Essay About Counterfeit Products And Selling Of Counterfeit Productsintroduction

Manufacturing/ Selling of Counterfeit Products
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Manufacturing/ Selling of Counterfeit ProductsINTRODUCTION:Counterfeit products are products, often of subservient quality, manufactured or sold under another brand name or copy of the original brand with minute changes without the brand owner’s consent.[1] Some very obvious type of counterfeit products are replica of currencies, branded clothes, shoes watches, handbags, electronic products, software’s etc.                  [pic 2]REASONS FOR COUNTERFEIT PRODUCTS:To take advantage of the brand value and name of the original product.To increase the market share and place because of real product’s popularity.To increase market share by lowering down the price of replica of same product.TYPES OF COUNTERFEIT PRODUCTS:Deceptive Counterfeit: When the consumers are unaware about the products they are buying are counterfeit.      Deceptive Counterfeit Products:              Who are the buyers?Illiterate/ Uneducated peopleConsumers unaware of brandNon-Deceptive Counterfeit: When consumer are aware of the counterfeit products they are purchasing but still are willing to buy those productsNon -Deceptive Counterfeit Products:             Who are the buyers?People aware of brand but cannot afford to buy.People looking for status to show-off.LEGAL POINT OF VIEW:It is illegal to use trademark of some other company without permission as per the Trademark Act 1999, violation of which may cause heavy fines and imprisonment in some cases.[1]Brand Protection act violates the copying of the product/ design.Anti-counterfeiting Consumer Protection Act imposes criminal liability for trafficking of such products. [2]It is an illegal activity, where the individual’s crime may not be obvious around them.Copyright Act,1957 empowers the police to seize the counterfeit products.[3]ABOUT COUNTERFEIT PRODUCT MARKET IN INDIA:In India, about 80% of the market is flooded with the counterfeit products.This is causing about 87% indirect tax loss to the government.In FMCG sector, it is very surprising to know that every 5th product is faked or smuggled.According to the report from “The Economic Times” in March 2018, Counterfeit market’s worth is over Rs. 40,000 Cr.[4]The dependency of Indians on e-commerce sites in gradually increasing where there is flooding of 95% of duplicate products with heavy discounts which attracts people.The situation is even more alarming when it come pharmaceutical products. Some products are not only fake but also sub-standard.COUNTERFEIT PRODUCTS FRON MANUFACTURER’S POINT OF VIEW:Loss of Market ShareLoss of revenueDepreciating brand valueIncrease in perfect competitionDecreasing credibilityCOUNTERFEIT PRODUCTS FROM FAKER’S POINT OF VIEW:Selling fake brands at lower cost which increase their market share.Increase in revenue without showing the income.Black money increases.Tax evasion.Easy Money.COUNTERFEIT PRODUCTS FROM CONSUMER’S POINT OF VIEW:In Favour:Brand tagged products in significant cheaper rates.Nearly same quality as of real brands in some cases.Easy availability.Against:Poor quality.Harmful contains/ materials used.Less durability.Zero Warranty.MY OPINION:In my opinion, Counterfeiting of products is not ethical and should be banned strictly for following reasons:It is illegal in terms of laws.It promotes child labour.It may support organized crime.It diminishes tax revenues.It increases inflow of black money.Weakens environmental, health and safety regulations.May introduce dangerous products in market.It can be a reason for major health issues.According to survey conducted on e-commerce by “Quartz India” in April 2018, from about 3000 respondents from across Mumbai, Delhi, Hyderabad, Chennai, Kolkata and Ahmedabad;