New Indian law mandates hallmarking for gold

M P Ahammed

Successive governments have brought many laws to ensure that the rights of consumers are non-negotiable. The hallmark of the Consumer Protection Act, 1986, passed by the Indian Parliament, is to legally ensure cent per cent value for money for the buyers of any articles of consumption. It is against this backdrop one should see the hallmarking for gold and gold articles made mandatory by the government last year.

It goes without saying that the mandatory mandate to hallmark gold and gold articles may put an end to the practice of cheating consumers by unscrupulous sellers pushing inferior quality products to buyers under the subterfuge of lower prices. Hence, the law should be treated as a watershed moment in ensuring consumers’ right for buyers of gold articles as now they have insurance against being duped by sellers.

The government, under the Consumer Protection Act, is duty-bound to legally protect the interest of buyers. By making hallmarking compulsory, the government now ensures the best interest of buyers of gold and gold articles as the law protects their rights with a legal mechanism in case of some traders trying to cheat them.

Hallmarking will also benefit gold jewellers immensely. By selling pure gold, they could gain the trust of their customers and thus grow in business.

 M P Ahammed is the chairman of Malabar Gold & Diamonds

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