Consumer Rights in Bangladesh: The Present Scenario1

1.0 Consumer Rights in Bangladesh- The Present Scenario

1.1 Background Summary:

In the backdrop of rapid development and globalization of our economy it is essential that
Bangladesh should have a pragmatic consumer policy to ensure consumer right and to protect
them from unfair business practice. There is a popular saying is Market Economy that
“Consumers are the King” but is the context of Bangladesh can we say the same?

In Bangladesh, peoples are now live in the state of insecurity as well as uncertainty. Two fold
dangers confronting the urban consumers are under consumption and health hazards arising out
of price spiral, lucrative advertising, packing the poor quality products with attractive covers and
massive adulteration. The onslaught of criminalization in commercial operations continued to
jeopardize the rights of the consumers in the recent past. Added to it many a fraud practice
unnoticed by the authorities went against public safety and security. Even now, the ordinary
consumers have much less access to the concerned authorities and the latter have been found to
be inefficient-not equal to the task in the face of manipulation of the market by the criminal;
syndicate.

However, social movement in consumer’s regime puts consumerism first. ‘Consumers Voice’ is
at the heart of such movement. Of course, belatedly, the Consumers Association of Bangladesh
(CAB) organized such movement through awareness buildings campaigns, conferences, rallies
and publications. This is in response to the development of consumerism at the global level.

1.2 Statement of the Problem:

Like other rights, consumer rights remain most ignored in Bangladesh for lack of awareness
many people do not check the manufacturing and expiry dates or whether or not the ingredients
used in foodstuff meet the standards.

The problem arises in the form of adulteration of food in the Dhaka city (like using formalin,
carbide, food color etc). This causes serious as well as harmful effect on human being.
 Consumer Rights in Bangladesh: The Present Scenario2

Consumers also lose out due to artificial price-hike. Lack of enforcement of the consumer rights
protection law also makes the consumers losers.

Last few years in Dhaka city basically during Ramadan adulteration of food was increasing in
alarming way. So the responsibility of government and implementation of the minimum safety is
the main problem in our study.

1.3 Purpose of the Study:

a. To assist countries in achieving or maintaining adequate protection for their population as

consumers;

b. To facilitate production and distribution patterns responsive to the needs and desires of
consumers;

c. To encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;

d. To assist countries in curbing abusive business practices by all enterprises at the national and
international levels which adversely affect consumers;

e. To facilitate the development of independent consumer groups;

f. To further international cooperation in the field of consumer protection; and

g. To encourage the development of market conditions which provide consumers with greater
choice at lower prices?

1.4 Limitations

There are few limitations of the study. Those are:

 Time constraints: Time limit was one of the constraints for this study.

 Literature constraints: No proper study was available for the research. So, we have to

collect literature from scatter web site data.

 Consumer Rights in Bangladesh: The Present Scenario3

1.5 Significance of the Study

This study can give us an idea about the Dhaka city’s current condition & it’s one of the risk

factor. The readers can have an idea about the legal & ethical issues related with consumer right

in Bangladesh. Also reader will get knowledge of incident happening in Dhaka city right now.

An in depth study can be possible with this study.

2. Information Guide on Consumer Rights and Responsibilities

2.1 Consumer’s responsibilities?

Consumer education must inculcate the responsibilities of the consumer as well. Responsibilities
always precede rights. If consumers want their rights recognized, they must first exercise their
responsibilities. These responsibilities are:

Critical Awareness:
The responsibility to be more alert and questioning about the price and quality of the goods and
services we use.

Action:
The responsibility to assert ourselves and act to ensure that we get a fair deal. As long as we
remain passive consumers, we will be exploited.

Social Concerns:
The responsibility to be aware of the impact of our consumption on other citizens, especially
disadvantaged or powerless groups, whether in the local, national or international community.

Environmental Awareness:
The responsibility to understand the environmental consequences of our consumption. We
should recognize our individual and social responsibility to conserve natural resources and
protect the earth for future generations.
 Consumer Rights in Bangladesh: The Present Scenario4

Solidarity:
The responsibility to organize together as consumers to develop the strength and influence to
promote and protect our interests.

2.2 What are the universal consumer rights?

The global movement has articulated 8universal rights for consumers, as follows:

Basic needs:
The right to basic goods and services which guarantee survival: adequate food, clothing, shelter,
healthcare, education and sanitation.

Safety:
The right to be protected against the marketing of goods or the provision of services that are
hazardous to health and life.

Information:
The right to be protected against dishonest or misleading advertising or labeling. And the right
to be given the facts and information needed to make an informed choice.

Choice:
The right to choose products and services at competitive prices, with an assurance of satisfactory
quality.

Representation:
The right to express consumer interest in the making and execution of government policy.

Redress:
The right to be compensated for misrepresentation, shoddy goods or unsatisfactory services.
 Consumer Rights in Bangladesh: The Present Scenario5

Consumer education:
The right to acquire the knowledge and skills necessary to be an informed consumer.

Healthy environment:
The right to live and work in an environment which is neither threatening nor dangerous and
which permits a life of dignity and well-being.

3. Information Guide on Code of Conduct for Ethical Business

This section provides background information and ideas to the consumer educator on the
Following:
 The importance of good business ethics;
 Contributions of good governance towards consumer protection;
 Business code of conduct;

3.1 The importance of good business ethics:

The consumer movement is not anti-business. The consumer movement is for good business. It is
however, anti bad business. Therefore the importance of good business ethics is to help
businesses get the support of the consumer movement. The support of the consumer movement
will help to improve sales and profit.

Second, the aim of good and ethical business is to serve the consumers. Likewise, the aim of the
consumer movement is also to serve and protect the interest of consumers. There is clearly a
common purpose between business and the consumer movement. The practice of good business
ethics cans synergies co-operation and collaboration between ethical business and the consumer
movement. Therefore, businesspersons need consumer education as much as consumers to
become successful in their business.

This co-operation and collaboration has the potential to benefit both parties, in particular the
business. A business that is ethical and truly wants to serve the interests of the consumers will
 Consumer Rights in Bangladesh: The Present Scenario6

get free feedback from consumers. This feedback can help business to improve constantly and
help the consumers better. Practicing ethical business is in the best interest of business as well.

3.2 Contributions of good governance towards consumer protection:

Good corporate governance means doing business in a responsible, efficient and cost-effective
way. Good corporate governance and management of business can contribute effectively to
consumer protection and national development in the following ways:

Responsible corporate governance

Leads to a fair and just economic system. A fair and just economic system leads to greater
confidence and the better use of resources without wastage and social disruptions. It creates a
win-win situation for the business, the workers, the investors, the government and the
consumers. Everybody tends to gain.

Efficient corporate governance

Leads to better time and resource utilization. This reduces waste and optimizes the use of
resources. We are able to manage the production and output process better. This enhances and
strengthens further the win-win situation.
 Consumer Rights in Bangladesh: The Present Scenario7

Cost effective corporate governance

Means we are able to do more with less. Again, this reduces wastage and optimizes the
resources. It enhances the ability of business to lower prices to benefit the consumers.
Collectively, good corporate governance – working and managing with responsibility, efficiency
and cost effectiveness – makes our society and nation competitive in the growing global market.

3.3 Business code of conduct

The Ministry of Domestic Trade and Consumer Affairs of the Government of Malaysia has
articulated five elements that constitute the code of conduct for ethical business. We can call this
the “Panacea of Ethical Business”. Businesses should:

 Recognize and accept the rights of consumers

 Practice truthful, ethical and non deceptive business
 Refrain from misleading and fraudulent statements
 Practice fair competition
 Be responsible towards society
 Consumer Rights in Bangladesh: The Present Scenario8

4. History of Consumer Protection

Consumer protection, as known today, has roots even in the daily lives of the Stone Age cave
men. A seller sells a product to a buyer, the buyer finds the product not to be up to his satisfaction;
coincidence, some would say. But is it? In the absence of definitive statistics, the instinct of a
consumer living in a capitalist society would lead me to wonder if the seller intentionally did or
did not do something that led to my compromised consumer satisfaction.

Today’s consumerism finds its origin in the late 19th and early 20th century marketplace in the
United States. The United States Congress made history in 1872 by enacting the very first of its
kind consumer protection law, the mail fraud law, which makes it a punishable offence to commit
mail order fraud. At best rudimentary and lacking teeth to curb anything but false advertising, this
law did nothing to prevent unsafe, unhealthy and dangerous products from reaching the hands of
trusting consumers.

The passage of the Sherman Anti Trust Act passed by the US Congress in 1890 was the next
feather in the cap of consumerism. This act prevents and limits the formation of cartels and
monopolies that challenge the very frame of consumer rights. The ground for the majority of
antitrust law suits, this federal law does not address the most critical area of consumer protection,
the product quality.

Apart from minor legislations at a state level, it was the beginning of the 20th century that marked
the revival of the consumer protection movement, which had been docile for the past 15 years or
so; the impetus being the publication of The Jungle by Upton Sinclair in which the author
described his disgust at the meat packing industry in Chicago. Horrified, President Theodore
Roosevelt had these allegations verified independently by federal agents, who confirmed the
distressful conditions of the meat that American consumers ate.

Soon afterwards in 1906, the US Congress passed the Pure Food and Drug Act which, along with
the Shirley Amendment, curbs sellers from selling adulterated food / drugs and places guidelines
on the accuracy of the data on labels. Together with the Meat Inspection Act, the government had
ensured a legal framework to prosecute anyone who would willfully violate the quality of the food
and medicines used by the consumers.

Other landmarks in the consumer protection movement were the establishment of the Federal
 Consumer Rights in Bangladesh: The Present Scenario9

REFERENCES

1. Consumer Education: A Resource Book. by Anwar Fazal and Bishan Singh: Malaysia,
1991, 115 p

2. Consumer Education: A Comprehensive Reader for Malaysian Secondary Schools.

by Koh Tsu Koon and Loke Liok Ee: Malaysia. 1977, 97 p

3. Generating Power: A Guide to Consumer Organizing. by Wayne Ellwood: Malaysia,

1984, 51 p

4. Consumer Education Guidelines for Teachers: A Handbook of Consumer Education

Consumers’ Association of Penang, Penang, 1972, 33 p

5. The State of the Consumer in the Asia Pacific Region. by Rash Behari and Anwar Fazal,
1991, 116 p

6. Consumers Lifelines – A Resource Book for Consumer Journalists. by Louise Crosby

and Anwar Fazal: Malaysia, 1991, 204 p

7. The Social Audit Consumer Handbook – A Guide to the Social Responsibilities of

Business to the Consumer. by Charles Medawar: London, 1978, 154 p

8. www.prothom-alo.com

9. www.thedailystar.com

10. www.wekipedia.com