The government has announced plans to expand consumer courts across all provinces in the upcoming fiscal year 2025–26, which has raised hopes among consumer rights advocates.

Finance Minister Bishnu Prasad Paudel presented the national budget on Thursday and stated that the government is committed to curbing malpractices such as black marketing, monopolies, syndicates, and artificial shortages.

He emphasised that the market would be more competitive and consumer-friendly, and consumer courts would be expanded to all provinces.

Nepal’s first consumer court, housed within the Department of Cottage and Small Scale Industries at Tripureshwar in Kathmandu, began operating on March 15.

Due to budgetary constraints, it only handles cases from the Kathmandu Valley, including Kathmandu, Lalitpur, and Bhaktapur. However, the Supreme Court has already instructed the government to establish consumer courts beyond the Valley as well.

Despite the presence of multiple government agencies at local, provincial, and federal levels and several consumer protection laws, consumers continue to face hurdles in accessing justice. Unfair market practices remain prevalent, undermining competition and consumer welfare.

In the last fiscal year, the government allocated Rs10 million to establish the Kathmandu-based consumer court as a pilot project. An official at the Ministry of Industry, Commerce and Supplies said that while the new budget introduces a policy-level commitment, financial resources are still necessary for the courts' expansion.

The official added that it might not be feasible to establish consumer courts in all provinces simultaneously in the next fiscal year, but the process would move ahead gradually.

According to the ministry, delays in setting up the consumer court were partly due to its unique nature. With initial experience, officials now hope replicating the model in other provinces will be less complicated.

Prem Lal Maharjan, president of the National Consumers Forum, welcomed the move, saying the formation of a consumer court had been a long-standing demand since the democratic movement of 1989.

While acknowledging the progress, he criticised the decision to limit the court to Kathmandu, calling it discriminatory. Maharjan stressed that courts should be established in all provinces, if not all districts, to ensure equal access to justice. He also hoped the government’s budgetary announcement would soon translate into concrete action.

Maharjan further pointed out that the current consumer court only deals with cases involving goods and services where consumers seek compensation for provable damages. He argued that the court should address policy-level issues affecting consumer rights and interests.

The Consumer Protection Act of 2018 obliges the government to form consumer courts. Following this mandate, the Ministry of Industry, Commerce and Supplies drafted legislation in September 2019 and submitted it to the Ministry of Law, which later forwarded it to the Judicial Council.

However, prolonged procedural delays prompted a Supreme Court order on February 20, 2022, directing the government to establish consumer courts in all provinces. This order came in response to a petition filed by the Forum for Protection of Consumer Rights Nepal.

Despite the court’s directive, ministry officials had expressed concerns about the practicality of setting up consumer courts in every province, arguing that consumers would still face long travel times to file cases.

Nonetheless, pressure has continued to mount from consumer advocacy groups, as more individuals seek legal remedies against fraudulent business practices.

Many consumers shy away from lengthy and complex legal proceedings, particularly at higher courts like the Supreme Court, which has allowed unethical traders to operate unchecked.

Experts and observers believe that consumer courts will streamline the complaint process, reduce legal barriers, and play a key role in addressing problems like food adulteration, artificial shortages, and price manipulation.

Even though consumers pay significant amounts for utilities such as water, energy, telecom, and financial services, many still face difficulties accessing them efficiently and fairly.

According to legal analysts, the success of the consumer court will hinge on its transparency, independence, and ability to handle cases efficiently. In a country like Nepal, where low human development indicators and chronic political instability often result in long waits for justice, effective legal institutions can make a significant difference.

In more than two months since its inception, the Kathmandu-based consumer court has received only about six cases. The court’s registrar attributes the low number of filings to a general lack of awareness. This highlights the need for greater information dissemination so that consumers can fully use the legal mechanisms now available to them.