The Working Group on Counterfeit, Fake Spurious and Contraband Products set up by the Department of Consumer Affairs has suggested the Government to form an independent authority with wide ranging powers to initiate suo-moto to protect the interests of consumers, including those related to food and drugs.

In its final report, the group said that the thrust should be given on critical areas affecting consumer health and provision of safe drinking water, milk, food and drugs and all concerned ministries and departments should join hands and launch a vigorous campaign for enhancing consumer awareness in concerned areas. Simultaneously, appropriate infrastructure facilities should be provided to consumers to get doubtful products tested to pursue further action.

It further said that industry has to take the onus of protecting consumers from fake products sold in the market by imitating their brand, through latest technology or through extensive public awareness campaign in addition to holding periodic exhibition of their products. Industry should also review its pricing policy and bridge the gap between the fake and genuine products as far as possible. Industry associations should jointly set up 'Better Business Bureau' to protect the interest of consumers as a similar institution has been found effective in USA for countering the menace. Government should tackle the problem of counterfeiting, fake and spurious goods through the joint action of various wings of enforcement authorities and use of modern technology coupled with advanced training, the report suggests. Service of voluntary organizations and media is also recommended for countering the problem.

A Government release said the Department of Consumer Affairs is already contemplating the setting up of a National Consumer Protection Authority incorporating the best features of Consumer Products Safety Commission and the Federal Trade Commission of the US Government dealing with products and services respectively. This Authority should have investigation as well as enforcement control and should be given effective powers to protect consumers from grievances.

The release said it is estimated that the illegal activities relating to counterfeit, fake, spurious and contraband products result in a loss of about Rs. 30,000 crore to industry and Rs. 15,000 crore to Government annually. The Mashelkar Committee on drugs set up by the Ministry of Health and Family Welfare had reported that the extent of adulteration in drugs ranged between 0.5 per cent to 35 per cent. The report had also recommended a scientific and statistically significant study to assess the real impact, said the release.

A Working Group on Counterfeit, Fake, Spurious and Contraband Products was constituted in January 2004 in pursuance of the recommendations of the 23rd Meeting of Central Consumer Protection Council to identify the various problems that the consumers face on account of sale of spurious and contraband products in the market and to suggest preventive and remedial measures to curb the import as well as manufacture of such products. The Working Group headed by Dr. Jayashree Gupta, joint secretary, Department of Consumer Affairs as chairperson has 20 members representing various ministries and departments with one representative each from ASSOCHAM, FICCI and CII. The nominee of the Bureau of Indian Standards is the Member Secretary of the working group.