Following it up with a competition policy
Saturday, 23 August 2008
The draft of a law for the protection of consumers has been finally approved by the Council of Advisers last Wednesday after a travail of 15 years since the move was made at the governmental level to frame and introduce it. The law is, therefore, likely to come into existence following its promulgation by the President through an ordinance. The Consumer Rights Protection Ordinance, 2008 that has reportedly been approved provides for the establishment of a mechanism for the ordinary aggrieved consumer anywhere in the country to lodge a complaint about unfair conduct on the part of a producer, seller or distributor of a good or service and to have the same investigated and responded to, by the authorities. The proving of guilt would lead to conviction and jail or fine or both for the offenders. These are the basics of the ordinance that could be known and the new law incorporates many other features designed to thoroughly protect consumers' interests. It has been already welcomed by the Consumers' Association of Bangladesh (CAB) as a significant step towards promoting consumers' rights.
However, it will take some time to set up the mechanisms from the central to the district levels for the operation and enforcement of the new law. The incumbent government in the remaining several months of its tenure can put a pace to this end. At the same time, it should work in right earnest in this period to follow up the promulgation of the consumer protection law with the preparation of a comprehensive competition policy. A competition policy, alongside the elaborate consumer protection law, can play a complementary role in helping the enforcement of the consumer protection law. Thus, it is only sensible to introduce at the fastest also such a competition policy and frame laws and set up institutions for the functioning of such a policy. Only then, the consumers can be expected to get the full benefits of the moves to get their interests protected and promoted.
It is not only enough to have an elaborate consumer protection law. For even with such a law, there may exist restrictive trade practices, monopolies, syndicated activities and other ills hidden under the garb of the so-called market economy. The only way to ensure that competition does happen, unfailingly in all areas of the economy, requires that laws to that effect exist and are operated vigorously. Not only laws but their applications and the existence of institutional mechanisms for enforcement are also required to create actual competition as an unavoidable factor. But the starting point of all these things is a competition policy which Bangladesh seems to be lacking at the moment.
The consumers in Bangladesh, generally, are a very harassed lot at the moment. The introduction of the legislation dealing with consumers' rights marks progress in creating a way for redressing their sufferings. But the same would now need to be reinforced by a proper competition policy. That will enable the consumers to benefit themselves from the gains derived simultaneously from a legal environment protecting their interests as well as from the fruits of competition compulsorily generated by such a policy. Government in Bangladesh can learn from how other countries operate their competition policies.
However, it will take some time to set up the mechanisms from the central to the district levels for the operation and enforcement of the new law. The incumbent government in the remaining several months of its tenure can put a pace to this end. At the same time, it should work in right earnest in this period to follow up the promulgation of the consumer protection law with the preparation of a comprehensive competition policy. A competition policy, alongside the elaborate consumer protection law, can play a complementary role in helping the enforcement of the consumer protection law. Thus, it is only sensible to introduce at the fastest also such a competition policy and frame laws and set up institutions for the functioning of such a policy. Only then, the consumers can be expected to get the full benefits of the moves to get their interests protected and promoted.
It is not only enough to have an elaborate consumer protection law. For even with such a law, there may exist restrictive trade practices, monopolies, syndicated activities and other ills hidden under the garb of the so-called market economy. The only way to ensure that competition does happen, unfailingly in all areas of the economy, requires that laws to that effect exist and are operated vigorously. Not only laws but their applications and the existence of institutional mechanisms for enforcement are also required to create actual competition as an unavoidable factor. But the starting point of all these things is a competition policy which Bangladesh seems to be lacking at the moment.
The consumers in Bangladesh, generally, are a very harassed lot at the moment. The introduction of the legislation dealing with consumers' rights marks progress in creating a way for redressing their sufferings. But the same would now need to be reinforced by a proper competition policy. That will enable the consumers to benefit themselves from the gains derived simultaneously from a legal environment protecting their interests as well as from the fruits of competition compulsorily generated by such a policy. Government in Bangladesh can learn from how other countries operate their competition policies.