The government has once again delayed the process of establishing consumer courts, apparently disregarding Nepal’s top court ruling issued two years ago.

While the government delays the consumer court formation, rights activists say that market malpractice and cheating have become rampant—prevailing everywhere from microfinances and cooperatives to online and offline shops.

Government officials said that they are starting a fresh process.

“We have decided to begin a fresh process to establish consumer courts in all seven provinces as there have been many changes in the administrations in the past two years,” said an official at the Ministry of Industry, Commerce and Supplies, wishing not to be named.

In February 2022, a division bench of justices Bam Kumar Shrestha and Nahakul Subedi issued the order to establish consumer courts in all provinces after the Forum for Protection of Consumer Rights-Nepal took the matter to court.

Officials said that since the capitals of some provinces have been changed and some provinces have been renamed in the past two years, they are starting a fresh process.

Consumer courts, which are special courts set up by Nepal’s judiciary, aim to settle consumers’ grievances and swiftly address their problems.

These courts also ease the burden on the judiciary and ensure speedy justice.

Officials say once these courts are established, consumers do not need to hire a lawyer or a legal professional for a hearing unless they feel the need.

Consumer rights activists say that delay in forming consumer courts highlights how negligent the government is when it comes to consumer rights protection.

Activists and members of the public have long been demanding consumer courts as they bring unscrupulous traders under a legal framework within a fast-track system.

According to consumer rights activists, the sale of adulterated goods continues unchecked. Nepal has long been battling with its tarnished image as an unfavourable shopping destination. Consumers are being cheated left and right, yet the government appears to be making minimal effort to address the issue, they said.

In January 2022, Nepal Police busted a major fraud—the sale of “duplicate” honey. The Metropolitan Crime Division arrested Naresh Shrestha, a 38-year-old man from Sindhupalchok, for producing and selling adulterated honey.

Police also confiscated 600 kg of the bogus product which, it turned out, was a concoction of glucose, sugar and some honey. In February of the same year, police raided the Sunakothi-based Sparsh Food Products and Packaging Company, which manufactured breads and cookies.

According to police, the factory was making cookies using expired bakery products that could cause serious health issues.

Meanwhile, in August 2021, a joint team of the Department of Commerce, Supply and Consumer Protection Management and the Nepal Police swooped on the warehouse of Agad Nepal Venture in Balaju and found large stocks of date-expired packaged food products like pasta, biscuits and chocolates.

Police seized a labelling machine which the traders used to relabel the packages with new expiry dates.

They found hundreds of tonnes of packaged food products like chocolates, Choco Chocos, Swiss rolls, soy chunks, Mexican vegetable cracker biscuits, crackers, pasta and other items.

Five years ago, the amended Consumer Protection Act 2018, which contained a provision requiring the government to establish a consumer court, was passed.

In 2018, the government made the first amendment to the law in two decades in a bid to better protect the rights and interests of Nepali consumers.

One of its highlights was the establishment of consumer courts.

In September 2019, the Ministry of Industry, Commerce and Supplies submitted a draft legislation to establish a consumer court to the law ministry.

It was then forwarded to the Judicial Council. As the process was delayed, the Supreme Court on February 20, 2022 ordered the government to establish consumer courts in all provinces.

“Nepal’s top court ordered the immediate formation of consumer courts two years ago. It looks like the government has awakened only after two years,” said Bishnu Prasad Timilsina, general secretary of the Forum for Protection of Consumer Rights-Nepal. “Now it has started a fresh process. This shows the government’s disregard for the court’s order. No one is serious when it comes to addressing consumers’ concerns.”

Hundreds of customers have been swindled by cooperatives. Fraudsters are finding innovative ways to cheat people via e-commerce. Online and offline shops continue to sell substandard products.

With rising violations of consumer rights in quality, quantity and price of goods and services, consumer courts need to be formed as soon as possible, said Timilsina.

The official at the Industry Ministry said they are not aware of how long it will take to establish the courts.

Industry Ministry officials said they are currently discussing consumer court formation with the Finance and Law ministries.

“Forming the courts requires more budgets,” the official said. “Discussions are underway to arrange the budget.”

The Industry Ministry has formed a committee in connection with the formation of consumer courts and it will submit its report to the government by mid-February, the officials added.

The report will outline the expenditure details and manpower requirements for setting up the courts.

“We are hopeful that consumer courts will start functioning by the start of the next fiscal year,” the Industry Ministry top official said.

The Finance Ministry is also positive about allocating the budget in the next fiscal year, he said.

The ministry is planning to set up consumer courts in all 77 districts, he said. “If this is not viable, we plan to establish at least one consumer court in each province,” the official said.

“Consumers can currently file cases in their respective district administrative offices, but if a consumer court is established in each district, it will be easy and convenient for all.”

Without such courts, cases are currently filed at the district court or the District Administration Offices, resulting in lengthy procedures and bureaucratic hassles.

It usually takes three to six months for the district court to give a verdict, while in many cases the guilty firm does not face any legal action as the evidence is often lost with time.