This article deals with the issues surrounding consumer rights in Nepal and the rampant violations that occur in every aspect of the market. Jyoti Baniya, a leading consumer rights activist in Nepal, explains that while some people are aware of their rights, many others are not, particularly in urban areas. Even when consumers do identify violations, they often feel powerless to act against them.
Among the issues facing consumers are unfair pricing, false advertising, nepotism, corruption, political instability, lack of good governance, and lack of transparency. The article highlights the example of the telecom industry, where consumers in Nepal pay significantly more than in other countries due to a billing system that charges 10 seconds per pulse instead of one. This is just one example of the many ways in which Nepali consumers are being taken advantage of.
To combat these issues, Nepal has a Consumer Protection Act that was first introduced in 1998 and amended in 2018. However, the act is often not enforced, and consumers lack knowledge of their rights and the legal remedies available to them. The act does provide for fines and compensation for consumers who have been wronged, as well as prison sentences for offenders.
Consumer rights activists are calling for the establishment of a consumer court to provide fast-track legal remedies for consumers who have been wronged. However, the government has yet to establish such a court, despite passing an amended Consumer Protection Act in 2018 that called for its creation.
Overall, the article suggests that consumers, government authorities, and all parties in the supply chain need to take responsibility for their actions and work to build a systematic structure that benefits consumers. The article calls on consumers to be more aware of their rights and to report violations to inspection officers and other stakeholders. It also suggests that the government needs to be more proactive in enforcing the Consumer Protection Act and establishing a consumer court to provide timely legal remedies for consumers.
Recently, Nepal has been grappling with ever-increasing fuel prices, which have caused significant distress among the population. The Nepal Oil Corporation (NOC) has been buying fuel from the Indian Oil Corporation (IOC), which has resulted in the price of petrol per liter in the Nepali market being Rs 178 and the price of diesel being Rs 175. Unfortunately, people continue to be robbed or pay the said amount because they do not have awareness of consumer rights nor do they have an alternative to purchasing the same.
According to the law, after the federal system is in effect, the local units are required to set up a local market as per the Subnational Governance Program. In Nepal, the Consumer Protection Act 2018, which was first introduced in 1998, ensures the constitutional rights of every citizen to get quality goods and services.
However, while the law mentions consumer rights protection, it only remains theoretical, and sellers need to take responsibility for providing quality products to consumers. The legal provisions in Nepal impose a fine of Rs 100,000 along with a jail-term from three months to 12 months. The biggest loophole in these legal provisions is public ignorance. Many consumers are unaware of their rights, and sellers often take advantage of this ignorance.
There have been several legal cases in Nepal where consumers have been cheated by sellers. However, many of these cases go unreported, and the guilty parties go unpunished. To cope with these problems, people need to be aware of their rights and should not hesitate to report any violations of consumer rights. Inspection officers should be tasked with reporting such cases, and stakeholders, including the government, should be proactive in building a systematic structure that benefits consumers, as per the law.
Consumer rights activists accuse the government of delaying the implementation of the Consumer Protection Act 2018. It has been three years since the amended law, which contained a provision requiring the government to establish a consumer court, was passed. However, there is no indication of the consumer court being set up, and this clearly indicates the government's lack of seriousness in ensuring the rights of consumers.
There have been several legal cases in Nepal where consumers have been cheated by sellers. However, many of these cases go unreported, and the guilty parties go unpunished.
In 2018, the government amended the law in a systematic and broad way to better protect the rights and interests of Nepali consumers. Among them, the establishment of a consumer court could bring unscrupulous traders under a legal framework through fast-track methods and procedures. Unfortunately, due to vested interests, nepotism, corruption, and pressure from manufacturers and traders, consumer rights are not being implemented and practiced as they should be.
These days, unfair trade practices are filed at district courts or district administration offices. It is high time that the government took strong measures to implement the Consumer Protection Act 2018, including setting up a consumer court, to ensure the rights of Nepali consumers. Consumers need to be made aware of their rights, and sellers and producers must be held responsible for their parts in the supply chain.
Consumers in Nepal face a difficult time seeking compensation and legal remedy for unfair trade practices. Lengthy administrative procedures and bureaucratic hurdles often leave victims without compensation and legal remedy on time. In some cases, the guilty firm does not face any real action as the evidence is either vanished or damaged due to a long period of time. The district court, which takes three to six months to give a verdict, is the only option for consumers seeking justice.
However, other countries have special courts that deal with cases regarding consumer complaints and conflicts. These courts protect consumer rights and offer a platform for consumers to file a case against a seller if they are cheated or exploited. The basic consumer rights made by the UN are widely adopted and followed by many countries, such as the right to safety, the right to be informed, the right to choose and the right to be heard, and the right to consumer education.
In September 2019, the Ministry of Industry, Commerce and Supplies submitted a draft legislation to establish a consumer court to the Law Ministry. The first consumer court in Nepal was expected to be established by the beginning of 2021. However, consumers' rights are only present on paper, rather than being followed practically. The police and the Department of Commerce, Supplies and Consumer Protection raid one of the distributors and seized tones of expired foods and other products that directly or indirectly hamper the health of the consumer.
Despite the government's efforts to establish a consumer court, consumers continue to face difficulties in obtaining compensation and legal remedy. The lack of a consumer court means that victims of unfair trade practices must resort to lengthy and time-consuming procedures. In addition, evidence is often lost or damaged due to the time-consuming process, leading to guilty firms escaping punishment.
The establishment of a consumer court is crucial for protecting the rights of consumers in Nepal. This would provide a platform for consumers to seek justice and file complaints against unfair trade practices, which would reduce the instances of malpractice in the market. The government must prioritize the establishment of a consumer court and ensure that it functions efficiently and effectively to safeguard consumer rights.
In a nutshell, Nepal must take immediate steps to establish a consumer court to protect the rights of its citizens. The government must prioritize this issue to ensure that consumers are protected and have access to swift and effective legal remedies. With the establishment of a consumer court, consumers in Nepal can have confidence that their rights will be protected, and that they will be able to seek compensation and legal remedies without unnecessary delays or hurdles. (Krish Aryal is a law student.)
