Consumer Protection Laws

Razi Ahsan
Advocate High Court & Tax Consultant

Diploma “Business Laws & Taxation”

CCEE - NED University Of Engineering & Technology
2021
Consumer Protection
CONSUMER: is defined as someone who acquires goods or services for direct use or
ownership rather than for resale or use in production and manufacturing.

CONSUMER PROTECTION: is the practice of safeguarding buyers of goods and

services, and the public, against unfair practices in the marketplace.

CONSUMER PROTECTION LAW OR CONSUMER LAW: is considered as an area of law

that regulates private law relationships between individual consumers and the
businesses that sell those goods and services.
Consumer Protection
SCOPE OF CONSUMER PROTECTION: Consumer protection covers
a wide range of topics, including but not necessarily limited to product
liability, privacy rights, fraud, unfair business practices, misrepresentation, and
other consumers/business interactions. It is a way of preventing frauds and
scams from service and sales contracts, eligible fraud, bill collector regulation,
pricing, utility turnoffs, consolidation, personal loans that may lead
to bankruptcy.T
here have been some arguments that consumer law is also a better way to
engage in large-scale redistribution than tax law because it does not
necessitate legislation and can be more efficient, given the complexities of tax
law.
Consumer Protection
PRIVATE LAW is that part of a civil law legal system which is part of the jus commune that
involves relationships between individuals, such as the law of contracts and torts as it is
called in the common law), and the law of obligations (as it is called in civil legal systems).
It is to be distinguished from public law, which deals with relationships between
both natural and artificial persons (i.e., organizations) and the state
PRODUCT LIABILITY is the area of law in which manufacturers, distributors,
suppliers, retailers, and others who make products available to the public are held
responsible for the injuries those products cause
PRIVACY RIGHTS in the 1948 Universal Declaration of Human Rights Article 12, the United
Nations states: No one shall be subjected to arbitrary interference with his privacy, family,
home or correspondence, nor to attacks upon his honour and reputation. Everyone has the
right to the protection of the law against such interference or attacks Unfair business
practices encompass fraud, misrepresentation, and oppressive or unconscionable acts or
practices by business, often against consumers, and are prohibited by law
Consumer Protection
The idea of consumer protection laws was firstly adopted in Pakistan by The
Federal Government in 1995 when The Islamabad Consumer Protection Act,
1995 was passed. These councils are established to create awareness among masses
about their basic rights and benefits as a consumer.
The provincial governments followed this pattern the Provincial Assembly of Punjab
passed

The Act the Punjab Consumer Protection Act 2005,

The Khyber Pakhtunkhawa Consumer Protection Act 1997,
Baluchistan Consumer Protection Act 2003,
The Sindh Consumer Protection Act 2014
Consumer Protection
The Consumer Protection Rationale
 Why a consumer needs protection and from whom? Consumers are a key pillar of present
economic structure. They have gained universal acknowledgment. Different laws are enacted for
consumer protection. Consumer satisfaction is the main characteristic of urbanized markets
 It restrains twisting of information, vending of substandard goods and full disclosure regarding
quality and extent of services .Perhaps the most important reason for protecting consumers is
that of lack of information . Wide information gap between consumer and sellers hinder
consumer’s ability to make informed decision. The consumer’s lack of knowledge, experience
and bargaining Power would make it more likely that they will be tricked by deceptive practices
and will less likely be able to guard their benefits.
 Responsibility for consumer protection descends upon the government of each country .In
countries like Pakistan traders and service providers, public or private, enjoy unrestrained
powers and the consumer is at their mercy, but In Pakistan a low literacy rate puts the
inexperienced and uninformed consumers at the pity of service providers, retailers and
producers. Those attending to complaints, most of the times, treats the consumer in a most
unreasonable manner
Consumer Protection
CONSUMER RIGHTS

The Right to Safety: It’s a consumer’s basic right to feel protected from harmful goods and services
available in market. Especially if those goods or services are used appropriately for desired
purpose Consumers should be protected from the flow and sale of hazardous products and
services.
The Right to Choose: Competition is the main factor to avoid monopolizes market. Consumers
should have a choice of worth goods and services. They need to be sure that intended goods and
services are available at competitive cost . It indicates that consumers must have the option to go
for the products or services that they want to get
The Right to be informed: Consumers must have access to sufficient information about products
to make an informed decision. Dependable sources should be available to aware them about
different goods or services
The Right to be heard: Governments have the obligation to protect consumer rights by giving it
reasonable consideration in strategy making. State is also responsible to ensure justice without
delay upon any claim. In simple words, it is a consumer right to protest when there are issues or
apprehension (Wilson, 2008). It is a Consumer right that he be heard when he raise his voice and
to anticipate positive remedy
Consumer Protection
CONSUMER RIGHTS
The Right to Redress or Remedy: It’s a settled legal maxim “ubi jus ibiremidiam” mean there is no
wrong without remedy. Simply mean that whenever a right is infringed there shall be a remedy for
that. The UN guide lines for consumer protection recognized the right to redress by raising voice
for his dissatisfaction.
The Right to Service: By “right to service” it is meant that the consumer should have access to all
the necessary goods and services which are essential for life. Its consumer’s basic right to expect
convenience, respectful treatment, a proper response to his needs, and good quality in a product
and also expect a humble behavior in market or other organization
The Right to Environmental Health: Living in a healthy environment is an essential consumer right
and to subsist and work in an atmosphere where the comfort of present and future generations is
not compromised. Consumers must be safeguarded from the impacts of unhealthy environment
that may be the result of daily marketplace operations.
The Right to Consumer Education: Consumer has the right to be educated about his rights
available under national and international laws. Consumer awareness ensures the enjoyment and
protection of rights. Consumer education is vital for making informed decision. It develops and
enhances the knowledge and skills that are required to make an informed decision.
Consumer Protection
Legislation made for the consumer protection in Pakistan.
 Food Sector Legislation
 Health sector legislation in Pakistan
 Transport
 Environmental Protection
 Energy Sector
 Telecommunications Sector Legislation in Pakistan
Consumer Protection
Legislation made for the consumer protection in Pakistan

Islamabad Consumers Protection Act, 1995 . A cutting edge period for shopper
security rose in the nation when the government declared Islamabad Consumers
Protection Act, 1995 in the elected capital. It manages vile exchange practices and
gives instruments to handle buyer protests. This Act stressed the detailing of
Consumer Protection Council to defend the privileges of buyers. The Council is ordered
to shield them from unsafe merchandise, guarantee their privilege of data about item
quality, amount, intensity, immaculateness, standard and value, their privilege of
decision, change, instruction and right of accessibility of vital products and
administrations. Grievances can be documented with the power in the event of
unreasonable exchange hones or false ads. On the off chance that the business
substance is discovered liable, it can confront detainment, fine or requested that pay
remuneration.
Consumer Protection
Legislation made for the consumer protection in Pakistan

Khyber Pakhtunkhwa Province Consumer Protection Act, 1997 . Islamabad Consumer

Protection Act, 1995 turned into a model for the territories to take after. Khyber
Pakhtunkhwa) assembly passed Province Consumer Protection Act, 1997. This Act expects to
secure the privileges of buyers by controlling uncalled for exchange practices like bogus
representation of merchandise and administrations, denying the offer of substandard
products, giving deluding data, false ensure and guarantee or deceiving open with respect to
the cost of an item. This demonstration commits a producer to distribute greatest retail cost
on the compartment of each item, the nature, standard and different determinations of the
item like weight, size or volume and dates of assembling and expiry. Receipt might be issued
to buyer which expresses the date of offer, particulars of products sold, the amount, name
and location of the merchant. The demonstration likewise accommodates the definition of
Consumer Protection Council on lines like Islamabad Consumers Protection Act. The Act
likewise indicates an instrument for the change of purchaser dissentions
Consumer Protection
Legislation made for the consumer protection in Pakistan

 Punjab Consumer Protection Act 1995 Punjab Consumer Act cutting edge time for
buyer security developed in the nation when the government proclaimed
Islamabad Consumers Protection Act, 1995 in the elected capital. It manages
uncalled for exchange practices and gives instruments to handle shopper grievances
 This Act accentuated the detailing of Consumer Protection Council to shield the
privileges of shoppers. The Council is ordered to shield them from risky
merchandise, guarantee their privilege of data about item quality, amount,
strength, virtue, standard and value, their privilege of decision, change, training and
right of accessibility of crucial products and administrations. Objections can be
documented with the power if there should arise an occurrence of unreasonable
exchange hones or false notices. On the off chance that the business substance is
discovered liable, it can confront detainment, fine or requested that protection Act,
2005
Consumer Protection
Legislation made for the consumer protection in Pakistan
Sindh Consumer Protection Act 2014 Sindh Assembly. This would provide and protect the rights and
interests of consumers in Sindh and whereas it was expedient to provide protection and promotion of rights
and interests of consumers and speedy redressal of consumers complaints .Sindh government would set up
a provincial consumer protection council in the province. Besides government might set up consumer
protection councils in all districts which would report to provincial consumer protection council. The
provincial consumer protection council would gather information and data necessary in order to remove
unreasonably dangerous products and faulty and defective services from trade or commerce with approval
of the government. Each consumer protection council would have an adequate representation of consumers
and associations of trade, industry and services, as case may be, duly registered under law for the time
being in force, provided the representation of consumers of council, other than any ex-officio members,
would not be less than fifty percent of its total membership. The Sindh government would set up consumer
courts in province. A claim for damages arising out of contravention of any provision of consumer protection
act would be filed before a consumer court set up under this act. A judicial magistrate would be appointed
for each consumer court by government in consultation with Sindh High Court. The terms and conditions of
service of judicial magistrate would be such as may be prescribed under the act.
Consumer Protection
Legislation made for the consumer protection in Pakistan
THE SINDH CONSUMER PROTECTION ACT, 2014.
 PRELIMINARY Part-I

PART-II LIABILITY ARISING FROM DEFECTIVE PRODUCTS

 Liability for defective products.
 Defective in construction or composition
 Defective in design.
 Defective because of inadequate warning.
 Defective because of nonconformity to express warranty
 Proof of manufacturer's knowledge.
 Restriction on grant of damages.
 Duty of disclosures
 Prohibition on exclusions from liability
Consumer Protection
Legislation made for the consumer protection in Pakistan
THE SINDH CONSUMER PROTECTION ACT, 2014.
PART-III LIABILITY ARISING OUT OF DEFECTIVE AND FAULTY SERVICES
 Liability for faulty or defective services.
 Standard of provision of services.
 Restriction on grant of damages.
 Duty of disclosure.
 Prohibition on exclusions from liability
PART-IV OBLIGATIONS OF MANUFACTURERS
 Prices to be exhibited at the business place
 Receipt to be issued to the purchaser
 the date of sale; b) description of goods sold; c) the batch number of the product,
the original printed retail price, date of manufacture and date of expiry. d) the
quantity and price of the goods, and e) the name and address of the seller
 Return and refund policy.
Consumer Protection
Legislation made for the consumer protection in Pakistan
PART-V UNFAIR PRACTICES
 False, deceptive or misleading representation.
 Prohibition on bait advertisement

PART-VI THE POWERS OF THE AUTHORITY

 Powers of Authority.
 Powers of Government.

PART-VII CONSUMER PROTECTION COUNCIL

 Consumer Protection Council.
Consumer Protection
Legislation made for the consumer protection in Pakistan
PART-VIII DISPOSAL OF CLAIMS AND ESTABLISHMENT OF CONSUMER COURTS
 Filing of Claims.
 Establishment of Consumer Courts.
 Jurisdiction of Consumer Courts.
 Settlement of Claims.
 Settlement at pretrial stage
 Procedure on receipts or complaint
 Order of Consumer Court.
 Penalties.
 Appeal.
 Finality of order.
 Dismissal of frivolous or vexatious claims.
PART-IX MISCELLANEOUS
 Aid to the Consumer Court.
 Immunity
 Power to make rules.
 Power to remove difficulties.
Consumer Protection
Legislation made for the consumer protection in Pakistan
Competition Commission of Pakistan The Competition Commission of Pakistan (CCP), established under the
Competition Ordinance, 2007, deals with the issues of competition and consumer protection. The
Ordinance sets out the principles and norms of sound competitive behaviour as well as the manner of their
enforcement in the country. The CCP is mandated to redress deceptive marketing practices and enhance the
link between the Commission and the consumer. The Commission is also engaged in advocacy through
various means including seminars, roundtables, media appearances, active sessions of the Competition
Consultative Group and bilateral meetings with sector regulators in order to create awareness on
competition issues. The Commission has been aggressively and proactively pursuing its agenda. It has
conducted raids on the premises of different organizations and associations suspected of alleged use of
dominant position; it has published reports of enquiry and studies on different sectors of the economy; it
has taken bold decisions to eliminate cartelisation in the cement and sugar industries; and it has formulated
voluntary standards and codes for the industry. However, these are early days for the Commission, and it
will take quite some time before a culture of competition will take root in the country
The Network for Consumer Protection The Network for Consumer Protection, a not-for-profit, public
interest and independent non-government organization has been working since 1992. It works for the
protection of consumer rights as given in the United Nations Guidelines for consumer protection, 1985 and
charter of Consumers International. For this purpose, the Network educates consumers about their rights;
provides them research-based information on products and services; as well as updates them about
government polices and performance in consumer protection.
Consumer Protection
Legislation made for the consumer protection in Pakistan
Consumer Rights Commission of Pakistan (CRCP) CRCP was set up in 1998 to demonstration a free, non-
benefit, and non-administrative association to approach the issue of shopper insurance in an all
encompassing way. Its vision and procedures have noteworthy cross linkages with both business practices
and issues of administration. It mediates for the shoppers to secure their rights through exploration and
productions and additionally promotion, preparing and gathering assembly. Moreover, the Commission
underscores straightforwardness, flexibility of data and natives' interest and voice amid administration
conveyance through its promotion and mindfulness raising battles. It likewise investigations existing laws
with the point of making approach info for their change. It surveys business sector procedures and
corporate practices from a purchaser viewpoint. It goes about as a business guard dog and spotlights on
perspectives, for example, availability, moderateness, quality and measures, market morals, restraining
infrastructures and unjustifiable exchange practices to verify that market gets to be receptive to shopper
premiums Despite their vicinity, these purchaser backing associations have neglected to make an effect. As a
matter of first importance, they just exist in huge urban communities however the greater part of the
populace lives in residential areas and towns. What's more, even where they work, their vicinity has not
been felt.
Consumer Protection
Legal Procedure
Legal Procedure involved Any civilized and developed society
recognizes and believes in the fundamental importance of
consumer protection. The consumer’s satisfaction counts a lot in
modern world of consumerism. If a consumer is dissatisfied with
his purchase basket he is entitled to file a law suit against the
supplier and avail the remedy possible under consumer’s law. Of
course he must be aware of the legal procedure to be followed.
The limitation period to lodge a formal complaint in the court is
30 days which starts after a reasonable cause of action arose. The
pre requisite of a legal notice is 15 days during which a claim in
consumer court is filed. A cause or gist of action arises in case
Consumer Protection
Legal Procedure
When any provision of the act is violated a consumer is entitled to file a claim for damages which
requires no court fee.
As a remedy of redress the abused or aggrieved consumer can lodge a complaint before a
competent authority i.e. The Consumer Council of Pakistan
• When receipt is not issued.
• When price list is not exhibited.
• When the date of manufacturing, expiry or ingredient is not mentioned.
• If qualification is not disclosed.
• For inferior quality of product supplied.
• For charging higher prices than normal prevailing rates.
• For gas, phone and water service
• Bait advertising
• Deceptive service of lawyer, doctor or any other service provider.
Consumer Protection
Legal Procedure
Complaints can be made to the Consumer Court and/or The competent authority (DCO) The
procedure for filing a complaint and seeking damages is as following; A fifteen days notice is
served addressed to the person who provided and sold a defective product or faulty service.
Such a notice is written on a plain paper and is served through person or the lawyer of the
consumer and requires a proper acknowledgement of receiving such a notice. The notice
must clearly state which kind of physical or mental harm or both were caused to the
consumer due to use of the product or service so the consumer be paid damages within
fifteen days prior to the reception of such notice otherwise a law suit can be filed in the
consumer court to decide the case. If a proper dispute resolution is not reached by such
notice the person still have the remaining 15 days after the service of notice to demand
adequate damages. It is important point that damages means all kind damage inflicted by a
defective product or faulty and includes the economic, physical or mental harm.. Damages can
be claimed by the consumers before the consumer courts depending on the extent and
nature of their sufferings. In this regard there is no particular limit in this regard.
Consumer Protection
Conclusion
Consumer’s protection laws and consumer’s courts are well established in
Pakistan.These laws are enacted to make the sellers of products and
providers of services accountable and responsible so that whenever there is
an abuse or violation of consumer rights take place the consumer’s position
is safeguarded.There are a number of legal remedies available to consumers
in case they are misled, defrauded or overcharged than normal rates. The only
requirement is that a greater awareness be created among the consumer’s to
minimize their chance of vulnerability.The legal procedure is simple and only
a courage and patience is required on the part of consumers. Instead of
blaming or exchanging hot words or even mutual quarreling it is the most
dignified and amicable solution to present and prove the grievances before
the honorable court of justice.
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Thank You