Consumers Rights in Digital Landscapes
Author: Sadiq Mahmood
Bangladesh has already entered the digital economy era, through advancements in mobile communication technology, entrepreneurial skills, and various policy support. The digital economy has transformed consumer convenience and accessibility with e-commerce platforms, digital financial services, and online marketplaces. To protect consumer rights and build a healthy digital economy, service providers must be transparent and accountable, providing accurate information about products, prices, and service conditions. However, in recent years, the infamous scandals connected to various e-commerce platforms have shaken people’s faith in e-commerce and raised awareness of Consumer Rights Protection laws. Despite the resilient efforts of numerous digital commerce players to rebuild consumer confidence, the economy is progressing towards regaining full trust from consumers at a slower pace. Nonetheless, prioritizing consumer safety remains essential for achieving this objective.
Consumers & Their Rights
The word “consumer” defines an entity that may or may not be directly involved in a trade but receives goods and services from a person engaged in the business. The word consumer is also generally referred to as “customer”, in the cases where the consumer is also taking part in the trade. To empower consumers, a set of protections and guarantees are established in the marketplace, and these are called consumer rights. These rights ensure that consumers can make informed decisions and are treated fairly by businesses.
The comprehensive set of laws, rules, and regulations designed to safeguard consumers’ interests from the grip of business monopolies and unethical trade practices, are collectively called Consumer Rights Protection, which has been enacted in Bangladesh with the Consumer Rights Protection Act 2009. With this, the Directorate of National Consumer Rights Protection was established in 2009, to address anti-consumer rights related complaints and grievances and provide necessary protection to the consumers. Additionally, to impose voluntary protection, the Consumer Association of Bangladesh conducts extensive consumer research, and has previously lobbied the government and policymakers to implement the Consumer Rights Protection Act since 1978.
Consumer Protection in the Digital Age
The COVID-19 pandemic has catalyzed a significant boom in e-commerce and f-commerce in Bangladesh. With lockdowns and social distancing measures in place, consumers have increasingly turned to online shopping platforms to meet their needs. This surge in digital commerce saved businesses and changed consumer behavior, hastening the adoption of online shopping. This unprecedented growth in Bangladesh’s e-commerce and f-commerce sectors, however, caused many irregularities.
In the digital marketplace, many consumers are unaware of their rights, making them vulnerable to exploitation. For instance, it may come as a surprise to some that the common practice in f-commerce of not disclosing prices publicly is actually against the law (Clause 38, Consumer Rights Protection Act 2009). Similarly, false advertising (Clause 44) and failure to deliver products after receiving advance payment (Clause 45) are considered criminal offenses. Unfortunately, a significant number of consumers remain unaware of the legal protections in place to safeguard them from unscrupulous business practices and such practices have turned into a common scenario in the digital commerce space, due to the lack of awareness among the consumers and the businesses.
One of the most talked about recent events of fraudulent practices was connected to Evaly, an e-commerce platform, where they have been reported to be involved with anti-consumer rights activities such as failing to deliver products, refusing to issue refunds, lack of communication with customers, and unauthorized use of trademarks. The laws they were violating were:
- Penal Code 1860 (Sections related to breach of trust and fraudulence)
- Consumer Rights Protection Act 2009 (Multiple sections)
- Digital Security Act 2018 (Section related to fraudulent activities)
- Intellectual property laws (Related to unauthorized use of trademarks)
Another important aspect of consumer protection is ensuring the safety of consumer data. The rapid growth of e-commerce and f-commerce has elevated data to a crucial role, serving as the currency of the digital economy. Ensuring consumer rights as well as data privacy is critical to the long-term viability of e-commerce. As data-sharing practices evolve, the risks that consumers face in the online marketplace become more apparent, emphasizing the importance of safeguards. Another concern with the misuse of data is connected to committing identity theft by using NID information of individuals and causing fraud. Due to the lack of proper awareness and digital literacy, in many MFS users’ cases, scams are occurring as people give away their PIN codes by falling into traps. Since MFS channels are one of the key modes of payment at many digital commerce platforms, other than cash and bank payments, such vulnerabilities are important to address by the respective entities. These matters emphasize the importance of raising awareness of not only digital commerce but also the extent of data protection measures one can exercise.
Activities of DNCRP
The Directorate of National Consumer Rights Protection (DNCRP) in Bangladesh, operating under the Ministry of Commerce, is responsible for safeguarding consumer rights and promoting fair trade practices. Its primary goals are to monitor markets, investigate consumer complaints, and raise consumer rights awareness. The DNCRP works to ensure compliance with consumer protection laws, educate consumers about their rights, and provide avenues for filing complaints and seeking redress. DNCRP works with government agencies and stakeholders to boost consumer confidence and promote a transparent and accountable marketplace in Bangladesh.
The graph above illustrates the performance of the Directorate of National Consumer Rights Protection (DNCRP) in addressing consumer complaints over six fiscal years. Starting in FY18, the DNCRP consistently resolved all lodged complaints, with numbers ranging from 7,515 to 9,195. However, from FY21 onwards, the number of unresolved complaints began to rise, peaking in FY23 with 25,605 complaints lodged and 19,538 settled. This data indicates a rising trend in consumer awareness and the DNCRP’s efforts to ensure protection of their rights, despite the growing volume of cases.
The digital landscape in Bangladesh underscores the critical need for robust consumer rights protections to ensure fair and transparent transactions. While existing laws and a designated authority are in place, with the evolving nature of technology and business models, the implementation and effectiveness of these mechanisms also require a dynamic approach. With the rapidly expanding market of digital commerce, it is also essential to raise further awareness among the consumers, the businesses, and the other relevant stakeholders on the evolving offerings of the sector and foster trust and confidence on this promising sector.
References
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