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🔒 Beware of Fake Gold Hallmarking: A Consumer Protection Guide Based on the Rajasthan Scam.

Date 25 Apr 2025
Written By
Jewelry Fraud Alert: Fake Gold Hallmarks Exposed, Consumers Warned About Deceptive Precious Metal Sales
A recent investigation revealed a gold hallmarking scam in Rajasthan where non-precious metals were fraudulently sold as 22-carat gold jewelry with fake BIS hallmarks. The article provides a comprehensive guide on identifying genuine hallmarks, understanding consumer protection laws, and steps to take if scammed. It emphasizes the importance of verifying jewelry authenticity through official channels and leveraging legal frameworks to seek redressal. - (AI Summary)

🔒 Beware of Fake Gold Hallmarking: A Consumer Protection Guide Based on the Rajasthan Scam.

📍 The Incident

In a troubling revelation, a fake gold hallmarking scam has surfaced in Rajasthan, where non-precious metals like copper and brass were fraudulently sold to consumers as 22-carat gold jewelry. These items were often stamped with fake BIS hallmarks, misleading buyers into believing they were purchasing genuine gold.

This incident is not isolated — it reflects a larger concern about the integrity of the gold trade, especially in local or unregulated markets.

🔎 What Is Hallmarking?

Hallmarking is the certification of the purity of gold by the Bureau of Indian Standards (BIS). As of June 16, 2021, hallmarking is mandatory for all gold jewelry sold in India under the BIS (Hallmarking) Regulations, 2018.

A genuine BIS Hallmark includes:

  1. BIS logo (the triangular symbol)
  2. Purity/Fineness (e.g., 22K916, 18K750)
  3. HUID (6-digit Hallmark Unique Identification number)
  4. Assaying and Hallmarking Centre’s mark
  5. Jeweller’s identification mark

🧠 How to Verify:

Use the official BIS CARE app to check the HUID and authenticity of any hallmark.

⚖️ Legal and Statutory Framework for Consumer Protection

1. Consumer Protection Act, 2019

  • Ensures right to be informed, right to safety, and right to seek redressal.
  • Sections 2(7), 2(9), and 2(47) define consumer, unfair trade practice, and rights.
  • Consumers can file complaints against unfair trade practices in Consumer Commissions at district, state, or national level.

2. BIS Act, 2016

  • Section 29: Penalty for misuse of BIS Standard Mark — imprisonment up to 1 year or a fine up to ₹1 lakh or both.
  • Section 14: Only certified jewelers can use BIS hallmarking.
  • Section 17: Authorizes seizure of non-standard marked goods and revocation of licenses.

3. Legal Metrology Act, 2009

  • Ensures proper weight and measure in commodities.
  • Mandates accurate declaration of content and packaging.

🚨 Red Flags: How to Spot Fake Gold

Red Flag

What It Might Indicate

Hallmark is smudged or unclear

Possible fake stamping

No HUID in the hallmark

Not BIS-certified

Jeweler refuses to show BIS license

May not be registered

Price is too good to be true

Could be substandard or fake metal

Lack of proper invoice/bill

No official transaction — hard to seek remedy

🛠️ What to Do if You’ve Been Scammed

  1. Test the Jewelry at a BIS-recognized Assaying and Hallmarking Centre.
  2. File a Complaint:
  3. Seek Redressal:
    • Lodge a case with the Consumer Disputes Redressal Commission.
    • You can now file complaints online through edaakhil.nic.in.

🧑‍🏫 Consumer Education Is the Best Shield

As consumers, we must:

  • Always buy from BIS-certified jewelers.
  • Check for HUIDs and verify via the app.
  • Educate others — especially elderly buyers or those in rural areas — who may be more vulnerable.
  • Understand our legal rights under Indian laws.

📢 Government’s Role and Enforcement

The Department of Consumer Affairs and BIS have started regular market inspections and have empowered State Legal Metrology Departments to check malpractice. Recent operations in Rajasthan, Maharashtra, and Delhi have uncovered dozens of such frauds.

Conclusion

Fake gold hallmarking scams are a serious threat to consumer trust and financial security. With legal mechanisms in place and digital tools like the BIS CARE app, Indian consumers are better equipped than ever to make safe and informed purchases.

Stay alert. Stay informed. Assert your rights. Because an aware consumer is an empowered citizen.

***

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