Consumer Protection

Act, 2054(1998)

Presented by: Nisha Kafle

(19314).
 What is Consumer??
• Consumer refers to any individual or
households that use goods and services
generated within an economy.

For example: when your father buys apple for

you and you consume them, your father as well
as yourself are treated as consumers.
 Consumer Protection
Consumer protection means safeguarding the
interest and rights of a consumer. In other
words, it refers to the measures adopted for the
protection of consumers from unethical
malpractices by the business and to provide
them speedy redressal of their grievances
 Consumer Protection Act
• The consumer protection Act, 2054 (1998)
was enacted for better protection of the
interests of the consumers.
• Consumer protection act imposes strict
liability on a manufacturer, in case of supply of
defective goods by him, and a service
provider, in case of deficiency in rendering of
its services.
 Protection and Promotion of
Consumer Rights
• Right to Safety
• Right to Information.
• Right to choice
• Right to be heard.
• Right to consumer education.
• Right to seek Redressal
 Continued…
• Right to safety: To be protected against the
marketing of goods or provision of services
that are hazardous to health and life.
• Right to Information : To be protected against
dishonest and misleading advertisement or
labeling .
• Right to choice: To choose products at
competitive prices with an assurance of
satisfactory quality.
 Continued…
• Right to be Heard: To raise their voice to the
related authority in case of any inconvenience.
• Right to Consumer Education: To acquire
knowledge and skills necessary to be an
informed consumer.
• Right to seek Redress: To be compensated for
misrepresentation, sub standard goods and
unsatisfactory services.
 Consumer Protection Council
A consumer protection council is formed in
order to formulate policies relating to the
protection and promotion of the rights and
interests of consumers, and offer suggestion to
government of Nepal on matters concerning the
rights and interests of consumers. The functions,
duties and power of council are:
 Function, Duties and Power of
Councils.
• To offer suggestions to GON on matters relating to
protection of consumer rights, the supply system,
prices, quality and purity of consumer goods.
• To disseminate or cause to disseminate information
relating to rights and interests of consumers in order
to inform them about standard of goods and
services.
• To inform or cause to inform about the price, quality,
quantity and purity of goods and services.
 Continued…
• To offer suggestions to government on changing the
existing policies or framing new policies.
• To maintain or cause to maintain updated national
and international information relating to the
protection of rights and interests of consumers.
• To monitor or cause to monitor the rights of
consumers and offer suggestions to government to
rectify the shortcomings noticed in the course of
such monitoring.
 Judicial proceedings
A person who commits or cause to commit the
following act shall be punished as follows, depending
upon the degree of offense.
• A person who is responsible for influencing demand,
supply and price of the consumer goods and services
shall be punished with an imprisonment for a term
not exceeding 3 years, or with fine not exceeding
Rs.50,000 or both.
• A producer who doesn’t mention the particulars in
the consumer goods shall be punished with
imprisonment of term not exceeding 2 years, or with
a fine not exceeding Rs.30,000 or both.
 continued…..
• If a person is found to be producing, selling or supplying sub-
standard consumer goods, or making false or misleading
claims, or engaging in unfair trade practices, or producing and
supplying goods which harm the health of consumer or
imitating any of the consumer goods shall be punished with
imprisonment for a term not exceeding 3 years or with a fine
not exceeding Rs. 50,000 0r with both.
• A person who commits or cause to commit any Act in
violation of Clauses of section 10 shall be punished as follows:
i. If there is threat to life, for a term not exceeding 14 years, or
with fine not exceeding Rs 500,000 or with both.
ii. In case the strength of any organ of the body is likely to be
reduced or lost, with imprisonment for a term not exceeding
5 years, or with fine not exceeding 300,000 or with both.
 continued….
ii) In case the strength of any organ of the body is likely
to be reduced or lost, with imprisonment for a term not
exceeding 5 years, or with fine not exceeding 300,000
or with both.

iii) In other circumstances, with imprisonment for a

term not exceeding 5 years, or with a fine not
exceeding 300,000 or with both.
Thank you …….