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

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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.