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Financial Daily from THE HINDU group of publications Monday, December 25, 2000 |
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The Ugandan way
R. Desikan
In continuation of my series on the Consumer International Congress 2000, I 'd like to focus on consumer protection in Uganda this week. The Consumer Protection Act in Uganda has incorporated some very interesting definitions. I'd like to quote some whi
ch are relevant to our country. They are as follows:
* Abusive clause: A clause which is or appears imposed on the consumer by a supplier or provider who has economic power over the consumer which gives the former an unfair, uncomfortable or excessive advantage over the latter.
* Abusive advertising: Abusive, unfair or discriminatory advertising, which incites or is likely to incite violence, exploits fear, profits from the lack of maturity of children, infringes environmental values or is capable of leading consumers to behave
in a manner detrimental or hazardous to their health or safety.
* False and misleading advertisements: includes any type of business information or communication using text, dialogue, sounds, images or descriptions, which can directly or indirectly, expressly or by omission, lead consumers to mistake, misunderstand o
r get confused.
* Advertiser: includes the supplier of technology, goods or services who has commissioned the publication of an advertising message.
* Unfair trade practice: A trade or business practice including the practice which, for the purpose of promoting the sale, use, supply or provision of any technology, goods or service adopts any unfair or deceptive practice including the practice of maki
ng any statement whether orally or in writing or by visible representation which:
* falsely represents that the technology, goods or service is of a particular standard, quality, grade, durability, composition, style or model;
* falsely represents that the services are of a particular standard, quality or grade;
* falsely represents that any rebuilt, second-hand, renovated, reconditioned or old goods are new or unused goods;
* represents that any technology, goods or service has sponsorship, approval, performance characteristics, accessories, peripherals, uses or benefits which such technology, goods or service does not have;
* represents that the seller, provider or supplier has sponsorship or approval, affiliation, intellectual property or licence or franchise which such seller, provider or supplier does not have;
* makes a false or misleading representation concerning the need for the usefulness or utility of any technology, good or service;
* gives to the public any assurance, warranty or guarantee of the performance, efficiency, efficacy or life-span of a product or any technology, goods or service that is not based on adequate or proper test thereof.
The rights of the consumers under the Ugandan Consumer Protection Act:
* The protection to their lives, health and safety in the consumption of goods, services and technology.
* True, sufficient, clear and timely consumer education including information on goods, services and technology offered, as well as on prices, characteristics, quality and risks that may be encountered in the consumption of goods, services or technology.
* Fair, non-discriminatory treatment by suppliers of goods, services and technology.
* Full, timely, adequate and prompt compensation for damages suffered by consumers which, pursuant to the provisions of this Act or other special or general contractual obligations, are attributed to suppliers.
Some of the provisions on the principles of consumer protection:
* The State shall establish or adopt, maintain and enforce standards for goods, technology and services in order to prevent goods and services from causing harm to life and property of the
people in their consumer life.
* The State shall establish a system for indicating the quality and other elements of the substance of goods and services and to regulate against false advertising and exaggerated indications so that the consumer may not make a mistake in the selection o
f goods and services in purchasing or utilising them.
* The State shall regulate activities that reasonably restrict fair and free competition concerning the prices of goods and services that are particularly important to the consumer life of the people.
The consumer information standards:
* All product-manufacturers and service-providers of goods and technology shall provide consumers with true, sufficient, clear and timely information including the fact whether they are genetically modified or not.
* The labelling of all products must be legible, indelible, bold and in ordinarily understandable language or dialect by the consumer.
The obligations of the advertising industry including the manufacturer or the advertiser to the consumer:
* It is the duty of every supplier of goods, technology or services to provide consumers with true, adequate, clear and prompt information on the goods and services offered, so that the consumers can make proper and informed choice.
* Advertisements should conform to rules of decency, sincerity and truth.
* Any false or misleading promotion or advertising of technology, goods, activities or services shall be punished.
* The benefits or repercussions of the use of such goods, technology or services.
Compensation for the consumer for any loss suffered:
* Where the advertising results in loss to the consumer, the consumer shall be entitled to claim compensation at the expense of the offeror, or advertiser which compensation shall in event be less than the balance between the price of the technology, goo
ds, or services under promotion or sale and its regular or ordinary price or cost of replacement or repair.
* Where the statements made in an advertising message are considered false or misleading to consumers, the respective regulatory body shall order an amendment of the content and such amendment shall be announced at the expense of the advertiser.
Many of us in the consumer movement and many officials in the Government are campaigning for these requirements especially those connected with advertising. We seem to be rushing into liberalisation without putting in place regulatory systems.
Let me cite an incident that happened 20 years ago with regard to regulation. When I requested a senior officer of the State Transport Corporation to provide a median on the roads to prevent motorists from crossing the yellow lines, he replied that peopl
e should be persuaded to follow the road rules. But the same officer introduced medians on the city roads after he realised that people could be forced to follow a rule only if it is physically impossible for them to break it.
Hence, the Government should look at the possibility and necessity of enforcing a Consumer Product Safety Authority or Commission in order to make sure that consumer protection is ensured, at least in the new year.
The author is former chairman, Federation of Consumer Organisations, Tamil Nadu. He can be reached at rdesikan@vsnl.com
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