Consumer protection law : another view
Amirul Islam | Sunday, 15 June 2008
GOVERNMENT after government has been stalling the adoption of a comprehensive consumer protection law. A law was drafted long ago. But it was not introduced in parliament possibly due to behind- the- scene lobbying by the vested interest groups. The consumers across the country felt happy when they learnt that it would be promulgated by the caretaker government through an ordinance in the public interest. And now once again, Finance Adviser Mirza Azizul Islam has indicated in his budget speech that a law protecting the interests of the consumers is in the offing
Like the separation of the judiciary, the consumers expected that the present government would promulgate the law much earlier for their protection without wasting time as the vested groups have been frustrating the move for it for long. But they started feeling disheartened seeing no results as yet. Reportedly a draft comprehensive consumer protection law was already ready for approval by the council of advisers. The consumers were quite happy over this. But much of the joy was lost because the newspapers later reported that the draft law, sent by the commerce ministry to the council of advisers and drawn up by it in 2006, contained many omissions and deficiencies. If it is correct, the law would fail to protect the interests of the consumers..
On its part, the Consumer Association of Bangladesh (CAB) scrutinised the law drafted by the ministry and found it unacceptable. It, therefore, prepared another draft on its own with support from the Bangladesh Rifles (BDR) in 2007. It retained the acceptable parts of the draft prepared by the ministry and incorporated provisions extensively to make it a meaningful law. The council of advisers should have considered only this draft prepared by the CAB. But it was reported that the draft of 2006 made by the ministry, with many compromises mainly to promote not so transparent business interests, has been sent for approval by the council of advisers.
Nothing could be more shocking than this because the draft of 2006 contains major deficiencies. For example, it would not allow the consumers to directly sue the wrong-doers. The penalties proposed in it for causing harms to buyers, are also modest and will, therefore have no deterrent effect on the offenders. It does not cover the service sector including education and health. It does not also provide for setting up institutional mechanism for the enforcement of the law. The much- awaited consumer protection ordinance would, in that case, be quite ineffective and toothless, in the event of no effective changes to the related provisions thereof.
It is, therefore, imperative to follow a transparent method for making the consumer protection law or ordinance. Different versions of the draft law should be made available to all concerned to elicit public and expert opinion. Suggestions for stronger or harder punishments must be accepted.
The consumer protection law will have to be realistic and comprehensive. It would not be enough to limit it to only stating some good things about the quality of goods and services. It must also provide for steps against unethical advertising to promote substandard goods, through buying on credit. There must be provisions to check monopolies and mergers having negative implications for the consumers as the monopolies can restrict competition and dictate unfair prices on buyers. The law must provide measures against restrictive trade practices that do not allow the consumers the choices offered by competition in areas of price and quality. Institutions will also have to be established to watch the markets in support of these goals and for the enforcement of the law.
In sum, there should not any hurried adoption of a consumer protection law must, under the given circumstances in the backdrop of all the aforementioned developments and the realities in the situational context be avoided. It should be done through a transparent exercise to examine all the aspects involved. The council of advisers must take into consideration the expectations of the consumers seriously. No decision on the faulty draft should be taken. It should adopt a law in line with the draft made by the CAB in 2007. The CAB representatives are rightly pointing out that doing anything short of this would mean flagrantly overlooking and betraying the interests of the millions of consumers across the country.
Like the separation of the judiciary, the consumers expected that the present government would promulgate the law much earlier for their protection without wasting time as the vested groups have been frustrating the move for it for long. But they started feeling disheartened seeing no results as yet. Reportedly a draft comprehensive consumer protection law was already ready for approval by the council of advisers. The consumers were quite happy over this. But much of the joy was lost because the newspapers later reported that the draft law, sent by the commerce ministry to the council of advisers and drawn up by it in 2006, contained many omissions and deficiencies. If it is correct, the law would fail to protect the interests of the consumers..
On its part, the Consumer Association of Bangladesh (CAB) scrutinised the law drafted by the ministry and found it unacceptable. It, therefore, prepared another draft on its own with support from the Bangladesh Rifles (BDR) in 2007. It retained the acceptable parts of the draft prepared by the ministry and incorporated provisions extensively to make it a meaningful law. The council of advisers should have considered only this draft prepared by the CAB. But it was reported that the draft of 2006 made by the ministry, with many compromises mainly to promote not so transparent business interests, has been sent for approval by the council of advisers.
Nothing could be more shocking than this because the draft of 2006 contains major deficiencies. For example, it would not allow the consumers to directly sue the wrong-doers. The penalties proposed in it for causing harms to buyers, are also modest and will, therefore have no deterrent effect on the offenders. It does not cover the service sector including education and health. It does not also provide for setting up institutional mechanism for the enforcement of the law. The much- awaited consumer protection ordinance would, in that case, be quite ineffective and toothless, in the event of no effective changes to the related provisions thereof.
It is, therefore, imperative to follow a transparent method for making the consumer protection law or ordinance. Different versions of the draft law should be made available to all concerned to elicit public and expert opinion. Suggestions for stronger or harder punishments must be accepted.
The consumer protection law will have to be realistic and comprehensive. It would not be enough to limit it to only stating some good things about the quality of goods and services. It must also provide for steps against unethical advertising to promote substandard goods, through buying on credit. There must be provisions to check monopolies and mergers having negative implications for the consumers as the monopolies can restrict competition and dictate unfair prices on buyers. The law must provide measures against restrictive trade practices that do not allow the consumers the choices offered by competition in areas of price and quality. Institutions will also have to be established to watch the markets in support of these goals and for the enforcement of the law.
In sum, there should not any hurried adoption of a consumer protection law must, under the given circumstances in the backdrop of all the aforementioned developments and the realities in the situational context be avoided. It should be done through a transparent exercise to examine all the aspects involved. The council of advisers must take into consideration the expectations of the consumers seriously. No decision on the faulty draft should be taken. It should adopt a law in line with the draft made by the CAB in 2007. The CAB representatives are rightly pointing out that doing anything short of this would mean flagrantly overlooking and betraying the interests of the millions of consumers across the country.