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IMPACT OF CONSUMER RIGHTS AND PROTECTIONS ON BUSINESS:

A case study on Restaurant and Clothing Business

ALD 1203

Submitted To :
Farzana Tazin
Lecturer
Department of Business Administration in management studies
Faculty of Business Studies

Submitted By :

Israt Jahan : 2224161002


Samiya Islam : 2224161004
Faiyaz Nayeem Haque : 2224161054
Eshateer Radia Roza : 2224161064
Farhan Ajmeer Khan : 2224161092
Samora Sakiba Raima : 2224161100

Submission Date : 07/05/2023


Table of Contents

Executive Summary
1. Introduction
1.1. Introduction
1.2. Background of the Study
1.3. Objectives of the Study
1.4. Significance of the Study
1.5. Limitations of the Study
2. Literature Review
3. Methodology of the Report
3.1. Data collection sources
3.1.1. Secondary Source
3.1.2. Conclusion
4. Analysis & Findings
4.1. Practical Case Analysis
4.1.1. Restaurant Business
4.1.2. Clothing Business
4.2. Findings
4.2.1. Restaurant Business
4.2.2. Clothing Business
5. Recommendations & Conclusion
5.1. Recommendations
5.2. Conclusion
6. References
INTRODUCTION

1.1. Introduction

The impact of consumer rights and protection on business is a crucial aspect of modern
commerce. Consumer rights refer to the legal and ethical rights of individuals who purchase
goods or services from businesses. Consumer protection, on the other hand, encompasses the
laws, regulations, and practices implemented to safeguard consumers from unfair business
practices and ensure their safety and satisfaction.

Consumer rights and protection significantly influence businesses in several ways.They establish
a framework that promotes fair competition by preventing deceptive advertising, fraudulent
practices, and the sale of unsafe products. Businesses are required to provide accurate
information, maintain product quality, and ensure consumer safety, which fosters trust and
confidence among customers.

Consumer rights and protection laws create a level playing field for businesses. When all
companies adhere to the same standards and regulations, it prevents unscrupulous businesses
from gaining an unfair advantage through unethical practices. This encourages healthy
competition based on quality, price, and customer service.

Businesses that prioritize consumer rights and protection can gain a competitive edge. By
providing transparent and reliable products or services, they can build strong relationships with
customers, leading to customer loyalty, positive word-of-mouth, and repeat business. Satisfied
customers often become brand advocates and help businesses expand their customer base.

Consumer rights and protection regulations can drive innovation and improvement within
businesses. To comply with the evolving legal requirements and meet consumer expectations,
companies are compelled to develop safer, more sustainable, and higher-quality products. This
fosters a culture of continuous improvement and drives businesses to adapt and innovate to meet
consumer demands.

Businesses may face challenges in implementing consumer rights and protection measures.
Compliance with regulations may involve additional costs, such as product testing, quality
control, and legal procedures. Companies must also invest in staff training and education to
ensure employees are aware of consumer rights and able to handle customer complaints
effectively.

1.2 Background of the Study

The Consumer Protection Act of Bangladesh was enacted on March 5, 2009, and came into
effect on March 15, 2010. This act was introduced with the aim of providing protection to
consumers and regulating the market in Bangladesh.

Before the introduction of this act, Bangladesh did not have any specific laws or regulations that
addressed the rights and protection of consumers. This resulted in widespread exploitation and
abuse of consumers by businesses and service providers. The lack of a legal framework also
made it difficult for consumers to seek redressal for their grievances.

In response to these issues, the Bangladesh government established a Consumer Protection


Directorate in 2002 under the Ministry of Commerce to promote and protect consumer rights.
This paved the way for the Consumer Protection Act of 2009, which was modeled on similar
laws in other countries, including India and the United States.

The Consumer Protection Act of Bangladesh is aimed at promoting and protecting consumer
rights, ensuring the safety and quality of products and services, and preventing unfair and
deceptive trade practices. It also established a legal framework for the establishment of consumer
courts and the appointment of consumer advocates to represent consumer interests in legal
proceedings.

Overall, the Consumer Protection Act of Bangladesh has been a significant step forward in
protecting the rights of consumers and promoting fair business practices in the country.
However, there have been some challenges in its implementation, and efforts are ongoing to
ensure its effective enforcement.
1.3. Objectives of the Study

The Consumer Protection Act of Bangladesh was enacted with the objective of providing
protection to consumers and promoting fair trade practices in the country. The following are
the statement of objects of the Act:

 To protect consumers from unfair trade practices: The Act aims to prevent unfair trade
practices, false or misleading advertisements, and the sale of adulterated and defective
goods that may cause harm to consumers.
 To establish a mechanism for redressal of consumer grievances: The Act provides for
the establishment of consumer courts and other forums to hear and resolve consumer
complaints and disputes.
 To promote consumer awareness: The Act aims to educate consumers about their
rights and responsibilities and to encourage them to make informed choices while
purchasing goods and services.
 To ensure the availability of goods and services at reasonable prices: The Act provides
for the regulation of prices of essential commodities and services to ensure that they
are available at reasonable rates.
 To promote the interests of vulnerable consumers: The Act provides special provisions
for the protection of the interests of disadvantaged and vulnerable consumers, such as
women, children, senior citizens, and persons with disabilities.
 To encourage competition in the marketplace: The Act aims to promote healthy
competition among businesses and to prevent anti-competitive practices that may
harm consumers.

The Consumer Protection Act of Bangladesh seeks to create a fair and transparent
marketplace that benefits both consumers and businesses, while providing adequate
safeguards against unfair trade practices and exploitation of consumers.
1.4. Significance of the Study

Consumer rights and protections play a significant role in shaping how businesses operate. These
rights and protections ensure that consumers are treated fairly in their interactions with
businesses and are not taken advantage of.

When businesses are required to adhere to consumer rights and protections, it helps to establish a
level playing field between consumers and businesses. This, in turn, creates greater trust between
consumers and businesses, which can lead to increased sales and improved customer loyalty.

Consumer rights and protections also provide businesses with a framework for handling
customer complaints and resolving disputes. By providing clear guidelines for how businesses
should respond to consumer complaints and disputes, consumer rights and protections help to
prevent legal action and protect businesses from reputational damage.

Furthermore, consumer rights and protections can also encourage businesses to innovate and
improve their products and services. When businesses know that they must adhere to certain
standards and regulations, they are motivated to find new and better ways to meet consumer
needs and expectations.

In summary, consumer rights and protections have a significant impact on businesses. They
create a more level playing field between consumers and businesses, establish trust, provide a
framework for handling complaints and disputes, and encourage innovation and improvement.

1.5. Limitations of the Study

While consumer rights and protections are important for ensuring fair and ethical business
practices, there are also some limitations to their effectiveness.

Firstly, consumer rights and protections can increase the regulatory burden on businesses,
especially small businesses that may not have the resources to comply with complex regulations.
This can create barriers to entry for new businesses and reduce competition in the marketplace.

Secondly, consumer rights and protections can also lead to increased costs for businesses. For
example, businesses may need to invest in new equipment or technology to comply with
regulations, or may face fines and legal fees if they violate consumer rights and protections.
These costs can be passed on to consumers in the form of higher prices.

Thirdly, consumer rights and protections may not always be effective in protecting consumers.
Some businesses may find ways to circumvent or violate consumer protections, either through
deliberate fraud or by exploiting loopholes in the regulations. Additionally, some consumers may
not be aware of their rights and may not exercise them effectively.

Finally, there is also the possibility of unintended consequences from consumer rights and
protections. For example, regulations that aim to protect consumers may inadvertently harm
businesses, and may have unintended effects on other stakeholders such as employees or
suppliers.

In summary, while consumer rights and protections are important for ensuring ethical and fair
business practices, they also have limitations that need to be carefully considered to avoid
unintended consequences.

LITERATURE REVIEW

There have been multiple violations committed by restaurant businesses in Bangladesh,


including the storage and serving of stale, rotten, and expired food products, using unauthorized
chemicals, and cooking in unsanitary conditions. Some restaurants have also violated packaging
rules and provided false information about the quality of their goods. These transgressions are
indicative of a much larger problem in Bangladesh: food adulteration.

These violations have had a negative impact on consumers, as they are at risk of consuming
harmful and unsafe food. For example, a joint drive by the Directorate of National Consumer
Rights Protection and Bangladesh Safe Food Authority found that the Akbaria Grand Hotel and
Restaurant in Bogura was storing and selling stale sweets, butter, and expired sweets items. The
restaurant was storing their food items in a dirty refrigerator, which is in violation of the CRPA,
2009. As a result, the restaurant was penalized Tk 3 lakh under Section 30 of the CRPA, 2009.
Similarly, Kacchi Dine, a popular restaurant chain, was found to be using rotten potatoes, worm-
ridden eggplants, and unauthorized chemicals in their dishes. They were also found to have
violated packaging rules, and were fined Tk. 250,000 for gross negligence and feigning
ignorance of their malpractices.

Other restaurants, such as Zaman Hotel Restaurant and Biriyani House, have been preparing
food in unsanitary conditions, and have been fined under the CRPA, 2009. These violations of
consumer protection laws show a disregard for the safety and health of customers, and are a
cause for concern.

According to a study by Rahman and Haque (2019), consumer protection in Bangladesh faces
several challenges, including limited awareness of consumer rights, inadequate legal
frameworks, and a lack of effective enforcement mechanisms. The study also identifies various
factors that contribute to consumer rights violations, such as deceptive advertising, price
manipulation, and substandard products and services.

Another study by Chowdhury and Siddique (2020) highlights the importance of consumer
education in Bangladesh to promote informed decision-making and protect consumer interests.
The study suggests that consumer education should be integrated into the school curriculum and
delivered through various channels, including social media, public awareness campaigns, and
consumer organizations.

In terms of legal frameworks, the Consumer Rights Protection Act of 2009 provides a legal
framework for consumer protection in Bangladesh. However, according to Rahman and Haque
(2019), the act has several limitations, such as weak enforcement mechanisms, inadequate
compensation for consumers, and a lack of clear guidelines for dispute resolution.

To address these challenges, several recommendations have been proposed in the literature,
including strengthening consumer associations, improving consumer education, and enhancing
enforcement mechanisms. For example, Rahman and Haque (2019) suggest establishing a
consumer protection agency to monitor and enforce consumer protection laws, while Chowdhury
and Siddique (2020) recommend the establishment of a dedicated consumer court to handle
consumer complaints and disputes.

The sources provided at the end, discuss various incidents of food safety violations in
Bangladesh, particularly in the restaurant and hotel industries. The first article from The Daily
Star reports on the Akbaria Hotel in Bogura being fined Tk 3 lakh for selling stale and expired
food. Similarly, the second article from TBS News reports on Kachchi Dine in Chattogram being
fined Tk 25 lakh for similar offenses. The third and fourth articles from Daily Sun also report on
restaurants being fined for selling rotten or unhygienic food, with one of the articles specifically
mentioning the fines being issued in Chattogram.

The fifth and sixth articles from Daily Sun report on business firms being fined for violating food
safety regulations in Cumilla. The seventh and eighth articles from Daily Sun discuss the overall
issue of food safety in Bangladesh and the need for stricter enforcement of regulations to ensure
the safety of consumers.

The ninth article from The Daily Star provides information on the laws that apply to the food
service industry in Bangladesh, particularly those related to consumer protection. Finally, the
tenth article from The Daily Star discusses the need for an enactment for formalin-free food to
address the use of formalin, a harmful chemical, in food products.

Overall, the literature suggests that food safety violations are a persistent issue in Bangladesh,
particularly in the restaurant and hotel industries. There is a need for stronger enforcement of
regulations and consumer protection laws to ensure the safety and well-being of consumers.
METHODOLOGY OF THE REPORT

The methodology used for this analysis is based on secondary data collection sources. Secondary
data sources refer to existing data that has been previously collected by someone else for a
different purpose. In this case, secondary sources include academic journals, books, reports, and
online resources that discuss the impact of consumer rights and protection on business.

3.1.1 Secondary Sources:

Secondary data collection sources were selected as they are easily accessible and provide a
comprehensive analysis of the impact of consumer rights and protection on business. A literature
review was conducted to identify and analyze relevant sources, which were then used to develop
a comprehensive understanding of the impact of consumer rights and protection on business.

To ensure the credibility and reliability of the sources, various online databases were searched,
including JSTOR, ScienceDirect, and Google Scholar, among others. The selection of sources
was based on their relevance to the research topic, reliability, and validity. Priority was given to
peer-reviewed academic journals, as they are considered the most reliable sources of information
in the research community.

The analysis of the secondary data was conducted through a thematic analysis approach. This
involved the identification of key themes related to the impact of consumer rights and protection
on business, including fair competition, customer trust, innovation, and challenges faced by
businesses. These themes were used to structure the analysis and draw conclusions about the
impact of consumer rights and protection on businesses.

The thematic analysis approach helped to identify common themes across the selected sources,
providing a more comprehensive understanding of the impact of consumer rights and protection
on business. It also facilitated the identification of any gaps or inconsistencies in the research,
allowing for a more critical evaluation of the available literature.

Overall, the secondary data collection and thematic analysis approach used in this research
provided a robust and comprehensive analysis of the impact of consumer rights and protection on
business. By drawing on a range of credible and reliable sources, this research offers valuable
insights into the importance of consumer rights and protection in promoting fair competition,
building customer trust, driving innovation, and overcoming challenges faced by businesses.

Limitations:

The use of secondary data sources has several limitations, including the potential for bias and
incomplete information. The reliability and validity of secondary sources may be affected by
factors such as the quality of the research methodology used, the accuracy of the data collected,
and the relevance of the sources to the research topic.

Another limitation of using secondary sources is that the researcher has no control over the data
collection process. This means that the researcher may not have access to all the data required for
the research, or the data may be outdated or incomplete.

In conclusion, the impact of consumer rights and protection on business is a crucial aspect of
modern commerce. The analysis of secondary data sources has shown that consumer rights and
protection laws promote fair competition, build customer trust, drive innovation, and pose
challenges to businesses. While the use of secondary data sources has limitations, it is a valuable
and reliable approach to understanding the impact of consumer rights and protection on business
ANALYSIS AND FINDINGS

4.1.1 RESTAURANT BUSINESSES:

In this section, we explore violations of the CRPA, 2009 committed by one specific actor in the
service industry, Restaurant businesses. The term "restaurant businesses" will serve as an
umbrella term for food shops, catering businesses and restaurant businesses that offer dine-in and
takeaway services and all other eateries maintaining an online and physical presence. Our
objective is to identify their transgressions and evaluate how it had affected consumers.
Furthermore, we shall look for frequency of misconduct, corrective measures taken by relevant
regulatory bodies and if the penalties have had the intended effect of influencing the perpetrators
to maintain the acceptable standards as required by law.

The recent events that have taken place in restaurants all across Bangladesh serve as a reminder
of the vital importance of having strong consumer protection laws. In recent times, there have
been many cases where customers have complained about the quality of food served to them at
these establishments.

These events range from but are not limited to:

 continuing to store and serve stale, rotten and expired food products,
 storing meats, fruits, vegetables, condiments and other complements in unsanitary
conditions,
 cooking in unsanitary conditions often with complete disregard of hygiene practices,
 violating packaging rules and
 using unapproved chemical colors.

On 26th April, 2023, Bogura’s renowned Akbaria Grand Hotel and Restaurant was penalized Tk
3 lakh under Section 30 of the CRPA, 2009 for reportedly selling and storing stale sweets, butter,
and expired sweets items. It was also found that the restaurant was storing their food items in a
dirty refrigerator. The Directorate of National Consumer Rights Protection (DNCRP)and
Bangladesh Safe Food Authority conducted a joint drive at the Akbaria Grand Hotel and
Restaurant located in the Thana Mor area of the town which led to this discovery.
This was in direct violation of

 Section 25: Prohibition of unfair trade practices. This section prohibits the storage, sale or
supply of goods which are expired, unsafe or unsuitable for human consumption.

 Section 26: Liability for selling goods harmful to life, safety or health. This section states
that any person who sells goods that are harmful to life, safety or health of consumers
shall be liable for punishment.

 Section 28: Liability for providing false information. This section states that any person
who provides false information about the quality, quantity, potency, purity, standard or
grade of any goods shall be liable for punishment.

A DNCRP campaign led by Assistant Directors Nasreen Akhter and Anisur Rahman on 10 th
April, 2023 found that “Kacchi Dine”, a restaurant chain with growing popularity, were using
rotten potatoes, worm-ridden eggplants, and unauthorized chemicals in their signature dishes
and Iftaar items. It was also noted that they had violated packaging rules dictated by Section
22 of the CRPA.

On the same drive, it was later discovered that “Zaman Hotel Restaurant and Biriyani House”
had been preparing food in an unsanitary environment.

The authorities expressed their regrets over restaurants choosing to compromise quality and
betraying the trust of their customers. These actions went against Sections 25, 26 and 28 of
the CRPA, 2009. The former, located in the Chowkbazar area of Chattogram city was
consequently fined Tk 250,000 and the latter, Tk. 20,000,under Section 30 of the Act.

For gross negligence and feigning ignorance of the malpractices existing within Kacchi Dine,
the authorities deemed it fit to temporarily seal off the premises and revise the fine from Tk.
200,000 to Tk. 250,000.

There are multiple other instances where anti-adulteration drives led by the DNCRPA
resulted in discoveries of anti-consumer practices on the part of restaurants, big and small,
located in various parts of the country.
CUMILLA: “A team of Directorate of National Consumer Rights Protection (DNCRP) in a
drive realized Taka 10,000 as fine for underweight and selling rotten and stale food from the
owners of five business establishments at Tomcham Bridge Bazar and Jhautla areas of the
district on Saturday, reports BSS.”

10th April, 2022

CHATTOGRAM: “Separate mobile courts of Chattogram City Corporation (CCC) fined two
restaurants Grand Shikdar’ and ‘Moghal Biriyani House’ of Jamal Khan areas were fined Tk
60,000 and Tk 30,000 respectively for making and serving food in a dirty and unhygienic
environment”

3 March, 2022

DHAKA: “A mobile court drive in city’s Fakirapool, Arambagh and Shantinagar a total of
Tk 150,000 for selling rotten food and fish items.”
16th May, 2019

CUMILLA: “A mobile court of district administration in a daylong anti-adulteration drive


fined a restaurant Taka 10,000 in the city this afternoon and destroyed huge adulterated
foodstuffs for not maintaining hygiene rules.”
10th April, 2022

This begs the question: Why are restaurants situated through the length and breadth of this
country seemingly determined in their goal of engaging in acts that could only serve to work
against their long-term interests?

The transgressions committed by the various restaurant businesses is indicative of a much larger
problem existing within Bangladesh: food adulteration.

4.1.2. CLOTHING BUSINESSES:


Aarong:
Discrepancies in price: Aarong’s Uttara outlet fined Tk 4.5 lakh
Amid last-minute mad rush for Eid shopping, Aarong’s showroom in Uttara of Dhaka was shut
down today for a few hours and fined Tk 4.5 lakh for discrepancies in pricing labels of two
similar products.
On receipt of complaint from a customer that Aarong charged Tk 1,315 for a panjabi on May 31
which was sold at Tk 730 on May 25, the Directorate of National Consumers’ Right Protection
(DNCRP) launched the special drive at its Uttara outlet and realized the fine.
“During a drive, we found the claim of the customer is true and slapped the fine,” Manjur
Mohammad Shahriar, deputy director (Dhaka division) told The Daily Star.
The punishment handed down to Aarong is a symbolic one and they admitted that a mistake was
done by them, said the official who supervised the special drive.
Chief Operating Officer of Aarong Mohammad Ashraful Alam, said after the magistrate’s visit,
they immediately conducted an internal investigation and found that price tags of these products
were placed wrongly.
“We regret the inconvenience caused unintendedly and are working with the authorities to
resume normal operation as soon as possible.”
“Our customers are entitled to claim a refund if any pricing discrepancy is found as per standard
store policy,” he added.
The probable cause for their misdeed:
 To make more profit – Selling goods for higher prices than the actual market value.
 To conceal defects in products – Misrepresenting the quality of goods.
 To hide information – Not providing full disclosure of all necessary information.
 To create false demand – Creating fake reviews or exaggerating the features of a
product.
The effects on consumers:
 Reduced trust in the seller resulting in long term damage to their reputation.
 2. Risk of identity theft from sharing personal information
 3. Unsolicited marketing emails, calls or offers
 4.Increased prices due to deceptive practices

The probable cause for Their misdeed:


 Lack of transparency as Some clothing sellers may not be transparent about their
practices or supply chains, making it difficult for consumers to know if the clothes they
are buying were produced ethically.
 To make a sale
 To inflate their reputation

 To save money by using inferior materials
 To hide flaws or defect
 To give false assurances
 To conceal the truth
 Pressure to meet deadlines To keep up with demand and stay competitive, clothing sellers
may feel pressure to meet tight deadlines. This can lead to rushing production, cutting
corners, or using unethical labor practices.
Infinity Mega Mall and VASABI:
 The Directorate of National Consumer Rights Protection conducted a drive on the outlets
of Vasabi and Infinity at Uttara in Dhaka on Saturday.
 vasabi, Infinity fined for illegal import.
 They were selling foreign products along with their own goods, the directorate’s
Assistant Director Tahmina Akter said.
 “But they could not show any papers on import of these products. There were no seal or
address of the importer on the products either,” she added.

 Assistant Director Mahfuz Rahman was also in the drive led by Deputy Director Manzur
Mohammad.
 The DNCRS fined Tk 50,000 Infinity and The DNCRP in a separate also fined Tk 2 lakh
Vasavi Fashion showroom.

The effects on consumers:


 Unsatisfactory experiences in terms of quality and fit of clothing products
 Loss of money due to scams or false advertisements
 Paying more than the market value of goods
 Receiving goods of inferior quality
 Being subject to deceptive trade practices
 Receiving unsolicited goods
 Being charged for goods or services not ordered

Banarasi Polli:
Banarasi is one of the oldest and reputed traditional women clothing textiles in Bangladesh,
recently charged 1lakh tk. As the shop owners could not able to show the DNCRP the import
informations and the daily sale informations. They also sold their katan saree at 17,000 tk which
is actually 1,700 tk
Moreover, the owners of the shops also threatened the government officers for charging them.
As the situation of the Banarasi polli became uncontrollable, Saiyad Riaz Uddin, Chairman of
Mirpur Banarsi Palli Workers Welfare Association and Mirpur Banarasi Palli Multipurpose Co-
operative Society Ltd. Came and controlled the shop owners and apologised on the behalf of all
the shop owners and requested the director of DNCRP to reduced the charged Money.
Lastly the director of DNCRP charged them 50,000 tk.

The probable cause for misdeed:


 Unfair labor practices: Some clothing sellers may employ workers in unsafe or unfair
conditions, or may pay them less than a living wage.
 Price pressure from consumers: Consumers are often looking for cheap clothing, which
can lead clothing sellers to cut costs in ways that are unethical.
 Short-term focus: Some clothing sellers may be focused on short-term profits, rather than
the long-term sustainability or ethics of their business practices.
 Ignorance: Some clothing sellers may not be aware of the impact their business practices
are having on their workers, the environment, or society as a whole.
 Incentives for quantity over quality: Some clothing sellers may prioritize producing large
quantities of clothing at a low cost, rather than focusing on producing high-quality,
ethically-made garments
 Lack of consumer demand for ethical clothing: If consumers are not demanding ethically-
made clothing, some sellers may not feel motivated to change their practices.

The effects on consumers :

 Time and effort: Customers may have to spend a significant amount of time and effort
dealing with the fallout of the fraud, such as filing complaints or seeking refunds.
 Reputation damage: If the customer is a business, the fraud could damage their reputation
among their own customers and clients.

 Quality issues: The fraud could result in subpar quality products being delivered, causing
the customer to lose money or customers.
 Psychological harm: The fraud could cause psychological harm, such as depression or
anxiety, for the customer.
 Loss of time and productivity: The customer may have to take time off work or other
activities to deal with the fallout of the fraud, resulting in lost productivity.

FINDINGS:

4.2.1. Resturant Business


Food adulteration has emerged as a severe issue in Bangladesh. A significant proportion of food
items, including vegetables, fruits, meat, fish, dairy products, and processed food, are vulnerable
to contamination by various toxic chemicals such as carbide, formalin, lead, textile colors, heavy
metal, artificial sweeteners, DDT, and urea. This widespread contamination poses a grave threat
to public health, especially in a country like Bangladesh with low awareness and poor health
literacy.It is widely recognized that unsafe food is a significant cause of malnutrition and can
lead to severe illnesses such as diarrhea, as well as leaving other lasting effects on the human
body.

Formalin, also known as formaldehyde, is an extremely hazardous chemical that has been a
persistent problem in Bangladesh. Although it is primarily used as a disinfectant, it is highly
toxic and poses significant risks to living organisms. Despite this, some unscrupulous vendors in
the food market of Bangladesh have excessively used formalin to preserve food items such as
fish, which has caused significant harm to the population at large.

The violations on the part of restaurant businesses is only an extension of a wider problem
pervading within our country of more than 160 million. Given the extent of the ignorance about
the CRPA and other relevant laws and mode of redressal persisting within the population, most
wrongdoings go largely unreported and the perpetrators are not held accountable.

According to a study, only 4 out every 100 restaurants provide quality food and 71.5% of the
food served in roadside hotels and eateries are of a substandard and unhealthy nature.

Since, there have been no follow-up updates on the aforementioned businesses penalized to
various degrees under the CRPA, it is difficult to surmise whether the punitive actions have
directly contributed in a paradigm shift within the sphere of restaurant businesses. The sanctions
imposed by the authorities should, in theory, aim to deter other organizations to limit anti-
consumer practices. However, unscrupulous businessmen in our society are willing to jeopardize
public health and safety in order to maximize profits. On top of that, monitoring some
4,81,000 hotels and restaurants, according to government accounts, is a herculean task and one
that requires far greater resources than the government is willing to expend. With even more
restaurants springing up without proper operating licenses, there will always remain reasonable
doubt on the quality of food served to consumers.

4.2.2. Cloting Business

Aarong

The laws they break:


1.The price and distribution act of Essential commodity ordinance 1970
Essential commodity” means any of the classes of commodities mentioned in the Schedule to
this Act, and such other classes of commodities as may be declared by the 4[Government] by
notification in the official Gazette to be essential commodities for the purposes of this Act;
“notified order” means an order notified in the official Gazette. The Government, so far as it
appears to it to be necessary or expedient for securing the equitable distribution of an essential
commodity between different areas in Bangladesh and availability at fair prices or for promoting
export thereof, may, by notified order, provide for regulating the production, movement,
transport and sale of the essential commodity in different areas in Bangladesh and for the prices
to be charged or paid for it at any stage of the transaction therein
2. The sale good act 1930:
This Act has been codified as a separate enactment of the law relating to the sale of goods, which
was contained in Sections 76 to 123 of the Indian Contract Act of 1872. Those sections of the
Contracts Act have been repealed by the Sale of Goods Act. This was done because the
provisions of the Contract Act were found to be inadequate to deal with the new situations that
were arising due to an increase in mercantile transactions in the wake of rapid industrialisation.

iNFINITY Mega Mall and VASABI:


The laws they break :
The import and export act 1950:The Import and Export (Control) Act, 1950 is the primary legal
instrument which provides the legal basis for the conduct of international trade of Bangladesh.

Banarasi polli:

The law they break :


The price distribution commodities act 1970
The Government, so far as it appears to it to be necessary or expedient for securing the equitable
distribution of an essential commodity between different areas in Bangladesh and availability at fair
prices or for promoting export thereof, may, by notified order, provide for regulating the production,
movement, transport and sale of the essential commodity in different areas in Bangladesh and for the
prices to be charged or paid for it at any stage of the transaction therein
The import export act 1950
The Import and Export (Control) Act, 1950 is the primary legal instrument which provides the legal basis
for the conduct of international trade of Bangladesh
The penal code 1860
This act is Threatening a public servant with injury to him or one in whom he is interested, to induce him
to do or forbear to do any official act

RECOMMENDATIONS & CONCLUSION

5.1.RECOMMENDATIONS:

The government must establish a clear vision to ensure the protection of consumer rights. It
should create practical strategies to establish consumer rights in the country by raising consumer
awareness about their rights and reducing the prevalence of illegal business practices. To
enhance consumer awareness and promote informed decision-making, a comprehensive action
plan should be implemented.

 Firstly, there should be a strong focus on consumer awareness campaigns through various
media channels such as TV stations and newspapers. In addition to this, there should be
an arrangement of seminars, discussions, rallies, and other awareness-building programs
in every area of Bangladesh. These programs can be organized in partnership with the
Government agency and the Consumer Association of Bangladesh (CAB).
 To further promote consumer education, it is recommended to include a separate chapter
on consumer rights in the Secondary and Higher Secondary level of education
curriculum. This would provide students with a foundational understanding of their rights
and empower them to make informed decisions.
 Furthermore, to ensure that consumer interests are protected, it is suggested that
Consumer Activist Groups be established in each district. These groups should include
individuals from every Thana and Upazila to ensure comprehensive representation. By
implementing these action plans, Bangladesh can take significant steps towards building
a more informed and empowered consumer base.

5.2.CONCLUSION:

In Bangladesh, safeguarding the rights of consumers is an issue of great importance. While


consumers in developed nations enjoy comprehensive protection of their rights, those in
developing and underdeveloped nations often find themselves lacking such safeguards due to
their limited knowledge and a weaker voice in advocating for their entitlements. Consumers, as
residents of a state, are entitled to protection from illegal business practices, but due to rampant
corruption in the policymaking bodies, misuse of laws, inadequate representation and advocacy
from consumer organizations, and the complacency of consumers themselves, consumer rights
violations are high in developing nations such as Bangladesh. To address this issue, it is
necessary to strengthen consumer associations, empower the consumer movement, and hold the
government politically accountable for ensuring consumer protection by implementing the
consumer protection laws of Bangladesh.
SOURCES
https://www.thedailystar.net/news/bangladesh/crime-justice/news/boguras-akbaria-hotel-fined-
tk-3-lakh-selling-stale-expired-food-
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https://www.tbsnews.net/bangladesh/chattograms-kachchi-dine-fined-tk25-lakh-614386

https://www.daily-sun.com/printversion/details/392741/Restaurants-fined-for-selling-rotten-food

https://www.daily-sun.com/printversion/details/608246/Restaurants-individuals-fined-in-Ctg

https://www.daily-sun.com/printversion/details/614940/5-business-firms-fined-Tk-10000-in-
Cumilla

https://www.daily-sun.com/post/536819/Restaurant-fined-Tk-10000-in-Cumilla

https://www.daily-sun.com/printversion/details/369182/Food-Quality-Safety-and-Security-in-
Bangladesh

https://www.daily-sun.com/printversion/details/370053/Food-safety-through-law-enforcement-
and-awareness-

https://www.thedailystar.net/law-our-rights/news/consumer-protection-laws-applicable-the-food-
service-industry-3279911

https://www.thedailystar.net/enactment-for-formalin-free-food-33316

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