Gaps persist in consumer protection rights despite laws and inspections

The Department of Food Technology and Quality Control (DoFTQC) recalled a food product from the market and the Department of Commerce, Supplies and Consumer Protection (DoCSCP) imposed a penalty on two eateries, ordered one hotel to submit the business-related documents to the department within three days and prescribed general improvement guidelines to 11 other eateries during its routine inspection on December 26.

The DoCSCP, which is the primary body for inspecting and monitoring goods or services, imposed a fine of NRs 5,000 each on Julie’s Cakes and Pastries in Kupandole, Lalitpur, and Jiri Khimti Hotel Restaurant in Jadibuti, Kathmandu. The penalties were imposed for violating Section 15 and Section 38(d) of the Consumer Protection Act, 2018. The department also checks quality and pricing, and takes action against unfair practices, often with specialised teams.

Section 15 requires anyone involved in selling or transporting goods to carry valid bills/invoices and show them to the authorities when asked.  Section 38 (d) states that failing to keep the bills, invoices pursuant to Section 15 will be deemed to have committed the offence. Violation means a fine of NRs 5,000 to NRs 20,000 under Section 39 (1) (a). 

In recent inspection drives, the DoCSCP has taken action against a range of goods sellers and service providers for practices found to violate the Act. While most enforcement measures have been carried out under Section 38(d), authorities have also invoked Section 38(k) on several occasions.

For instance, on December 3, the DoCSCP fined NRs 50,000 each to two businesses: Krish Ply House and Palanjali Ayurvedic Centre in violation of Section 38(k), NRs 20,000 to Shrestha Tripura International and NRs 5,000 to Suashree U.P.V.C Industries in violation of Section 38(d).

Section 38(k) refers to violation of Section 20(1) or 20(2) as an offence.  Section 20(1) requires the producer to keep a clear price list, specifying the factory price of each of the goods by the producer, the wholesale or retail price of goods to be sold and distributed by the seller, and the price of the service to be provided by the service provider. Section 20(2) requires that if industry, its industry registration certificate and if it is a business, business registration and licence, be displayed at the place of sale in a way visible to the general public.

While these violations were mainly price-related, another concerning trend for consumers is food safety. Inspections reveal lapses in hygiene standards, expired products on shelves, and improper storage practices, putting consumers at potential risk.

On December 26, the DoFTQC recalled Mix Dalmoth (Bholeshwor Brand) produced by Mahalaxmi Dalmoth Industry in Chandragiri from the market. According to the department, the food produced by them was found to be of low quality. 

Section 38(2) of the Food Sanitation and Quality Act, 2024 states that if a food product is found unsafe or below required standards during inspection, the Director General can order its immediate recall from the market.

Similarly, based on the inspection on December 22, the DoFTQC directed two eateries, Chitwan Hotel and Restaurant in Maharajgunj and Lumbini Tandoori Bhojanalaya in Kanti Marga, to maintain hygiene, ordering them to use certified food products.

Meanwhile, the DoFTQC’s Dang office imposed a sanction on the selling and distribution of a product from Sworgadari Gharelu Chocolate and Food Industries in Ghorahi. They have been found to be producing, distributing and selling the product without a food license and are ordered to obtain a permit. Additionally, they are ordered to develop required infrastructures for food production. 

Section 16 of the Act prohibits the production, processing, export, import, storage, transportation, or sale of low-quality food items. Violation of this provision leads to imprisonment up to six months or NRs 300,000 in fine or both, as mentioned in Section 42(1)(d). 

Concerns over weak enforcement came into focus after a major scandal broke out in February 2022, where Sparsh Food Products and Packaging Company was reportedly making cookies out of the expired bakery products and selling them as fresh food. The company collected expired bakery products from the market, crushed them and remade cookies, toasts and biscuits using the stale powder base. Media reports claimed that the bakery products they were using had already expired in 2019. Additionally, the company was not registered under the required DoFTQC.

Consumer rights are legal protections that guarantee the rights of every consumer to obtain quality goods and services. It is guaranteed as a fundamental right under Article 44 of the Constitution. Additionally, in 2018, the Consumer Protection Act was enacted to consolidate legal provisions relating to consumer protection. The Act also provides a judicial remedy for the enforcement of the rights, and to provide compensation for harm and injury likely to be caused to the consumers.

However, official records published on the websites of the concerned departments like the DoFTQC and DoCSCP indicate that market inspections continue to uncover numerous violations of consumer rights.

In the fiscal year 2023/24, the DoFTQC filed 175 cases against businesses for violating food safety and quality standards. Among them 61 cases were filed for food contamination, 59 for low quality, 35 for label related and 23 were regarding violation of food act. Despite this, the country’s consumer court, which is confined to Kathmandu valley, largely remains ineffective due to leadership gaps.

Following the Act, the government established the country’s first-ever Consumer Court, specialising in dealing with consumer complaints and violations of their rights, in Kathmandu in March 2025. Section 41(3) of the Act provides that the court comprises one chairperson and two members.

While the Act provides for a consumer court in each district, the government piloted one in Kathmandu. During its initial operation, Kathmandu District Court Judge Ram Prasad Sharma was designated as the chairperson of the court in addition to Gehendra Raj Regmi, a gazetted second-class officer of judicial service and Ananda Raj Regmi, a gazetted second-class officer of the civil service, as its members. 

However, after Judge Sharma’s transfer to the Dhading District Court on August 23, the post remains vacant as of December 28. The court is currently managed by the two members from the bureaucracy.