Why Do Customers Now Require Hallmark Registration Before Buying?

Today’s modern consumers are becoming smarter; they know which things are best for them and which are not. Due to which they also buy those things that are ensured by the authorities. So, consumers want those jewelry pieces that are pure and totally qualified in terms of quality. Before purchasing anything, people check for any trademark and certification on that item. Buying jewelry with a hallmark certification is more trustworthy than a local jewelry. Because the hallmark registration ensures purity and quality in jewellery, which is a mandatory thing for any jeweller.

Hallmark registration in India comes during the time period of the 2000s, after which it became compulsory for any business or jeweller. If they want to sell their items freely and smoothly. Mainly, customers also want hallmark registration for purity assurance, protection against fraud, and legal recourse. Hallmark registration benefits for buyers become a mandatory government-regulated certification for valuable metals in nations like India, like gold and silver. This works as a third-party guarantee of quality, which becomes impossible to ensure alone.

So, in this blog, you will learn about why modern consumers are demanding hallmark-registered jewellery before purchasing:

1. 7 Reasons Why Consumers Are Demanding Hallmark Registration

There are many reasons why modern consumer wants purity and certified jewellery items. We can say they want hallmarked jewellery, because modern customers require those products which they can use of last-longer. Bis Hallmark’s trust in gold provides them a satisfaction and a piece of mind in their jewellery items, and also helps them protect themselves from fraud. That’s why we can say that hallmarking is a fair deal for consumers and sellers both.

Some more detailed points on this topic are mentioned below:

1. For the guarantee of purity and quality – Hallmarking ensures quality, for example, 22K or 91.6% pure gold. Due to which consumers get satisfaction in their jewelry. This removes their doubts regarding quality and helps consumers receive the true value for their money.
2. Protection from fraud – The hallmark jewellery purity check plays a role as a safeguard against unethical practices, such as getting adulterated or lower-purity products at a higher price. Implementing unique identification numbers (HUID) on every jewellery item improves traceability and transparency.
3. Increase confidence and trust – During the time of purchasing, seeing a hallmark sign on any jewellery from an authority like the Bureau of Indian Standards (BIS) boosts confidence and peace of mind among consumers. which is crucial when making significant investments in valuable items like jewellery.
4. Due to better resale value – Hallmarked jewellery comes with a higher and more consistent resale or exchange value throughout the market because the purity and quality of it is fully certified by authorities. 
5. Provides legal protection – Also, in the case of legal protection, the hallmark registration for jewellery provides a genuine legal framework and trademark. Because if the purity of hallmarked products is found to be less than the written standards, then in that case, the buyer has a formal mechanism to file a complaint and seek justice or compensation.
6. Transparency – The hallmark awareness among consumers also brings standardization to the jewellery products, and provides informed decisions, and compares prices across different sellers based on guaranteed purity levels. Because transparency helps in promoting ethical behavior among jewellers and helps the industry grow in credibility.
7. Boost awareness – Reliable government campaigns and industry initiatives have increased consumer awareness about the importance of hallmarking, leading them to actively demand certified products.

2. Impacts of Not Having Hallmark Registration in a Business

Not having the hallmark registration means selling your jewellery items blindly. Because hallmarking ensures purity and quality in jewellery items, but without hallmarking that your products do not assure quality & purity. Also, due to not having your hallmark gold buying guide, you might have to face many fines and penalties throughout your journey, and with these, you also lose your brand reputation and respect. Your business got significant legal, financial, and reputational consequences.

So, before selling your jewellery items, make sure they are totally registered under the hallmarking guidelines. Now, some more detailed impacts are mentioned below:

Legal and financial impacts

1. If you try to sell your non-hallmarked jewellery in India, then it can be counted as a punishable action, which comes under the BIS Act, 2016. Especially for small jewellers with an annual turnover below ₹40 lakh.
2. Not getting Hallmark registration also causes fines, which include substantial fines. And the fine has five times more value than the price of the jewellery. Minimum of ₹1 lakh, or a fine based on the quantity of non-compliant items.
3. Legal action and a maximum penalty of one to two years in jail are possible outcomes of serious or repeated violations of non-compliance.
4. Even you got raids and seize by the Bureau of Indian Standards’ authority (BIS) for non-complianting with the guidelines of hallmarking.
5. Due to non-compliance, it can also result in the suspension or cancellation of the business license and the proper shutdown of your operations.
6. Some businesses can also face lawsuits and legal action under the Consumer Protection Act. Due to selling non-compliant items to the customers.

Business and reputational impacts

1. As we know, the BIS hallmark certificate acts as an assurance of authenticity and purity. So, without having it, businesses have to face issues in building and maintaining consumer confidence, as buyers are wary of fraud and adulterated products.
2. Non-hallmarked jewelry also gets lower resale or exchange value because it has no proof of any purity and cannot be officially verified, making buyers conservative in their pricing.
3. In this wide market where hallmarking is known to be a sign of purity and standard. So, businesses without the certification can lose their competitive edge in comparison to those who offer certified, transparent products.
4. If any business wants proper growth and potential, then having hallmark registration becomes must important for them. Especially for exports. Market reach and international acceptance may be restricted by non-compliance.
5. Impact on transparency, selling products without the hallmarking means getting non-transparent trade practices, which are counted as an action against government standards. 

3. Go with LegalRaasta’s Hallmarking Services and Get Yours!

Building a jewellery business takes time, and you shouldn’t have to do it alone. At LegalRaasta, we give founders, manufacturers, and startups real, hands-on services. Our team includes everything as we provide hallmark certification, providing hallmark certification service along with company registration, LLP, and NBFC formation, among other things. We are not just handing over papers; we help you understand your numbers and operate better. With LegalRaasta, you get practical expertise and efficient processes and a partner who is invested in your long-term growth. So, provide your legal and compliance work to us while you focus on what matters, raising the bar for your company.

4. Frequently Asked Questions

Who issues this hallmark registration?

Ans. The hallmark registration is issued by the Bureau of Indian Standards (BIS) for precious metals like gold and silver.

Why is the hallmark registration important for jewelry?

Ans. This registration is mandatory because it ensures quality and purity in jewelry items, to protect consumers from fraud and spam.

Is getting hallmarking hard?

Ans. No, getting Hallmark registration for jewellery is not that hard; you can easily apply for it with some easy steps.

What happens if I do not get Hallmark?

Ans. If any business does not have the hallmark, then it might get fines and penalties, and also lose its brand reputation.

How does hallmarking check the purity in jewellery?

Ans. During the time of process, the authority sends an inspector to your facility. It ensures that your products are pure and of high quality.