Wednesday, April 10, 2013

POST EDITORIAL Murderous traders Law for protection of consumers needed



A few years back at a seminar in the city, probably organized by the Consumers' Association of Bangladesh, to discuss the pros and cons of and the need for a law for protection of consumers of the country, the then Commerce Minister, beside whom I was sitting on the podium, remarked, "In an underdeveloped country like Bangladesh what we need is not a law for protection of consumers but a law for protection of producers". The minister incidentally happened to be an industrialist.
I was a bit harsh in responding but said softly, "Mr. Minister, kindly don't mortgage your reason and conscience to your office and kindly do not look at everything with only one eye as the party the blessings of which you enjoy has desired you to do. Don't forget that every producer is also more a consumer than a producer. A producer may produce one or two or at best a dozen products, but he has to consume a hundred and one products on which even his very existence on this Mother Earth may depend."
Baffled, and a fine gentleman as he had been, he did not talk back and try to fight out his point of view which was obviously erroneous without a shadow of doubt.
BACKGROUND OF THE CONCEPT OF CONSUMER PROTECTION
Ralph Nader, an American, was born in 1934 in Winsted, Connecticut, and was educated at Princeton and Harvard Universities. He became a lawyer and was twice a candidate for the U.S. Presidential office in 2000 and 2004 respectively. The concept that the consumers of all categories need protection against dishonest traders first entered into his head when car manufacturers in the United States began to manufacture and market cars of questionable quality in mid-1960. He produced a booklet named 'Unsafe at any Speed' in 1965 and a revised edition thereof in 1972. This booklet provided the primary impetus for the National Traffic and Motor Vehicle Safely Act, 1964, passed by the U.S. Congress and signed into law by President Johnson on 9 September, 1966. In brief, the Act provided for the creation of the National Traffic Safety Agency within the Department of Commerce. The Agency's function would be, in collaboration with the government, industry and academic experts, to assist the Commerce Secretary in establishing minimum safety standards for motor vehicles. The implementation of the Act ensured manufacture of motor vehicles in the United States and also import of such vehicles maintaining all possible safety standards. Possibly, the use of seat belts is, among many other measurers, one of the results of the Act.
Nader then diverted his attention and efforts to other areas of consumer interest. One of them was environmental pollution endangering human life and public safety. He launched an attack on the atomic energy plants pointing out the danger involved in these plants. Other issues were health hazards in food, medicine, occupations, and fraud played by the large companies on the consumers by displaying attractive advertisement of their products although the products were really sub-standard or even unfit for human consumption. He also attacked the secrecy enjoyed by the companies in the materials used in, and the method of production of, their goods on the ground of protecting their patent right. He demanded transparency in production and condemned the immunities enjoyed by the companies. The immediate result was the enactment of the Wholesome Meat Act, 1967.
Nader now became a leader of the consumer protection movement. He organized investigative teams of young lawyers, consumer specialists and students known as 'Nader's Raiders', to conduct surveys of numerous companies, federal agencies and even the U.S. Congress.
He formed Green Party and contested the U.S. Presidential election in 2000 under its banner. His party sought the verdict of the U.S. electorate on two issues: (a) attack on the corporate power; and (b) protecting the environment; but, secured only 3 percent votes of the American voters.
Many enactments followed one after the other thereafter and various departments were setup to look after the rights of the American consumers. This law gave new impetus to safety measures pertaining to such products as automobiles, drugs, tyres, toys, food and textiles. A White House Office of Consumers Affairs headed by Verginia H. Kauner was to channel consumer complaints, foster consumer representation in government, assist in consumer education and press for consumer legislation law All these were possible because of pressure created by Ralph and his Raiders and public awareness built up by them against mal-practices of the traders. Various consumer protection groups also grew up and played effective roles in protecting the rights of consumers.
Nader's movement for consumer protection and enactment of appropriate law thereafter spread throughout the world and led to the enactment of laws for protection of consumers of many countries.
DOES BANGLADESH NEED A LAW FOR CONSUMER PROTECTION
Bangladesh had and still does have some laws scattered hither and thither which aim at giving protection to consumers. These laws mainly contain penal provisions providing for penalizing mal-practice in trade and commerce.
Some of these laws were enacted even hundred years back and some are recent. But, all these enactments, rules, etc. provide for punishment for certain types of offences committed by traders, such as, adulteration of food products, semi standard drug products, supplying underweight goods to consumers etc. But, there is no comprehensive law for consumer protection in respect of all types of goods produced for consumption and all types of services rendered to the consumers. There is also no comprehensive law for compensating the consumers for the sufferings and loss incurred from consumption of defective and dangerous goods and taking inefficient, neglectful and sub-standard services of all kinds on payment of considerable consideration.
All the countries of the world have now comprehensive laws for protecting the consumers from the previously prevailing compulsion of consuming unwholesome and sub-standard goods and services and these laws have, contrary to the fallacious belief of the former Commerce Minister of Bangladesh whose comments have already been mentioned above, instead of retarding industrial development, led to booming economic growth and development of industry, trade and commerce. The enactment of the Consumer Protection Act, 1986 (Act 68 of 1986) did not create any slump in trade, commerce and industry in India. On the other hand, this Act immediately resulted in quality control in products as well as services of various kinds which in turn increased consumers' interests in, and more consumption of, local products and taking local services, instead of running like Bangladeshis for foreign goods and also running to Singapore, Bangkok, Kolkata, Delhi or Channai for medical treatment. The Indian Act 68 of 1986 is a comprehensive law and has been giving very satisfactory results. The efforts of the Consumer Association of India in raising awareness of the people of their rights and of taking recourse to the various provisions of the Act in cases of violation of their rights as consumers have added to the efficacy of the Act.
The Commerce Minister's comments begs the question whether in our country we really need any law for protecting the consumers with regard to goods produced and services rendered by the producers.
Although belated but the most welcome move by the government during the last few weeks to launch drive against the eating houses of all categories and the stark real conditions prevailing in these even apparently posh eating houses as disclosed in those drives is a complete answer to the stand of the former Commerce Minister and all those who subscribe to his views.
These drives have conclusively established that this country immediately needs a law for protection of the consumers, because, the current drives which are going on cannot be continued for months and years together. Secondly, the actions currently taken can only punish the wrongdoers but cannot compensate a consumer who has undergone sufferings for sub-standard goods or after taking sub-standard services provided to him by dishonest trades. Consequently, a legal framework for compensating the victims of dishonest traders and at the same time, to bring the dishonest, rather murderous, traders to book is necessary.
The writer is a former Judge of the Supreme Court and former Member, Law Commission.
JUSTICE NAIMUDDIN AHMED

















What happened to consumer rights protection act?
Enayet Rasul
1/14/2006

Latest News
We are pleased to announce that the electronic version of the Asia Pacific Consumer Vol 42 4/2005 is now available online. The theme for this issue is Consumer Protection in the ASEAN Free Trade Area
20 February: A new Consumers International report has condemned World Intellectual Property Organization (WIPO) technical assistance as 'thoroughly inadequate', and is demanding a wholesale review of the organization’s legislative advice to developing countries. 
The Copyright and Access to Knowledge report examines copyright law in 11 Asian countries. It  finds that all 11 countries, including China, India and Malaysia, have given copyright owners far more protection than the intellectual property treaties they have signed up to require.
13 March: With World Consumer Rights Day 2006 upon us, Consumer International member organizations around the world are preparing for action on 15 March. From Bolivia to Zimbabwe; China to the United Kingdom; consumer groups are finalizing their plans for a day of action, debate and awareness rising on the issue of 'Energy: Sustainable access for all'. Figures recently published by the International Energy Agency predict that consumer energy demand will increase by a staggering 119% by 2030. This makes sustainability a vital issue.  
It's not too late to act: you can send a letter of protest to the G8 as well as other campaign ideas You can all view our energy case studies, and the latest Consumers International press release

 
18 December:  Download version two of the new Draft Ministerial Declaration, released 18 December, 16:30 HKT. You can also read CI's initial response and get our latest daily update.
15 December: Consumers International continues to meet with delegations at the WTO Ministerial and push for the member governments to put consumers at the heart of trade. Although negotiations remain deadlocked, CI is campaigning hard, particularly on threats to universal service provision. Get more on the campaign, read our latest daily report, and our press release on services.

12 December: As the member governments of the World Trade Organization (WTO) meet for crunch talks in Hong Kong, many issues vital to the world's consumers are not even on the table. Consumers International (CI) is deeply concerned that firm dates on the completion of the Doha Round remain elusive and that the potential flow of benefits to consumers, particularly in the developing world, will be no more than a trickle. Read CI's latest press release and our Hong Kong daily updates.

We are happy to announce that the electronic version of the Asia Pacific Consumer Vol 41 3/2005 is now available online. The theme for this issue is Millennium Development Goals.
6 December: Some 40 representatives of government consumer protection agencies and consumer leaders of Southeast Asia have called for, among others, the formation of a network of ASEAN consumer protection agencies and an ASEAN Consumer Council to ensure consumer rights are promoted coherently throughout the region. This call is part of the Plan of Action which is the culmination of the Southeast Asian Conference on Consumer Protection held in Kuala Lumpur on November 28 and 29.
News...Get the latest on our WTO policy positions
Member action...We need to reinforce the important role consumers play in trade and make it clear to the WTO that action needs to be taken to help all consumers. Use the model letters provided and get in touch with your trade minister and back the call to action.
25 Nov 2005 :As the Association of South East Asian Nations (ASEAN) moves closer towards achieving a unified market much still needs to be done to ensure that the welfare of the regions 500 million consumers are well protected. Ever anxious to grasp economic prosperity, ASEAN's business and trade arrangements are all in place the region's consumer protection agencies are still far from ready to face the challenges posed by the increased flow of goods and services across borders.
Consumers International Asia Pacific together with the Malaysian Ministry for Domestic Trade & Consumer Affairs hopes to lay the foundation for an ASEAN-wide consumer protection programmed at the Southeast Asian Conference on Consumer Protection on November 28 and 29 in Kuala Lumpur.
October 18: Replete with cooking gear, caps, aprons and great tasting food some 20 Chennai street food vendors participated in a Street Food Festival organized by Citizens, consumer and civic Action Group (CAG), supported by Consumers International Asia Pacific Office.
The Festival was the culmination of CAG's efforts in conducting training workshops for 30 street food vendors in Chennai.
October 18: At the height of the Asian financial crisis of 1997 and 1998 the International Monetary Fund (IMF) advised the Government of Indonesia to open its markets and to remove State agencies from intervening in its domestic market. In return for financial assistance the Indonesian government complied with the IMF prescription - much to the detriment of its local small farmers and consumers. Read how Indonesia's sugar industry collapsed as foreign importers stepped in: Nightmare in a Spoonful of Sugar
October 18: Governments in Asia are turning to privatization and liberalization of public services in the name of efficiency and lower costs. But has this contributed to improving competition and consumer welfare? In collaboration with four members, Consumers International commissioned a study to compare consumer benefits arising from competition in the telecommunications markets of Bangladesh, Indonesia, Pakistan and Thailand. 
17 October: The massive earth quake that struck Pakistan has resulted in almost 100,000 deaths and many more injured. As many medical facilities and roads have been destroyed, the survivors may soon succumb to their injuries. There is also need to provide shelter for four million people and to hasten relief efforts as winter approaches.
Consumers International's member in Pakistan, The Network for Consumer Protection, is working furiously to help provide relief in affected areas. The Network is currently helping to facilitate the provision of goods and medical supplies as well as providing rehabilitation centers and half-way homes near hospitals for homeless victims who need minimum medical attention. The Network needs support to continue its efforts.
9th September: In the run-up to the WTO Ministerial Meeting in Hong Kong in December 2005, Consumers International is collaborating with the Centre for Policy and Dialogue (CPD) to organize the Pre-Hong Kong International Civil Society Forum on October 3 to 5 in Dhaka, Bangladesh. The Forum aims to promote and advance the interests and concerns of LDCs in the ongoing negotiations under the Doha Development Agenda.
The Forum will scrutinise and discuss major areas under the Doha Round namely agriculture, non-agricultural Market access (NAMA), services, WTO rules, special & differential (S&D) treatment and development provisions.
16 August: With an estimated 232 million Internet users in the region, engaging Asian consumers on-line ought to be a brilliant strategy for any ambitious businessman. Yet for every few successful E-Commerce entrepreneur there are thousands more who fail miserably.
Consumers still lack the confidence to shop on the Internet but they will eagerly transact with reputable businesses that they are familiar with. The E-Commerce industry needs to take effective steps to win the confidence of consumers to go online to shop for products and services.
The Asian Seminar on Consumers and E-Commerce will highlight and push for stronger measures to protect the consumer on the Internet. The Seminar, which will be held on August 24 and 25 in Kuala Lumpur, will identify and discuss various mechanisms necessary for a comprehensive framework for E - Commerce in Asia.
15 August: At the beginning of the new millennium, governments of the world came together and agreed to a bold and noble plan to achieve eight goals to improve the lives of millions. This September will mark the fifth year since the Millennium Development Goals (MDGs) were formulated to combat poverty, hunger, disease, illiteracy, environmental degradation and discrimination against women.
CI and UNCTAD are jointly organizing the Asian Conference on Consumer Protection and the MDGs to be held on August 23 in Kuala Lumpur. The conference aims to critically assess the nature of work being undertaken by the consumer movement in Asia and how they contribute towards achieving the MDGs.
Consumers International together with the United Nations Conference on Trade & Development (UNCTAD) has recently completed a joint-study to examine government policies for improving competition and consumer protection measures.
CI President, Marilena Lazzarini was in New Delhi for the Consumer Coordination Council's 4th National Consumer Convention. [ More ]
CI President, Marilena Lazzarini, Vice President Felix Cohen and Executive Member Pamela Chan were in Shanghai attending an "International Forum on Harmonious Consuming Environment Establishment".
We are happy to announce that the electronic version of the Asia Pacific Consumer Vol 39 & 40 1&2/2005 is now available online. The theme for this double issue is Traditional and Complementary Medicine.
We have just uploaded all the materials (Agenda, PowerPoint Presentations and  the Plan of Action for Consumer Organizations on Nutrition) of the :
·         Regional Workshop on Children and Food Security - Nutrition in Schools, 22 June 2005  and
·         Training Workshop on Rights to Seeds, 23 June 2005 we look forward to hearing about your plans and activities on these topics.
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PERSPECTIVES
What happened to consumer rights protection act ?
Enayet Rasul
1/14/2006

          Every year when the time for the presentation of the national budget nears, the finance minister in his pre-budget consultations--as has been the practice for some years-- can be expected to meet with representatives of different interest groups to get their views and recommendations for possible consideration while making the budget. The business community is seen especially active in these meetings and many of their suggestions can be expected to be favorably taken into consideration while preparing the budget document. Thus, the producers and sellers get the opportunity to be heard by the government on the eve of the declaration of the national budget which is very important for all kinds of production and selling activities involving the producers, the financiers, the distributors and others in the entire business chain.
But the consumers or the preponderant number of people in the country who are to consume the products and services of businesses are not seen similarly consulted. This, on the one hand, reflects the weaknesses of whatever consumer organizations there are in the country and, on the other, government's callous attitude towards consumers' interests.
But proper economic management essentially calls for giving a boost to not only right type of production activities but equally, the consumption activities. The productive efficiency or allocative efficiency of resources in an economy is determined not only by how goods or services are produced but whether these can effectively satisfy the maximum demand of consumers at prices they can afford as well as meeting consumers' expectation in respect of quality or safety of the products and services.
If consumers are persuaded by lack of regulation and information or misinformation to consume more demerit goods that provide no social benefits or negligible such benefits but create high costs to society from their consumption, then hardly the goals of positive consumption are attained. Consumption ought to be more and more in areas that generate much greater social benefits than costs so that the economy can grow in the right direction or the right type of economic growth can be sustained. For example, attractive media advertisements can allure the customers into buying many unnecessary or even harmful goods and services. The real promotion of consumers’ interest involves discouraging the consumption of such goods and services. But these truly enlightened interests of the consumers can be advanced only in a situation where enabling legislation in extensive forms exists to discourage production and consumption of demerit goods and services.
Powerful consumers' groups in many countries act as a go between the producers and the government and contribute to government's policy formulation so that consumers' interests as well as the best interests of the national economy are promoted. The absence of such groups in Bangladesh or their presence in rather feeble form has meant inadequate representation of consumers' interest . But that does not absolve the government of its responsibility to act on its own and doing its best to safeguard the interests of consumers because this is not only desirable from the perspective of consumers but also very necessary for the economies efficient functioning to ensure best utilization of resources or maximizing their value.
People in all walks of life have been very shocked by the recent findings of the roving mobile courts. People could learn that practically inedible foodstuffs in terms of quality and safety were being marketed with the least care by their producers. In other cases, foods were being catered to customers in unhygienic conditions. Both are very serious offences and since the taking of the initiative by the mobile courts against adulterated food and unhygienic catering of food, the demand for toughening the laws against such offences arose. The relevant laws have been toughened as a response. But for the comprehensive protection of the consumers, extensive laws are needed. For example, it is not enough to only find stale food and fine their producers or caterers. The laws should have longer arms and provide penalties for not meeting the desired quality specifications of foods in respect of coloring, additives, refrigeration, bottling, etc. Similar 'elaborate' laws should be there to deal with producers of all kinds of goods apart from food items and also services providers.
The detailed laws should aim to ensure safe production and consumption of all types of goods and services from end to end. And such detailed laws to include every sphere of consumers' interests are only possible through a comprehensive consumer protection act. Such an act was contemplated twelve years ago and a draft form of this act was prepared by the law ministry for submission in parliament. But long twelve years have gone by ; the draft law was not even introduced in parliament. Probably vested interest groups are active to withhold the passing of this law which they fear would create compulsions on them to take much greater care as regards the quality, price and safety of their products.
The Consumer Association of Bangladesh (CAB) is the only organization of any significance devoted to upholding and promoting consumers' interests. It organized a discussion meeting at the Jatiya Press Club last week where the speakers drew attention to the obstructionism in passing this vital legislation. They pointed out that India, Nepal and other countries have implemented elaborate legislation in the interest of buyers and ensured consumers' protection. But Bangladesh has done nothing of substance to this end. CAB's urging of the government to introduce the consumer protection act in parliament-immediately-- has been overdue. But it needs to sensitize and mobilize the consumers in large number in support of its advocacy to be able to pile enough pressure on the government.
The Bangladesh Standard and Testing Organization (BSTI) is the main official body that deals presently with consumer protection. But this organization performs in a lackluster way for many reasons. One such very important reason is its lack of empowerment. It can detect violation of standard in the production and distribution processes and warn and admonish the violators. But it is not empowered to order the withdrawal of defective goods or to prohibit their production. Thus, the BSTI is like a tiger without its tooth and claws. Clearly, the BSTI will have to be empowered with introduction of new laws or amendments of existing ones to work efficiently towards consumer protection. This has become an imperative. BSTI may be adequately empowered also if and when the proposed comprehensive consumer protection act comes into force. Furthermore, this vital organization will have to be made resourceful with recruitment of expert people for testing and acquiring of adequate testing equipment and other facilities for the purpose.


 

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