FRAI Urges Ministry Of Consumer Affairs To Intensify Crackdown On Illicit Trade And Counterfeit Products

* Retailers Call for Stronger Enforcement and Fair Market Practices to Protect Consumers and Safeguard Millions of Small Retailers

The Federation of Retailers Association of India (FRAI), one of the country's leading representative bodies of small retailers and traders, organised a national seminar on “Confronting Illicit Trade in Modern Markets” in New Delhi today, bringing together policymakers, industry experts, law enforcement officials, consumer advocates and retail stakeholders to deliberate on the growing threat of illicit trade, counterfeit products and unfair market practices in India's rapidly evolving retail ecosystem.

The seminar highlighted the alarming rise of counterfeit and non-compliant products across multiple categories, including food and beverages, groceries, personal care products, cosmetics, tobacco products, cigarettes, e-cigarettes, emerging nicotine delivery products, electronics and household goods. Participants expressed concern that the proliferation of illicit products through both traditional and digital channels is posing significant risks to consumer safety, weakening trust in legitimate businesses and adversely impacting government revenues.

The discussions also focused on the challenges faced by millions of small retailers who are increasingly struggling against the dual threat of counterfeit products and unfair market practices. Participants noted that genuine retailers operate within regulatory frameworks, ensure product authenticity and remain accountable to consumers, while illicit operators continue to exploit gaps in enforcement and monitoring mechanisms.

During the event, FRAI submitted a representation to the Ministry of Consumer Affairs, Food & Public Distribution seeking stronger policy measures to curb illicit trade and counterfeit products. The association recommended stricter enforcement against illegal products, stronger penalties for repeat offenders, greater accountability across digital marketplaces, enhanced surveillance and market inspection mechanisms, and coordinated action among enforcement agencies and regulatory authorities to protect consumers and ensure fair market practices.

Speaking at the seminar, Shri Praveen Khandelwal, Hon'ble Member of Parliament, said, "The challenge of illicit trade, counterfeit goods and smuggled products directly affects consumers, businesses and families alike. While the government is treating this issue with utmost seriousness and is committed to strengthening the legal framework, it is equally important for industry, traders and citizens to work alongside enforcement agencies. Technology can become a powerful tool in combating counterfeit products, and collective action through public-private partnership is the key to building a transparent, accountable and trusted retail ecosystem. I urge FRAI to play a proactive role by creating dedicated mechanisms to identify illicit trade and support authorities in eliminating such practices from our markets."

Addressing the gathering, Vinay Kumar, Generate Secretary, Federation of Retailers Association of India (FRAI) spokesperson said, "Illicit trade is no longer merely a commercial issue; it has become a serious consumer protection and livelihood concern. Counterfeit and illegally sourced products not only expose consumers to unsafe and substandard goods but also erode the foundations of fair competition. Millions of small retailers across the country are struggling to compete against an ecosystem where illicit products continue to circulate unchecked. We urge the government to strengthen enforcement mechanisms, enhance surveillance and accountability across marketplaces, and create a fair and transparent retail ecosystem that protects consumers while safeguarding the livelihoods of honest retailers."

Participants further observed that the rapid expansion of digital commerce and quick-commerce channels, while enhancing consumer convenience, has also created new challenges in monitoring product authenticity and supply chain compliance. The seminar stressed the need for balanced regulatory frameworks that encourage innovation while ensuring accountability and consumer protection.

The event featured keynote addresses and expert insights from policymakers, legal experts, law enforcement officials, medical professionals and consumer protection stakeholders, who collectively underscored the need for a multi-stakeholder approach to combat illicit trade and counterfeit networks operating across the country.

Concluding the seminar, FRAI reiterated that protecting consumers, preserving fair competition and safeguarding the livelihoods of millions of small retailers are critical to ensuring a healthy and sustainable retail ecosystem. The association called upon all stakeholders to work together to eliminate illicit trade and strengthen trust in India's marketplace.