A consumer is an individual who uses goods or services to satisfy personal needs without any intention of reselling or profiting from them.
A consumer is an individual who uses goods or services to satisfy personal needs without any intention of reselling or profiting from them.
In their pursuit of maximising profits, businesses often design and manufacture goods and services in ways that reduce production costs. These cost-cutting measures frequently compromise consumer health and well-being, as companies use low-quality or inexpensive alternative ingredients that are harmful to human consumption.
Many large business owners fail to recognise that once they amass a fortune, they too will end up spending it on goods and services produced by others -- who often prioritise profit over human health and well-being. As a society, we must realise that we are all interconnected. Meaningful improvements in quality of life can only be achieved when businesses and individuals prioritize collective well-being alongside financial success.
Countries like the UK and the US are committed to continuously enhancing consumer protection in response to a rapidly evolving market. These nations understand that the quality of goods and services consumed by their citizens directly impacts their living standards and lifespan. Consequently, consumer protection issues are given the highest priority.
In the UK, the Consumer Rights Act 2015 exemplifies this commitment. This legislation was designed to strengthen consumer protection and regulate contracts between consumers and manufacturers. Similarly, in the US, the Federal Trade Commission (FTC) was established to maintain checks and balances on businesses and their interactions with consumers.
In 1985, the UN issued guidelines on consumer protection, obligating member countries, including Pakistan, to implement these standards. As a UN member, Pakistan committed to aligning its policies with these guidelines to enhance consumer rights and protections.
Currently, several laws protect consumer interests in Pakistan, including the Punjab Consumer Protection Act 2005, the Islamabad Consumer Protection Act 1995, the Balochistan Consumer Protection Act 2003, the Sindh Consumer Protection Act 2014, and the Khyber Pakhtunkhwa Consumer Protection Act 1997. These provincial consumer protection acts follow a similar framework and contain largely identical provisions. However, they are limited to their respective provinces, and there is no single, consolidated act covering the entire country. Consumer rights must be prioritised, as neglecting them allows businesses to exploit vulnerable consumers. Ensuring consumer rights fosters a fair marketplace where individuals are protected from unethical practices.
Among the provinces, only Punjab has made significant progress in implementing consumer protection laws, establishing numerous consumer courts and district councils. In contrast, Sindh, Balochistan and Khyber Pakhtunkhwa have lagged, with far fewer consumer courts and councils available to effectively protect consumer rights.
The current framework for consumer protection in Pakistan requires reform. Instead of delegating consumer protection responsibilities separately to each province, a single, consolidated federal act should be enacted. This would establish a unified standard across the country
In Pakistan, many consumers are unaware of their rights and the protections available to them. As a result, consumer disputes often end in private settlements rather than legal proceedings. These settlements allow manufacturers to avoid significant accountability, as they pay a small fee without making meaningful improvements to their production processes or business practices. The lack of oversight provides large enterprises with an easy escape from responsibility, perpetuating practices that may continue to harm consumers.
Historically, consumer protection in Pakistan was virtually nonexistent before 1970. The first step toward safeguarding consumer rights came with the enactment of the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970, which aimed to break monopolies and eliminate trade restraints. At the time, about 20 families controlled two-thirds of Pakistan's industrial sector and 80 per cent of its banking and insurance sectors.
This ordinance led to the establishment of the Monopoly Control Authority (MCA) to enforce the new regulations. However, the MCA lacked the authority to effectively challenge dominant economic powers, resulting in most disputes being settled privately rather than in court. This limited the ordinance’s impact on dismantling monopolistic practices and left significant gaps in consumer protection.
During that period, then-PM Zulfikar Ali Bhutto pursued a policy of nationalising industries in Pakistan, culminating in the Economic Reform Order of 1972. This move further limited the scope of the 1970 Monopolies and Restrictive Trade Practices Ordinance. More recently, consumer protection efforts were revitalised with the enactment of the Competition Act of 2010, following the Competition Ordinance of 2007. This ordinance, supported by the World Bank and the UK's Foreign, Commonwealth & Development Office (formerly DFID), laid the groundwork for the comprehensive Competition Act, which aimed to foster fair competition and strengthen consumer protections.
The Competition Act of 2010 is a federal law that applies nationwide, establishing the Competition Commission to monitor market practices and enforce the Act’s provisions. The Competition Act and the provincial consumer protection acts contain complementary provisions, particularly regarding deceptive marketing practices. Ultimately, a key objective of the Competition Act is to protect consumers by prohibiting anti-competitive practices. It targets behaviours such as cartel formations, price-fixing, and production quotas that manipulate supply and demand to artificially inflate prices, thereby unfairly exploiting consumers. Through these measures, the Act seeks to promote a fair and competitive marketplace.
Pakistan’s consumer protection laws have become outdated in today's rapidly evolving society, particularly lacking provisions for regulating e-commerce. Following the Covid-19 pandemic, online shopping and trading increased significantly. Even as the pandemic subsided, the convenience of purchasing products from home has sustained the popularity of e-commerce. For businesses, online platforms offer cost advantages by reducing the need for physical outlets. However, the rise of e-commerce has also led to an increase in scams and fraud, highlighting the urgent need for updated regulations to safeguard consumers in the digital marketplace.
The current framework for consumer protection in Pakistan requires reform. Instead of delegating consumer protection responsibilities separately to each province, a single, consolidated federal act should be enacted. This would establish a unified standard across the country, improve implementation, and elevate consumer protection to a matter of national importance.
The writer is a freelance contributor.
