Traders Get Relief with New Improvement Notice Policy for First Time Regulatory Lapses

The government stated that this reform aims to promote voluntary compliance, reduce unnecessary litigation, lower compliance costs, and enhance regulatory clarity for the industry. File Photo.

The department clarified that this system does not weaken consumer protection or law enforcement.

The Department of Consumer Affairs has introduced an Improvement Notice system under the Legal Metrology Act, 2009. This initiative allows businesses that commit procedural violations for the first time to rectify their shortcomings before facing punitive action. Under this new framework, if an officer detects an initial regulatory lapse, they can issue a formal notice detailing the flaw and providing a specific timeframe for compliance. If the entity corrects the issue within the allotted period, no penalty will be imposed.

This provision specifically covers first-time violations related to registration requirements, documentation, model approvals, the manufacturing or repair of weighing instruments, imports, packaged commodity transactions, and statutory return filings. The department explained that this strategy enables enforcement agencies to focus their resources on intentional or repeat offenses that directly harm consumer interests rather than minor procedural errors.

The government stated that this reform aims to promote voluntary compliance, reduce unnecessary litigation, lower compliance costs, and enhance regulatory clarity for the industry. The department emphasized that this move adopts a balanced approach, supporting honest businesses in adhering to rules while maintaining the overall integrity and reliability of the legal metrology system.

Crucially, the department clarified that this system does not weaken consumer protection or law enforcement. Strict legal action will continue against instances of fraud, tampering, persistent rule-breaking, and other activities that adversely impact consumer rights.

This policy applies to manufacturers, importers, packers, dealers, repairers, traders, and Micro, Small and Medium Enterprises (MSMEs). The department confirmed on Monday that these changes were implemented through the Jan Vishwas (Amendment of Provisions) Act, 2026, aligning with the government's broader objective of improving the ease of doing business across the nation.