relevant legal and institutional instruments for the protection of consumer rights and privileges

8/8/2019 Relevant Legal and Institutional Instruments for the Protection of Consumer Rights and Privileges

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RELEVANT LEGAL AND INSTITUTIONALINSTRUMENTS FOR THE PROTECTION OF CONSUMERRIGHTS AND PRIVILEGES UNDER THE CONSUMERPROTECTION ACT OF 1992 .1

MRS IFY UMENYIDIRECTOR GENERAL,

CONSUMER PROTECTION COUNCILABUJA.

1 Being Text of Invited Lecture at a One Day National Conference on Electricity Consumers in Nigeriaholding at International Conference Centre, Abuja, 14 th March, 2007

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RELEVANT LEGAL AND INSTITUTIONAL INSTRUMENTS FORTHE PROTECTION OF CONSUMER RIGHTS AND PRIVILEGESUNDER THE CONSUMER PROTECTION ACT OF 1992 .

Protocols

Foremost, I want to express my profound gratitude to the NigerianElectricity Regulatory Commission for bringing to the fore, issues of consumers concerns on Power and Energy in the organization of this

National Conference on Electricity Consumers in Nigeria . It would berecalled that these concerns informed the global action of the WorldConsumer bodies who staged various campaigns to canvass for betteraccessibility, affordability, sustainability and efficiency of electricity

supplies especially to the vulnerable poor of the World as the WorldConsumers Right Day was marked in 2006. In the developing world, thisgroup constitutes not less than 70% of the population.

I must say that the Council has watched with pride the workings of theCommission since its inception noting the efforts being made to ensure thatconsumers have the fairest deal in the ongoing and upcoming reformationsystems in electricity power supply. We appreciate the program being put inplace for Power Distribution Companies to have structured and mandatoryconsumer complaints forum. This will assure effective self regulation whichis the shortest route to optimum quality and service delivery. Consequently, Ihave the greatest pleasure to be associated with your venture and to respondenthusiastically to your invitation for me to present this paper.

In the paper, I shall attempt to give a short introduction to the ConsumerProtection Act 66 of 1992, highlight relevant legal and institutionalinstruments or provisions contained therein for the protection of consumerrights and privileges in Nigeria and finally raise issues of concern that hascaused criticisms of the Act and warranted interventions of different law

enactment and reform bodies towards the revision of the Act. I hope that atthe end, we shall have enough excitement to proffer contributions in thisConference to make suggestions that will assure consumer satisfaction andpatronage of electricity business in Nigeria, which is the ultimate in anyprogressive business enterprise.

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Brief Background to the Consumer Protection Act: With the growth of industrial advancement and the economic boom that attended the postsecond world war era, it became clear that vulnerable consumers across theglobe need some formal protection from the bourgeoning class of entrepreneurs taking advantage of industrial revolution and renaissance tomake great wealth at the expense of the weaker consumers in the marketforce equation. Equally, was the climaxing activity of pressure groups fromthe academia, press, and labour etc. agitating for legal protection of consumers. Notable heroes of this struggle, also known as consumerists,include Ralph Nader and Esther Peterson. On March 15, 1962, the Presidentof United States of America President presented to the Congress the famousBill of Rights that heralded the birth of holistic consumer protection regimein the world. It is pertinent to note the kernel of this enactment as depicted inthe famous quote of Mr. President where he affirmed that it was very crucial

to ensure that the extra dollar profit of the businessman was and must not beat the expense of the blood of the consumer. Following this and theunyielding efforts of consumerism movements across the globe to includeConsumers International, the United Nations General Assembly in 1985,made formal Declaration on consumer rights and released Guidelines forMember Nations adoption in formulating effective Consumer Protectionpolicies in their countries. In Nigeria, various steps were taken followingthe directive of the Supreme Military Council to the Federal Ministry of Commerce, which culminated in the promulgation of the ConsumerProtection Decree 66 in 1992 by the then President of the Federation General Ibrahim Babangida. This decree was published in the Laws of theFederation of Nigeria (LFN) in 1994 though it is still popularly cited as CPCAct 66 of 1992, hereinafter called CPCA.

Legal and Institutional Instruments (Provisions) Under the CPCA forthe Protection of Consumer Rights.

The CPCA is basically sufficient in details expected of a typical law of theFederal Republic of Nigeria. Though enacted first by the military, it is

consistent with the Constitution of Nigeria in its legal and institutionalprovisions. Its commencement date specified as 23 rd November 1992remains valid since a statute remains in force until it expires, lapses or isreplaced.

The Principal Provisions of the Act are in Parts I to III with substantive andadministrative clauses, Sections 1 to 24, detailing among others:

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1. The legal establishment and composition of the body charged withimplementation of the CPCA, Section 1, Functions and Main Powersof the Council, Sections 2 and 3, Establishment, composition andappointment thereof of State Committees to receive, investigate andact on complaints on consumers, subject to the general supervision of Council, and specifics of their activities, Sections 4 and 5.

2. Subject over which complaint can be made and how complaint can bemade, Section 6. The power to use certain institutions in trade forpurpose of investigation is contained and follow up with appropriate,

just and reasonable redressal actions is provided in Section7 of theAct.

3. Obligations of business outfit to provide public warning or notices tothe public where unforeseen hazards trail a product or service alreadyin the market and offence and penalty in cause of failure thereof are

spelt out in Section 9.4. Appointment of Director General, other staff, terms and condition of

appointment thereof and power to make regulations that shall specifyconditions of service, staff appointment, promotions, discipline etcand the process of approvals of same (Part III, Sections 22 to 24).

Although, CPCA envisages use of modern trend of using AlternativeDispute Resolutions (ADR) of Negotiation, Mediation and Conciliation,NMC, in solving market failure cases, Sections 2(a) and [10(1)], Sections 10(2&3), 11, 12 and 19 criminalizes specified offences on consumer rights tocorrect information or alert on goods and services, albeit, through theAttorney General of the Federation. In order to obviate the bottleneck thatthe bureaucracy of using the Attorney General could create, the AttorneyGenerals fiat has been obtained to make enforcement stay in compliancewith the speedy intent of the CPCA in Section 2(1).

Furthermore, CPCA recognizes the vast scope of the Councils mandate andthe need for her to work in harmony and collaboration with othergovernment agencies and professional bodies in establishing and use of

facilities or common procedures, also in ensuring or enforcing standards orassessing quantum of damage or loss to consumer. Section 14 provides legalbacking for this.

The Miscellaneous Provisions of the CPCA comprise Sections 30 to 32where the Power of Council to make Regulations, subsidiary law to give fulleffects to the provisions of the CPCA and the administration thereof, and

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interpretation of certain key words used in the Act to include a simpledefinition of who a consumer is. By the CPCA, a consumer is an individual(legal person) , who purchases, uses, maintains, or disposes a product orservice .

The CPCA made important final provision that has relevance to protectingconsumer rights and this includes financial provisions and the Schedule,which details Proceeding of the Council.

The Consumer Protection Council Act has made very far-reaching measuresin the protection of both economic and health interest of the consumers inNigeria. The CPCA imposes extensive obligations on the Council to keepcontinual surveillance on business practices, Section 15, and where suchbusiness malpractices are found to be unfair and prejudicial to the economic

and health interest of consumers, the CPCA mandates the Council to nib it inthe bud before the harm manifest and where a consumer has suffered anyloss or damage as a result thereof, the Council shall provide speedy redressto such consumer complaints. S.2 (a), (b), (d), (i), and (s).

Another very useful provision to consumers is that in S.10 of the CPCA,which gives power to the Council to obtain satisfactory written assurancefrom a person carrying on business in a manner detrimental to the interestsof consumers, to desist from such conduct.

In addition to all of the above, the most relevant and institutional instrumentas far as an individual consumer is concerned is the empowerment of consumers under S.8 of CPCA to take a civil action against an offender forredress in any competent court for compensation or restitution in addition toany redress provided by the Council under the Act.

There is no gain saying that the CPCA is the only legislation in the laws of the Federal Republic of Nigeria that makes an attempt to ensure thatNigerian consumers are put as far practicable on the same pedestal as their

counter part in other parts of the globe.

Worthy of note however is the most recently promulgated ConsumerProtection Council Act Sales Promotion Regulations 2005, currently beingoperated under its counterpart, Product and Services Monitoring andRegistration) Regulations 2005 both of which are intended to give full effect

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to the provisions of the CPCA as expressly provided for under S.31 of theConsumer Protection Council Act.

The former is expected to curb the excess of manufacturers and promoters of goods and services by empowering the Council to verify he genuineness of all sales promotions and ensure that they are legal, decent, honest andfaithful to consumers. While the latter provides for the registration of products and services with the Council so as to enable the Council performits statutory functions under the Act and at the same time monitor themovement of products and provisions of services in Nigeria.

Some Concerns over and Criticisms of CPCA: A number of concerns and criticisms have been raised over the CPCA overthe years that have necessitated proposals for an amendment of the Law.

Notable among them are:

1. Fluidity in the Provisions on State Committee:The composition of State Committee has been criticized by many StateGovernments, Constitutional lawyers and others. This has hindered thecoming on board of many State Committees. It is gladdening to note,though, that States like Imo, Enugu and Kano are brailing the trail.

2. Largeness Council Membership: The CPCA puts membership of Council at 43 because as of the time of itsdrafting, the number of States in the Federation was 12 and each State was tobe represented in Council. However, by the time of the Act becameoperational in 1999, number of States had become 36 and with addition of FCT, Federating units are 37. This number is apparently too large foreffective management both operationally and financially and has trulylimited performance of Council. Many others also argue that the CPCA doesnot delineate Council from the Executives implementing the Act.

3. Omission of Strict Liabilities to Protect Consumer Rights:

Apart from Section 8(a) of the CPCA that made light reference to redressinginvestigated rights abuse, strict liabilities and specific rights are notmentioned in the law. The definite mention of these rights and provisions forstrict liabilities are crucial success in adjudication. All these are beingaddressed in the proposed amendments.

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Conclusion: This paper has given a brief insight to the genesis of the CPCA act showingthat it was born out of international concern for fairness and best practices inthe market. It highlighted relevant legal and institutional provisions for theprotection of consumer rights and indicated concerns and criticisms that isdirecting the ongoing amendment process of the current Act.

Thank you for your kind attention.

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relevant legal and institutional instruments for the protection of consumer rights and privileges

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