Consumer Law: Safeguarding all customers’ rights

A consumer is an individual or entity that purchases or consumes goods and services for personal use or to satisfy their wants and needs. Examining the pattern of consumption, all individuals or organizations in society act as consumers in some form, as the seller or provider of a product or service. Every individual is covered by consumer protection laws. So it is important to understand that safeguarding consumer rights is safeguarding the rights of all individuals in society.

In Falgun 2078, Nepal’s Supreme Court ordered the government to set up a consumer court in all seven provinces to defend customers' interests in the face of recurring allegations of unfair market practices. A division bench of Justices Bam Kumar Shrestha and Nahakul Subedi said in their decision: “... with the necessary coordination with the relevant stakeholders, if further study-research is required, the consumer court as per Section 41 of the Consumer Protection Act, 2075 should be formed as soon as possible.” 

However, there isn’t any indication yet of a consumer court being established in any of the country’s seven provinces.

Consumerist movement’s background and development

Ralph Nadar, the leader of the consumerist movement, started the consumer protection campaign for the protection of basic rights related to the daily life of individuals. Consumer rights are viewed as a fundamental aspect of human rights due to their connection to the overall quality of life. Consumer rights advocate for consumers to have access to high-quality goods and services, offered at the right time, price, and with convenience.

Since the beginning of the 19th century, many countries have become more aware and vocal regarding consumer rights protection. For the first time in the world, the United States of America enacted the Consumer Rights Act in 1962. US President John F Kennedy was the first person to raise his voice regarding consumer rights. He mentions four types of consumer rights: safety, quality, choice, and information.

Consumer rights in a federal system

The constitution serves as both a crucial principle for governing the state and a key document ensuring all the rights of its people. Establishing coordination between the ruler’s jurisdiction and the people's rights is also accomplished through the constitution. The constitution plays a crucial role in ensuring a balance between the governing authority and the governed. It serves as a legal tool to provide direction to the government, grant authority to the government, and oversee the use of that authority.

The Constitution of Nepal, 2015 provides the basic legal structure for protecting consumer rights. Consumer rights are recognized as a fundamental right in Article 44 of the Constitution, which ensures the right to obtain quality goods and services and to be compensated for any violations of these rights. Consumers are also sovereign parties who are related to all three levels of government, so it is necessary to have mutual coordination in laws, structures, and data systems.

The Consumer Protection Act, 2075 guarantees consumer rights, outlines seller and distributor liabilities, and enforces regulations for the goods and services supply chains. Section 41 of the Constitution establishes the existence of a consumer court, while section 50 addresses the process for seeking compensation.

Institutional arrangement

The Consumer Protection Act, 2075 provides for the formation of a 15-member Consumer Protection Council under the chairmanship of the Minister of Industry, Commerce and Supply. Its main task is to formulate policies on the protection and implementation of consumer rights. Similarly, under the chairmanship of the Secretary of Industry, Commerce and Supply, there is a nine-member central market monitoring committee, whose main task is to coordinate among the agencies involved in the monitoring or supervision of the supply of goods or services, price, quality, and purity for the protection of consumer rights.

Provincial and local levels have also been given the responsibility of consumer interest protection and market monitoring. For this, there is a legal provision to form a provincial monitoring committee and a local market monitoring committee.

Furthermore, at the district level, district administration offices and industry, commerce, and consumer protection offices have been made responsible for consumer protection. The consumer association is also directly involved in consumer protection. For cases other than section 40 (1) of the Consumer Protection Act, 2075, there is also a provision for a three-member consumer court with a district judge and two deputy secretaries of justice services.

Consumer court holds significance in Nepal

A consumer court is a specialized court that focuses mainly on resolving consumer-related disputes, conflicts, and complaints. The court convenes hearings to settle these matters. For a while now, people have been requesting a consumer court to hold dishonest traders accountable through a quick legal process.

Observers claim that unscrupulous traders have become more confident as consumers avoid becoming entangled in complicated legal battles, especially at the Supreme Court. According to them, once consumer courts are in place, it will be simpler to lodge complaints and there will be less inconvenience.

The establishment of a consumer court is essential in order to prevent actions that harm consumers and hold those responsible accountable. There is a need for the prompt establishment of a consumer court to take legal measures against individuals who harm the well-being and health of the less fortunate by manufacturing and distributing inedible goods. Consumers are not aware of their rights. Raising awareness about consumer rights is essential.

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.