Bangladesh can create a more robust and effective legal framework to safeguard consumer rights, fostering a fair and transparent marketplace that instills confidence in consumers and supports sustainable economic growth
In Bangladesh, the violation of consumer rights is a pervasive issue, stemming from various factors such as low ethical standards in businesses, consumer ignorance. Despite being a fundamental aspect of human rights, consumer rights have not received the attention and prioritization they deserve in the country’s development line.
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The concept of consumerism and the need for consumer protection mechanisms evolved in Europe during the 19th century, initially as a struggle against capitalism and food fraud. The first consumer protection organizations were established in Denmark, and the first consumer council was created in Great Britain in the mid-20th century, empowering consumers to have a say on issues traditionally reserved for producers and traders.
Consumers’ Rights are a far cry in Bangladesh
The severe hyperinflation experienced by consumers dominated media headlines for most of 2023. The prices of basic food items were particularly volatile, creating significant distress for the average consumer. This economic instability underscored the persistent issues with the enforcement of the Consumer Rights Protection Act (CRPA) of 2009, which was amended in 2017 to align with the UN Consumer Bill of Rights.
For decades, consumers’ rights have been consistently violated. Goods, medicines, and services are frequently sold at prices higher than those mandated by law. Traders have knowingly sold adulterated goods and medicines and have not hesitated to sell products contaminated with hazardous ingredients, posing serious health risks to consumers.
These conditions highlight the pervasive manipulation of prices at every stage of the supply chain, from manufacturers and importers to wholesale distributors and retailers. Authorities have been forced to act in response to rampant greed. A stark example of this manipulation is the recent surge in onion prices. Following India’s announcement of an export halt, the price of onions in Bangladesh skyrocketed by Tk100 per kilogram in just one day. This price hike represented a staggering 71 percent increase, showcasing the audacity of suppliers to exploit market conditions for excessive profit.
Market interventions by authorities often prove to be short-lived and largely ineffective, primarily because the fines imposed on traders are insufficient to deter such behavior. As this newspaper has noted, ‘Imposing fines on traders has become a meaningless ritual.’ Recently, the total fines collected from 133 trading houses amounted to Tk666,000 or an average of Tk5,008 per trader. This paltry amount is negligible compared to the astronomical profits these traders reap from their unethical practices.
The core issue lies in the inadequacy of these fines. The current penalties do not impact traders significantly enough to discourage their exploitative practices. To address this problem, fines need to be increased to levels that make breaking the law prohibitively expensive. Only then can the balance be shifted in favor of consumers, ensuring their rights are protected and economic stability is maintained.
Shortcomings of the Consumer Rights Protection Act
From 2009 to 2023, the Directorate of National Consumer Rights Protection (DNCRP) accrued fines totaling more than Tk113 crore by penalizing 163,239 product sellers and service providers.
Moreover, the directorate has recognized 8,488 consumers whose complaints resulted in the collection of over Tk6 crore in fines from sellers who violated consumer rights. According to the provisions of the Consumers’ Rights Protection Act 2009, these consumers received 25% of the fines collected, amounting to approximately Tk1.5 crore.
| Metric | Total |
|---|---|
| Fines Accrued by DNCRP | Tk113 crore |
| Number of Sellers Penalized | 163,239 |
| Consumers Recognized | 8,488 |
| Fines Collected from Violators | Tk6 crore |
| Consumers’ Reward | Tk1.5 crore (25% of fines) |
When the Consumer Rights Protection Act was finally passed in 2009, it failed to satisfy the expectations of rights activists. The law did not provide for the constitution of a quasi-judicial body comprising stakeholders, including rights advocates, civil society members, and business leaders, as was the case in India with the establishment of the National Consumer Disputes Redressal Commission (NCDRC).
Instead, Bangladesh established the Directorate of National Consumers’ Rights Protection (DNCRP), a full-fledged government department headed by a director general. This bureaucratic approach frustrated consumer protection efforts from the outset, as the department struggled to tackle the widespread incidents of consumer rights violations effectively.
Comparative Analysis
India’s approach to consumer protection offers a stark contrast to Bangladesh. After adopting the UN guidelines, India quickly set up a comprehensive consumer protection framework.
In Bangladesh, however, the establishment of the Directorate of National Consumers’ Rights Protection (DNCRP) as a government department rather than an independent commission marked a significant setback.
The Global Context
Consumer rights, now recognized as integral to human rights, have garnered significance globally over the years. Major economic powers have established stringent laws to uphold consumer interests and combat deceptive trade practices. Additionally, international bodies like the World Trade Organization (WTO) formulate rules to regulate global trade, impacting producers, manufacturers, suppliers, and, ultimately, consumers.
The Legal Framework for Consumer Protection
Recognizing the importance of consumer rights, Bangladesh enacted the Consumer Rights Protection Act in 2009 to address consumer affairs. This law complements around 61 other relevant laws that deal with consumer rights protection mechanisms in a sporadic manner. The Constitution of Bangladesh, particularly Articles 15 and 18, provides the foundation for consumer protection laws, ensuring the provision of basic necessities, reasonable wages, social security, and quality of work.
Other key laws governing consumer rights in Bangladesh include:
- The Essential Commodity Act, 1956
- The Pure Food Ordinance, 1959
- The Price and Distribution of Essential Commodity Ordinance, 1970
- The Drug Control Ordinance, 1982
- The Breast Milk Substitute (Regulation of Marketing) Ordinance, 1984
- The Tobacco Goods Marketing (Control) Act, 1988
- The Special Powers Act, 1974
- The Dangerous Drug Act, 1930
- The Trade Marks Act, 1940
- The Standard of Weights and Measures Ordinance, 1982
- The Food Grain Supply Ordinance, 1956
- The Penal Code, 1860
- The Sale of Goods Act, 1930
- The Bangladesh Standards and Testing Institution Ordinance, 1985 (BSTI Act Amendment – 2003)
- The Essential Commodity Act, 1990
- The Fish and Fish Product Rules, 1997
Institutional Framework for Consumer Protection
The Bangladeshi laws provide for the establishment of various organizations and courts to protect consumer rights, including:
- Consumer Rights Protection Department
- National Consumer Rights Protection Council
- Special Tribunal
- Mobile Court (can function under various laws and be constituted by a special executive order)
- Drug Court
- Food Special Court
- Ordinary Criminal Courts
- Ordinary Civil Courts
- Marine Courts
- Bangladesh Standards and Testing Institution (BSTI)
- Claims Tribunal
The Way Forward
To address the rampant infringement of consumer rights in Bangladesh, a more robust and effective consumer protection mechanism is urgently needed. This should include:
- Establishing an Independent Consumer Protection Commission, the government should consider establishing an independent consumer protection commission, similar to India’s NCDRC, comprising stakeholders from various sectors, including consumer rights advocates, civil society members, and business leaders.
- Strengthening Legislation and Enforcement Existing consumer protection laws should be reviewed and strengthened to address gaps and loopholes, and enforcement mechanisms should be bolstered to ensure effective implementation and deterrence.
- Enhancing Penalties and Fines the penalties and fines for consumer rights violations should be increased to reflect the gravity of the offenses and serve as a stronger deterrent against unscrupulous business practices.
- Consumer Education and Awareness Campaigns should be undertaken to empower consumers with knowledge about their rights and the available redressal mechanisms.
- Encouraging Civil Society Involvement Civil society organizations and consumer rights groups should be actively involved in monitoring and reporting violations, advocating for stronger protection measures, and holding businesses accountable.
By implementing these measures, Bangladesh can demonstrate its commitment to upholding consumer rights as an integral part of human rights and fostering a fair and transparent market environment that safeguards the interests of its citizens.
