Consumer protection

Meaning of Consumer Protection

Consumer protection is a group of laws and organizations designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace. The laws are designed to prevent the businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation that aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food.

Reasons for Consumer Protection

• Unfair trading practices of businessman.
• Inability of consumers to asses claims of advertisers.
• Ignorance of consumers that products may endanger their health or life.
• Safeguarding the religious beliefs of consumers.
• Ignorance of customers of their rights.

Legislation

In order to check the unfair practices of producers and middlemen, various legislations or laws have been enacted by the government. Some of the laws to protect the consumers are:

1. Food and Drug Act 1955
2. Weight and Measure Act of 1963
3. Price Control decree of 1970
4. Trade description Act of 1968
5. Standard Organisation Decree 1971
6. Hire Purchase Act 1975
7. Sales of Goods Act 1893
8. Rent Edict

Food and Drug Act 1955

This law provides regulations for the regulation of the manufacture, sales and adverstisement of food, drugs, etc. The Act provides that:

1. goods that has poisonous or harmful substances is unfit for human consumption.
   b. adulterated goods or drugs must not be sold.
   c. all goods must be accurately labeled with the ingredients contained in the food.
   d. the Act allows for environmental health officers to close down any premises which sell unfit food products.
   e. the Act had been amended by various food hygiene laws which maintain how food products are prepared in restaurants and pubs, but the underlying legality of the Act remains.

Weight and Measure Act of 1963

1. Under the Weights and Measures Act, it is illegal for businesses and manufacturing firms to sell goods which are not to the specific weights or measure as described on their packaging.
2. Manufacturers can get away slightly with powdered goods as they can state that the goods may settle under transportation.
3. Standard weights and measure systems are used.

Price Control Decree 1970

The decree was introduced to control inflation by fixing the retail prices of some commodities. This is to provide stabilization of general price levels.

Trade Description Act 1968

This was introduced to prevent the deception of consumers by false advertising. It prohibits misleading description of goods and services.

Standard Organisation Decree 1971

The decree established the standard organisation of Nigeria (SON) to standardize methods and products in industries and to ensure compliance with government policy in standardization.

Hire Purchase Act 1975

The hire purchase act was passed with the objective of placing a break on the catalogues of injustices inherent in hire purchase transactions. It provides for the requirements relating to hire purchase and credit sale agreements.

Rent Edict

The rent edict was introduced to curb the excesses of landlords and agents. It serves to control rent charges by landlords, ensure compliance with the edict, ensures rights of the tenant and to also curtail the activities of caretakers and agents.

Sales of Goods Act 1893

Sales of goods act was introduced to regulate the respective rights and duties of the vendor and purchaser. The provisions are; the sellers has the right to sell in any contract of sales, the goods must correspond with description, the bulk must correspond with samples and also that the goods must fit the purpose for which they are required.

Exercises

1. Define Consumer Protection.
2. State five (5) reasons why a Nigerian consumer needs protection.
3. What are the major goals of the food and drug act of 1955?
4. What are the objectives of the of Standard Organsiation?
5. Write short notes on the following government legislations:
6. a) Sales of Goods Act
7. b) Rent Edit
8. c) Hire Purchase Act