Govt to crack down on false apparel tags before Eid

• Ministry warns traders against false declarations
• Garments mislabelled imported to inflate prices
• Authorities may seize, fine or cancel
• Taskforces deployed to monitor Eid sales

The commerce ministry is gearing up to take action against traders accused of cheating consumers through false declarations of goods, particularly garments, ahead of the Eid-ul-Fitr shopping season.

The ministry's Price Monitoring and Forecasting Cell (PMFC) has already issued a circular, published in newspapers and on the ministry's website, warning traders that selling goods with false information regarding origin, brand or price is a punishable offence.

Eid-ul-Fitr is the country's biggest retail season, when a section of traders earns substantial profits, especially from garment sales. During this period, consumers often face inflated prices in markets across Dhaka and other cities, particularly in upscale shopping centres.

For instance, some traders purchase fabrics from wholesale markets such as Islampur in Old Dhaka, tailor panjabis, kurtas, shirts and other apparel locally, and then sell them in affluent areas, including Gulshan, Banani and Bashundhara. These products are frequently mislabelled as imported from India, Pakistan or other countries to justify higher prices.

In many cases, traders also attach counterfeit labels of well-known international brands and sell the garments at exorbitant rates during the Eid rush.

"They make excessive profits by selling goods with false declarations during the peak Eid season," Commerce Secretary Mahbubur Rahman told The Daily Star yesterday.

He said officials have been instructed to take strict action against dishonest traders who cheat consumers by providing false information about their products.

If goods are found to be sold with false declarations, authorities may seize or destroy them, impose fines, and even cancel trade licences, the secretary said.

In some cases, he added, goods may be publicly destroyed in front of the shops as a deterrent.

Traders will be required to maintain proper documentation, including information on the source and origin of goods, import papers, dates of import, price levels and the country of manufacture, Rahman said.

He also said that price tags and information on the origin of products must be displayed clearly so that consumers can make informed purchasing decisions.

"We are circulating this information widely and holding meetings with traders so that they refrain from engaging in deceptive practices," the commerce secretary also said.

The circular has been issued at this time as imports of goods meant for Eid sales usually begin ahead of Ramadan, which is expected to start in mid-February next year.

An official of the Directorate of National Consumer Rights Protection, speaking on condition of anonymity, said Dhaka city has been divided into four zones to monitor the sale of falsely declared goods.

A meeting with traders at Islampur, one of the capital's largest wholesale fabric markets, is scheduled for December 22 to raise awareness about the issue.

Similar meetings will be held in phases across Dhaka as well as other divisional and district cities to inform traders about government measures and legal consequences related to false declarations during the Eid season, the official said.

Another price monitoring cell official, also requesting anonymity, said members of district-level price monitoring taskforces will be deployed to check irregularities during the peak sales period.

Under the Consumer Rights Protection Act, the government has the authority to take stringent action against traders involved in deceptive sales practices, he added.