Misuse of hallmarks attract severe penalty

January 10, 2012 12:58
Misuse of hallmarks attract severe penalty

Though the voluntary jewellery hallmarking scheme was started in 2001, the recent survey conducted by BIS taking 162 jewellery samples from 16 cities found that more than 90 per cent were not of the declared purity. “This means the consumer loses 20 per cent to 30 per cent of gold in jewellery purchases,” sources added.

Misuse of hallmarks will now attract stringent punishment once the Centre brings in an amendment to the Bureau of Indian Standards (BIS) Act 1986.  “The BIS Act will be amended by enhancing the punishment to prevent misusing of hallmarking of products,” sources in the Union Ministry of Consumer Affairs told media. According to the proposal, misuse of hallmarking would attract minimum six months and a maximum of one year jail while fine will be between Rs 2 lakh and Rs 5 lakh for a single offence. Now, the minimum fine is Rs 50,000 and maximum six months jail term. The proposed amendment, which was approved by the Cabinet recently, will also empower the government to bring under compulsory certification regime any article and/or process that it considers necessary from the point of view of health, safety, environment and prevention of deceptive practices.

The government also plans to bring another 500 items under the mandatory hallmarking including toys and helmets. Now, 88 items, including cement, mineral water and milk products, are certified through mandatory hallmarking under the BIS Act for conformity with expected quality levels. The BIS, under the Consumer Affairs Ministry, is the administrative authority of hallmarking. The BIS hallmark, a mark of conformity widely accepted by the consumer, bestows the additional confidence to the consumer on the of products including precious metals like gold jewellery. The Cabinet also approved the ambit of mandatory hallmarking to include more products, including precious metals like gold, silver and platinum.

Though the voluntary jewellery hallmarking scheme was started in 2001, the recent survey conducted by BIS taking 162 jewellery samples from 16 cities found that more than 90 per cent were not of the declared purity. “This means the consumer loses 20 per cent to 30 per cent of gold in jewellery purchases,” sources added. “To protect consumers from unscrupulous jewellers, the Centre has decided for compulsory hallmarking of precious metals,” said Food and Consumer Affairs Minister K V Thomas. However, taking into account the mammoth task involved, the mandatory hallmarking of precious metals will be conducted on phased manner beginning with major cities.   “The Centre will fund every state to set up laboratories for testing the gold and certify,” Thomas said.

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