlights that the total employment losses globally due to counterfeit and piracy stood at 2-2.6 million jobs in 2013 and is expected to rise to 4.2-5.4 million jobs in 2022, an increase of about 110 per cent.

Source: SME Times

Global counterfeiting has grown 100 times-FICCI CASCADE

FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) has raised a serious concern on counterfeiting and smuggling. The body believes that the global economy has suffered massive financial loss due to counterfeiting and there has been an increase in its volume by 100 times.

The experts from FICCI CASCADE while speaking at a seminar highlighted the importance of increased awareness on the hazards of counterfeiting and smuggling, and the need for effective enforcement to enhance India’s economic development.

PC Jha, Advisor, FICCI CASCADE and Former Chairman, Central Board of Excise and Customs, stated that during the last twenty years, the volume of duplication has increased 100 times around the world and the size of the trade in duplicate goods is 10 percent of the legal international trade. He finally stressed on the seriousness of the problem of illicit trade.

Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Delhi Police emphasized on the need for consumers being continuously made aware of the detrimental impact of illicit products. He further said, “Consumer awareness campaigns that explain how to differentiate a spurious product from a genuine product to demanding a copy of the bill from the seller, along with the harmful consequences of purchasing illegal products.

As per the FICCI CASCADE report published in 2015, the total loss to the government on account of illicit markets in just seven manufacturing sectors is Rs 39,239 crores. Amongst the various sectors, the maximum revenue loss to the exchequer is attributed to tobacco products. Estimating a revenue loss of Rs 9139 crores, followed by mobile phones at Rs 6705 crores and alcoholic beverages at Rs 6309 crores.

According to a FICCI report, ‘Illicit Trade: Fuelling Terror Financing and Organized Crime’, counterfeiting is the second largest source of income for criminal activities. The global loss to employment would stand at 4.2 to 5.4 million in the year 2022.


FICCI CASCADE organizes seminar on the problem of counterfeiting & smuggling

FICCI CASCADE the anti-smuggling and anti-counterfeiting arm of the industry body FICCI recently organized a seminar on ‘Combating Counterfeiting and Smuggling, an Imperative to Accelerate Economic Development’ in the city of Bhopal.

Counterfeiting is a growing problem and can be effectively countered with appropriate policies said experts present at the seminar. The experts discussed the urgent need for awareness on the hazards of duplication and smuggling. They also raised concerns on the level of enforcement of anti-counterfeiting policies for the overall growth of the country.

Justice (retired) N.K Jain, Judge of MP High Court and Chairman, Madhya Pradesh State Consumer Redressal Commission praised and encouraged FICCI CASCADE’s dedication to eradicate smuggling and illicit trade in the country. Besides this, he also mentioned that a lot more is required to change the outlook of the common man with regard to the use of counterfeit and smuggled goods. Counterfeiting and smuggling of goods not just block the economic growth of a country but is equally detrimental to the health and society. He further commented on the need for strict regulations and effective implementation of the same to curtail the problem.

Anuradha Sharma, Additional Director General, Madhya Pradesh Police stated that counterfeiting and smuggling is an important issue and negatively impacts the health and safety of the common man. This has also led to tax and revenue losses of the industry. The issue is highly critical and needs a collaborative action from all stakeholders.

According to a report released by FICCI CASCADE in 2015, the overall loss to the government on account of illegal markets in seven manufacturing sectors is Rs 39,239 crores.

Source: Daily Pioneer

major industry

Counterfeiting of Products is a Big Industry in India, Says Bengal Minister

Duplication of items have turned into a “major industry” in India that is affecting the purchasers and in addition, the income earned by the legislatures, a senior West Bengal serve said recently, encouraging the police and state organizations to be more careful to control such practices. Continue reading “Counterfeiting of Products is a Big Industry in India, Says Bengal Minister”


Global Terrorism Relying on Illicit Trade of Cigarettes

FICCI recently launched its report at MASCRADE 2017, titled Illicit Trade: Fuelling Terror Financing and Organised Crime. According to this report, many terrorist organisations, including Al Qaida, Hezbollah, Lashkar-e-Tayiba, and the Irish Republican Army, depend on illicit trade for financing up to 20% of their terror operations. Continue reading “Global Terrorism Relying on Illicit Trade of Cigarettes”

Job Loss Due To Counterfeiting and Piracy

A Worldwide Loss of Around 5M jobs Due to Counterfeiting, Piracy

According to a recently published report by Organisation for Economic Co-operation and Development (OECD) and European Union Intellectual Property Office (EUIPO), the total employment losses globally due to piracy and counterfeiting is expected to rise to 4.2 to 5.4 million jobs in 2022 which stood at 2 to 2.6 million jobs in 2013 witnessing a staggering increase of 110%. Continue reading “A Worldwide Loss of Around 5M jobs Due to Counterfeiting, Piracy”