Table of Contents
A consumer is a person or a group who intends to order or use purchased goods, products, or services primarily for personal, social, family, household, and similar needs, and who is not directly related to entrepreneurial or business activities. Consumer rights are protected under sections 107 to 110 under the National Penal Code, 2074, and further provisions regarding consumer protection are mentioned in the Consumer Protection Act, 2075.
Rights of the consumer
- Right of easy access to goods or services
- Right to choose quality goods or services at a fair competitive price,
- Right to be informed of the price, quantity, purity, quality, etc. of the goods or services,
- Right, to obtain information from the producer, importer, or seller regarding the quantity, ingredient, or percentage of the substances contained in the goods made of or produced with the mixture of two or more two substances,
- Right to be safe from the sale and distribution of the goods and services that inflict harm to the human body, life, health, and property,
- Right to get appropriate legal action taken against unfair trade and business activities,
- Right to obtain compensation against harm and injury caused by the use of goods or services,
- Right to receive remedy or hearing from the competent authority or entity on protecting the rights and interests of the consumers,
- Right to get consumer education.
1. Food Adulteration
It is prohibited to mix harmful substances into food or beverages intended for public consumption. Avoid selling or distributing substandard or inedible substances, as well as expired or adulterated foods.
3. Prohibition of selling or distributing goods by misrepresentation:
No person shall sell or distribute any food, lie or misrepresent that it is a different food or that a food which is of low quality or inedible is a food of high quality, or mix any food substance of low standard or inedible food substance into any food substance of high quality.
Prohibition of selling or distributing goods by misrepresentation
No person shall sell any low quality good, except food, by misrepresenting that such good is original one or any good by causing to believe that it is a different good or any good so 68 adulterated as to degrade its quality or change a label on any good or sell any good of which the date of expiry has expired.
4. Prohibition of hoarding consumable goods intended for sale:
No person shall increase the price of any consumable goods by creating an artificial shortage of such goods in the market or sell, or cause to be sold, such goods at higher price or dump, store or hoard such goods by refraining from selling such goods with the motive of making an undue profit from the sale of such goods.
Prohibited Activities according to the Consumer Protection Act 2075
1. Not to conduct unfair trade and business activities
If any of the following activities is conducted, an unfair trade and business activity shall be deemed to have been taken place:
- Selling or providing the goods or services by lying, concealing, hiding or misleading the actual quality, quantity, price, measurement, format or composition etc. of such goods or services,
- Releasing false or misleading advertisements, or selling the goods by making misleading advertisements,
- Doing any of the following acts through oral, written or visual means in the case of goods or services:
- selling sub-standard goods by showing standard, quality, quantity, class, composition, and design as if having specialty or quality,
- selling re-produced or old goods showing or misrepresenting that they are new ones,
- Advertising or notifying and disseminating, falsely and misleadingly, while selling the goods or services even when no benefit is obtained as declared,
- Advertising or notifying and disseminating, falsely and misleadingly, while selling the goods or services even when no benefit is obtained as declared,
- Determining price by including the price or cost of other goods to be obtained as donation, gift or without charge upon the price of any goods or service, or selling such goods or service at such price,
- Producing, mixing up or supplying or transporting or hoarding or selling the goods so as to become less or more than the quality or standard in any goods or service, or to inflict harm and injury upon the consumer from the use of such goods or service,
- Creating artificial shortage of, hoarding or selling, any goods, selling the goods by including the price of goods destroyed by defective product or the price of goods contracted in the course of business transaction in the cost price of other goods,
- Producing or importing fake goods or selling such goods to displace any goods,
- Refusing to issue bill or invoice of the sold goods or service, or not issuing bill or invoice, or demanding additional amount while issuing bill, invoice,
- Using poison or any chemical to inflict harm and injury upon the consumer while using any goods, or selling the goods so used,
- Selling the already expired goods by affixing new labels on such goods which are not consumable or is not supposed to be used,
- Importing, producing, or selling sub-standard goods which cannot be used,
- Providing service without specifying the price, quality of service, venue, and time to provide service by a professional service provider,
- Selling or providing by setting up levels or series more than the business level prescribed while selling or providing any goods or services,
- Selling without fulfilling the structure, measurement, or standard if any, prescribed for selling or providing any goods or service.
2. Not to cause an adverse impact on demand, supply, or price:
No one shall sell, distribute transport, or hinder the sale and distribution of any goods by taking profit higher than that prescribed and over the cost invested in the production, import, transport, hoarding, or sale and distribution of that goods.
No one shall cause an adverse impact on the demand, supply, or price of any goods or service by doing any of the following acts:-
- Determining quota of the raw materials required for the manufacture of any goods, or reducing the production of any goods or doing any other such work,
- Creating artificial shortage by hoarding any goods or service or by any other manner,
- Selling the goods or service at the determined time or place only or doing other acts of a similar nature.
3. Act not to be done regarding goods or services:
No one shall do any of the following acts:-
- Producing, selling, or importing sub-standard goods knowingly,
- Selling any goods or services by lying or deceiving that the goods or services are other goods or services and stating high standard goods for low standard goods or services,
- Producing or selling the goods or service that cause adverse impact upon the health of consumer,
- Affecting the price and supply system by creating a shortage of the goods by accompanying businesspersons or business groups in order to manufacture, import or sell various goods of the same nature,
Consumer protection is important to ensure the well-being and rights of people who buy and consume goods and services. The legal framework in Nepal empowers consumers with essential rights through the Consumer Protection Act, 2075, and the National Penal Code, 2074, on the availability of quality products, making informed choices, and protection against harm. The prohibition of food adulteration, misrepresentation, hoarding, and unfair trade practices is further manifestation of the commitment to ensuring fair competition and preventing exploitation. In enforcing these provisions, the Act aims at a safe, transparent, and equitable marketplace, promoting accountability among producers, sellers, and distributors.