June 2024

June 07,2024 A recent investigation has brought to light a troubling issue within India’s prison system – a staggering number of wrongly incarcerated children are being held in adult prisons. A recent iProbono report, based on RTI responses, revealed that nearly 10,000 minors were wrongly locked up in adult prisons between Jan 2016 and Dec 2021. It is very likely that this number doesn’t reveal the entire picture because information was only sought from central and district jails in 28 states and two UTs, and only half of the prisons responded. This is scandalous for a nation that purportedly invests its future in its young. The Juvenile Justice (Care and Protection of Children) Act 2015 states that placing a child in an adult prison is unlawful. As per the Act, a child alleged to have committed an offence, or found guilty of an offence, is to be placed in an appropriate juvenile home – observation home, special home or a place of safety. Commenting on the JJ Act, the Supreme Court in 2005 had said, ‘The Act is not only a beneficent legislation, but also a remedial one. The Act aims to grant the care, protection, and rehabilitation of a juvenile vis-a-vis adult criminals.’ The first objective of the state is the promotion of the well-being of the juvenile, and the second is to bring about the principle of proportionality, by which proportionality of the reaction to the circumstances of both offender and offence, including the victim, should be safeguarded. The state has failed to implement the law on all counts. Affixing responsibility is critical, as is improving the juvenile corrections system by creating a network of observation homes, special homes and places of safety. Efforts to increase awareness of rights and access to legal aid will help protect rights of such hapless young Indians. Source: Economic Times

May 16,2024 The Supreme Court has declared that the the fundamental right to health encompasses the right of a consumer to be made aware of the quality of products being offered for sale by manufacturers, service providers, advertisers and advertising agencies. To protect this right, the Court directed that henceforth, before an advertisement is printed/aired/displayed, a Self declaration shall be submitted by the advertiser/advertising agency on the lines contemplated in Rule 7 of the Cable Television Networks Rules, 1994. The direction was passed by a bench comprising Justices Hima Kohli and Ahsanuddin Amanullah in the Patanjali case (Indian Medical Assocaition v. Union of India and others) on May 7. In the copy of the order uploaded today, the Court made certain pertinent observations regarding the customers’ rights. It may be recalled that the case was filed by the IMA seeking regulation of the misleading medical advertisements published by Patanjali Ayurved Ltd. During the course of the case, the Court initiated contempt proceedings against Patanjali Ayurved, its founders Baba Ramdev and Acharya Balkrishna. Advertisers and endorsers are equally responsible for issuing false and misleading advertisements In the order dated May 7, the Court commented on the responsibility of celebrities and influences who endorse products in advertisements. “We are of the firm view that advertisers/advertising agencies and endorsers are equally responsible for issuing false and misleading advertisements. Such endorsemehat are routinely made by public figures, influencers, celebrities etc. go a long way in promoting a product. It is imperative for them to act with a sense of responsibility when endorsing any product and take responsibility for the same, as reflected in Guideline No.8 of the Guidelines, 2022 that relates to advertisements that address/target or use children for various purposes and Guideline No.12 that lays down the duties of manufacturers, service providers, advertisers and advertising agencies to ensure that the trust of the consumer is not abused or exploited due to sheer lack of knowledge or inexperience. Guideline No.13 requires a due diligence to be undertaken for endorsement of advertisements and requires a person who endorses a product to have adequate information about, or experience with a specific good, product or service that is proposed to be endorsed and ensure that it must not be deceptive.” The Court also noted that there is no robust mechanism available for the customer to lodge complaints for violation of Guidelines for Prevention of Misleading Advertisements and Endorsements of Misleading Advertisements, 2022 framed by the Ministry of Consumer Affairs. “In view of the above and in the absence of any robust mechanism enacted in law to ensure that the obligations cast on the advertiser to adhere to stipulations in the Guidelines, 2022 in letter and spirit, it is deemed appropriate to invoke the powers vested in this Court under Article 32 of the Constitution of India for the enforcement of the fundamental right to health that encompasses the right of a consumer to be made aware of the quality of products being offered for sale by manufacturers, service providers, advertisers and advertising agencies. The Court directed that the Self-declaration shall be uploaded by the advertiser/advertising agency on the Broadcast Sewa Portal run under the aegis of the Ministry of Information and Broadcasting. As for the advertisements in the Press/Print Media/Internet, the Ministry is directed to create a dedicated portal within four weeks from May 7. Immediately on the portal being activated, the advertisers shall upload a Self-declaration before any advertisement is issued in the Press/Print Media/Internet. Proof of uploading the Self-declaration shall be made available by the advertisers to the concerned broadcaster/printer/publisher/T.V. Channel/electronic media, as the case may be, for the records. No advertisements shall be permitted to be run on the relevant channels and/or in the print media/internet without uploading the self- declaration as directed above. The above directions shall be treated as the law declared by this Court under Article 141 of the Constitution of India. Source: Livelaw

May 19,2024 New Delhi: The Food Safety and Standards Authority of India (FSSAI) has alerted traders, fruits handlers and Food Business Operators (FBOs) who are operating ripening chambers to strictly ensure compliance with the prohibition on Calcium Carbide for artificial ripening of fruits, particularly during the mango season. FSSAI is also advising Food Safety Departments of States/UTs to remain vigilant and take serious action and deal stringently against person(s) indulging in such unlawful practices as per the provisions of FSS Act, 2006 and Rules/Regulations made thereunder, the Ministry of Family and Health Welfare informed in a press release. Calcium carbide, commonly used for ripening fruits like mangoes, releases acetylene gas which contains harmful traces of arsenic and phosphorus. These substances, also known as ‘Masala’, can cause serious health issues such as dizziness, frequent thirst, irritation, weakness, difficulty in swallowing, vomiting and skin ulcers, etc. Additionally, acetylene gas is equally hazardous to those handling it. There are chances that calcium carbide may come in direct contact with fruits during application and leave residues of arsenic and phosphorus on fruits, the release stated. Due to these dangers, the use of calcium carbide for ripening fruits has been banned under Regulation 2.3.5 of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011. This regulation explicitly states, “No person shall sell or offer or expose for sale or have in his premises for the purpose of sale under any description, fruits which have been artificially ripened by use of acetylene gas, commonly known as carbide gas.”Considering the issue of rampant use of banned calcium carbide, FSSAI has permitted the use of ethylene gas as a safer alternative for fruit ripening in India. Ethylene gas can be used at concentrations up to 100 ppm (100 ml/L), depending upon the crop, variety and maturity. Ethylene, a naturally occurring hormone in fruits, regulates the ripening process by initiating and controlling a series of chemical and biochemical activities. The treatment of unripe fruits with ethylene gas triggers the natural ripening process until the fruit itself starts producing ethylene in substantial quantities. Further, the Central Insecticides Board and Registration Committee (CIB & RC) has approved Ethephon 39 per cent SL for the uniform ripening of mangoes and other fruits. The Ministry emphasised that FSSAI has published a comprehensive guidance document titled “Artificial Ripening of Fruits – Ethylene gas a safe fruit ripener” suggesting the Food Business Operators to follow the procedure for artificial ripening of fruits. This document outlines a Standard Operating Procedure (SOP) incorporating all aspects of artificial ripening of fruits by ethylene gas viz. Restrictions, Requirements for Ethylene Ripening System/Chamber, handling conditions, Sources of Ethylene Gas, Protocol for application of Ethylene gas from various sources, post treatment operations, safety guidelines etc. “In case any use of Calcium Carbide or any wrong practice of using ripening agents for artificial ripening of fruits is noticed by the consumers, the same may be brought to the notice of concerned State Commissioners of Food Safety for taking action against such violators,” the release added. Source: Healthworld

May 24,2024 Mumbai: The ‘Label Padhega India’ campaign, an important step in building domestic consumer activism and fostering awareness, underscores the inherent issues related to product labelling locally. Still, products aimed at more sensitive consumer segments, such as children, may undergo greater manufacturer scrutiny. “Label Padhega India campaign has the potential to become the second largest consumer campaign after the ‘Jaago Grahak Jaago’ campaign by the Indian government,” said Harish Bijoor, brand strategy specialist. “However, for that to happen, the digital marketing has to be strong. Companies will not pay heed to the campaign until it gains larger traction and manages to yield a change in consumer behaviour. The onus on the influencers is to garner traction for the campaign by advertising it on a larger scale across media.” Product labelling in India faces several issues – ranging from non-compliance with the regulations, language barriers, misinformation and misleading claims, inconsistent labelling standards, illegible labels, lack of transparency, inadequate enforcement of the labelling regulations and imported goods not meeting the Indian labelling standards. “The campaign is an effective step in the right direction with its timing being right – coming days after the Supreme Court strictures on Patanjali and its founders for misleading advertisements,” said business strategist and FMCG industry expert Lloyd Mathias. “However, there are issues with product labelling in India.” Consumers, globally, do not generally read the product labels minutely to find out about the ingredients used. Hence, the use of pictorial labels has become more widespread. Countries such as Chile, Mexico, Peru, Brazil and Israel have implemented the use of pictorial warnings on food labels. For instance, Chile uses black octagonal signs to indicate high levels of sugar, sodium, calories and saturated fats. In India, green dots on food products indicate that the product is vegetarian. But, as Mathias said, the intended outcome from product labelling faces a question mark due to inherent issues. “First, to what extent companies are truthful about their labels. Second, how stringent is the law enforcement on product labelling by the FSSAI. Third, local and small brands selling snacks or fast foods go past the FSSAI regulations,” Mathias said. “However, the campaign is important in drawing public attention toward nutritional information about the product and is likely to appeal to young, urban consumers. It emphasises that the onus is on the consumer to make an informed buying decision. The jury is out on the potential impact of the campaign on buying behaviour. “I don’t think that the campaign will make a significant difference in terms of consumer buying patterns, since most consumers are either making a conscious choice or don’t have alternative options to choose from,” said Sachin Bobade, VP – research, Dolat Capital. To be sure, product labelling is a small aspect of consumer awareness. “Displaying labels as part of the advertising campaign proves to be more effective than simply product labelling since only around 0.2% of the consumers in India read packaging on the product,” Bijoor said. “The law currently doesn’t mandate showing labels in the product advertising. But a display of the product label in a digital ad is effective in communicating the contents to the consumer.” The Label Padhega India campaign nevertheless is likely to prompt companies to re-jig their product portfolio. According to Mathias, the companies are very sensitive about what is said about them. “Once the campaign starts garnering attention, a lot of companies will look at ways in which their labelling can become better,” he said. “The campaign may prompt companies to relook at their product portfolio – especially the ones targeted for kids,” said Bobade. “Companies will have to change the contents or proportion of sugar, salt or fats in the products – that may lead to changes in taste and increase in prices. But their concern would be whether consumers continue to prefer the products with changed taste and higher prices,” he said. “A sizable public chatter building up shall make the regulator wake up. The regulator can issue specifications related to the size, font and other details of the label, guidelines for companies to follow especially when they are selling the same product in different parts of the world and improve the enforcement of the laws at the last mile,” Mathias added. Source: Economic Times

June 10,2024 “I am not saying that the market will go up five times, but I am seeing the repeat of that. So, we are seeing, as you said, huge volatility, not the kind which we saw earlier, but still a huge volatility,” says Milind Karmarkar, Dalal & Broacha Portfolio Manager. So, actually, again, as always, I go back in history. So, in fact, 2002 to 2008, that period was one of the best periods to be in the markets because you saw the best, you saw the worst. You saw what happens after a coalition comes in power. You see what happens when a liberal party like Congress is supported by communists, the market goes down 20% and after that the market goes up five times. You have seen that happen. I think we are seeing a repeat of that. I am not saying that the market will go up five times, but I am seeing the repeat of that. So, we are seeing, as you said, huge volatility, not the kind which we saw earlier, but still a huge volatility. And now we have a government which is a coalition government all said and done, though BJP has a significant number of seats, but it is a coalition government and there will be coalition politics will come into play. So, my belief is that whenever a coalition is at the centre, then you see a decent growth. The clear focus is economics. The clear focus is to do better for the masses and that is what drives the markets, that is what drives the economy as well. My view is that, frankly, now the market is far better discovered than what it was in 2003-04. There are so many analysts, there are so many funds, and everyone is researching companies. So, according to me, market is fairly discovered market. There may not be a single theme which will drive the market. The only mega trend which I see and I have been talking about it earlier also is consumption and rising per capita income. So, whichever industries benefit out of that will continue to do well. Within that, of course, there are smaller trends which are also there, like you said, whether it is railways, whether it is power. But again, there is a slight difference here. What will happen probably is that the PE expansion will not happen going forward. You will get the returns which earnings will give you. I do not see it immediately. Five years down the line, I do not know. But immediately, at least it is unlikely that the PEs will contract, especially in themes like railways, power and these, because there is a defined growth path there for next four-five years. Source: Economic Times