consumer rights in bd

1Consumer Rights in Bangladesh: The Present Scenario

1.0 Consumer Rights in Bangladesh- The Present Scenario

1.1 Background Summary:

In the backdrop of rapid development and globalization of our economy it is essential that

Bangladesh should have a pragmatic consumer policy to ensure consumer right and to protect

them from unfair business practice. There is a popular saying is Market Economy that

“Consumers are the King” but is the context of Bangladesh can we say the same?

In Bangladesh, peoples are now live in the state of insecurity as well as uncertainty. Two fold

dangers confronting the urban consumers are under consumption and health hazards arising out

of price spiral, lucrative advertising, packing the poor quality products with attractive covers and

massive adulteration. The onslaught of criminalization in commercial operations continued to

jeopardize the rights of the consumers in the recent past. Added to it many a fraud practice

unnoticed by the authorities went against public safety and security. Even now, the ordinary

consumers have much less access to the concerned authorities and the latter have been found to

be inefficient-not equal to the task in the face of manipulation of the market by the criminal;

syndicate.

However, social movement in consumer’s regime puts consumerism first. ‘Consumers Voice’ is

at the heart of such movement. Of course, belatedly, the Consumers Association of Bangladesh

(CAB) organized such movement through awareness buildings campaigns, conferences, rallies

and publications. This is in response to the development of consumerism at the global level.

1.2 Statement of the Problem:

Like other rights, consumer rights remain most ignored in Bangladesh for lack of awareness

many people do not check the manufacturing and expiry dates or whether or not the ingredients

used in foodstuff meet the standards.

The problem arises in the form of adulteration of food in the Dhaka city (like using formalin,

carbide, food color etc). This causes serious as well as harmful effect on human being.


Consumers also lose out due to artificial price-hike. Lack of enforcement of the consumer rights

protection law also makes the consumers losers.

Last few years in Dhaka city basically during Ramadan adulteration of food was increasing in

alarming way. So the responsibility of government and implementation of the minimum safety is

the main problem in our study.

1.3 Purpose of the Study:

a. To assist countries in achieving or maintaining adequate protection for their population as

consumers;

b. To facilitate production and distribution patterns responsive to the needs and desires of

consumers;

c. To encourage high levels of ethical conduct for those engaged in the production and

distribution of goods and services to consumers;

d. To assist countries in curbing abusive business practices by all enterprises at the national and

international levels which adversely affect consumers;

e. To facilitate the development of independent consumer groups;

f. To further international cooperation in the field of consumer protection; and

g. To encourage the development of market conditions which provide consumers with greater

choice at lower prices?

1.4 Limitations

There are few limitations of the study. Those are:

Time constraints: Time limit was one of the constraints for this study.

Literature constraints: No proper study was available for the research. So, we have to

collect literature from scatter web site data.


1.5 Significance of the Study

This study can give us an idea about the Dhaka city’s current condition & it’s one of the risk

factor. The readers can have an idea about the legal & ethical issues related with consumer right

in Bangladesh. Also reader will get knowledge of incident happening in Dhaka city right now.

An in depth study can be possible with this study.

2. Information Guide on Consumer Rights and Responsibilities

2.1 Consumer’s responsibilities?

Consumer education must inculcate the responsibilities of the consumer as well. Responsibilities

always precede rights. If consumers want their rights recognized, they must first exercise their

responsibilities. These responsibilities are:

Critical Awareness:

The responsibility to be more alert and questioning about the price and quality of the goods and

services we use.

Action:

The responsibility to assert ourselves and act to ensure that we get a fair deal. As long as we

remain passive consumers, we will be exploited.

Social Concerns:

The responsibility to be aware of the impact of our consumption on other citizens, especially

disadvantaged or powerless groups, whether in the local, national or international community.

Environmental Awareness:

The responsibility to understand the environmental consequences of our consumption. We

should recognize our individual and social responsibility to conserve natural resources and

protect the earth for future generations.


Solidarity:

The responsibility to organize together as consumers to develop the strength and influence to

promote and protect our interests.

2.2 What are the universal consumer rights?

The global movement has articulated 8universal rights for consumers, as follows:

Basic needs:

The right to basic goods and services which guarantee survival: adequate food, clothing, shelter,

healthcare, education and sanitation.

Safety:

The right to be protected against the marketing of goods or the provision of services that are

hazardous to health and life.

Information:

The right to be protected against dishonest or misleading advertising or labeling. And the right

to be given the facts and information needed to make an informed choice.

Choice:

The right to choose products and services at competitive prices, with an assurance of satisfactory

quality.

Representation:

The right to express consumer interest in the making and execution of government policy.

Redress:

The right to be compensated for misrepresentation, shoddy goods or unsatisfactory services.


Consumer education:

The right to acquire the knowledge and skills necessary to be an informed consumer.

Healthy environment:

The right to live and work in an environment which is neither threatening nor dangerous and

which permits a life of dignity and well-being.

3. Information Guide on Code of Conduct for Ethical Business

This section provides background information and ideas to the consumer educator on the

Following:

The importance of good business ethics;

Contributions of good governance towards consumer protection;

Business code of conduct;

3.1 The importance of good business ethics:

The consumer movement is not anti-business. The consumer movement is for good business. It is

however, anti bad business. Therefore the importance of good business ethics is to help

businesses get the support of the consumer movement. The support of the consumer movement

will help to improve sales and profit.

Second, the aim of good and ethical business is to serve the consumers. Likewise, the aim of the

consumer movement is also to serve and protect the interest of consumers. There is clearly a

common purpose between business and the consumer movement. The practice of good business

ethics cans synergies co-operation and collaboration between ethical business and the consumer

movement. Therefore, businesspersons need consumer education as much as consumers to

become successful in their business.

This co-operation and collaboration has the potential to benefit both parties, in particular the

business. A business that is ethical and truly wants to serve the interests of the consumers will


get free feedback from consumers. This feedback can help business to improve constantly and

help the consumers better. Practicing ethical business is in the best interest of business as well.

3.2 Contributions of good governance towards consumer protection:

Good corporate governance means doing business in a responsible, efficient and cost-effective

way. Good corporate governance and management of business can contribute effectively to

consumer protection and national development in the following ways:

Responsible corporate governance

Leads to a fair and just economic system. A fair and just economic system leads to greater

confidence and the better use of resources without wastage and social disruptions. It creates a

win-win situation for the business, the workers, the investors, the government and the

consumers. Everybody tends to gain.

Efficient corporate governance

Leads to better time and resource utilization. This reduces waste and optimizes the use of

resources. We are able to manage the production and output process better. This enhances and

strengthens further the win-win situation.


Cost effective corporate governance

Means we are able to do more with less. Again, this reduces wastage and optimizes the

resources. It enhances the ability of business to lower prices to benefit the consumers.

Collectively, good corporate governance – working and managing with responsibility, efficiency

and cost effectiveness – makes our society and nation competitive in the growing global market.

3.3 Business code of conduct

The Ministry of Domestic Trade and Consumer Affairs of the Government of Malaysia has

articulated five elements that constitute the code of conduct for ethical business. We can call this

the “Panacea of Ethical Business”. Businesses should:

Recognize and accept the rights of consumers

Practice truthful, ethical and non deceptive business

Refrain from misleading and fraudulent statements

Practice fair competition

Be responsible towards society

4. History of Consumer Protection

Consumer protection, as known today, has roots even in the daily lives of the Stone Age cave

men. A seller sells a product to a buyer, the buyer finds the product not to be up to his satisfaction;


coincidence, some would say. But is it? In the absence of definitive statistics, the instinct of a

consumer living in a capitalist society would lead me to wonder if the seller intentionally did or

did not do something that led to my compromised consumer satisfaction.

Today’s consumerism finds its origin in the late 19th and early 20th century marketplace in the

United States. The United States Congress made history in 1872 by enacting the very first of its

kind consumer protection law, the mail fraud law, which makes it a punishable offence to commit

mail order fraud. At best rudimentary and lacking teeth to curb anything but false advertising, this

law did nothing to prevent unsafe, unhealthy and dangerous products from reaching the hands of

trusting consumers.

The passage of the Sherman Anti Trust Act passed by the US Congress in 1890 was the next

feather in the cap of consumerism. This act prevents and limits the formation of cartels and

monopolies that challenge the very frame of consumer rights. The ground for the majority of

antitrust law suits, this federal law does not address the most critical area of consumer protection,

the product quality.

Apart from minor legislations at a state level, it was the beginning of the 20th century that marked

the revival of the consumer protection movement, which had been docile for the past 15 years or

so; the impetus being the publication of The Jungle by Upton Sinclair in which the author

described his disgust at the meat packing industry in Chicago. Horrified, President Theodore

Roosevelt had these allegations verified independently by federal agents, who confirmed the

distressful conditions of the meat that American consumers ate.

Soon afterwards in 1906, the US Congress passed the Pure Food and Drug Act which, along with

the Shirley Amendment, curbs sellers from selling adulterated food / drugs and places guidelines

on the accuracy of the data on labels. Together with the Meat Inspection Act, the government had

ensured a legal framework to prosecute anyone who would willfully violate the quality of the food

and medicines used by the consumers.

Other landmarks in the consumer protection movement were the establishment of the Federal

Trade Commission (FTC) in 1914 and the establishment of the Food and Drug Administration

(FDA) in 1931. This was closely followed by the Food, Drug and Cosmetic Act of 1938 which


enabled the FDA to test new drugs before they reached the hands of the consumers.

In the mid twentieth century, the two stalwart figures in the consumer protection movement were

Ralph Nader and John F Kennedy. In a historic speech in 1962, Kennedy was the first one to

define the basic consumer rights as they are still used today. A milestone in the consumer

protection movement came with the publishing of Ralph Nader’s book ‘Unsafe at Any Speed’ in

1967. Leading to the enactment of The National Traffic and Motor Vehicle Safety Act in 1966,

this book was the first attempt by a common citizen to exercise his consumer rights against the big

corporate sharks.

Kennedy introduced the Consumer Bill of Rights in 1962 in the US Congress. This was closely

followed by several bills legislations such as The Cigarette Labeling Act (1965), The Fair

Packaging and Labeling Act (1966), and the Wholesome Meat Act (1967) and the establishment

of the Consumer Product Safety Commission (CPSC) in 1972.

In India, as always the laws reach late. Obviously, the Indian politicians could not hold on any

longer protecting their business patrons against public outcries of corporate fraud, deceit and

callousness in general. So in December 1986, the Consumer Protection Act was reluctantly passed

by the Indian Government to protect the consumers.

Independently if reviewed, the Consumer Protection Act 1986 has all the mistakes that the

developed economies made with their consumer legislations over 25-50 years ago. One would

assume that the Indian politicians would use their wisdom to not repeat the mistakes that have

already been made by others, but then again, loopholes in the law means more protection for the

corporate sharks. So willfully some “mistakes” may have been introduced.

The Consumer Protection Act 1986 is at best a mediocre attempt at consumer protection.

Nevertheless, better none than one when it comes to laws in India! It lacks teeth in several areas

including safety, product labeling, execution of the law, and punishment of the violators of the

law. Sadly, violators of consumer rights still enjoy absolute freedom in India to disregard safety

and quality when it comes to consumer products despite this law. You may read more about the


Consumer Protection Act 1986 here.

4.1 History of Consumer Rights in Bangladesh:

In Bangladesh, the consumer Association of Bangladesh (CAB) was established in 1978. With the

relentless effort of CAB since 1994, a draft Consumer Protection Act for Bangladesh was

formulated in 1998 by the Ministry of Commerce in consultation with CAB and other relevant

ministries, Department and agencies of the government of Bangladesh. During 1999, CAB

arranged a series of seminars and workshops where people from different corners of the society

actively participated to suggest necessary changes in the draft act so prepared. In February 2000,

the Ministry of Commerce sent the draft Act (with necessary amendment) to the Law Reform

Commission to do necessary research on it. On the 29 October 2000, the Law Reform

Commission published a report on the draft act. Finally the draft Act got the preliminary approval

at the cabinet but was again sent to the secretarial Committee meeting for further security. This is

so far the current status of the Consumer Protection Act of Bangladesh.

The draft act is organized into 4 parts with 32 sections in total. The purpose of the act is stated as:

To protect the interests of the consumers,

To set standards in business and

To established necessary institutions for satisfying the above mentioned purpose

and for the settlement of consumer disputes.

We are grateful to the parliament for enacting the Consumer Rights Protection Act 2009, which

brought a light of hope for us to enforce our rights in the courts and get a platform to speak for the

rights specified in the law. However, are these specifications sufficient? It seems to leave a

controversy of darkness underneath the candle light.

4.2 Implications of Consumer Act:

The most striking part of the draft Act is that a compliant in relation to any goods sold or


delivered or agreed to be sold or delivered or any service provided, may be filed not only by the

concerned consumer(s) or the government but also by the any recognized consumer association.

For that matter, it is not necessary that the concerned consumer(s) be a member(s) of such

consumer association.

The draft Act gives quite a lot of power to the District Consumer Courts and the National

Consumer Court. If such courts find any complaint to be true, they have the power to issue order

directing the relevant party to do one or more of the following things,

To remove the defect from the goods or services in question,

To replace the goods with new goods of similar description,

To return price or charges paid for the defective product/services,

To discontinue with unfair trade practice or the restrictive trade practice,

The right to protection against exploitation by unfair trade practices,

The right to protection of health and safety from the goods and services the

consumers buy,

The right to get the grievances redressed and

The right to physical environment that will protect and enhance the quality of life.

Of course constitutional provision of basic necessities recognizes protection of life through safe &

clean food, safe drinking water, hygiene public health, sanitation and safety.

4.3 Future Plan of the Consumer Act:

According to the draft Act, a National Consumer Protection Council will be established in

Bangladesh. The objects of such council shall be to promote and protect the rights of the

Consumers such as:

The right to be protected against the marketing of goods and services,

Not to offer the hazardous goods for sale,

To withdraw the hazardous goods from being offered for sale and

To provide the adequate costs to parties.


There are two very important issues, which are absent in the draft of Consumer Protection Act of

Bangladesh. They are:

There is no power given to either District Consumer Courts or to the National

Consumers Court to issue an “Interim Order” regarding the sale or withdrawal of

hazardous goods from the market.

There is no provision of constituting and maintaining a “Consumer Protection

Fund” for protecting consumer rights in Bangladesh.

5. What Laws, Rules and Regulations are there in the Country to Protect the Rights of

Consumers?

Consumer is a person who is not directly involved in a trade, but receives goods and services from

a person who is occupied in the business. To keep the business profitable and legal, some policies

have been established by the government to create a balance between profit and quality. Such

policies are largely about goods and services, supplied to the consumers or customers, who wish

to purchase or hire goods or services from the sellers or manufactures.

There are three pillars of Consumer policy. These are:

Consumer Legislation and Regulation,

Consumer Representation and

Empowerment of Individual Consumer.

India has extensive consumer protection legislation that is successfully executed and ensures the

access to justice. They have established a separate court for consumers so that if there is any

violation of consumer protection law then the consumers can directly bring action through the

court.

Now being a neighboring country where does Bangladesh stand? Do we have similar extensive

consumer protection Law, which would ensure justice to the poor consumer of our country?

After a prolonged advocacy and lobbying by the CAB with the government and the policy makers


a draft consumer Protection Law war formulated long time back. This draft act is still lying with

the Ministry of Commerce to be processed for enactment by the parliament. However we do have

some existing laws on consumer protection but that are very controversial and conventional.

Consumer Protection in Bangladesh is referred in Article 15 and 18 of the Constitution. Article 15

deals with provision of basic necessities like food, clothing, shelter, education, medical care, right

to work, right to work at reasonable wages, quantity and quality of work, social security etc.

Article 18 deals with public health and morality, life preventing the consumptions of alcoholic and

other intoxicating drinks and drugs, which are injurious to health.

In addition there are other numerous provisions of consumer law, which have been enacted from

time to time. For example, the Control of Essential Commodity Act, 1956 has given power to the

government to control the production, distribution, preservation, and business etc of certain

essential commodities for which a license or permit is must.

6. Brief Description of the Existing Consumer oriented Laws:

The Control of Essential Commodities Act, 1956

The objective of this law, which came into effect on September 19, 1956, is to impose restriction

over the essential commodity prices. In order to impose restriction over the essential commodity

prices Government possesses the right to produce, distribute, preserve, use and trade, etc. of the

essential commodities time to time.

Essential Commodities Price & Bond Ordinance, 1970

To guarantee the current prices of commodities so that Government possesses the right to

determine the prices of essential commodities.

The Pure Food Stuff Ordinance, 1959

The objective of this ordinance which came into effect on Oct 14,1959 and later amended in 1966

is to check and control adulteration and production, supply and distribution of several foodstuffs


including milk and powder milk, flour, edible oils, butter etc.

Trade Mark Act, 1940

Prior to 1940, there was no statutory law relating to trademarks in the British India, and the law,

which was applicable to the subject, was based on common law that was substantially the same as

that applied in England before the passing of the first Registration Act in 1875. The Trade Marks

Act, 1940, (TMA) promulgated in 1940, introduced for the first time for the registration and

statutory protection of trademarks in Bangladesh.

Breast Milk Substitutes Ordinance, 1983

Effective Date: This ordinance came into effect on May 24, 1984. The ordinance has the

objectives of: to encourage breastfeeding and to control marketing of breast milk substitutes

through showing or publishing of highly motivating advertisement of breast milk substitutes.

The Drug Control Ordinance, 1982

Empowered government to establish control over manufacture, import, distribution and sale of

drugs. This enactment makes provisions for constituting a Drugs Control Committee, which is

known as Drug Administration. Without its permission no drug can be manufactured for sale or be

imported or distributed. In case of manufacturing of drugs, the firms are advised to follow the

recommendations of the World Health Organization (WHO).

Anti- smoking Ordinance, 1988

In October27, 1988 Bangladesh has joined anti-smoking campaign. The aim of such is to reduce

the use of tobacco. Sellers and manufactures are instructed to give warning on the tobacco packet

as “smoking is injurious to health”. Without this caution they are not allowed to display or

advertise any tobacco product.

The Special Power Act, 1974

The Special Power Act, 1974 provides for more severe penalties for advertisement, black-

marketing, smuggling, adulteration or sale of adulterated foods, drinks, drugs or cosmetics.


Weight and Measures Ordinance, 1982

Provides that the establishment of standards of weights and measures shall be based on metric

system and units of measurement and would be know in the country as System International (SI)

units.

Apart from these Ordinance there are some additional legislative provisions giving protection to

consumer interests. For example, Section 272 of the Penal Code, 1860 prohibits any food of drink

to be adulterated. Section 274 also imposes restriction on adulteration of any drug or medical

preparation. Section 482 provides restrictions on any false trademark or any false property

trademark. Section 267 provides restrictions on false statement to sell or dispose any instrument

for weighting.

The laws described above were enacted to protect the consumers but are not effective in

implementation. Therefore the market situation is far away from the expectation. The most

interesting thing is that The Control of Essential Commodities Act, 1956 does not give right to the

consumer to sue the producer; it gives right only to the empowered govt. servant. Essential

Commodities Price & Bond Ordinance, 1970 is not also properly implemented which result in

irregular fluctuation in the essential commodity price. During some occasions like Eid and

Ramadan sellers intentionally raise the price of the essential commodities. Still lawlessness is

law of our consumer market; generally sales are dependent on individual bargaining. In case of

some goods prices are feed with rapid fluctuation. A cursory look at the price index and the

annual inflation rate will show that our country has been experiencing unstable price situation

since long. Manufacturers of different products also suffer from the irregular fluctuation of wages

and prices of the raw materials which sometimes causing cost-push inflation and ultimately

punishing the consumers.

7. Case Study (Food Adulteration):


The news "Eating Dangerously" was run in The Daily Star that provided awareness about

adulterated food products among consumers. The investigative reporters of the newspaper have

done a splendid job in detecting adulterated food products and exposing them to the public.

Not only it is reported that certain "rogue" restaurants are using dead meat/chicken meat, sweets

have been mixed with substances that pose health hazards.

For example: Calcium Carbide, Ethan, Ethylene is used to ripe fruits like: mangoes, bananas,

papayas etc, Sal far as well as color is used to make the vegetable and fruits green, Formalin is

used to keep the meet as well as milk.

Not only that during Ramadan as well as in other time Mobil, Diesel, crash of brick, Lead,

Arsenic etc is also used to make cosmetics. This causes skin diseases, cancer, kidney problem, as

well as lever problem.

There is also broader picture with regard to safety of food in Bangladesh. If someone looks at the

Gulshan lake, one may easily find that fish are dying, floating on top of the lake because of high

level of toxins. Fish- meal therefore from polluted lakes and rivers poses a great health risk for

consumers.

The current law is Pure Food Ordinance of 1959. Sections 273-274 of the Bangladesh Penal Code

make adulteration of food products a minor crime. One of the laws BSTI-Act of 2003 carries a

punishment of one lakh Taka (100,000 taka). This is a meager amount compared to their profits

earned by adulteration in present days. This is a meager amount compared to their profits earned


by adulteration in present days.

The food adulteration offence needs to be strengthened with heavy penalties, such as 50lacs to one

crore fines depending on the severity of the offence and fine and imprisonment for several years.

8. Problems beset with Consumer Act:

All these Ordinance and Acts have been enacted with good intention to protect the “Helpless”

consumers of Bangladesh. Similarly the CAB was established to protect the rights of those

consumers. Nevertheless, the Bangladeshi consumers are still beset with various problems. These

problems are include:

Lack of Awareness:

Mass people of Bangladesh are unaware of their rights as a consumer. They do not know if

the sellers cheat them, what they should do or where they should go. The reason behind is

that consumers right is still a comparatively new concept to the people of Bangladesh.

Illiteracy:

Most of the people of Bangladesh do not know about the existence of their rights as

consumer. One of the main reasons for this is the lack of basic education. They cannot

think up to the level that they can have such rights which would give them protection

against adulteration of food, medicine etc. and the right to get proper service for which

they are paying.

Economic Condition:

We cannot avoid thinking of the economic condition which does not provide the

atmosphere fit for consumers who are careful and demand quality.

Compromising Attitude:

Sometimes we do compromise with the quality of goods bought because of our financial

limitation. If we are incapable of paying the accurate price for the goods we buy, we

cannot expect a high standard of quality for the same.


These are the small fractions of problem related to the consumers. However, there are other

problems too. For example, in Bangladesh there is no separate court for consumer’s rights. Also

the consumers lack of proper authority to go to the court to bring action against those who violate

the consumers’ rights. On the other hand in India all consumers can get support from their court.

Therefore, the consumers need to rely upon the government official’s concerned to bring any

effective action against the alleged parties. Those alleged parties are also taking advantage of this

vague situation.

The corrupt businessmen tend to established good relationship with corrupt government officials

who might help them to cheat and exploit innocent consumers.

Moreover, the Bangladesh Standards and Testing Institute (BSTI) is beset with lots of problems,

like it does not have modern equipment and facilities for testing of many products. Also the

general consumers very often question the efficiency and integrity of the officials of BSTI.

Many claim that, our present law is outdated, unable to protect the consumers, faulty and does not

meet the present requirements. Hence, enactment of new law is must.

9. How far these are being implemented?

Perhaps two decades long or a bit more than that we have frequently been hearing about human

rights in our country. And there are many individuals and organizations who are very much

engaged in working in the sector of human rights. No doubt human rights are democratic rights.

At the same time consumer rights are the integral part of the human rights. And all of us know

how the consumer rights are being abused in our country. Almost everywhere in the world

consumers are highly honored, taken full care of their rights. It is told that consumers are the

kings. But in our country it is quite reverse.


What we generally observe in our country is that consumers are treated negligently. While

consumerism has become a strong movement and consumer organizations’ are highly powerful in

the developed as well as in many of the developing countries including our neighbors, a great

majority of the consumers in our country are still in the dark about their basic rights and

obligations as consumers. Due to mass illiteracy, particularly the poor and the disadvantaged

section, the consumers are not aware and conscious of their rights and responsibilities as

consumers. In fact, consumerism is still a new concept in Bangladesh and the very term Consumer

Rights is not known even to the great majority of those whom we are literate.

In the absence of appropriate and adequate protective laws, standards and effective

implementation of existing laws consumers in our country are helplessly being cheated and

exploited by some dishonest businessman and vested interest groups. The innocent, simple and

illiterate consumers are revolving in a vicious circle of food and commodity adulteration, cheating

in weighing & measures, hoarding and artificial price-hike. In the service sectors, the consumers

are deprived of their legitimate services even after paying increased costs. The physicians are not

sincere in their duties and responsibilities and do not adhere to minimum ethics in their

professional practices. Incidence of death due to wrong treatment or intakes of adulterated and

counterfeit drugs are often published in the newspapers. Surprisingly the drug administration is

silent.

The transport sectors are more dangerous and horrifying. No one can be assured of safe-return

home. In the absence of good road transport system and due to lack of effective implementation of

existing traffic laws, road accidents have been increasing at an alarming rate causing heavy tolls

of lives and damage to property. Defective bus, minibus, auto-rickshaw and rickshaws are plying

on the road with excessive passengers and often causing accidents resulting in death and damage

to lives of innocent passengers. In case of water way every year we see the overloaded launches

capsizing and killing hundreds of people.


In the name of open market economy foods and commodities are being imported freely. But how

much do we know about the standards and quality of these imported commodities? Are we sure

that these imported products have undergone any safety and standards tests by any appropriate

authority in the testing laboratories? Consumers Association of Bangladesh (CAB) conducted a

survey on packaged biscuits of 66 brands (both imported & locally produced) made of 33

companies in July 2003. The survey revealed that 76% did not have BSTI certification marks and

proper labeling, 86% had no expiry date on the label, in 83% cases weight was not mentioned and

in 83% cases the sellers are taking more price.

CAB conducted another survey in August- September 2002 on 51 brands of Jams and Jelly of 31

companies and it was found that 52% of Jams and Jelly did not have BSTI certification marks,

13.72% did not mention ingredients, 23.52% did not mention date of production and date of

expiry and in 54.90% cases retail price was not mentioned on the label.

Bangladesh Standard and Testing Institute (BSTI) is beset with numerous problems. It is not well

equipped with modern facilities for testing products and commodities. The efficiency and integrity

of the officials of BSTI are often questioned by the general consumers. Services of BTTB, DESA,

WASA, Bangladesh Biman, BRTC, BTV and Bangladesh Betar hardly meet consumer’s

expectation. Rights are being abused in day to day life. Still they keep mum.

In the developed countries there are adequate laws to protect the consumers against violation of

their rights and interests. There are separate consumer courts in those countries to deal with cases

of violation of consumers' rights and interests. In India, Consumer Protection Law was enacted in

1986 with subsequent modification in 1992. Under this law consumer courts were established all

over the country to try cases instituted by the consumers for violation of their rights involved in

the purchase and use of commodities and services. Instances are there that physicians had to

compensate the patients for medical negligence and wrong treatment, trades and businessmen had

to redress the grievances of the consumers by replacing or refunding money to the buyers for


defective goods and commodities.

In Malaysia, Srilanka and even in Nepal consumer protection laws are in prevalence and being

effectively implemented for protection of the rights and interests of the consumers of those

countries.

But unfortunately in Bangladesh we do not have Consumer Protection Law as such even after

prolonged advocacy and lobbying with the government and policy makers during the last one

decade. But very recently the draft Consumer Protection law has almost been finalized in a

meeting under the chairmanship of additional secretary, commerce Mr. B. R. Khan and hopefully

it will go to the cabinet for final approval very shortly. However, there are some conventional

laws in existence in the country, but these laws are so outdated that little or no protection is

provided to the consumers. These laws are also inadequate and do not meet the present needs. The

most prominent amongst these laws are:

1. Bangladesh Food Ordinance, 1959

2. Bangladesh Pure Food Rules, 1967

3. Bangladesh Essential commodity Act, 1978

4. Bangladesh Drug Control Ordinance, 1982

5. Bangladesh Standard and Testing Institute Ordinance 1984

Among rules and ordinances BSTI ordinance 1984 has been amended will be implemented soon.

The most interesting features of these laws are that aggrieved consumers can not sue the violators

themselves. It is only the designated government officials empowered under these laws, who can

initiate and sue the violators. Besides, provision of penalty or punishment is so negligible that

nobody cares to abide by the rules under these laws and as such there is no effective

implementation of the laws. As a result the consumers in Bangladesh are completely dependant

upon the mercy of the business houses, the professionals and the vested interest groups.


10. What Recommendations do you have to improve the situation?

This is the age of consumerism. The world of business is now focused to consumers and trying

their best to provide the consumers not only with satisfaction they are trying to make them

delighted. This is possible only when there is free and fair competition. In a highly competitive

market consumers are the ultimate gainers profiting from a seamless price Reduction and quality

improvement. The right of the consumers is a recognized entity in most of the advanced countries

of the World. However, we are yet to have a comprehensive consumer act and a congenial

business environment for a healthy relationship between business and consumers. The above

review of the situation as obtained in the country in respect of business and industry which

produce consumer Goods and services the following recommendations may be made:

SHORT RUN

1. Government should set up a national vision on consumer rights and protection of their

Interests in consultation with the key stake holders, namely different professional bodies,

Business groups, common people to have a wider and aggregative view on it.

2. Government should provide political commitment to national vision on consumer right

And ensure administrative e commitment to the same.

3. A comprehensive consumer protection act should be immediately enacted by the

Government which should respect the consumers rights and put an end to restrictive trade

Practices reflecting the views of the representatives of the consumers and business.

4. A strong measure to be taken by the government to stop smuggling to protect the local

Industries and the consumers by adequate surveillance and vigilance at the border and spot

Checking of the smuggled items in the market and take quick punitive measures against the

Violators.

5. Set up a task force to review the acts related to consumers with a plan to update those to make


them useful and effective to serve and protect the consumers.

6. A fair price monitoring cell should be established under the auspices of the chambers of

Commerce to regulate and monitor unfair business practices and take appropriate

Preventive measures to restore and raise the consumer faith in business.

7. Business should empower consumers to enforce their own quality control gradually.

8. Providing CAAB and other consumer associations support for carrying out their activities

9. A rational tax and excise duty to protect the local industries and to discourage smuggling.

10.Business malpractice in existence in the country have damaging impacts on the

consumers .Adequate institutional control may well be exercised to minimize such practice that

are responsible for extremely high prices, adulteration, shddy commodities and environmental

degradation. it is advisable to rid market of all kinds of distortions enabling it to operate

transparently to maximize social welfare.

MEDIUM RUN

1. Government should review the old and outdated consumer oriented laws like, The control Of

essential commodities act, 1956, Essential commodities price and bond ordinance 1970,The pure

food stuff ordinance, 1959, trade mark act 1940, Weight and measures Ordinance, 1961 and

update those in respect of policy instruments and punishment clauses

2. A congenial business environment should be built by ensuring free and fair competitive Market

for all goods and services and ending the monopoly of the State Owned Enterprises (SOE).

3. To foster consumer education through relevant government agencies

4. E-governance for commercial operation and customer service is a good idea. But; we are

lagging behind in the field of service marketing or customer service. IT requires efficient

management of service organization to focus sharply on the needs of the customer. Banks


unnecessary charges.

5. Now services in the age of information offer much promise to consumers. Even then the

consumers are threatened to be deprived with lingering with bureaucratic constraints. We should

take lessons from the new paradigm like new public management (NPM) that proclaims flexible

bureaucratic operation in favor of the consumers. The CTG seeks to involve public sectors in the

distribution channel of business to counter balance business malpractice in the private sector. This

is a good idea calling for wide networking.

BSTI ought to be revamped with enhanced manpower to promote adequate capacity disposition.

Its operational coverage needs to be extends both horizontally and vertically. Here attention may

be called to strict monitoring of the quality and size of the food products in bakeries, food

industries and

LONG RUN

1. To enact laws restricting monopoly both in public and private sector and in the utility

Sector as well.

2. To introduce a separate cell under the ministry of commerce to monitor and constantly

Keep vigilance on price of essential commodities and violation of consumer rights and

Privileges

3. Improved action of public utilities like WASA, WAPDA, PDB, DESA, TNT, TITAS, enabling

them to meet the rising expectation of the consumers in modern time using new public

management (NPM) as an acceptable doctrine.

4. BY an amendment in 1980, provisions for such fund were incorporated into the srilankan

consumer protection Act 1979.In Srilanka, the sources of such consumer protection fund generally

come from fines procured by the consumer courts for offences under the Act, profits from sale of

goods forested under the act, grants and donations, and finally from the budget sanctioned by the

parliament for protection of consumer rights. In Bangladesh, similar provision for ‘consumer


protection fund can be incorporated into the act.

11. Conclusion

In conclusion, the innocent consumers of Bangladesh are in crucial need of having the protection

of comprehensive consumer protection legislation. Therefore, the government of Bangladesh must

enact a comprehensive Consumer Protection Act as soon as possible and further strictly ensure the

effective implementation of such legislation. We should always remember that an effective

consumer protection legislation of a nation not only protects and promotes the rights and interests

of its consumers, but it also enhances certain socio-economic targets of its macro economy, such

as poverty alleviation, efficient, fair and transparent market mechanism, good governance and

above all, socio-economic justice for its citizens.

REFERENCES

1. Consumer Education: A Resource Book. by Anwar Fazal and Bishan Singh: Malaysia, 1991, 115 p

2. Consumer Education: A Comprehensive Reader for Malaysian Secondary Schools.by Koh Tsu Koon and Loke Liok Ee: Malaysia. 1977, 97 p

3. Generating Power: A Guide to Consumer Organizing. by Wayne Ellwood: Malaysia, 1984, 51 p

4. Consumer Education Guidelines for Teachers: A Handbook of Consumer Education Consumers’ Association of Penang, Penang, 1972, 33 p

5. The State of the Consumer in the Asia Pacific Region. by Rash Behari and Anwar Fazal, 1991, 116 p

6. Consumers Lifelines – A Resource Book for Consumer Journalists. by Louise Crosby and Anwar Fazal: Malaysia, 1991, 204 p


7. The Social Audit Consumer Handbook – A Guide to the Social Responsibilities of Business to the Consumer. by Charles Medawar: London, 1978, 154 p

8. www.prothom-alo.com

9. www.thedailystar.com

10. www.wekipedia.com

http://www.wekipedia.com/

http://www.thedailystar.com/

http://www.prothom-alo.com/

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