Govt allows businesses to fix first-time procedural violations before penal action

The Department of Consumer Affairs in an official statement on Monday, said the new mechanism has been introduced through the Jan Vishwas (Amendment of Provisions) Act, 2026.

The reform aims to promote ease of doing business by encouraging voluntary compliance, reducing unnecessary litigation and creating a more trust-based regulatory framework, while continuing to safeguard consumer interests.

It stated "Under the new mechanism, businesses committing specified first-time procedural or regulatory non-compliances will be given an opportunity to rectify the deficiency before penal proceedings are initiated".

Under the new system, a Legal Metrology Officer may issue an Improvement Notice when a business commits a specified first-time procedural or regulatory non-compliance covered under the Act. The notice will identify the deficiency and provide reasonable time to correct it.

If the regulated entity rectifies the issue within the prescribed period, penal proceedings and related litigation can be avoided. However, failure to comply with the notice or repeated violations will continue to attract action under the provisions of the Legal Metrology Act.

According to the Department, the mechanism applies to manufacturers, importers, packers, dealers, repairers, traders, MSMEs and other regulated entities.

The government said the reform is designed to encourage voluntary compliance and timely self-correction while reducing compliance costs and improving regulatory certainty for businesses.

It will also allow enforcement authorities to focus on deliberate and repeated violations that affect consumer interests.

The Improvement Notice mechanism covers specified first-time procedural and regulatory non-compliances related to registration requirements, documentation and record maintenance, model approval, manufacture and sale of weights and measures, imports, packaged commodities and furnishing statutory information and returns.

The provisions covered include those relating to the use or sale of non-standard weights and measures, transactions in contravention of prescribed standards, non-production of documents, failure to obtain model approval, import-related violations, furnishing false information and operating without registration.

The Department clarified that the mechanism does not dilute consumer protection or weaken enforcement under the Legal Metrology Act. Strict action will continue against fraud, repeated violations, tampering and other acts that adversely affect consumer interests.

According to the government, the reform reflects its vision of "Minimum Government, Maximum Governance" by promoting trust-based regulation and creating a transparent, predictable and business-friendly regulatory environment.

The Department said the mechanism seeks to strike a balance between supporting honest businesses in achieving compliance and preserving the integrity of the legal metrology system while safeguarding consumer interests. (ANI)