The Consumer Protection Act of 2018 (2075), which came into effect in September 2018, serves as the primary legislation in Nepal aimed at safeguarding consumer interests concerning the quality, pricing, and availability of goods and services. This Act was established to rectify the deficiencies found in the Consumer Protection Act of 1998. Key features of the Consumer Protection Act 2018 include:
Redefinition of Services
In contrast to the previous Consumer Protection Acts, which included legal provisions for the protection of consumers utilizing goods or services, the current Act expands the definition of services beyond labor, facilities, or consultancy. It now encompasses a broader range of services, including:
- Electricity
- Drinking water supply
- Telephone services
- Information technology
- Healthcare
- Education
- Transportation
- Drainage
- Banking
- Other similar services, such as legal, medical, or engineering services.
Regulation of Goods and Services
The earlier Act offered minimal guidance on the regulation of goods and services. The Consumer Protection Act 2018 provides a more comprehensive framework. According to Section 4 of the Act, the Government of Nepal is tasked with:
- Implementing various policies,
- Facilitating supply systems,
- Coordinating with relevant agencies to oversee the regulation of supplies, pricing, quality, measurement, labeling, and advertising of goods and services.
Labeling Requirements
Both the current and previous Acts mandate the affixing of labels that provide specific information about goods. However, the current Consumer Protection Act explicitly prohibits the import, sale, and distribution of goods that lack an affixed label, as stipulated in Section 6 of the Act.
Prohibited Activities
Chapter 4 of the Consumer Protection Act 2018 delineates a range of activities that are prohibited in order to safeguard consumer interests. This legislation rectifies the deficiencies of its predecessor by detailing and expanding upon the activities that are deemed unacceptable, which include:
Engaging in unfair trade and business practices
- Misrepresenting, concealing, or withholding information while selling or providing goods or services.
- Creating an artificial scarcity of goods, hoarding, or engaging in the sale of any products.
- Failing to issue a bill or invoice for goods or services rendered, or neglecting to provide bills/invoices altogether.
- Delivering services without clearly stating the price, quality, or other relevant details of the service.
To cause adverse impact on Demand, Supply, or Price
- The distribution, transportation, or obstruction of the sale and distribution of goods by charging profits that exceed the established limits or surpass the production costs.
- The importation, transportation, hoarding, or sale of goods or services that are banned by the Act.
- The intentional production, sale, or importation of substandard goods.
- The sale of any goods or services through falsehoods or deception regarding their quality.
- The promotion of goods or services as being of high quality when they do not meet such standards.
- The production or sale of goods or services that adversely affect consumer health.
Relevant Authorities
The government bodies designated in the Consumer Protection Act 2018 for the safeguarding of consumer rights include:
- Ministry of Industry, Commerce, and Supplies
- Department of Commerce, Supplies, and Consumer Welfare Protection
- Consumer Protection Council
- Central, Provincial, and Local Market Monitoring Committee
- Consumer Court
- District Court
Making a Complaint
Currently, there is no Compensation Committee established under the existing legislation. Complaints may be submitted in writing, verbally, or electronically to the Central Marketing Monitoring Committee, the relevant Department, or an Inspection Officer, accompanied by the necessary information, proof, and evidence.
Filing Lawsuits
The Consumer Protection Act of 2018 facilitates the creation of Consumer Courts to handle and resolve complaints or legal cases. In the event that a Consumer Court is disbanded, the Government of Nepal will transfer cases and complaints to the appropriate district court.
Compensation
Consumers who experience loss or damage are entitled to file complaints seeking compensation at the Consumer Court.
Reward to Informants
The Act stipulates a reward of 10% of the claimed amount, or a maximum of one million rupees (whichever is lower), for individuals who provide information regarding offenses that are being committed or are planned. This provision was not included in the previous legislation.
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