Acknowledgement

Firstly we would thank Allah Almighty for giving us the opportunity and the resources to be able to do something productive with our lives. Without His blessings we would not have been able to come as far as we have. Then our sincere thanks to Respected Maam Mehreen Khalil for helping us throughout this report. Her guidelines have been very useful for us in preparing this report. She helped us find new ways of being innovative and creative. This report would not have been possible without her cooperation and continuous directions. Last but not the least we would like to thank our families for their incessant support and cooperation.

Abstract
Research reports are an important source of students' learning. Business students can have a practical exposure of the market through these reports and can make effective use of their knowledge and abilities. Consumer protection agencies and laws are well-known for the protection of fundamental rights of consumers. In this perspective Pakistan has passed enormous laws at district and provincial level, these laws are made to ensure that companies do not engage in fraudulent practices or spread wrong information in the markets to promote their products and have an unfair advantage over their competitors. The purpose of our study is to determine the role of consumer protection agencies and to what extent consumers are satisfied with these agencies. Authorities have made the laws and policies in this respect then agencies are responsible to carry on these activities in a transparent manner.

Executive Summary

The study focuses on the role of the consumer protection agencies that are playing basic role in the protection of the fundamental rights of the consumers. The report explores the fundamental consumer rights, consumer protection laws in Pakistan, different public and private agencies working in Pakistan and the role of these agencies. At the end part of this report, suggestions for the enhancement of working capacity of these agencies are included. By conducting this research it was found that the agencies are vital for any society well being as laws are made but how these laws are implemented then agencies perform that task. Agencies act as mediator between the authorities (government) and societies. Not only agencies are responsible for consumer right but citizens are also responsible to be aware about their rights.

Fundamental Consumer Rights

Definition of Consumer
Consumer is defined as: A person who acquire goods and services for his or her personal needs

History of Consumer Rights

Consumers had little protection in the world marketplace before the 1950s.On March 15, 1962; President John F. Kennedy put forth the "Consumer Bill of Rights" to help consumers understand their rights and responsibilities. In 1985, eight basic consumer rights were adopted by the United Nations' Assembly, which resulted in consumers having stronger consumer protection policies worldwide. March 15 is now declared as World Consumer Rights Day. US President John F. Kennedy delivered an historic address to the US Congress in which he outlined his vision of consumer rights. This was the first time any politician had formerly set out such principles.

Kennedy said in his Congressional Statement 'Consumers by definition include us all,', 'They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group... whose views are often not heard.

Birth of Consumers Day

Considering the importance of Kennedys speech to the US Congress on this day, and the resultant law, the CI took a decision in 1982 to observe 15 March as the World Consumer Rights Day from 1983. Peculiar though it may sound, 15 March is not observed as a special day in the worlds largest and most pulsating consumer society - the US. It is rightly said: A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work - he is the purpose of it. We are not doing him a favor by serving him. He is doing us a favor by giving us the opportunity to serve him.

Consumer Rights and its Expansion

Pakistan has been observing 15 March since 1989 as the National Consumers Day. This day has a historic importance as it was on this day in 1962, when the Bill for Consumer Rights was moved in the US Congress. During his speech President John F. Kennedy had remarked: If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened, and national interest suffers. John F. Kennedy had equated the rights of the ordinary American consumer with national interest. He gave the American consumer four basic right Four basic consumer rights are: The right to choose The right to safety The right to be informed The right to be heard. Federal Government, by nature the highest spokesman for all people, had a special obligation to the consumers needs. Thirteen years later President Gerald Ford felt that the four rights constituted in Kennedys Bill of Rights were inadequate for a situation where most consumers are not educated enough to make the right choices. So he added the Right to Consumer Education, as an informed consumer cannot be exploited easily. While these rights served the interest of the American consumer well enough, they did not cover the whole gamut, because a global consumer did need, apart from them, other well-defined rights like basic needs, a healthy environment and redress.

The Consumers International (CI), former International Organization of Consumer Unions (IOCU), the umbrella body, for 240 organizations in over 100 countries, expanded the charter of consumers rights contained in the US Bill to eight, which in a logical order reads:

1. 2. 3. 4. 5. 6. 7. 8.

Basic Needs Safety Information Choice Representation Redress Consumer Education Healthy Environment.

This charter had a universal significance as they symbolized the aspirations of the poor and disadvantaged. On this basis, the United Nations, in April 1985, adopted its Guidelines for Consumer Protection. Through Consumers International, four more rights were added as follows: The right to redress or remedy The right to environmental health The right to service The right to consumer education. Now there are total eight fundamental consumers rights:

Fundamental Rights of Consumers:

1. 2. 3. 4. 5. 6. 7. 8. The right to satisfaction of basic needs The right to safety The right to be informed The right to choose The right to be heard The right to redress The right to consumer education The right to a healthy and sustainable environment. The right to choose. Within reason, consumers have the right to be assured that a selection of quality products and services are available for them to purchase at competitive prices. It means that a consumer should have the opportunity to select the goods or services that he or she wants to purchase. The right to safety.

Consumers have the right to expect protection from hazardous products and services purchased in the marketplace, particularly if used properly for their intended purpose. Consumers have protection from the sale and distribution of dangerous goods and services. The right to be informed. Consumers have the right to receive adequate information about products on which to base buying decisions. Reliable sources exist to inform consumers about products or services. The right to be heard and the right to voice. Consumers have the right to equal an affair consideration in government policymaking situations, as well as prompt treatment in administrative courts or legal communities. In other words, consumers have a right to complain where their problems concern. They have the right to speak up, to be heard, and to expect positive results. Through this right, both business and government are expected to respond to consumers. The right to redress or remedy. Consumers are afforded an opportunity to have a hearing to voice dissatisfaction such that a resolution is reached and the complaint is settled satisfactorily. The right to environmental health. Consumers should be protected from the devastating effects of air, earth, and water pollution that may result from the performance of daily marketplace operations. Consumers have then right to live and work in an environment that does not threaten the well-being of present and future generations. The right to service. Consumers may expect convenience, the right to be treated with respect, an appropriate response to their needs and problems, and good quality design and workmanship in a product. Additionally, consumers may expect a courteous manner while in a store or other establishment even if a purchase is not made. Service means access to essential goods and services to include adequate food, shelter, clothing, health care, education and sanitation basic needs that should be available to all consumers. The right to consumer education. Consumers are extended the right to continuing consumer education that supports the benefits and enjoyment of other specific rights. Consumers have the right to some form of training and mastery of knowledge and skills needed to make informed decisions in the marketplace

Consumer Protection Laws in Pakistan

Consumer Protection Laws:

While it is important for any economy to promote markets, it is also just as important to protect the rights of consumers. Consumer protection laws are made to ensure that companies do not engage in fraudulent practices or spread wrong information in the markets to promote their products and have an unfair advantage over their competitors. Such laws also ensure that information about the products such as those concerning effects on health that are meant to be shared with the public are not hidden from the consumers. Wikipedia defines consumer protection laws as: Laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves. Consumer protection laws are a form of government regulation which aims to protect the rights of consumers. Consumer protection is linked to the idea of "consumer rights" (that consumers have various rights as consumers), and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

Consumer Protection Laws in Pakistan:

Consumer protection laws are made to regulate a private law-relationship between individual, consumers and the businesses that sell those goods and provide services. These laws cover a wide range of topics, including product liability, privacy rights, unfair business practices, fraud, misrepresentation and other consumer/business interactions. The internationally recognized eight consumer rights include; satisfaction of basic needs, safety, choice, information, consumer education, redress, representation and a healthy environment. To simplify these laws further, we can say that these laws enable consumers to express their concerns for the food they eat, the medicines they take, the water they drink or the products they use at homes. In every country, consumers are considered the core foundations of all business activities and to secure their interests become the paramount responsibility of the state, followed by legal punishment for violators. Manufacturers and service providers are made to tailor their operations with quality products and services, which are not only profitable but also ethical, for the satisfaction of all stakeholders. But unfortunately, in Pakistan these laws were ignored or made trivial and the lack of friendly laws gave rise to diverse problems. Various leading organizations advocating for these laws include the Consumer Rights Commission of Pakistan (CRCP), The Network for Consumer Protection in Pakistan, Helpline Trust and Human Rights Group have said that lack of effective laws result in artificial shortage of essential commodities, arbitrary price hikes, poor quality products and services, sale of hazardous products and misleading advertisements. To tackle these problems, former governments took initial steps for protection of consumer rights. At present there are four consumer protection laws in force in various parts of Pakistan, namely: 1. The Punjab Consumer Protection Act, 2005 (hereinafter to as PCPA) 2. The Baluchistan Consumer Protection Act, 2003 (hereinafter referred to as BCPA) 3. The NWFP Consumer Protection Act, 1997 (hereinafter referred to as NCPA) 4. The Islamabad Consumer Protection Act, 1995 (hereinafter referred to as ICPA) ( hereinafter collectively referred to as Consumer Protection Laws or CP Laws). 14 Consumer courts for Punjab are approved in 2006 and came into being in 2007. These courts are in 11 districts of Punjab province. Persons belonging to other districts may appeal into a nearby district court. If you have any complaint about a product, services or a company you may contact these courts. Just write an application, attach copy of your CNIC and receipt and submit it to your District Consumer Court.

The UN Guidelines:

Before we move forward, it will be useful to see what aims of consumer protection and policies are laid down in the Guidelines. The aims prescribed under the general principles are: (a) The Protection of consumers from hazards to health and safety; (b) The promotion and protection of the economic interests of consumers: (c) Access of consumers to adequate information to enable them to make informed choices according to individual wishes and needs; (d) Consumer education, including education of the environmental, social and economic impacts of consumer choice; (e) Availability of effective consumer redress; (f) Freedom to form consumer and other relevant groups or organizations and the opportunity of such organization to present their views in decision-making processes affecting them; (g) The promotion of sustainable consumption patterns.

Status of Implementation All the above-mentioned statures as a matter of routine and formality prescribe that they shall come into force at once, however, as shall be seen therein, none has so far become functional in the true sense. All these laws prescribe the establishment of two institutions: Consumer Protection Councils (CPCs); Consumer Courts

Consumer Protection Councils (CPCs); An important guideline mentioned is the availability of freedom to form consumer and other relevant groups or organizations and the opportunity of such organizations to present their views in decision making processes affecting them; There is apparently no hurdle in the formation of consumer rights associations, except, the routine official delays etc. Consumer protection council is the only forum provided for policy input for consumer protection, and this is where there is potential room for a formal effective role to be played by consumer rights associations. Participation of consumers in the process of consumer protection is also said to be an important ingredient of consumer protection policies. 18 It is felt that one way of strengthening consumer participation is greater representation on the consumer protection councils of consumer rights associations to articulate consumer concerns. Establishment of Consumer Courts: All the enacted laws provide for the establishment of consumer courts with the exception of ICPA, for example, section 12 of BCPA prescribes for the establishment of consumer courts and, in the alternative, empowers the provincial government to confer powers of the court on judicial magistrate to act under the law.

Consumer courts (as consumer grievance redressal forum) are usually provided for around the world as lower courts or forums parallel to the existing ordinary courts for the purpose of providing speedy redress of consumer complaints. That is why the first three of the abovementioned Acts prescribe establishment of such courts with exception of ICPA wherein the court in Sessions has been prescribed as the forum for lodging consumer complaints. If the Consumer Court is satisfied that the product or service complained against suffers from any of the defects specified in the claim, it may direct manufacturer or service provider to

to remove defect, to replace the products with new products, to return to the claimant the price, to pay reasonable compensation, to award actual costs of the legal proceedings, to recall the product from market, to cease to provide the defective or faulty service.

Consumer protection organizations, governments, judiciary, print and electronic media are very active throughout the world by introducing consumer protection laws and consumer courts and ensuring that they are strictly enforced. It is not only the sole responsibility of government but the giant corporations or small manufacturers and consumer protection organizations should also share their onus by raising awareness among the masses. THE PUNJAB CONSUMER PROTECTION ACT 2005: An Act was passed to provide protection and promotion of the rights and interests of the consumers. Preamble: Whereas, it is expedient to provide for protection and promotion of the rights and interests of the consumers, speedy redress of consumer complaints and for matters connected therewith; It is hereby enacted as follows:Definitions: In this Act, unless there is anything repugnant in the subject or context, (a) Act means the Punjab Consumer Protection Act 2005; (b) Authority means the District Coordination Officer of the district concerned. (c) Consumer means a person or entity who: (I) buys or obtains on lease any product for a consideration and includes any user of such product but does not include a person who obtains any product for resale or for any commercial purpose; or (II) hires any services for a consideration and includes any beneficiary of such services; 1. LIABILITY ARISING FROM DEFECTIVE PRODUCTS

The manufacturer of a product shall be liable to a consumer for damages proximately caused by a characteristic of the product that renders the product defective when such damage arose from a reasonably anticipated use of the product by a consumer. A product shall be defective only ifit is defective in construction or composition, design and it is defective because an adequate warning has not been given. Defective in construction or composition A product shall be defective in construction or composition if, at the time the product was manufactured, a material deviation was made from the manufacturers own specifications, whether known to the consumer or not. Defective in design (1) A product shall be defective in design if, at the time the product left its manufacturers control (2) When the manufacturer has used reasonable care to provide adequate warning to the users or handlers of the product, it shall be considered in evaluating the likelihood of damage arising from the design of a product. Defective because of inadequate warning A product shall be defective if an adequate warning about the product that it possessed a characteristic that could cause damage, has not been provided at the time the product left its manufacturers control or the manufacturer has failed to use reasonable care to provide an adequate warning of such characteristic and its danger to users and handlers of the product: Defective because of non-conformity to express warranty A product shall be defective when it does not conform to an express warranty made at any time by the manufacturer about the product if the express warranty has induced the claimant to use the product and the claimants damage was proximately caused because the express warranty was untrue. Duty of disclosure Where the nature of the product is such that the disclosure of its component parts, ingredients, quality, or date of manufacture and expiry is material to the decision of the consumer to enter into a contract for sale, the manufacturer shall disclose the same. Prohibition on exclusions from liability The liability of a person by virtue of this part to a consumer who has suffered damage shall not be limited or excluded by the terms of any contract or by any notice.

2. LIABILITY ARISING OUT OF DEFECTIVE AND FAULTY SERVICES A provider of services shall be liable to a consumer for damages proximately caused by the provision of services that have caused damage. Standard of provision of services.

Where the standard of provision of a service is regulated by a special law, provincial or federal, the standard of services shall be deemed to be the standard laid down by such special law. Restriction on grant of damages Where the consumer has not suffered any damages from the provision of service except lack of benefit, the service provider shall not be liable for any damages except a return of the consideration or a part thereof and the costs. Duty of disclosure Where the nature of the service is such that the disclosure of the capabilities or qualifications of the provider of the service or the quality of the products that he intends to use for provision of the service is material to the decision of the consumer to enter into a contract for provision of services, the provider of services shall disclose the same. Prohibition on exclusions from liability The liability of a person by virtue of this Part to a person who has suffered damage shall not be limited or excluded by the terms of any contract or by any notice.

3. OBLIGATIONS OF MANUFACTURERS Prices to be exhibited at the business place Unless a price catalogue is available for issue to customer, the manufacturer or trader shall display prominently in his shop or display-centre a notice specifying the retail or wholesale price, as the case may be, of every goods available for sale in that shop or display-centre. Receipt to be issued to the purchaser Every manufacturer or trader who sells any goods shall issue to the purchaser a receipt showing (a) The date of sale; (b) Description of goods sold; (c) The quantity and price of the goods; (d) The name and address of the seller. Return and refund policy Return and refund policy of a seller shall be disclosed to the buyer clearly before the transaction is completed by means of a sign at the point of purchase.

4. UNFAIR PRACTICES False, deceptive or misleading representation. No person shall make a false, deceptive or misleading representation that: a) The products are of a particular kind, standard, quality, grade,

b) The products have particular history or particular previous use; c) The services are provided by a person having a requisite skill or qualification or experience; d) the products were manufactured, produced, processed or reconditioned at a particular time e) the products or services have any sponsorship, characteristics, accessories, uses or benefits; f) Concerns the place of origin of products. 5. CONSUMER PROTECTION COUNCIL 1) The Government shall set up a Consumer Protection Council in the Province. 2) The Government may set up Consumer Protection Councils in one or more districts which shall report to the Provincial Consumer Protection Council. 3) The Consumer Protection Councils shall have such other functions as may be assigned to them by the Government by notification in the official Gazette. 4) The Provincial Consumer Protection Council shall gather such information and data as may be necessary in order to remove unreasonably dangerous products and faulty and defective services from trade or commerce. 5) Each Consumer Protection Council shall have an adequate representation of consumers and associations of trade, industry and services, as the case may be, duly registered under the law for the time being in force; provided that the representation of consumers on the Council, other than any ex-officio members, shall not be less than fifty per cent of its total membership. 6. THE POWERS OF THE AUTHORITY Powers of Authority 1) Any person may file a complaint for violation of the provisions of sections 11, 16, 18 and 19 before the Authority who, on being satisfied that such is the case, fine the violator that may extend to fifty thousand rupees and which may be recovered as arrears of land revenue. 2) The Authority may file a claim for declaring a product defective under sections 4, 5, 6, 7 or 8 or a service as faulty or defective under section 13 without proof of any damage actually suffered by a consumer but likely to be suffered keeping in view the general standard of that service. 3) The Authority may file a claim before the Consumer Court for declaring any act on the part of any person as being in contravention to Part IV of this Act without proof of any damage actually suffered but likely to be suffered due to the said contravention. 4) The Authority on receipt of a complaint or a reference from the Consumer Protection Council or on his own motion may hold an inquiry as to defects in products or services or practices which contravene any of the provisions of this Act. No prior notice shall be

5)

6) 7) 1)

2) 3)

required to be given to a manufacturer or provider of services for the purposes of holding an inquiry The Authority, while holding an inquiry, may direct the police or any other officer or authority of the Government to gather such evidence as it deems necessary or to perform function in accordance with law which have an impact on the inquiry. The Authority may delegate his powers under this Act through a notification to any officer of the Government with its prior approval. Any person aggrieved by the order passed under sub-section (1) may file an appeal before the Government within thirty days of such order. Powers of Government The Government may, by general or special order and subject to such conditions as may be prescribed, exercise all or any of the powers conferred upon the Authority under this Act except the power of imposition of fine. The Government may, from time to time, issue directions to the Authority with regard to the performance of the functions of the Authority under this Act. The Government may, at any stage, modify or set aside any order or action of the Authority subject to such condition or conditions as it may deem fit.

7. DISPOSAL OF CLAIMS AND ESTABLISHMENT OF CONSUMER COURTS Filing of Claims. A claim for damages arising out of contravention of any provisions of this Act shall be filed before a Consumer Court set up under this Act. Establishment of Consumer Courts 1) The Government shall, by notification, establish one or more separate Consumer Courts [for an area, comprising one or more districts] to exercise jurisdiction and powers under this Act. 2) A Consumer Court shall consist of a District Judge [or an Additional District Judge] to be appointed by the Government in consultation with the Lahore High Court. Inserted by the Punjab Consumer Protection (Amendment) Act 2006 (XI of 2006) Jurisdiction of Consumer Courts. Subject to the provisions of this Act, the Consumer Court shall have jurisdiction to entertain complaints within the local limits of whose jurisdiction a) the defendant or each of the defendants, where there are more than one, at the time of filing of the claim, actually and voluntarily resides or carries on business or personally works for gain; or b) any of the defendants where there are more than one, at the time of the filing of the claim, actually and voluntarily resides, or carries on business, or personally works for gain; provided that in such a case the permission is granted by the Consumer Court or the

c) 1)

2) 3)

4)

defendants who do not reside, or carry on business, or personally work for gain, as the case may be, acquiesce in such institution; or the cause of action wholly or in part arises. Settlement of Claims. A consumer who has suffered damage, or Authority in other cases, shall, by written notice, call upon a manufacturer or provider of services that a product or service is defective or faulty, or the conduct of the manufacturer or service provider is in contravention of the provisions of this Act and he should remedy the defects or give damages where the consumer has suffered damage, or cease to contravene the provisions of this Act. The manufacturer or service provider shall, within fifteen days of the receipt of the notice, reply thereto. No claim shall be entertained by a Consumer Court unless the consumer or the Authority has given notice under sub-section (1) and provides proof that the notice was duly delivered but the manufacturer or service provider has not responded thereto. A claim by the consumer or the Authority shall be filed within thirty days of the arising of the cause of action: Provided that the Consumer Court, having jurisdiction to hear the claim, may allow a claim to be filed after thirty days within such time as it may allow if it is satisfied that there was sufficient cause for not filing the complaint within the specified period:

Provided further that such extension shall not be allowed beyond a period of sixty days from the expiry of the warranty or guarantee period specified by the manufacturer or service provider and if no period is specified one year from the date of purchase of the products or providing of services. 8. MISCELLANEOUS Aid to the Consumer Court All agencies of the Government shall act in aid of the Consumer Court in the performance of its functions under this Act. Immunity No suit, prosecution or other legal proceedings shall lie against any functionary under this Act, acting under the direction of the Consumer Council or the Government for anything which is in good faith done or intended to be done under this Act. Power to make rules. The Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Act. Power to remove difficulties If any difficulty arises in giving effect to any of the provisions of this Act, the Government may make such order, not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing such difficulty.

Consumer Protection in Pakistan: A Fad Or Beneficial Step For Consumers?

The consequences of growing integration globally include enhanced speed & velocity of transactions involving finance, technology, information and transportation of goods and services. The business is on the move globally and off shoring and outsourcing provides cheaper inputs resulting in cost effective products and services. As a consequence business remains competitive and consumers get more options to choose from a range of products and services. The services trade is growing immensely and increased connectivity has provided it with virtual space to move and grow. The increasing competition due to availability of information make consumer confused but at the same time cost of product and services may decrease to the benefit of the consumer. The standards of products and services can go down and deceptive practices to earn profits may gain currency. During the past few years, many beneficial steps have been taken both at National and Provincial level to ensure consumer protection in Pakistan. At the national level, the framework of principles formulated to protect consumers from ill effect of the market failures and deceptions results in consumer protection policy. The formulation of consumer protection policy is not a priority for the developing countries in view of more urgent targets within their national policy planning to achieve economic growth and reduce poverty. The politics of business in developing countries results in dominant position of the sellers being more organized and having resources and information at their command. The consumers on the other hand are ill organized, lack resources and relevant information, which results in absence of resistance by civil society against onslaught of sub-standard products and services. In Pakistan the legislation and its implementation, has preceded an organized effort to raise awareness about the act. The legislative process to introduce consumer protection in Pakistan resulted in enactment of legislation in three provinces and federal area except for Sindh province where the ordinance has lapsed thrice till now. In Punjab, the provincial assembly passed the Punjab consumer protection act in 2005.Under the act institutional mechanism started working in March 2007. At the apex of the institutional system is the Provincial Consumer Protection Council with representation in equal numbers from both public and private sectors. The council will gather data and information to eradicate hazardous and unhealthy product and services and will make efforts to remove these items from trade and commerce. The council will also review recommendations from district councils and get these suggestions implemented. The consumer court presided by judges will adjudicate complaints pertaining to claim of damages/compensations.

The salient features of the act include: complaints against services besides products with few exceptions Time limit of six months for decisions by the court, easy method of filing complaints no court fee and grant of unlimited damages Besides, judicial system, a quasi-judicial system with District Coordination Officer as authority, can impose fine up to Rs 50,000 and inquire into hazardous and unhealthy products and services. Alternate dispute resolution system in form of compromise before start of the trial is also available under the act. The district consumer courts and councils have been established in eleven districts of the province including Lahore, Gujranwala, Sialkot, Gujrat, Rawalpindi, Sargodha, Faisalabad, Sahiwal, Multan, Dera Ghazi khan and Bahawalpur. Nearby districts are covered by these courts and future plans include establishment of consumer courts in all the districts of the province. In the past, existing legislations, regulatory laws and departmental complaint redressal systems did not provide redressal of complaints especially for ordinary consumers and they were at the mercy of the expatiators. Now different governmental bodies like PCPA provide a platform for the consumers to lodge their complaints in a cost effective manner. The civil society play crucial role in protection of rights of every citizen in a society. It builds pressure on the policy makers to realize the need for change and to collectively work towards empowering citizens. As consumer protection is a part of human rights agenda, it requires whole hearted effort from the civil society to bring changes in the attitude of the society as a whole and provides basis for creating suitable environment for inclusion of consumer protection in the national policy framework. The implementation of consumer protection legislations will lead to its evolution, which will ultimately result in its effective implementation. In this evolutionary process a lot of grey areas may emerge like role of regulatory bodies, mohtasib, departmental redressal mechanism and price control system vis--vis consumer protection system. i. ii. iii.

Different Consumer Protection Agencies in Pakistan and their Role

At Federal Level
Under Article 18 of the Constitution, it is the duty of the state to regulate trade, commerce or industry in the interest of free competition. To protect the rights of the consumers in situations of inadequate information, impediments in competitive behavior in the markets, the Federal Government enacted the Islamabad Consumer Protection Act on October 18, 1995. This law incorporates definitions of unfair trade practices as well as provides for a mechanism for handling consumer complaints. The definition of unfair trade practice aims to identify situations where insufficient, misleading or false information in respect of the product has been provided to the consumer. The examples are any false information/advertisement regarding quality, quantity, grade, composition, style or mode, or rebuilt, reconditioned goods shown as new goods, false warranty or guarantee of performance, facilities available in the private educational institutions, professional services, etc. Furthermore situations restrictive of competitive behavior such as hoarding and black-marketing are also defined as unfair trade practices. Safety concerns are also addressed and trade practices that cause loss or injury through adulteration, selling of expired drugs, food items and commodities unfit for human consumption are also defined as unfair. Finally, charging for goods and services in excess of the prices fixed by an authority authorized to do so, is prohibited under the legislation.

Role for Protection Of Consumer Rights

The mechanism of the agency for handling consumer complaints works as follows. The law provides for a Consumer Protection Council in Islamabad which will consist of prominent citizens involved in social work as well as legislators and government officials. The main purpose of the Council shall be to inform the consumers about their rights. Also the purpose includes determining, promoting, protecting and formulating policies for the interests of the consumers against marketing of hazardous goods, variety of goods/substitutes at competitive prices, compensation against unfair trade practices of unscrupulous exploitation of consumers, easy availability of essential services and right of information about the quality, quantity, purity, standard and price of goods and services. To ensure this the Council shall coordinate between the Government, manufacturers, producers, suppliers and consumers. To adjudicate disputes the law sets up an Authority which according to the Islamabad Act shall be the Court of Sessions. The

Council or the consumer can file a complaint to the Authority against any unfair trade practice. If the Authority observes that the rights of the consumers have been infringed, it shall first provide the opportunity of being heard to the relevant parties. If the rights of the consumers are found to be violated, the Authority may punish the person responsible with imprisonment which may extend to two years or with fine which may extend to forty thousand rupees, or with both. Similar punishment may be given to a person responsible for false or misleading advertisement. The Authority may order for payment of compensation to the consumer to the extent the consumer has suffered any damage or loss through any unfair trade practice. The Authority can also order for confiscation of the goods or direct for their destruction. The present consumer protection law is only for the Federal Capital. Consumer protection being a provincial subject the provinces are also in the process of formulating legislation for their respective provinces, Islamabad Consumer Protection Act is being used as a model law for this purpose.

Consumer Rights Commission of Pakistan

Mission To articulate and promote the interests and rights of citizens and consumers at all socioeconomic levels, with a particular emphasis on the inarticulate and disadvantaged groups; and facilitate the emergence of an organized movement in Pakistan, so that the citizens could have legally enforceable rights. CRCP Consumer Rights Commission of Pakistan (CRCP) is an independent not-for-profit research and advocacy organization, which has been working in Pakistan at the national level for articulation and promotion of citizen's rights and interests, particularly those of the poor and disadvantaged. Establishment CRCP is based in Islamabad with liaison offices in major cities of Pakistan. It is well established in terms of financial and administrative capacities. It is one of the few organizations in Pakistan, which have been selected for SAID-funded Institutional Management Certification Program (IMCP). CRCP has successfully completed this program; it meets the program, financial and administrative standards of USAID to be eligible for award of independent USAID grants. Consumer Rights Commission of Pakistan (CRCP) is a rights-based civil initiative registered under the Trust Act, 1882. Established in 1998, CRCP is an independent, non-profit, and non-

governmental organization. It largely works through local fund-raising and engaging volunteers. It is not supported by any industry or commercial sector. It is the first national consumer organization in the country, which approaches the issue of consumer protection in comprehensive and holistic terms. Its vision and strategies have significant cross linkages with both market practices and issues of governance.

Role of CRCP
To encourage and support the information of consumer groups and organizations all socio economic levels of society. To create awareness among different categories of consumers, specially the marginalized groups about their roles, rights and responsibilities. To undertake advocacy and lobbying activities for the enactment and implementation of improved legislation on consume protection. To intervene on behalf of consumers, while seeking active support and participation of existing consumer groups.

At Provincial Level CPC

The Consumer Protection Council was established in 2006 after promulgation of Punjab Consumer Protection Act 2005. DCCs are run by District Session Judges specially deputed by the High Court Lahore while District Coordination Officers (DCOs) are the heads of the DCPCs. DCCs and DCPCs have been established in 11 different districts only, of the total 36 districts. The reason why more courts have not been established is the fact that these courts are not independent and function under the Punjab Ministry of Industries. Secondly, insufficient funds have been allocated for the establishment of courts and for increasing consumer awareness about their rights. Another drawback is that Consumer Protection Act was promulgated on the ground that a Consumer Court would be setup in every district of the province but since only 11 courts have been established, the act is more or less useless.

Role for Protection Of Consumer Rights

It has also been observed that if an aggrieved consumer approaches the Provincial Consumer Protection Council, the Council makes an effort to settle the matter between the consumer and

the manufacturer, which could also explain the low number of cases in the courts. It is pertinent to mention here that the employees of the Consumer Protection Council were also used by Punjab Chief Minister Shahbaz Sharif in the dengue campaign, leaving the complainants stranded.

Establishment of Consumer Courts

All the enacted laws provide for the establishment of consumer courts with the exception of ICPA, for example, section 12 of BCPA prescribes for the establishment of consumer courts and, in the alternative, empowers the provincial government to confer powers of the court on judicial magistrate to act under the law. Similarly, Section26 of PCPA says: The Government shall, by notification, establish one or more separate Consumer courts in each district to exercise jurisdiction and powers under this Act. Scenario in Baluchistan However, no consumer courts have been notified in Baluchistan, and in Punjab though consumer courts in 11 districts are said to have been notified19, they are yet to be established and made functional. Such is also the case in NWFP. It is therefore anybodys guess how high is consumer protection on the agenda of the governments. Scenario in Sindh In June 2009 City Naib Nazim Ms. Nasreen Jalil had announced the launch of consumer protection ordinance for Sindh Soon. Unfortunately it has not been implemented yet although signed by Dr. Ishrat ul Ebad, Governor Sindh, three times, but has always lapsed, because it was never presented to Sindh Assembly for ratification. The last time it was signed by the Governor was on 25th October, 2007, but once again lapsed because it was not presented to the provincial assembly and today, Sindh is the only province that does not have Consumer Protection Law.

Consumer Courts as Consumer Grievance Redressal Forum

Consumer courts (as consumer grievance redressal forum) are usually provided for around the world as lower courts or forums parallel to the existing ordinary courts for the purpose of providing speedy redress of consumer complaints. That is why the first three of the abovementioned Acts prescribe establishment of such courts with exception of ICPA wherein the court in Sessions has been prescribed as the forum for lodging consumer complaints. The legislature perhaps did not find it necessary to have a separate consumer forum in view of the small size of ICT. In the absence of any data it is not possible to see how many consumer complaints have been disposed of since the enactment of ICPA in 1995 i.e. in more than 11 years. However, anecdotal evidence, gathered from the consumer activists and newspaper reports, leads one to guess that very little has been achieved here too.

It may be argued that provision of an effective mechanism for consumer grievance redress is the foremost characteristic of useful consumer protection law and policy. This argument is based on the understanding that wherever there are liabilities and obligations, violations of relevant legal rights can only

Consumer Based Organizations

Pakistan have these councils been notified let alone their formation. An important guideline mentioned is the availability of freedom to form consumer and other relevant groups or organizations and the opportunity of such organizations to present their views in decisionmaking processes affecting them; There is apparently no hurdle in the formation of consumer rights associations, except, the routine official delays etc.

Network Throughout Pakistan

Keeping pace with the international community, Punjab Government enacted Punjab Consumer Protection Act 2005 that guarantees the protection of consumers through a variety of ways. Consumer Court and Consumer Protection Councils (CPCs) have been set up in 11 major districts including Lahore, Sahiwal, Dera Ghazi Khan, Rawalpindi, Gujrat, Sialkot, Gujranwala, Bahawalpur, Sargodha and Faisalabad. There was a desperate need of such councils because the dishonest elements in the society are flourishing very rapidly. These elements are exploiting the consumers by trading substandard and deceptive products that jeopardise the health and personal safety of the community. Punjab government has set up this pioneering mechanism of providing relief to the consumers at their doorstep. It is to be remembered that Punjab is the first province to launch this pioneering arrangement since 2005 and no such scheme of consumer protection is in place in other provinces of the country.

Consumer Complaint and Feedback Mechanism

Consumer protection is an institutional mechanism, based on enactment of legislation followed by establishment of grievance redressal system. Only enactment and enforcement of the law by the Government does not serve. It always requires enthusiastic response from the citizens side. The consumers should register their complaints in the Consumer Courts or before Authority, as the case may be to mark the power of consumers and to protect their rights. Precise legislation, utilization of every forum for redressal of complaints by citizens and clear mandate of various agencies involved will make the consumer protection system effective and efficient for the benefit of ordinary citizens. On violation of any provision of the Act, consumer may file a claim for damages in Consumer Court for which no court fee is required. Provision of an effective mechanism for consumer grievance redress is the foremost characteristic of useful consumer protection law and policy. Wherever there are liabilities and obligations, violations of relevant legal rights can only be sought through effective redress mechanism For redress of following grievances consumer can file complaint before Authority: Non issuance of receipt Non exhibition of price list Non mentioning of date of manufacturing, expiry or ingredient Non disclosures of qualification

To whom a complaint can be made?

Any complaint by the consumer can be made to; Consumer Courts Authority(District Coordination Officer)

Procedure of filing a complaint / to get damages

If you suffer from consumer problems then the first person you will ask is your

1) Service provider in case of services (any person who provides service on payment like a construction worker, plumber, electricians, doctor, lawyer, transporters, logistics, couriers, airlines, railway companies etc.) or 2) product manufacturer or seller (any person who sells you a product on payment) [[[[[[[NEVER DELAY IN CASE OF CONSUMER CASES OR YOU WILL END UP LOOSING AND WASTING YOUR OWN TIME AND MONEY]]]]]]]Ask the provider or seller amicably to solve your matter. If he does not help and you think that he is wrong then send him your written complaint through email or registered mail. You should mention in the letter that the complaint is sent as per guidance of Consumer Protection Act and that you have 15 days to resolve the matter.(it is a must to mention the above line. else its no use) If in 15 days the person does not help you then you need to go to Consumer Court and file your complaint. The court if accepts the case then will direct you to submit and sent notices to the service provider/seller and call him before the court and then the court will proceed. It is very fast speedy remedy for consumers unlike any other law or case that goes for years. It gives a direction to end the case within three months if it is proceeded and not settled. Now how to approach the Consumer Court, you can write a complaint yourself under supervision of a lawyer or you can hire a lawyer who will plead your case. You can also visit the official website of CRCP and fill an online form or download it.

Level of Consumer Satisfaction with these Agencies

The well being of any society depends on ensuring that how authorities and government meet the needs of the people while making best use of all resources at their disposal. In the perspective of consumer protection rights no. of laws have been passed and agencies are working according to these laws that are made by the higher authorities. Consumer courts and consumer councils are established for this purpose. In Pakistan agencies are not in a position to fully protect the consumer rights due to political instability and other environmental factors but still they are trying to satisfy the customers about their basic fundamental rights. We take the example of SBP (State bank of Pakistan) has issued a policy that defaulter name comes into CIB report in case of not paying the loan on time. The purpose of these agencies is to protect the customers right and prevent them from any damages. The working of these agencies is not up to that extent that everyone expects but they are trying to meet the standard of the society that people have made in their minds. Agencies have made a complaint mechanism in which customers put their complaints then these complaints come under the consideration of the agencies and they try to solve it. But customers are not too much satisfied with these agencies as they have no proper awareness, knowledge about the agencies work and process. The customers are not properly aware of all of their rights so sometimes they do not how to access these agencies for their rights. Citizens also have basic responsibility to keep in contact with the duties of the agencies and also their other mechanism. Almost all organizations have made customer complaint mechanism and timely to timely they are trying to resolve the issues that customer faces regarding to purchasing, delivery of products etc.

Suggestions made for the Enhancement and Protection of Consumer Rights in Pakistan
The first step in this respect is the precise categorization of the tasks which may fall within the consumer protection work, and the definition of the overall boundaries of such work, is of utmost importance. This certainly is not a straightforward thing to start with. In the short term, effective enforcement and implementation involves five tasks. 1) APPROPRIATE LEGISLATION: There is need for appropriate legislation for consumer protection. Appropriate legislation for consumer protection should be enforced in the whole country. It should cater to the peculiarities of the market situations. The legislation should aim at reducing information gaps, providing advice and restore to the best of consumer interests. At the same time there is a need to create awareness amongst the consumers and to inform them of their rights. 2) AWARNESS BOTH IN GRNERAL PUBLIC AND GOVERNMENT LEVEL: Raising the general awareness at both government as well as general public level is necessary. Government should be conscious of the fact that protecting the rights of the consumers is essential for promoting efficient and effective competition in the country. The Islamabad Consumer Protection Act is the first step in this direction and its extension to the provinces will prove to be a bigger challenge. General public on the other hand, being consumers, should be made aware of their rights. Tripartite seminars, having participation from consumers, industry and the government with involvement of mass media could be used for this purpose. Publicity campaigns by the consumer associations and NGOs can also prove helpful in this regard. Some important issues which need attention, once the law is operational are: i. ii. iii. iv. v. vi. Suitable laboratories for testing the quality of the products. Registration of consumer protection associations. Time-frame to be specified within which a complaint can be filed so that consumer do not misuse the law. Frivolous complaints should be disposed of at the earliest possible stage to minimize costs. Instead of confining the law to prosecution only, there should be provision for replacement or removal of defect in a product. The law should also cover the issues of environment protection. Moreover, the UN Guidelines for Consumer Protection, 1985, can also be used as a checklist against which the effectiveness of policies can be measured.

3) ADEQUATE INFORMATION AND ADVICE

The issue of adequate information and advice should be in more specific terms. Information can serve as an effective tool for consumer protection in many ways; i. Well informed consumers would be in a better position to protect themselves against exploitation. ii. Even in case of problems, they would be able to resolve by themselves. iii. Where they are unable to do so, they will be able to get assistance from others. This should be the essential element of any consumer protection agenda. A wide range of small, attractive and precise booklets having facts about goods and services should be provided at convenient places to inform the consumers. Guidance and advice should be provided to consumers on individual case bases in response to telephonic/written queries. Regulation on information should be formulated to outlaw misleading information about products. It may be by means of legislation e.g., on trade descriptions and misleading advertisement as well as prescribing what should be revealed in the interest of consumers. Improved disclosure of information may be used as a remedy for situations of consumer impairment. 4) QUALITY STANDARDS: There is the need to lay down quality standards to provide minimum specifications for goods and services to be sold. Quality, used in a wider meaning, may cover weights and measures legislation, safety regulation, some other measures which may be product specific e.g., food hygiene, etc. The objective behind this task is to impart a sense of confidence to the consumer in making choices. However, it should be assured that quality standards and procedures required thereof are maintained with least burden on suppliers/producers. Producers and traders should also be advised by the CPA regarding their benefits in complying with the quality and information standards. This would help reduce difficulties at both consumers and producers end. 5) SECURE SPEEDY REDRESS: It is important to secure speedy redress; this should be provided through courts such as small claim courts, session courts, ombudsman and other self regulatory mechanisms e.g., guarantees and arbitration schemes. The objective is to encourage more effective and accessible redress channels for all, which may be used when other measures for consumer protection might not impede consumer exploitation. In the long-term there is need to create an appropriate environment for execution and enforcement. There are five aspects: i. Research on other countries legislations by the academicians and other consumer representative bodies (e.g., consumer NGOs) into the matters related to consumer protection should be conducted on continuous basis. The Procedure s /processes followed in other countries while dealing with cases of consumer protection and the ways to effectively use/accommodate them in Pakistans legislation should be analyzed. The results of research and investigations into areas of consumer concern, identification of core issues on specific sectors/trading practices, with recommendations should be directed to industry/government. The results should also be publicized for the benefit and knowledge of general consumers

ii.

Formation of and lobbying by consumer pressure groups is the next task. The research work for changes in the existing practices adversely affecting interest of the consumers. This may be in the shape of providing policy inputs and representations. The existence of such groups in an effective capacity would go a long way in strengthening the consumers position. Producers involved in malpractices will fear the negative publicity that the consumer pressure groups may give about their product or company and thus may resort to fair trade. The task of the Consumer Protection Agencies would be considerably lessened groups should pursue recommendations derived both through actual experiences. Third is the formulation/revision of policy and legislation, essentially to be done by the Government by way of policy-making. Time to time revision of legislation should be done in light of results of research and by the consumer groups. Public interest groups should be consulted and briefed at every stage of legislative changes. This will help in receiving appropriate inputs from the consumers regarding then necessary changes and in keeping active involvement of the public. The efforts should be towards development of an integrated consumer protection policy such that different branches of the government maintain appropriate consumer dimension while taking any step or decision which will affect consumers. Coordination should be assured among CPA, Council and consumer organizations/groups and their roles/functions be clearly defined. Otherwise the possibility of overlaps in efforts, or gaps in coverage, may arise. Regional cooperation among SAARC/ASEAN countries could be developed in the form of setting up an International/Regional Supervision Network. Network could help in dealing with cross-border consumer complaints and inquiries can be referred to the appropriate authorities in other countries through the auspices of the Network. In addition, it would help Pakistan to benefit from the experiences of other countries

iii.

iv.

v.

The present scenario of implementation of consumer laws face various challenges like raising awareness among public to get relief from the implementation system, build capacity in the system to develop procedures and laws which are compatible with our social environment, take business interest along and motivate civil society to build pressure for changing policy discourse towards consumer oriented policy making and need to educate younger generation of consumers, rural consumers and women in order to build future support base for a consumer centered struggle. The facilitation of consumers is the primary objective of this public welfare legislation introduced by Federal and Provincial Governments, its success or otherwise will depend on its proper utilization by citizens of the province through lodging complaints and claiming their rights.