The Act also establishes the creation of a Consumer Protection Council, outlines the rights that consumers enjoy in Nepal, delineates the role of the government in their implementation, governs unfair competition practices and sets standards for quality and labeling. The Consumer Protection Act provided for the creation of the Consumer Protection Council, which is entrusted with the goal of protecting consumers through its advisory and information dissemination functions. This council was designed as an interdisciplinary body that would look after consumer issues. It has members from the ministries of commerce and supplies, agriculture, industry and home ministry, and also representatives of women and members from NGOs. The main tasks of the council are to make policy recommendations to the government of Nepal on consumer issues, to inform consumers about their rights, to be involved in research on these matters, including keeping an eye on national and international trends regarding consumer protection; and to promote the interests of consumers generally.
This Act outlines the rights that consumers enjoy in Nepal, which the Consumer Protection Council must promote following the directions of the government. Consumers thus have the following rights pursuant to article 6 of the Consumer Protection Act:
“(a) Right to be protected from the sale and supply of consumer goods and services which may harm life, body, health and property.
(b) Right to be informed about the prices, attributes, quantity, purity, quality, etc. of consumer goods and services so as to be safe from unfair trade practices.
(c) Right to be assured of an opportunity to choose consumer goods and services at competitive prices as far as possible.
(d) Right to be assured that an appropriate agency will hear matters concerning the protection of the rights and interests of consumers.
(e) Right to be heard and compensated against exploitation […] resulting from unfair trade practices.
(f) Right to consumer education.”
The Act also regulates competition practices that affect consumers, as it forbids that market participants collude in affecting the supply or demand of consumer products, or their price. The government may take action to forestall such actions, to ensure that consumers do not suffer the negative impact caused by unfair market practices. The distribution of goods and services that are sub-standard, harmful or are sold using misleading claims is equally prohibited.
In addition, goods destined to consumers must be labeled adequately, including mentions such as the contact details of the producer, the ingredients of food and medication products, the quality, price, production and expiry date, period of guarantee of electronics and hardware, and whether the item is fragile, flammable or dangerous, as well as the possible consequences of consumption of the product.
The government of Nepal has the authority, under this law, to conduct inspections in order to guarantee the compliance with the provisions of the act. Inspection Officers appointed by the government are allowed to search and inspect the places that are reasonably suspected of producing or selling goods that do not comply with the requirements of the law. Consumers can demand compensation if they suffer any damage as a result of these violations, which may be awarded by the Compensation Committee. Consumers can file claims either individually or through a consumer organization. These committees are established at the district level, to ensure that the mechanism is accessible to citizens even in the rural areas of the country. Their pronouncements can be reviewed by the Appellate Courts.
It must be noted that the Department of Commerce and Supply Management is a key authority in consumer protection. In its strategic plan for 2012-2015, the Department determined that inspection committees would be established in 75 districts, to guarantee the adequate implementation of the Consumer Protection Act. Additionally, the Department of Food Technology and Quality Control, lodged under the Ministry of Agriculture Development, is entrusted with the task of ensuring that citizens will have access to food that complies with the set quality and safety standards. Although the Consumer Protection Act is the key text in this area of the law, there are other important laws that affect the position of consumers in Nepal. Regarding food standards, relevant norms are the Food Act and the Animal Slaughterhouse and Meat Inspection Act. The Drugs Act relates to standards applicable to medicine manufacturing. The Competition Promotion and Market Protection Act governs market practices that may impact consumers. Finally, the Standard Measurement and Weight Act, the Nepal Certification Mark Act and the Black Marketing and Some other Social Crime and Punishment Act cover other aspects of consumer law related to quality standards and fair marketing
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