A consumer protection law of dubious value ?
Thursday, 28 June 2007
Enayet Rasul
A comprehensive draft of a consumer protection law is about to be finally adopted by the council of advisers. Reports have appeared in the press about the imminence of the introduction of this act. This news would have normally gladdened the vast body of consumers but for the reason that its draft has been severely criticised by the main organisation dealing with consumers' interest in the country, the Consumer Association of Bangladesh (CAB).
CAB organised a press conference last Saturday in the auditorium of the Dhaka Reporters Unity. CAB leaders in the meeting charged the commerce ministry with deception in the adoption of a very vital piece of draft law with flaws, from the perspective of the millions and millions of consumers of the country who have been paying a high price over the years as there are no adequate laws to protect and promote their interests.
The demand for a well prepared and extensive law for consumer protection and consumer welfare started from the decade of the eighties as a consequence of all kinds of anti-consumer developments. It was not that sellers of goods and services were conscionable in greater number and engaged in good practices of their own in the past so that the clamour for consumer protection was not made earlier. But cases of harming consumers with unsafe products, were probably detected on a lower scale in the seventies or before that period. Besides, many services which have cropped up today, also were not in existence or had a far thinner existence at that time. This situation was coupled with low consciousness among consumers and the insufficiency of consumer protection organisations. Even now, CAB is practically the lone body working for consumers' welfare.
But this scene started to change from the nineties as the services sector broadened with the appearance of many new services but these hardly required submission to any regulation or monitoring to assure about their maintaining the desired quality. At the same time, many businesses became more and more unscrupulous with their adulteration activities of a varied nature. Foodstuffs started getting seriously adulterated for making supernormal profits. Marketing of fake medicines on a large scale was noted. The meeting of standards in the production of a large number of consumer products was similarly avoided to fatten profit margins. All of these ills and many others led to greater suffering of consumers and created their bitter experiences on the one hand. On the other hand, the same also induced expressions from different quarters that a comprehensive consumer protection act should be introduced and enforced to protect consumers' interests in many different ways.
Thus, in 1992, the then government seemingly out of deference to public opinion, made known that it ordered the drafting of such a comprehensive consumer protection act. But we are in the year 2007 now. Some 15 years have passed away but this consumer protection law is yet to be adopted. Many times in this period, the media was told that the drafting of the law was complete and it would be introduced in parliament for its approval to clear the way for its enforcement. And yet, the fine day of its acceptance by parliament never came. People were only fed with false hopes. Three party governments ended their tenures in this period but none of them showed the resolve to go all the way to put this law into effect. Meanwhile, reports also appeared many times about successive governments stalling this legislation at the behest of vested interest groups in businesses with their cohorts in the civil administration who were dead set to block even a consumer protection law that would preserve most of their interests. Businesses and their lackeys in the government did not wish to be bound by any regulation at all and they could have their way.
Thus, when it became known that the present interim government was trying to accelerate the adoption of the law, many felt that at last they would be headed for bliss. Where the party governments were deliberately faltering with or stalling this legislation, the interim government would be totally uncompromising and decisive like in other areas, and would present the consumers with a consumer protection law which they have been eagerly waiting for so long.
But the CAB organised press conference has resurrected fears that they would very likely be presented with a consumer protection law in name only that would hardly satisfy their needs. CAB leaders told the press conference that the commerce ministry has sent to the council of advisers the final draft of the consumer protection act of 2006 prepared by that ministry. CAB scrutinised this draft and found it very deficient in many respects. They made known their objections and took the initiative to produce a draft on their own with full support of the trade and commerce monitoring cell of the Bangladesh Rifles (BDR). This draft drawn up jointly by the CAB and BDR in 2007 that addressed all the lapses and gaps in the commerce ministry draft of 2006, was sent to that ministry. The ministry also assured at the outset that not their draft of 2006 but the latest one prepared in 2007 by the CAB and the BDR would be submitted to the council of advisers for approval. But the latest news is that the commerce ministry has decided to shake-off its commitment and has sent their own version of the draft of 2006 to the council of advisers. And if this draft is endorsed, then the consumers will likely get a consumer protection law of dubious value hardly fulfilling or promoting their interests.
Nothing could be more shocking than this because the 2006 draft has very major deficiencies. For example, consumers directly would not be able to sue by relying on it or attempt to enforce it. The penalties proposed in it for causing harms to buyers, are also modest and will have hardly any deterrent effect on the offenders. Services have been hardly covered by it including services in the vital education and health sectors. The act would not also provide for institutional mechanisms properly to be set up in support of it or for its enforcement. Thus, the eagerly awaited consumer protection act is likely to meet the same fate of many laws that proved to be otherwise loud sounding but having little value or effectiveness ultimately in the views of their expected beneficiaries.
Thus, it has become imperative to make the process of adopting the consumer protection act a transparent one. Different versions of the act in draft form must be circulated to elicit public and expert opinion on the same. If the penalties are found to be inappropriate or inadequate and suggestions are made to make them stronger or harder, the same must be responded to positively.
The consumer protection act will have to be also really very comprehensive in nature to cater to all aspects of consumer protection. It would not be enough to limit it to only ensuring the quality of goods and services. It must also provide for steps against such things as unethical advertising to promote demerit goods, popularising of buying at credit that only goes against the long term benefits of the consumers, creation of monopolies and mergers with their negative implications on consumers from the ability of the monopolistic bodies to restrict competition and impose unfair and dictated prices on consumers, and, different forms of immoral trade practices that would prevent the consumers to gain from competition in areas of price, quality and choice. Institutions will also have to be established to watch over the markets in support of these goals and to apply the law.
In sum, the hurried adoption or rather the improper imposition of the law must be avoided. It should be a transparent exercise after examining all sides. The council of advisers must regard consumers' expectations on this score and postpone taking any action in this respect for a while. Finally, they should frame a law in line with the draft created by the CAB in 2007. CAB leaders are rightly saying that doing anything short of this would be tantamount to most flagrantly overlooking and betraying the interests of consumers.
It is well understood that the top persons in the present government have every interest and sincerity to pave the way for a law which has been stalling for a long time. They have thought perhaps that adopting of this law now through a Presidential ordinance will speed things up and contribute towards consumers' satisfaction. But they are probably not aware that the bureaucrats in the commerce ministry have substituted the CAB-BDR produced document with their own one to pander to the wishes of some of their business patrons. Clearly, this move will have to be thwarted with definite order from the highest level of the government.
A comprehensive draft of a consumer protection law is about to be finally adopted by the council of advisers. Reports have appeared in the press about the imminence of the introduction of this act. This news would have normally gladdened the vast body of consumers but for the reason that its draft has been severely criticised by the main organisation dealing with consumers' interest in the country, the Consumer Association of Bangladesh (CAB).
CAB organised a press conference last Saturday in the auditorium of the Dhaka Reporters Unity. CAB leaders in the meeting charged the commerce ministry with deception in the adoption of a very vital piece of draft law with flaws, from the perspective of the millions and millions of consumers of the country who have been paying a high price over the years as there are no adequate laws to protect and promote their interests.
The demand for a well prepared and extensive law for consumer protection and consumer welfare started from the decade of the eighties as a consequence of all kinds of anti-consumer developments. It was not that sellers of goods and services were conscionable in greater number and engaged in good practices of their own in the past so that the clamour for consumer protection was not made earlier. But cases of harming consumers with unsafe products, were probably detected on a lower scale in the seventies or before that period. Besides, many services which have cropped up today, also were not in existence or had a far thinner existence at that time. This situation was coupled with low consciousness among consumers and the insufficiency of consumer protection organisations. Even now, CAB is practically the lone body working for consumers' welfare.
But this scene started to change from the nineties as the services sector broadened with the appearance of many new services but these hardly required submission to any regulation or monitoring to assure about their maintaining the desired quality. At the same time, many businesses became more and more unscrupulous with their adulteration activities of a varied nature. Foodstuffs started getting seriously adulterated for making supernormal profits. Marketing of fake medicines on a large scale was noted. The meeting of standards in the production of a large number of consumer products was similarly avoided to fatten profit margins. All of these ills and many others led to greater suffering of consumers and created their bitter experiences on the one hand. On the other hand, the same also induced expressions from different quarters that a comprehensive consumer protection act should be introduced and enforced to protect consumers' interests in many different ways.
Thus, in 1992, the then government seemingly out of deference to public opinion, made known that it ordered the drafting of such a comprehensive consumer protection act. But we are in the year 2007 now. Some 15 years have passed away but this consumer protection law is yet to be adopted. Many times in this period, the media was told that the drafting of the law was complete and it would be introduced in parliament for its approval to clear the way for its enforcement. And yet, the fine day of its acceptance by parliament never came. People were only fed with false hopes. Three party governments ended their tenures in this period but none of them showed the resolve to go all the way to put this law into effect. Meanwhile, reports also appeared many times about successive governments stalling this legislation at the behest of vested interest groups in businesses with their cohorts in the civil administration who were dead set to block even a consumer protection law that would preserve most of their interests. Businesses and their lackeys in the government did not wish to be bound by any regulation at all and they could have their way.
Thus, when it became known that the present interim government was trying to accelerate the adoption of the law, many felt that at last they would be headed for bliss. Where the party governments were deliberately faltering with or stalling this legislation, the interim government would be totally uncompromising and decisive like in other areas, and would present the consumers with a consumer protection law which they have been eagerly waiting for so long.
But the CAB organised press conference has resurrected fears that they would very likely be presented with a consumer protection law in name only that would hardly satisfy their needs. CAB leaders told the press conference that the commerce ministry has sent to the council of advisers the final draft of the consumer protection act of 2006 prepared by that ministry. CAB scrutinised this draft and found it very deficient in many respects. They made known their objections and took the initiative to produce a draft on their own with full support of the trade and commerce monitoring cell of the Bangladesh Rifles (BDR). This draft drawn up jointly by the CAB and BDR in 2007 that addressed all the lapses and gaps in the commerce ministry draft of 2006, was sent to that ministry. The ministry also assured at the outset that not their draft of 2006 but the latest one prepared in 2007 by the CAB and the BDR would be submitted to the council of advisers for approval. But the latest news is that the commerce ministry has decided to shake-off its commitment and has sent their own version of the draft of 2006 to the council of advisers. And if this draft is endorsed, then the consumers will likely get a consumer protection law of dubious value hardly fulfilling or promoting their interests.
Nothing could be more shocking than this because the 2006 draft has very major deficiencies. For example, consumers directly would not be able to sue by relying on it or attempt to enforce it. The penalties proposed in it for causing harms to buyers, are also modest and will have hardly any deterrent effect on the offenders. Services have been hardly covered by it including services in the vital education and health sectors. The act would not also provide for institutional mechanisms properly to be set up in support of it or for its enforcement. Thus, the eagerly awaited consumer protection act is likely to meet the same fate of many laws that proved to be otherwise loud sounding but having little value or effectiveness ultimately in the views of their expected beneficiaries.
Thus, it has become imperative to make the process of adopting the consumer protection act a transparent one. Different versions of the act in draft form must be circulated to elicit public and expert opinion on the same. If the penalties are found to be inappropriate or inadequate and suggestions are made to make them stronger or harder, the same must be responded to positively.
The consumer protection act will have to be also really very comprehensive in nature to cater to all aspects of consumer protection. It would not be enough to limit it to only ensuring the quality of goods and services. It must also provide for steps against such things as unethical advertising to promote demerit goods, popularising of buying at credit that only goes against the long term benefits of the consumers, creation of monopolies and mergers with their negative implications on consumers from the ability of the monopolistic bodies to restrict competition and impose unfair and dictated prices on consumers, and, different forms of immoral trade practices that would prevent the consumers to gain from competition in areas of price, quality and choice. Institutions will also have to be established to watch over the markets in support of these goals and to apply the law.
In sum, the hurried adoption or rather the improper imposition of the law must be avoided. It should be a transparent exercise after examining all sides. The council of advisers must regard consumers' expectations on this score and postpone taking any action in this respect for a while. Finally, they should frame a law in line with the draft created by the CAB in 2007. CAB leaders are rightly saying that doing anything short of this would be tantamount to most flagrantly overlooking and betraying the interests of consumers.
It is well understood that the top persons in the present government have every interest and sincerity to pave the way for a law which has been stalling for a long time. They have thought perhaps that adopting of this law now through a Presidential ordinance will speed things up and contribute towards consumers' satisfaction. But they are probably not aware that the bureaucrats in the commerce ministry have substituted the CAB-BDR produced document with their own one to pander to the wishes of some of their business patrons. Clearly, this move will have to be thwarted with definite order from the highest level of the government.