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Not good enough
Published in Al-Ahram Weekly on 11 - 05 - 2006

The impending consumer protection law fulfils long-awaited expectations, but more might be needed, reports Mona El-Fiqi
The consumers' protection law, which is currently being discussed at the People's Assembly, is also under scrutiny by consumers, civil society and experts. Although 10 years had to pass before the much-anticipated draft-law came to light, advocates of the law are now unsatisfied. Experts complain that the suggested law is ambiguous in its terminology and comprises a number of loopholes which practically strip it of any effectiveness.
The draft law covers diverse aspects such as suppliers' commitments, the functioning of the Consumers' Protection Authority and concerned civil organisations, as well as penalties imposed when the law is violated.
A study recently issued by the Egyptian Centre for Economic Studies (ECES) described the draft law as a "positive step" which will enhance the legislative environment. "The law is important, since it represents a unified framework for protecting consumers' rights in accordance with regulations set by the United Nations in 1985," said the ECES study.
The draft law stipulates the UN's eight proclaimed consumers' rights. These are, namely, the right to fulfill consumers' basic needs for products and services and to preserve their safety and health. They also include the right to choose a product and have access to all information pertaining to it. Such rights also comprise enjoying a healthy environment and having a voice which can be heard by the authorities concerned. Consumers should also have the right to file suits when harmed as well as the right to compensation.
However, observers do not seem to be optimistic that the law will actually conform to these principles. Shereen Adel, a government employee said that she does not believe that rights coercively obtained through legal suits filed against companies can really be said to be rights.
The ECES study also admits that the law does not provide enough guarantees that consumers' rights will automatically be preserved, because of several factors. The first is the absence of proper interactions between Egyptian consumers and suppliers. The second is that the draft law resorts to vague terminology in referring to what are to be considered infractions of consumer rights.
However, Secretary-General of the National Society for Consumers' Protection Rafaat Abul-Dahab says that the draft law is "just a beginning. And it still does not provide comprehensive protection for the majority of consumers".
According to Abul-Dahab one of the obviously positive aspects of the law is that it gives civil society associations the right to file suits against violators.
An authority will also be established to receive consumers' complaints which arise from any violations that are committed on the part of traders and producers, as well as importers. The Consumers' Protection Authority's objective is to protect consumers and civil society organisations, as well as to undertake the investigations needed to implement articles of the law, in coordination with the governmental authorities concerned.
Prescribed in the draft law as well are responsibilities of consumer protection societies, among which is the advocating of a consumers' rights culture, supporting consumers when they file complaints, and following up on them.
But Abul-Dahab also contends that the representation of civil society in the Consumer Protection Authority is poor, since its board comprises only four civil society representatives out of 13 members.
He is critical as well of the fact that the authority's members receive bonuses, which he describes as "not acceptable to civil society which sees that such work must be voluntary, for it to be credible".
Another allegedly significant loophole in the purported law is that it applies to consumer goods but not to services.
The draft law also stipulates that the invoice pertaining to a product must be provided if the consumer asks for it. Abul-Dahab stresses that providing invoices must be made obligatory if the product proves to be defective, so as to preserve consumers' rights.
According to Abul-Dahab, the law has not clarified how it will deal with the increase in prices which arises from monopolistic practices. He said that the government defends this situation with the argument that the market is left to supply and demand, and that the government and the law are not in charge of regulating prices.
Abul-Dahab finally advocates that an additional item must be added to the draft law enabling consumers to publicise the names of products that prove defective in the media. This would prevent more consumers from buying this product, before a court verdict is even issued.
The draft law also states a minimum fine of LE5,000 to be imposed on violators of the law. Abul-Dahab regards this as too high. "It is not fair that if a consumer buys an expired packet of biscuits, the seller has to pay that much."
The law imposes fines in cases where the product does not adhere to specifications, but does not say what action may be undertaken in the case of defects resulting from the bad storage and transportation of products.


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