The sale of sub-standard goods that are produced and sold without meeting prescribed standards is rampant in Nepal
Consumer International, the membership organisation for consumer groups worldwide, observes March 15 as World Consumer Rights Day every year. However, the roots of this day can be traced back to a speech delivered by U.S. President John F. Kennedy to the Congress of the United States on March 15, 1962, in which he presented the Consumer Bill of Rights.
Kennedy stated that if consumers are not adequately protected, their dollars are wasted, their health and safety may be threatened, and the national interest suffers. He introduced four basic consumer rights– the right to safety, the right to be informed, the right to choose, and the right to be heard – which continue to serve as a basis for policy development by various international organisations, including the European Union, the Organisation for Economic Co-operation and Development (OECD) and the United Nations.
In Nepal, the Consumer Protection Act of 1998 was enacted to govern the rights of consumers, making it the first legal instrument for governing consumers' interests. The prevailing Constitution of Nepal under Article 44 has also guaranteed the 'Right of Consumer' as a fundamental right of the Nepalis.
The Act was revised in 2018 to address the shortcomings of the previous act.
However, despite the existence of these laws, their implementation remains dubious to the public.
The right to safety: Kennedy's right to safety refers to the idea that consumers have the right to be protected against products and services that are hazardous to their health or safety. This right includes protection against goods that are poorly designed or manufactured, as well as protection against false or misleading advertising.
However, in Nepal, many manufacturers and sellers do not equip themselves with the responsibility of selling safe products.
The sale of sub-standard goods that are produced and sold without meeting prescribed standards is rampant in Nepal. Although section 5 of the Consumer Protection Act 2018 specifies that the government shall determine the standards or quality of goods or services that are inherently undetermined, there has been a lack of action in enforcing these regulations.
Poor inspection of products and services in the market creates a haven for shopkeepers and manufacturers to sell and distribute adulterated and expired food products, posing a significant risk to consumer safety. For instance, in 2018, the Department of Food Technology and Quality Control found packaged milk sold in Kathmandu to be adulterated with chemical contaminants such as washing soda and detergent chemicals. Such incidents underscore the urgent need for Nepal to strengthen consumer protection laws and enforcement mechanisms.
The right to be informed is essential for protecting consumers from fraudulent, deceitful or grossly misleading information, advertising, labeling or other practices. It means that consumers have the right to access accurate and complete information about the products and services they are considering purchasing, including information about the product's quality, ingredients, potential risks, benefits and limitations. This is especially crucial in a market like Nepal where inconsistent labeling practices and inadequate information about products are prevalent.
For instance, many goods like packaged foods, cosmetics, clothes and electronics in Nepal come from China, and the labeling often remains illegible, leaving consumers in the dark about the products they are buying. Furthermore, many products in Nepal do not provide enough information about the product's contents, ingredients or potential risks. To address these issues, the government should strengthen labeling regulations to ensure that all products sold in Nepal are labelled accurately and legibly, providing consumers with reliable information.
The government should also hold manufacturers and sellers accountable for providing incomplete or misleading information.
The right to choose means that consumers have the freedom to select from a range of products and services offered by different providers in the market. In other words, consumers should have access to a variety of options and should be able to choose what best fits their needs and preferences. This right is closely related to the principle of competition, which is essential for a healthy market economy.
However, in Nepal, there are a few products and services on which the government itself has imposed a monopoly. For example, Nepal Oil Corporation (NOC) holds a monopoly in the import, storage and distribution of petroleum products in Nepal. As a result, consumers are forced to purchase fuel at prices set by the NOC, with no competition to drive prices down.
To protect and promote the right to choose, the government must enact policies that promote competition in the market. Additionally, consumers need to be empowered through education and access to authentic information, enabling them to exercise their right to choose effectively.
The right to be heard recognises that consumers have the right to express their opinions and concerns about the products and services they use. This includes the right to have their complaints addressed promptly and fairly, and to be represented in the development of policies and regulations that affect their interests. Despite the provision of Consumer Courts in the Consumer Protection Act of 2018, the Nepal government appears to be uninterested in establishing them. With numerous cases awaiting resolution in the District and High courts, consumers are reluctant to pursue legal action for violations of their rights and often choose to compromise instead. The lack of consumer initiative to take legal action, along with the lengthy court procedures, puts consumer rights in Nepal at risk.
To protect consumer rights, Nepal needs to prioritise the implementation of the four basic consumer rights presented by Kennedy. Additionally, consumer rights should be classified as human rights.
A version of this article appears in the print on March 17, 2023, of The Himalayan Times.
