Market anomaly continues to choke consumers

The government has been collecting huge amounts of money in cash penalties from the traders found involved in market anomalies. However, consumers fail to receive benefits largely in the absence of an effective monitoring mechanism. The records with the Department of Commerce, Supplies and Consumers Protection (DoCSCP) show that Rs 770,000 was collected in cash penalties from such traders in the last one week. Out of the market monitoring conducted in 89 outlets in the Kathmandu Valley, 36 traders were slapped with cash fines. These operators of the outlets were charged with fines ranging from Rs 5,000 to Rs 100,000 per outlet. Of them, a grocery shop in Dhunge Adda and a dealer of drinking water in Mulpani were fined Rs 100,000 each and a grocery in Chabahil was slapped with Rs 50,000. The actions were taken against the stores for not renewing their business operating licenses.

According to DoCSCP officials, most of the penalized outlets were related to drinking water and food supplies. Likewise, the traders were accused of not maintaining price lists of goods, not cooperating with the monitoring officials on the spot, and not having renewed licenses, among others.

Due to the lack of effective government monitoring, the selling of expired food items and price hikes are rampant in many places across the country. But the department officials blame insufficient budget, lack of manpower and inadequate logistics for unrewarding results from poor market monitoring. Consumer rights activists said weak government mechanisms for market monitoring has allowed unscrupulous traders ample room to cheat consumers. “In fact, the protection of consumers’ rights is not the priority of the government authorities,” said Madhav Timilsina, President of Consumer Rights Investigation Forum. The Consumer Protection Act prohibits traders from cheating consumers by engaging in adulteration, giving short measures, or surcharging. As per the law, the government authority can impose a cash penalty from Rs 5,000 to Rs 300,000 on the spot. According to Mahesh Bhattarai, Director General of DoCSCP, the random cross-checking of the outlets alone might not help reduce the misconduct going on in the market. He says the lack of a proper data-keeping system, consumers lacking awareness to deal with billing and lack of resources with the department have led to poor outcomes from the market monitoring. “We have planned to develop a separate software to maintain market records and to coordinate with other government agencies related to the market system and consumers,” he said.