Tougher rules against illicit mkt practices

KATHMANDU, JAN 30 - The government has planned to formulate new policies regarding consumer rights, price control and promotion of competition in the market . The proposed rules have set new targets as the existing mechanism has not been able to get good results despite an intensification of market monitoring.

In a bid to facilitate taking action against those involved in artificial price hikes and illegal practices like the syndicate system in transportation, a draft working procedure of the Competition Promotion and Market Protection Act has been prepared, according to the Department of Commerce and Supply Management.

Similarly, three new policies on domestic trade, pricing and consumer protection are in the pipeline for regulating prices of consumer goods and assuring consumer rights. “We have sent the drafts to the Ministry of Commerce and Supplies for its review and endorsement,” said Narayan Prasad Bidari, director general of the department. He added that the government would adopt two additional customer rights through the new consumer policy and that it had also envisaged setting up consumer courts in all the districts.

There is no special provision regarding consumer courts dedicated to dealing with consumer rights issues. As per Bidari, the two rights that are going to be adopted in the policy and later in the Consumer Protection Act 1998 are right to access of essential goods and right to a healthy environment.

The act has guaranteed six of the eight consumer rights recognised globally - right to be informed, right to be protected, right to be assured, right to be heard, right to seek redress and right to consumer education.

Inserting the rights in the law means the government will be responsible for assuring access to essential commodities as basic needs and a clean environment for healthy living.

Dipak Subedi, spokesperson of the Commerce Ministry, said that they would send the consumer protection policy to the Cabinet with needful corrections soon. He added that they were also going through the other drafts submitted by the Commerce Department.

The draft price policy has mentioned controlling black market ing and artificial price hikes while the working procedure of the Competition Promotion and Market Protection Act has stated that Market Protection Officers (MPOs) will be responsible for their duties and clearly mentions the procedure for taking action against wrongdoers in the market .

Originally, the price policy was supposed to be introduced in 2011 as per the government’s plan since it had been included in the budget for the fiscal year 2010-11. On the basis of Competition Promotion and Market Projection Act 2007, the government had appointed MPOs in 30 districts four years ago.

However, they have not been able to work effectively for lack of resources and clarity in procedures, according to the Commerce Department.

The competition promotion law enacted seven years ago prohibits anti-competitive activities and has authorised MPOs to take action and file cases against hoarding and discouraging competition and the syndicate system like that existing in the transport sector.

Bidari said that the proposed working procedure was mainly focused on how to implement the existing laws more effectively.

The government had appointed MPOs in all the 20 districts in the Tarai and in Kathmandu, Bhaktapur, Lalitpur, Makwanpur, Kavre, Kaski, Palpa, Dhankuta, Surkhet and Udaypur by publishing a notice in Nepal Gazette.

(Source: The Kathmandu Post)