Ensuring Consumer Protection and Ethical Business Practices in Nepal
Consumer protection and prevention of unfair trading practices are vital aspects of business ethics in Nepal. This presentation highlights the rights of consumers, obligations of manufacturers, and restrictions on substandard goods and services. It emphasizes the importance of safeguarding consumers from deceptive practices and ensuring transparency in product labeling and marketing.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
1 A Presentation of business ethics CONSUMER PROTECTION IN NEPAL UNFAIR TRADING PRACTICES
Consumer Protection in Nepal 2 Consumer is a person who buys goods or services for personal use not for resale purpose. Consumers are the king of market, but they are often beguiled by manufactures. Consumer Protection has been major concern of today s business world. The contemporary business world is marked with competition
Consumer Protection in Nepal 3 Consumer Protection is applicable on: Product: Malfunctioning product, defective product, product quality, wholesomeness, fitness and so on. Price: Excessive pricing, price fixing, deceptive pricing Place: Artificial Shortage Promotion: False advertisement, exaggeration, Product misinterpretation
Unfair Trading 4 An unfair trade practice consists of using various deceptive, fraudulent or unethical methods to obtain business. Unfair trade practices include misrepresentation, false advertising, tied selling and other acts that are declared unlawful by statute. It can also be referred to as deceptive trade practices.
Protection Against Unfair Trading Practices in Nepal 5 Assurance of consumer right 1. Right to Safety 2. Right to Choose 3. Right to be Heard 4. Right to seek Redress 5. Right to Consumer Education 6. Right to Healthy Environment
6 Obligation of Manufacturer The manufacturers are to mention the following information in the label of each product: Name, address and registration number of manufacturer. Composition, quantity and weight of products like food and medicines. Standard mark of certification if given to the product. Method of consumption and any side effects of the product. Price, batch number, date of manufacturing and expiry date of product. 1. 2. 3. 4. 5.
Restriction on substandard goods and services (Section 10) 7 1. Production, selling, exports and import of any substandard goods 2. Duplication of any products to cheat consumers. 3. Selling of any sub-standard or lower quality goods. 4. Unfair business practices transactions such as advertisements of utility or effectiveness of any goods or services. 5. Manufacturing and selling of any goods or services injurious to the health of consumers. and commercial misleading false or the use,
Unfair Trading Restriction 8 Adverse Impact in the Market Section 7 of the Act Prohibits the creation of circumstances that would lead to any adverse impact in the market Monopoly Section 8 (1) (b) of the Act empowers Government to formulate policy against monopoly Price Fixing Section 8 of the Act empowers GON to formulate policies regarding standard of goods, price discrimination and so on. Stock Market Regulations SEBON has created rules regarding insider trading
Examples of Unfair Trading Practices in World 9 Intel Vs. AMD 1. Intel accused of selling product below cost of production and criticizing advertisement. Flipkart AMD through 2. Flipkart accused of selling product at lower than cost price in Big Billion Day Unilever, P&G, and Hankel: Price Fixing in European Market Volkswagen Group: Defeat Box fixed in Automobiles 3. 4.
Example of Unfair Trading in Nepal 10 Price of Sugar surged above Rs. 80: A Cartel By Sugar Mill Mayos Noodles accused of adding MSG in noodles Insider Trading issue: Everest Bank: 70 percent Bonus Share National Life Insurance Company: 1:1 right share and 30 percent bonus share 1. 2. 3. 1. 2.
11 ANY QUERIES ??? THANK YOU !!!
BUSINESS CODE OF CONDUCT OF FNCCI,2061 PRESENTED BY: ANISH PRASAI
Background of FNCCI Refers to Federation of Nepalese Chambers of Commerce and Industry Leading the Nations economic progress Umbrella organization of business In Nepal Established in 1965 with the aim of promoting business and industry while protecting the rights and interests of business and industrial communities It provides, inter alia, information, advisory, consultative, promotional and representative services to business and government and organizes training / workshop / seminar on a regular basis.
Objectives of FNCCI Play a catalytic role in the business, industrial development and establish sound industrial relations in the country Reinforce business community's commitment to the society Provide advisory services to government, lobby as and when required in formulation and execution of business and industry related policies, acts and programs Foster cooperation with related national and foreign organizations Provide up-to-date information services to business and government and the community at large Create awareness and support for business and industry efforts on issues affecting business like quality, social responsibility, corporate governance, HIV /AIDS, child labor, environment etc.
Business Code of Conduct of FNCCI,2061 Members of all associations and organizations affiliated to the FNCCI shall make special efforts in abiding by the terms enunciated in the Business Code of Conduct as follows. All members shall hereby undertake to: Refrain from engaging in business activities that goes against the interest of the State Pay special attention to the protection and promotion of public welfare in the conduct of their business. Desist from activities that jeopardize fair conduct and public norms and values.
Abstain from activities considered detrimental to the general health of the people. Maintain smooth supply of quality goods and services in the market at fair prices. The merchandise shall be of specified weights and standards. There shall be no adulteration. Refrain from activities likely to cause artificial shortages of goods in the market. In the event of any shortages, shall not conduct business at unfair prices. Abstain from the usage of merchandise or standards prohibited by law.
Maintaining faith in fair business competition, provide maximum benefit to the consumers. Oppose monopolistic business practices and controlled supply systems (e.g. syndicates and cartels) and not be involved in any such groups or systems. Settle business disputes through mutual consultations in an amicable and lawful manner. Give precedence to business transparency. Make fair and proper utilization of credit and loans. Show special sensitivity towards environmental protection. Abide by prevalent statutes, laws and process.
Submit documents, papers, statements of accounts as well as pay taxes, tariffs and levies as required by law in time. Abstain from dealing in any goods categorized as forbidden or banned by law. Refrain from providing donations or financial assistance to political parties or their leaders with considerations of bearing in business deals or for personal benefits. Fix a ceiling of the value of any gift or present to anyone as not to exceed Rs.5,000. Observe the Business Code of Conduct endorsed by the FNCCI by self as well as encourage others also to do likewise.
