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Govt plans compensation mechanism to prevent sale of counterfeit products online: reports

The Department of Industrial Policy & Promotion (DIPP), along with the Department of Consumer Affairs (DCA) and various e-commerce platforms operating in the country are currently discussing a proposal for setting up a cashback or compensation mechanism for counterfeit products sold via online platforms, reports PTI. However, this proposed cashback system will be voluntary in nature, which probably defeats the purpose. As per the report, customers who have been sold a counterfeit product will be given the option of filing a complaint, following which some sort of an investigation will be conducted to establish if the product in question is in fact a counterfeit or not. Since, the discussions are still at a preliminary stage, it's not clear how exactly this mechanism will function. It's worth noting that a DIPP official told BusinessLine that the compensation mechanism will primarily look to address cases which do not fall within the usual 30 day replacement period offered by most e-commerce platforms. For example, a customer might be made aware that a mobile phone bought online is counterfeit only when it is sent for repair, a few months after the purchase, which is well past the standard replacement period, the official said. DIPP has organised a National Conference on Counterfeiting and Role of Enforcement Agencies, to be held on March 13 and 14, 2018, where experts will "have a dialogue and exchange best practices for the benefit of enforcement agencies, attorneys and industry representatives and provide fresh ideas for further strengthening the Intellectual Property…

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