Question: Mention the Rights of Consumers under the Consumer Protection Act, 2075. Explain the Provisions Relating to the Establishment and Jurisdiction of the Consumer Court in Nepal.
1. Introduction
The Constitution of Nepal recognises consumer rights as a fundamental right. Article 44 guarantees consumers the right to obtain quality goods and services and the right to compensation for any harm or loss caused by substandard goods or services.
To implement these rights, the Consumer Protection Act, 2075 (2018), and the Consumer Protection Rules, 2076, provide a legal framework for protecting consumers and ensuring access to justice. The Act also provides for the establishment of a Consumer Court to adjudicate consumer-related disputes and offences.
2. Rights of Consumers under the Consumer Protection Act, 2075
The major rights of consumers are as follows:
Right to Access: The right to have access to goods and services.
Right to Choice: The right to choose quality goods and services at competitive prices under fair market conditions.
Right to Information: The right to be informed about the price, quantity, purity, quality and other relevant aspects of goods and services.
Right to Information on Ingredients: The right to obtain information from producers, importers or sellers about the quantity, components or percentage of substances contained in goods produced by mixing two or more substances.
Right to Safety: The right to be protected from the sale and distribution of goods and services that may harm human life, health, physical well-being or property.
Right to Legal Action: The right to seek appropriate legal action against unfair trade and business practices.
Right to Compensation: The right to receive compensation for loss or damage caused by the use of goods or services.
Right to Hearing and Remedy: The right to seek remedies and be heard by authorised officials or institutions concerning the protection of consumer interests.
Right to Consumer Education: The right to receive education and information that help consumers make informed decisions.
3. Provisions Relating to the Establishment of the Consumer Court
Section 41 of the Consumer Protection Act, 2075, contains provisions relating to the establishment of the Consumer Court.
A. Establishment
The Government of Nepal may establish a Consumer Court, as necessary, by publishing a notice in the Nepal Gazette. The venue and territorial jurisdiction of the court must be specified in the same notice.
The Act also authorises the Government of Nepal to dissolve the court by publishing a notice in the Nepal Gazette.
B. Composition
The Consumer Court consists of a chairperson and two members:
Chairperson: A district judge designated by the Government of Nepal.
Member: A gazetted second-class officer of the Nepal Judicial Service designated by the Government of Nepal.
Member: A gazetted second-class officer of the Government of Nepal designated by the Government of Nepal.
The statutory consultation requirements involving the Judicial Council and the Judicial Service Commission apply when designating the chairperson and the relevant judicial-service member.
C. Establishment and Operation in Practice
Although the Act was enacted in 2018, the Consumer Court was established in February 2025 and began operating on 15 March 2025. Its initial territorial jurisdiction covers Kathmandu, Lalitpur and Bhaktapur districts.
This development has provided a specialised judicial mechanism for handling consumer-related disputes and enforcing consumer rights.
4. Jurisdiction of the Consumer Court
Under Section 41 of the Consumer Protection Act, 2075, the Consumer Court hears and settles cases under the Act other than those specified in Section 40(1), which are dealt with through the mechanism prescribed by that provision.
The principal categories of cases within the Consumer Court's jurisdiction include:
Failure to Fulfil Legal Obligations: Cases involving producers, importers, transporters, stockists, sellers or service providers who fail to fulfil their obligations or violate their legal duties under the Act.
Unfair Trade and Business Practices: Cases involving unfair commercial practices that violate consumer rights and interests.
Market Manipulation: Cases involving activities that adversely affect demand, supply or prices.
Consumer Harm and Loss: Consumer-related cases arising from violations of the Act, including matters involving harm or loss for which legal remedies may be available.
The precise territorial jurisdiction of the court is determined by the notice published in the Nepal Gazette.
Conclusion
The Constitution of Nepal and the Consumer Protection Act, 2075, establish a legal framework for protecting consumer rights and providing remedies when those rights are violated. The Consumer Court strengthens this framework by providing a specialised forum for adjudicating consumer-related cases. Effective enforcement of consumer rights, proper functioning of the court and compliance with consumer protection laws are essential for maintaining market discipline, promoting fair trade and strengthening consumer-oriented governance.