March 15, 2000

Islamabad. Consumer Rights commission of Pakistan (CRCP) here on Wednesday submitted the long awaited Model Consumer Protection Act, 2000 to the law Minster, with the request to give it legal effect as early as possible.

CRCP believes that with the enactment of the said law the consumer movement in Pakistan will get impetus and help protect the consumers against the state and the market forces. However, this legal initiative needs to be supported by the public interest organization.

Salient features of the Act are as follows:

· The Act defines the term 'consumer' as a broader category than that of customer, so that it not only includes customers in the category of consumer but consumer of all goods and services as will.
· It also defines the term 'complainant' by including individual consumer, a group of consumer, recognized consumer associations and concerned government officials/department.
· It deals with 'unfair trade practices' comprehensively and in details.
· It sets up consumer councils at district, provincial and nation levels to formulate policies and take measures to check unfair trade practices and ensure maximum consumer protection. These councils will also be responsible for consumer education and strengthening consumer organizations.
· The Model law provides for over 50% non-official representation in the consumer councils at the district, provincial and national levels. These representatives will be nominated by their respective organizations and not by the government.
· It establishes a system of consumer courts/benches, within the existing judicial system, exclusively for the purpose of this Act. These courts/benches will not charge any court fee, accept complaints on a plain paper and dispose of cases within a period of 120 days.
· It envisages a civil procedure for the redress of consumer co0mplaints. The consumers will be entitled to compensation and damages for any loss, damage, harm or inconvenience caused to them by unfair trade practices on the part of manufacturers, traders, and service providers.
· In order to ensure speedy disposal of consumer complaints, the Act allows the Court to impose penalty on the party/ parties seeking adjournments beyond a fixed limit of five adjournments. In addition, the Act restricts the right of appeals to just one. However, the superior court will have the power to grant leave for additional appeal after going through the merits of the case.
· The penalties and compensations for damages for the harm suffered by consumers proposed in the model law are of such a level are of such a level and degree that they can create a realistic deterrence.

CRCP on this occasion stated that there exist many laws and legislation which separately deal with different sectors of economic activity and consumer transaction. The scope of these laws and legislation is restrictive and procedures given for the redress are expensive and lengthy. Therefore, these laws and legislation appear to be unable to address consumer related problems and achieve their envisaged goals. This necessitates a comprehensive legal and institutional framework to ensure speedy, inexpensive and adequate consumer protection. Such a framework is essential to restrict unfair trade practices and protect the right of the consumers. It will also help in restructuring economic activity on far, sustainable and more competitive footing.

CRCP is striving for consumer protection and to equip the consumer movement with pertinent legislation in the country. it has embarked on drafting a Model Consumer Protection Act for Pakistan. Various issues like definition of consumers, scope of legislation, redress mechanism etc. have been debated in a series of extended consultative meetings and seminars attended by a large number of jurists, legal practitioners, civil society activists, academicians, etc. The model law, which is being proposed by CRCP, addresses the multi-dimensionality of consumer protection regime in Pakistan. The adjudication of consumer grievance and making consumer councils strong and capable of addressing problems at local level. People's participation and empowerment have been the major undercurrents of this document. Attempts have been made to bring in mechanisms, which ensure people's participation in policy making, monitoring and adjudications processes.

While preparing the Model Act, consumer-related laws and pieces of legislation of other countries particularly of South Asia were also reviewed. Other crucial and controversial issues regarding the scope of legislation, provincial or Federal status, redress mechanism etc. have been discussed at length in the explanatory foot-notes.

While preparing the Model Act, consumer-related laws and pieces of legislation of other countries particularly of South Asia were also reviewed. Other crucial and controversial issues regarding the scope of legislation, provincial or Federal status, redress mechanism etc. have been discussed at length in the explanatory foot-notes.

CRCP seeks the cooperation of all concerned to put the proposed Consumer Protection Act on the stature books.

CRCP submits the proposed Consumer Protection Act to the Law Minister Mr. Aziz A. Munshi
CRCP©Copyright 2000, All Rights Reserved.
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