FRAI Demands Stronger Enforcement Against Illicit Trade
The Federation of Retailers Association of India (FRAI) on Wednesday called on the Ministry of Consumer Affairs to intensify action against illicit trade and counterfeit products. At a national seminar in New Delhi, FRAI warned that the rising circulation of fake and non-compliant goods endangers consumer safety and the livelihoods of millions of small retailers.
BJP MP Praveen Khandelwal, who represents Chandni Chowk and chairs the Confederation of All India Traders (CAIT), attended the seminar. He highlighted that illicit trade directly affects consumers, businesses, and families, and stressed the role of technology in combating counterfeits.
Seminar Highlights Cross-Sector Impact
The event, titled “Confronting Illicit Trade in Modern Markets,” brought together policymakers, industry representatives, law enforcement officials, consumer advocates, and retail stakeholders. Participants expressed concern over the proliferation of counterfeit and illegally sourced products in sectors including food and beverages, personal care, cosmetics, tobacco, electronics, and household goods.
They noted that these products spread through both traditional retail and digital marketplaces, posing serious risks to consumers, undermining legitimate businesses, and causing significant revenue losses to the government.
FRAI’s Representation Calls for Tougher Penalties
During the seminar, FRAI submitted a formal representation to the Ministry of Consumer Affairs, Food and Public Distribution. The association demanded stronger penalties for repeat offenders, enhanced surveillance and market inspections, greater accountability for digital marketplaces, and coordinated enforcement by regulatory and law enforcement agencies.
FRAI General Secretary Vinay Kumar described illicit trade as a major consumer protection and livelihood issue. He noted that while genuine retailers comply with regulations and ensure product authenticity, illegal operators exploit enforcement gaps, making it difficult for small traders to compete fairly.
E-Commerce and Quick-Commerce Challenges
The discussions also addressed challenges from the rapid growth of e-commerce and quick-commerce platforms. Participants called for balanced regulations that encourage innovation while ensuring supply chain transparency, product authenticity, and stronger consumer protection.
Khandelwal emphasized the need for cooperation among the government, industry, and citizens to build a transparent and trusted retail ecosystem. He said technology could play a key role in identifying and eliminating counterfeit products.
Multi-Stakeholder Approach Needed
FRAI reiterated that curbing illicit trade is essential for protecting consumers, preserving fair competition, and safeguarding the interests of millions of small retailers across India. The association urged a multi-stakeholder approach involving government agencies, industry bodies, and consumers to dismantle counterfeit networks and strengthen trust in the marketplace.
