According to the Competition Commission of Pakistan, legal shortcomings exist in the consumer protection laws of the country particularly the lack of coverage to unfair trade practices online and digital market places.

‘Capacity building in consumer protection: trends and challenges’, a document submitted to the United Nations Conference on Trade and Development (UNCTAD) identifies the current status of Pakistan’s consumer protection efforts and the role of the Competition Commission of Pakistan (CCP) in ensuring consumer protection and welfare.

The document was discussed by the inter-governmental group of experts on consumer protection law and policy at their meeting this week in Geneva, under the aegis of UNCTAD.

This is shaping out to be a growing concern worldwide but the legal framework is not aucourant with developments. None of Pakistan’s existing consumer protection laws specifically provide for any remedy to consumers or raise liability for any manufacturer committing an unfair trade practice online. Furthermore, the laws define an ordinary consumer as a reasonably diligent person.

Besides, the scope of rights and liabilities of sellers and buyers differ in all five provincial/ territorial consumer protection laws. The disparity in the exercise of original and appellate jurisdiction results in violations of rights.

National policies need to be redefined keeping the changing dynamics in consideration, both real and virtual

Adding to these issues is the overall and general lack of awareness of consumer rights that has kept the concept from taking hold in the economy.

There are few consumers right non-governmental organisations operating in the country their reach is limited.

There is a need for a national awareness drive by the government, CCP points out.

Notwithstanding efforts by the federal and provincial governments in promulgating legislation, consumer protection remains a challenge in Pakistan. The relevant legislations include: Islamabad Consumer Protection Act, 1995; NWFP Consumer Protection Act 1997; Punjab Consumer Protection Act 2005; Balochistan Consumer Protection Act 2003; and Sindh Consumer Protection Act, 2015.

All consumer protection laws in the country firstly contain provisions for setting up consumer protection councils, as a cornerstone of the protection regime. Among other things the councils need to create awareness among consumers about their rights and responsibilities and minimise the marketing of faulty products and sub standard services.

The second most important step is the formation of Consumer Courts for redressal of consumer complaints forums, working parallel to ordinary courts.

So far, the Government of Punjab has done demonstrably more by setting up eleven consumer protection councils and consumer courts in eleven districts of the province, both functioning under a provincial consumer protection council and the Lahore High Court, respectively.

The Competition Act ensures protection of consumer rights through the prohibition of deceptive marketing practices, which include distribution of false and misleading information related to price, character, method or place of production, properties, suitability for use, or quality of goods.

The Act also covers consumer rights violations made through false or misleading comparison of goods in the process of advertising and fraudulent use of another’s registered trademark, firm name, product labelling or packaging.

Contrary to existing consumer protection laws where it is necessary to show that harm has occurred for a consumer to file a complaint, and that simply suffering from a lack of benefit does not entitle a consumer to any remedy, acts of the Competition Act particularly state that the unfair practice must only be ‘capable of’ misleading in order to be violating rights.

In today’s global competitive environment, businesses are under considerable pressure to bring new products and ideas to markets rapidly in order to retain a competitive advantage, and such pressure can cause businesses to stray from the right path.

National policies need to be redefined keeping changing dynamics in consideration, both real and virtual.

The policies should be framed keeping in mind the economic interest of the consumer and should allow the transparent disclosure of material information to the consumer. They should also empower consumer protection bodies to initiate independent probes into defective or sub-standard products or services.

Changes in the acts of the Competition Act that expand the scope of the Commission’s consumer protection activities would help empower the agency to expand both its enforcement and advocacy activities and help streamline the redressal system available to consumers.

Published in Dawn, Business & Finance weekly, October 24th, 2016