EU, US-type consumer product quality testing model in the works

Priority will be given to testing high-risk products such as electronics, food, and toys, among others, while ensuring that all items remain subject to surveillance.
Priority will be given to testing high-risk products such as electronics, food, and toys, among others, while ensuring that all items remain subject to surveillance.

Summary

  • India aims to ensure availability of quality products in retail markets and enhance consumer safety

A plan to bolster India’s quality standards for consumer products is being drawn up, with the Centre preparing to emulate norms followed by advanced economies such as the European Union (EU) and the US, two people aware of the development said.

The new regulations will cover both locally manufactured products and imported consumer goods, the two people said on condition of anonymity. The move comes in the backdrop of industry reports hinting that almost a third of consumer products in the market are spurious.

India will look to bring in random sampling and risk-based testing—practices widely adopted in the EU and the US—to ensure availability of quality products in retail markets and enhance consumer safety, the two people said.

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They added that priority will be given to testing high-risk products such as electronics, food, and toys, among others, while ensuring that all items remain subject to surveillance.

The first person said that the rapid evolution of consumer goods with innovations to make them more appealing is making it difficult for the lay consumer to assess their quality and safety. “As many do not have the expertise or tools to verify whether a product meets global standards, the introduction of new testing requirements is crucial," this person said.

According to the second person cited above, the consumer affairs ministry will task the Bureau of Indian Standards (BIS) and the National Testing House (NTH) to conduct random sampling. In the case of food items, the Food Safety and Standards Authority of India (FSSAI) will also be engaged for the purpose.

Queries sent to consumer affairs ministry remained unanswered till press time.

In December 2024, the EU replaced its 2001 regulation general product safety directive (GPSD) with the general product safety regulation (GPSR), mandating risk assessments, traceability via markings, and cybersecurity safeguards for connected products. As per the new norms, companies must maintain compliance documentation, notify consumers of safety issues, and cooperate with market surveillance authorities.

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According to a joint report by Crisil and the Authentication Solution Providers Association (ASPA) released in January 2023, about 25-30% of all products sold in India are spurious. Counterfeiting is most prevalent in the apparel and FMCG sectors, followed by pharmaceuticals, automotive, and consumer durables. As many as 27% of consumers are unaware that products are counterfeit at the time of purchase, but 31% willingly purchase spurious products, the report highlighted.

“Consumer durable standards are crucial—they will help prevent unscrupulous manufacturers from assembling and selling poor-quality products without proper guarantees, warranties, or service," said Ravi Saxena, CEO and founder of Wonderchef, a home appliances brand.

Saxena added that with the new standards, consumers will have access to better-quality products and feel more confident about what they are buying, which could encourage them to consume more.

To be sure, efforts have been underway for some time in India to strengthen coordination between regulatory bodies like the BIS, FSSAI, CSIR, and other sector-specific agencies to ensure comprehensive surveillance.

Over the past decade, the government has issued 181 quality control orders (QCOs) covering 769 products to ensure they meet Indian standards and global benchmarks. These orders apply to items like toys, appliances, and safety equipment, requiring manufacturers to get BIS certification before selling.

The department of consumer affairs is also planning to initiate class action against companies that fail to meet quality standards that are there currently, which was reported by Mint on 10 January. The proposed class action aims to hold such entities accountable and send a clear message about the importance of maintaining product quality for the benefit of consumers.

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According to a report released in September 2024 by the Confederation of Indian Industry (CII), India's consumer durables market is expected to reach 5 trillion by FY30 and will become the fourth largest in the world by 2027. It is also estimated that the sector will create around 500,000 skilled jobs across the value chain by 2030.

 

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