Time To Reform Consumer Rights

Instead of the consumer being the king, as the saying goes, the consumers have become the victims of their inefficiencies in Nepal. They have become complete slaves at the hands of manufacturers and sellers at present. Consumer exploitation is deep-rooted and can be traced back to the origin of the exchange economy, but its magnitude has unprecedentedly reached a climax. If the present trend continues, it may turn into economic anarchism in no time. As at the period of hyperinflation in Germany, the prices are rising every hour, every day, without any reasons.

Although maximization of profit is the measuring rod of the success of a business, customer satisfaction, which debar the traders from committing the social crimes of producing low-quality goods, charging artificially high prices, and resorting to hoarding and adulteration, is the basic business principle. The theory also tells us that the businessman should adhere to the principle of morality. But they are acting quite the reverse simply because they have not had to face the warmth of the customers.

The government often declares that it is committed to consumer protection, and recently it has been disclosed that the government is setting up a consumer court as well. The establishment of fair price shops and the scrutiny of warehouses owned by large businessmen to curb artificial shortages and price hikes are positive steps in the right direction. The committees relating to them will have to be cautious since the cunning businessmen are always one step ahead of the government.

The change in exchange rate, rise in the price of petroleum products, and wage hike due to labor unrest have added fuel to the fire of price increases already caused by the system of cartels in the supply of goods and services, artificial shortages, inadequate supply systems, etc. The businessmen have been reaping rich harvests by seizing an opportunity from a state of political chaos. Even the publicly owned enterprises have not lagged behind in increasing the prices and exploiting the consumers. The consumers have become the victims of their inefficiencies.

It is not that the provisions for consumer protection are completely absent in Nepal as well. But the real problem lies in their weak implementation. The Central Food Research Laboratory leaks out the outcome of certain food research once in a blue moon. How far the provisions made in the Food Act and Regulation have been implemented is open to doubt. The Consumer Forum, an association for the protection of consumer rights, is limited in making occasional public statements and has become the center for the employment of the party workers. Besides, the Nepal International Consumer Association and Forum for Protection of Public Interest have also been established. But the real motive behind such establishments has been to fulfill certain self-interests rather than genuinely raise voices against consumer exploitation.

The problem of the consumer is the problem of all since all are consumers, but it is as an orphan, a concern of none. There is neither consumer awareness nor consumer resistance. The consumers are at the mercy of sellers. Besides price increases, they have been exploited in many ways. They have been deceived by advertisements and packaging that show goods as new, different, and improved products, which, in reality, are virtually identical to products already marketed by them. The inadequate distribution system contributes to consumer harassment. The quality control and warranty cards rarely exist. Adulteration is widespread in almost all consumers as well as producers’ goods, which are the reasons for major health hazards in the country. Consumers are also exploited by giving short weight and measures.

It also seems to be consumers’ fault since they are most unorganized and careless. They pay more out of ignorance. An indifferent consumer, unmindful of the injustices done to him, is responsible for the denial of consumer rights. Too often the consumers grumble and do nothing, not even complain formally. They remain in fear of goods not being available and pay whatever price is demanded and accept whatever quality is offered. What is distressing is that a large organization like the Consumer Forum has been unable to organise any demonstrations to address and highlight consumer grievances.

It shows that the consumer movement is vital and urgent in Nepal; the consumers have to fight their own battle. They should not hesitate to take bold steps since, as opined by Adam Smith, the father of economics, 'it is not on the benevolence of the butcher or the baker that we derive our daily needs of food but through the regards of the suppliers for their own business’. To stop the businessman from deceiving all the people all the time, consumer unity is inevitable.

The strong consumer movement exists in developed countries. Ralph Nader, an ardent consumerist, made possible many legislations to safeguard consumers in America. To protect consumers from the evils of artificial price increases, adulterated food articles, hoarding, black marketing, frauds, hazardous products, fleecing of consumers, etc., laws, orders, and regulations are to be found in the U.S., U.K., Canada, Australia, Sweden, and other European countries. The legislations are often in the forefront of the consumer protection movement.

The consumer forums should be formed from the district to the national level, representing a cross-section of consumers with strong leadership. At the government level, the council for consumer protection or a separate department under the Ministry of Supplies should be set up. The government should ban or deal effectively with all illegal and unfair practices in business. The incorrupt officials be given the charge of looking after the unfair trading. The government's advocacy of a free market economy has its own limitations at the present juncture. There is no other alternative to the government seemingly committed to the improvement of the life of the majority of the poor rather than interference.

Besides, every leading newspaper should have a column for consumers to be informed and complain; the Fair Trading Act should be passed in the parliament. The consumer organization must be strong enough to boycott traders selling high-priced or substandard products and must verify the advertisement claims of manufacturers by examining the products in a test house. In leading markets, public weight and measurement facilities should be made available. The misdeeds of unfair traders should be brought out in mass media. The products must bear standard certification of approved agencies to reassure consumers of the quality of their purchase.

The strong consumer association is also necessary to get the best from public utilities as well. Despite the increase in the prices, the public utilities have not improved their services. In fine, it can be said that the stronger the consumer movement and the more cohesive its members, the more the government and traders will respond to it. It will also be wise on the part of the government to take actions promptly since the political honeymoon that it is enjoying today may not be forever.

 (Joshi is a Professor of Business Economics.)