Monday 12 November 2018

After DCGI Rap, Ecommerce Cos Commit To Prevent Sale Of Fake Cosmetics

DCGI has ruled that companies may face a police complaint if they fail to prevent sale of fake products
The companies will have to include seller information on their websites
Recently luxury online store received a High Court warning for selling fakes
In a meeting with the Drug Controller General of India (DCGI), ecommerce companies like Amazon and Flipkart have reportedly promised to prevent the sale of “unregulated and fake cosmetics.”
The increased vigilance from the regulator comes after a rise in reports that cosmetics and pharmaceuticals are some of the most commonly counterfeited products on ecommerce websites.
The DCGI also ruled that if the company discovers fake products being sold on their website, they must prevent sale of such products. If they fail in doing so, the companies will have to face severe action including formal police complaint, the regulator warned.
According to reports, representatives of the ecommerce companies had met with DCGI on November 1. This move came in after the regulatory body had issued notices to Flipkart, Amazon and IndiaMART for selling fake cosmetics on their platform.
It had also warned the ecommerce portals that penal action will be taken if they fail to respond within 10 days.
The companies from now on, will also have to provide seller information on their websites including license number of the cosmetics seller, the importer’s name and also the validity of their license.
According to DCGI, items such as stem cell-based cosmetics, serums, skin whitening creams, glutathione injections and hyaluronic acid filler injections were some of the illegally imported products which were being sold on the ecommerce platforms.
Citing unnamed sources, a Livemint report also claimed that certain cosmetic products being sold on the platform included certain ingredients which are not allowed to be used by humans.
DCGI had also conducted raids at 30 locations in eight states.
Recently this month, the Delhi high court has directed a Delhi-based fashion ecommerce platform named to check and verify the authenticity of every item which is listed on its platform for sale.
The Delhi high court also pointed out Amazon Seller Services and asked them to delist some sellers on its platform who were accused of selling fake products.
In order to get a better view on the sale of fakes on ecommerce platforms, LocalCircles had conducted a survey in which 35% of 27K participants said that cosmetics ordered online were most likely to be counterfeit.
The survey results also showed that nearly 19% of the respondents had received fake products from etailers in the last six months.

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