Retailers demand fair play in online markets as counterfeit trade rises
The Tamil Nadu chapter of the Federation of Retailers Association of India (FRAI) has expressed serious concerns over the growing circulation of counterfeit and non-compliant products, alongside unfair market practices, in India's rapidly expanding online retail ecosystem. The remarks came at a seminar titled 'Confronting Illicit Trade in Modern Markets' held in Chennai on Tuesday, where retailers, trader associations, and other stakeholders deliberated on the impact of illicit trade, predatory pricing, and deep discounting on traditional businesses.
Participants at the seminar highlighted that counterfeit goods and illegal distribution channels not only hurt genuine businesses and deprive the government of revenue, but also pose significant risks to consumer safety and threaten the livelihoods of lakhs of small traders across the country. The rise of quick commerce and e-commerce platforms, they noted, has made it increasingly difficult for consumers to distinguish authentic products from counterfeit ones, especially during flash sales and aggressive pricing campaigns.
C. Chelladurai, president of the FRAI Tamil Nadu chapter, described illicit trade as a serious threat to consumer safety, fair competition, and the livelihoods of legitimate retailers. "Counterfeit and illegally sourced products not only expose consumers to substandard and unsafe goods but also undermine the credibility of legitimate businesses," he said. His remarks echoed the collective concern of retailers who feel that the rapid growth of digital marketplaces has outpaced regulatory oversight and enforcement mechanisms.
The seminar also drew attention to the issue of predatory pricing and deep discounting, which retailers argue creates an uneven playing field. Small and traditional retailers, who cannot afford such aggressive pricing strategies, find themselves at a disadvantage against well-funded e-commerce platforms. This, in turn, threatens the diversity of the retail sector and the livelihoods of millions who depend on conventional trade.
The Federation of Retailers Association of India represents a broad spectrum of retailers, from small independent shops to large chains, and has been vocal about the need for a fair and transparent retail environment. In its Tamil Nadu chapter's appeal, the association called for stronger enforcement of existing laws, greater consumer awareness, and the adoption of fair market practices. "We need a level playing field for small and traditional retailers," Chelladurai added, urging authorities to address the regulatory gaps that allow illicit trade to flourish.
The concerns raised at the seminar come against the backdrop of India's rapidly growing e-commerce sector, which has seen a surge in online shopping, particularly in urban and semi-urban areas. While this growth has brought convenience to consumers, it has also brought challenges, including the proliferation of counterfeit products and the erosion of fair competition. Retailers argue that without timely intervention, these issues could undermine trust in the digital economy and harm consumers.
FRAI Tamil Nadu has now called for collaborative action involving government agencies, e-commerce platforms, and consumer groups to tackle the menace of illicit trade. The association has also stressed the importance of educating consumers about the risks of buying counterfeit goods and the need to verify the authenticity of products purchased online. As the seminar concluded, participants resolved to work towards a more equitable retail ecosystem, where all players—large or small, online or offline—can thrive without compromising on quality or fairness.
