Whither consumer protection law?

The main objective of consumers' law is to protect the rights and safeguard the interests of consumers. A look into the history of initiating steps to safeguard the rights and interests of consumers reveals that 'in the 1950s some businessmen in the United States (US) used to resort to fraud and deception in selling goods and commodities. At times they used to charge exorbitant prices in the name of monopoly business. They also used to cheat consumers by selling underweight and adulterated goods. In these circumstances, the US president John F. Kenedy got a historic bill on four rights of consumers approved by the Congress on 15 March 1962. These rights soon received recognition around the world.'

In a resolution on 16 April 1985, seven basic principles to protect consumers' rights were adopted by the UN General Assembly and these principles include: (i) right to safety; (ii) right to information or knowledge; (iii) right to complain and make representations; (iv) right to purchase commodities at a fair price according to one's choice; (v) right to get compensation; (vi) right to learning on the part of the buyer; and (vii) right to a healthy environment. The UN directed all member countries and organisations to implement these principles.

In order to protect the aforementioned rights, consumers' laws have been enacted not only in developed countries but also in some of our neighbouring countries namely India, Sri Lanka and Nepal in accordance with the principles laid down by the UN. Let me state below the salient points of consumer policy/ consumer acts in some countries.

Consumer protection in the European Union (EU) include the basic principles namely securing consumers' safety, safeguarding consumers' interests, enforcing consumer protection rules, asserting consumer rights, working with consumers, and consumer education. On 07 May 2002, the European Commission adopted a new consumer policy strategy specifying its overall political approach for the five-year period, 2002-2006. It has three key objectives: (a) a high common level of consumer protection; (2) effective enforcement of consumer protection rules; (3) proper involvement of consumer organisations in EU policies.

Federal trade commission (FTC) of the US works to protect American consumers. The FTC works with foreign law enforcement agencies on investigations and cases that affect US consumers. The FTC also develops policies that promote consumer choice and encourage consumer confidence in the international marketplace, with a focus on e-commerce and emerging technologies, through international organisations.

Indian consumer got a 20th century gift from its government in the form of consumer protection act 1986 (COPRA-86) which enshrines six consumer rights and encompasses all the earlier legislations for consumer protection. The consumer rights are eight in number out of which Indian government has accepted only six. The eight basic consumer rights are as follows:

(1) Satisfaction of basic needs: To have access to basic, essential goods and services: adequate food, clothing, shelter, healthcare, education, public utilities, water and sanitation.

(2) Safety : To be protected against products, production processes and services which are hazardous to health or life.

(3)Information: To be given the facts needed to make an informed choice, and to be protected against dishonest or misleading advertising and labeling.

(4) Choice: To be able to select a range of products and services, offered at competitive prices with an assurance of satisfactory quality.

(5) Representation: To have consumer interests represented in the making and execution of government policy, and in the development of products and services.

(6) Redress : To receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services.

(7) Consumer education: To acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.

(8) A healthy, sustainable environment: To live and work in an environment, which is non-threatening to the well being of present and future generations.

Indian government has accepted 2nd to 7th rights. 1st and 8th rights were supposed to be covered under other programmes of government.

The consumer protection act 1979 of Sri Lanka came into effect on 1 January 1979. The act provides for consumer protection, regulation of internal trade and the establishment of fair trade practices. The 1980 amendment of the act provides a novel feature--the consumer protection fund. Contributions to the fund come from fines imposed by the courts for offences under the act, 50 percent of the sale proceeds of any articles forfeited under the act, grants or donations to the fund, and any sums of money voted by parliament for the purpose of consumer education. The commissioner of internal trade created under the act is authorised to make payments from the fund for the promotion, assistance and encouragement of consumer organisations and for consumer education and information dissemination.

Enactment of consumer protection act in Bangladesh at an early date has become necessary primarily due to the following reasons:

First, price hike of essentials has been a matter of serious concern for the people in general and the poor and the fixed wage earners in particular. For price spiral of commodities produced in the country, the retailers hold the wholesalers responsible; the latter shift the blame onto extortionists. For the imported goods, the importers shift the blame on the increase in prices in international markets, high tariff etc. Analysts are, however, of opinion that it is only the importers who have the means and scope to manipulate the market. It is they who set the price in the first place. An English weekly on October 7, 2005 thus wrote “Various syndicates of traders grope for an arbitrary price that will sustain demand.”

Second, the people of the country have been facing serious problem of adulteration of all varieties of food. They are also victims of fake and date expired medicines and drugs. According to a front-page report carried by a Bangla daily on 1 November, 2005, there are five hundred thousand unlicenced pharmacies which are primarily responsible for selling low quality and date expired smuggled medicines. It is learnt that the draft law provides for a consumer council to formulate policies to protect consumers' rights. A consumer bureau will investigate allegations by consumers and if it finds any proof, the matter will be sent to special tribunal to be set up under the act to try the accused responsible for selling and producing fake, low quality commodities injurious to human health.

Third, provision for compensating the affected consumers by the manufacturers and sellers of fake, low quality and adulterated products will, to some extent, act as a deterrence in the manufacture and sale of such products.

Fourth, consumers need to be educated about their basic rights and responsibilities and how to act upon them. They have to be given facts that will protect them against dishonest or misleading advertising and labeling.

Fifth, a powerful lobby, according to some people, has been active against enactment of laws namely consumer protection law, and water bodies protection law. To allay this suspicion, the government should accelerate the process of enactment of consumer protection act.

Last but not the least, as a member of the UN, Bangladesh should not further delay in implementing the UN resolution on the issue.

To conclude, the proposed consumer protection law will encompass all strata of the society. The government may, therefore, consider soliciting opinion of the CAB, the civil society leaders and the media on the draft law before placing it in the cabinet meeting. The cabinet may be benefited from public opinion in according its final approval to the draft law.

M. Abdul Latif Mondal is a former Secretary to the government.