Consumer Protection Law in Nepal

Consumer Protection Law in Nepal has been regulated by the Consumer Protection Act 2054 and the National Penal Code. Consumer laws have been enacted to protect consumers from the quality, quantity, and prices of consumer goods or services and prevent monopolies and unfair trade practices that increase prices.

Further, it has prohibited False and Misleading Propaganda regarding the use and usefulness of Consumer Goods and Services. Moreover, Consumer Protection Laws are enacted to maintain the health, welfare, and convenience of Consumers in Nepal.

1. Rights of the Consumer

Consumers in Nepal have been guaranteed the following rights to protect the interests of Every Consumer in Nepal:

(a) Right to be protected from selling and supplying consumer goods and services that may harm life, body, health, and property.

(b) Right to be informed about consumer goods and services’ prices, attributes, quantity, purity, quality, to be safe from unfair trade practices.

(c) Right to be assured of an opportunity to choose consumer goods and services at competitive prices as far as possible.

(d) Right to be assured that an appropriate agency will hear matters concerning the protection of the rights and interests of consumers.

(e) Right to be heard and compensated against exploitation hardships resulting from unfair trade practices.

(f) Right to consumer education.

2. Laws Regarding Consumer Goods and Services

The Major Provisions of the Consumer Protection Act 2054 in Nepal are:

  1. Prohibition to Influence Demand, Supply, or Price
  2. Systematize and Control the Supply of Consumer Goods and Services
  3. Particulars to be Mentioned in Consumer Goods
  4. Prohibitions of Consumer Protection Law in Nepal
  5. Industry Standard
  6. Price List
  7. Conduct Inquiry and Inspection
  8. Appoint or Designate Inspection Officer
  9. Inspect, Inquiry, or Search
  10. Confiscation of Goods
  11. Penalties of Consumer Protection Law in Nepal

4.1 Prohibition to Influence Demand, Supply or Price

No one is ordained to influence the Demand, Supply, and Price of Consumer Goods and Services through the following conducts:

  1. Controlling the supply of consumer goods by setting limits on raw material quotas, decreasing production, and other measures.

2. Hoarding, Creating Artificial Shortages, Selling at specific times or places, or other similar actions.

4.2 Systematize and Control the Supply of Consumer Goods and Services

The following Powers can be exercised to systematize and control the supply of Consumer Goods and Services:

(a) To formulate policies relating to consumer goods or services’ quality, price, and supply system.

(b) To formulate action plans in connection with the monitoring, preventing, and controlling unfair trade practices and monopolies that are likely to harm the rights and interests of consumers and implement such plans.

(c) To analyze and review the situation concerning the demand and supply of consumer goods consumed within the country.

(d) To make necessary arrangements for checking any undesirable price increase by producers, vendors, or distributors of consumer goods.

(e) To discourage unfair trade practices that are likely to create shortages through artificial or improper means.

4.3 Particulars to be Mentioned in Consumer Goods

The following must be mentioned in the Labels of Consumer Goods:

(a) Name and address of the producer and registration number of the industry.

(b) In the case of consumer goods such as food and medicines, their ingredients, quantity, and weight.

(c) Quality of consumer goods whose quality has been determined, if any.

(d) Method of consuming consumer goods and the possible impact of such consumption.

(e) Consumer goods’ price, batch number, production date, and expiration date.

(f) In the case of consumer goods such as electronic goods, hardware, and machinery, guarantee thereof, date of guarantee, and other necessary matters.

(g) In the case of consumer goods that are inflammable, dangerous, or fragile, precautions for their safety.

4.4 Standard of Goods and Services

The Government of Nepal must limit the quality and quantity of any ingredient by following prescribed procedures. They must publish a notice of the Determination of the set standards.

4.5 Price List

A Vendor/shop keeper must keep a price list of all consumer goods sold and supplied by him/her while mentioning the wholesale and Retail Price of the Product per Consumer Protection Law in Nepal.

4.6 Powers of the Government

The Government of Nepal has explicit powers in Consumer Protection Law for Unfair Trade Practices, Monopolies, and much more.

4.7 Conduct Inquiry and Inspection

Suppose an individual is discovered to be engaged in Unfair Trading Practices that involve manipulating Prices and Supply Systems. In that case, the Government of Nepal can initiate an inquiry or inspection. It is applicable if:

  1. Monopoly is exercised
  2. Sub-Standard Goods are produced or sold
  3. Violation of Consumer Protection Act 2054
  4. Appoint or Designate Inspection Officer

The Government is required to appoint an Inspection Officer to monitor the supply of Quality Consumer goods and services while maintaining Fair Prices.

4.8 Inspect, Inquiry, or Search

The Inspection Officer can inspect, inquire, or search places where a reasonable belief of sub-standard Consumer Goods or Services are being produced, Sold, or Supplied. They have the authority to take samples for Testing and impose bans on production as well as sale.

4.9 Confiscation of Goods

If consumer goods are sub-standard after laboratory testing, they will be confiscated under the law.

5. Penalties of Consumer Protection Law in Nepal

Persons that Violates Consumer Protection Law in Nepal are liable to be punished as follows:

Section

Violation

Punishment

7

Any Act in violation of Section 7

Imprisonment for a term not exceeding three years, or a fine not exceeding Fifty Thousand Rupees, or both

9 (a)

Any Act in violation of Clause (a) of Section 9

Imprisonment for a term not exceeding two years, or a fine not exceeding Thirty Thousand Rupees, or both

10 (a)

Any Act in violation of Clause (a) of Section 10

Imprisonment for a term not exceeding three years, or a fine not exceeding Fifty Thousand Rupees, or both

10 (b), (c), (d)

Any Act in violation of Clauses (b), (c), and (d) of Section 10

Imprisonment for a term not exceeding five years, or a fine not exceeding One Hundred Thousand Rupees, or both

10 (e) (1)

Any Act in violation of Clause (e) of Section 10 with a threat to life

Imprisonment for a term not exceeding fourteen years, or a fine not exceeding Rs 500,000, or both

10 (e) (2)

Any Act in violation of Clause (e) of Section 10 with a likelihood of reduced or lost organ strength

Imprisonment for a term not exceeding ten years, or a fine not exceeding Rs 500,000, or both

10 (e) (3)

Any Act in violation of Clause (e) of Section 10 in other circumstances

Imprisonment for a term not exceeding five years, or a fine not exceeding Rs 300,000, or both

Others

Taking or instigating actions violating tact or Rules under this Act

Imprisonment for a term not exceeding two years, or a fine not exceeding Rs 200,000, or both

 

Contact Us Now


Related Professionals

SURENDRA TIWARI
MANAGING PARTNER

DEEPESH OJHA
FOUNDING PARTNER

Contact us

Phone: +977 9803888924,                                        +977 9849093540
Email: info@lawimperial.com

Location: 4th Floor, Gravity Center (Big Mart Complex), Anamnagar-29, Kathmandu 44600, Nepal

Connect Via

Office Hours

09:00 AM – 06:00 PM
Sunday- Friday

Directions