The Bangladesh Bank is taking urgent steps to tighten security at ATMs following a rise in organised counterfeiting and thefts from cash machines.
It is right to draw attention to the issue and to reassure customers by mandating the installation of anti-skimming devices.
Among other measures being undertaken, it has also asked banks to quickly return money stolen from customers. While this is a necessary move, it also highlights the fact that there is significant room to improve consumer protection law in Bangladesh.
Were awareness of and legal protection for consumer rights better established, then all banks would have already compensated victims without needing to be asked. Similarly, there would be less public concern about violations of food safety laws.
The government needs to build upon the 2009 Consumer Rights Protection Act 2009 to ensure cheap, readily-accessible redress mechanisms for ensuring consumer rights.
At present, the law is still structured in an overly bureaucratic top down manner. While the CRPA provided for establishment of the National Consumer Rights Protection Council and National Consumer Rights Protection Directorate, redress is still largely left to criminal and civil courts and complaints need official CRPD endorsement to be taken before the court.
To make the legislation more effective and meaningful in practice, it should be amended to become more rights-based and provide consumers with access to simple redress procedures when rights are violated.
Improved rights for consumers including tougher rules against unfair contract terms are a pre-requisite to raising standards. They should be supported by campaigns to improve public awareness of consumer rights and redress mechanisms.
Making redress easier would not help consumers, but also benefit all responsible businesses by raising overall standards and expectations.
