Protecting The Rights Of Consumers

Nepal government has finally decided to set up a consumer court in the Kathmandu Valley. The jurisdiction of the court will be confined to Kathmandu, Lalitpur and Bhaktapur. Even so, this can be considered a great achievement in the domain of consumer rights. The court will be a specialised court dealing with consumer complaints, grievances or disputes. The court will be set up on the premises of the Department of Drug Administration. However, the Supreme Court has instructed the government to develop separate infrastructure for this. In other districts, issues regarding consumer protections will be looked after by respective district courts until consumer courts are established.  

Last fiscal year, the government allocated a budget of Rs. 10 million to establish a consumer court in Kathmandu on a trial basis. But the process could not move ahead. This time around, the concept of such a court has materialised. It is a dispute resolution and redress mechanism as recognised by the United National Guidelines for Consumer Protection. The need for establishing such a court has long been felt. The Consumer Protection Act, 2018 protects consumers’ rights to safe, fair and quality goods and services. This provision is also encapsulated in the Constitution of Nepal. The act requires the government to set up consumer courts to promote the interests of consumers against unscrupulous business practices, which are rampant in the market. 

SC's order 

Based on this requirement, the Ministry of Industry, Commerce and Supplies submitted a draft legislation to the Ministry of Law in September 2019, which was then forwarded to the Judicial Council. However, the process got delayed with the emergence of the COVID-19 pandemic and other factors such as political instability and frequent change of ministers. Seeing the procrastination, the Forum for Protection of Consumer Rights Nepal moved the Supreme Court for the establishment of consumer courts all over the country. In response, the Supreme Court, in February 2022, ordered the government to establish consumer courts in all provinces. 

As the establishment of consumer courts in a province would be unviable as people would have to travel long distances, it was decided to gradually set up consumer courts in each district. As per the decision, the government has decided to establish a consumer court in the Kathmandu Valley. The consumer courts to be established in the country will follow international standards and abide by the United National Guidelines for Consumer Protection. The guidelines help countries to formulate laws and regulations regarding consumer protection, set standards for law formation, provide international cooperation in working together to protect consumer rights and raise awareness about issues regarding consumer protection issues. 

There are unfair business practices galore in the market. Such practices include the sale of adulterated or low-quality food items, expired items, price manipulation and other forms of fraud. Adulterated or substandard food plays havoc with public health by inducing many kinds of diseases in people. The government has frequently monitored the market for adulterated, expired or low-quality items, especially during the festive season. Unscrupulous businessmen or traders are apt to hike prices without valid reasons. The recent hike in the prices of cement through cartelling is a case in point. Although the government has instructed the cement entrepreneurs to revoke the price hikes, they are ye to abide by the instruction. Further, the adoption of digitisation in trade has added to fraud. Online fraud is frequently reported.

Last fiscal year, the Department of Food Technology and Quality filed as many as 178 cases with the District Administration Office, a quasi-judicial authority. The cases were concerned with processed drinking water; food and lentils; sweets and confectionery; oil and ghee; milk and dairy products; and other items. The Department also seized and destroyed edible goods worth Rs. 11.64 million. The goods, which were expired or without proper labels, included food, beer, dalmoth (a spicy snack), potato crisps, meat spices, cheese balls, refined flour, semolina, juice, pickles, light beverages, edible oil and other items.   

The establishment of the consumer court in the Kathmandu Valley will be a great relief for consumers. People are reluctant to move district courts or the Supreme Court when issues concerning their rights or interests arise. This is because court proceedings are lengthy in the country. It may take two or more years for the proceedings to be settled. People have to attend hearings time and again. So court proceedings are full of hassles, which people cannot bear.

Fast-track basis 

Filing cases with consumer courts will be easier. It is reported that consumer courts will settle cases on a fast-track basis. Consumers will not have to wait for hearings. However, several options may be used before moving the court. First consumers suffering injustice at the hands of businessmen or traders may approach them and settle the matter through discussion. If the matter cannot be solved, the help of mediators may be enlisted. If these options are exhausted, the court may be moved with evidence. 

Consumer courts should be made efficient and effective. If they take years as regular courts do and make complainant consumers attend hearing after hearing, such courts will be of no use. So the government should see to it that such courts function efficiently and effectively. This will discourage businessmen or traders from indulging in malpractices such as selling substandard or expired goods, creating artificial shortages or unnecessarily hiking prices. And the trend of businessmen or traders making a fast buck by fleecing consumers will grind to a halt. Consumption of high-quality food will also promote public health. So the establishment of consumer courts should be taken as a positive initiative on the part of the government.  

(Maharjan has been regularly writing on contemporary issues for this daily since 2000.)