Consumer Laws in Nepal

Consumer Laws in Nepal has been provisioned from Section 107 to Section 110 of the National Penal Code. It has incorporated Laws related to Food Adulteration, misrepresentation of Food and much more. Further, Consumer Protection Act 2075 was also passed to secure the rights of Consumers in Nepal.

Food Adulteration

Food Adulteration is the practice of mixing combining or contaminating Food Products with Low-Quality, Unsafe, or inappropriate substances to achieve illegal profits from such conduct.

Section 107 of the National Penal Code has prohibited the Adulteration of Food in Nepal in regards to any food or drunk to be consumed by the public.

The following actions are considered to be food adulteration:

1. Refrain from introducing substandard components into food or beverages intended for consumption.
2. The inclusion of harmful chemical substances in food or drink is prohibited.
3. Selling or distributing food or beverages past their expiration date is unlawful.
4. The distribution of adulterated food or drink is not allowed.
5. It is prohibited to sell, distribute, or offer for sale any food product that does not meet prescribed quality standards
6. Dispensing substances unfit for consumption into the food or drink

Individuals who commit the offenses mentioned above or cause for the commission of such offenses are liable to face a term of Imprisonment for a term of up to five years and a fine of up to NPR 50,000 as stipulated in Section 107(2) of the Act.

Misrepresentation of Food to Consumer

Section 108 of the National Penal Code has enacted laws against the Misrepresentation of Food in Nepal. It has been prohibited by the act to sell or distribute food by misrepresenting or manipulating it as another type.

It has also sanctioned the misrepresentation of Low-Quality or inedible food as High-Quality Food. Furthermore, the Act has stipulated that mixing food of low standards or inedible substances into High-Quality Food is also prohibited by Law.

An Individual involved in carrying out the misrepresentation of Food or causing to carry out the offense is liable for a term of imprisonment not exceeding five years or fined for up to NPR 50,000 or both.

Misrepresentation in Goods

It has been forbidden in Nepal to sell or distribute goods through the means of Misrepresentation by Section 109 of the Act. Sub-Section 1 of Section 109 has stated that it is prohibited to sell low-quality goods while misrepresenting them as original. Furthermore, if an individual markets a product as something different from its originality or as an unadulterated food product when it’s not results in Criminal Charges.

The Act has also sanctioned the alteration of labels on a product or the selling of items that have passed their expiry date.

If a person commits the misrepresentation of goods or causes for the commission of misrepresentation of Goods can be liable to a term of imprisonment for a maximum of three years or a fine of up to NPR 30,000 or both.

Storing Consumable Goods

National Penal Code 2074 has stipulated that it is prohibited for any Individual or Entity to raise or cause an increment to the price of consumable goods by reducing their presence/availability in the market to hike the price.

Moreover, the Act has banned the sale or causing of sale of such artificially hiked goods at higher prices. It has also established that Stockpiling of consumable goods to profit from such stockpiling is against the Law in Nepal.

An Individual who is involved in such illegal storage of consumable goods or causes to commit such illegal storage and/or stockpiling is liable for a term of Imprisonment up to Five Years and a fine of up to NPR 50,000.