Originally posted in The Daily Star on 31 August 2025
Govt moves to amend consumer protection law
Draft introduces strict penalties for e-commerce crimes, hoarding
The interim government is moving to strengthen the consumer protection legislation, with draft amendments to the Consumers’ Rights Protection Act, 2009 introducing strict penalties for hoarding, e-commerce crimes, adulteration and overpricing.
Under the proposed changes, seen by The Daily Star, anyone caught illegally stockpiling essential goods to create artificial shortages could face up to two years’ imprisonment, a fine of Tk 5 lakh, or both. The current law does not prescribe a specific penalty for hoarding.
The draft also proposes increasing penalties across a range of offences. Producing, processing, importing or selling goods in violation of health and safety standards would carry a maximum of two years in prison or a Tk 3 lakh fine, up from Tk 1 lakh, as per the proposal.
Knowingly selling, displaying or offering to sell adulterated goods, meanwhile, would result in the same level of punishment, although the maximum jail term is being reduced from three years to two.
Officials say the draft closes long-standing gaps in the law.
“The current act lacks a process to appeal against fines or decisions imposed by our officers,” said Abdul Jalil, director of administration and finance at the Directorate of National Consumers’ Right Protection (DNCRP).
“In the draft law, we have introduced a new provision allowing appeals,” he said.
He also noted that digital commerce had proved a blind spot.
“Crimes on e-commerce platforms could not be prosecuted under the existing law. We have now incorporated e-commerce-related matters into the law, enabling us to address scandals arising from online sites,” said the DNCRP director.
The proposed amendments also increased penalties for selling, offering or displaying goods above the legally fixed or declared price to Tk 1 lakh from Tk 50,000. Jail time has remained capped at one year.
The draft framework also reduces penalties in some areas.
Filing a false, harassing complaint or lawsuit against a trader or service provider with the intention of causing harassment, public humiliation, or business loss, which currently carries a maximum of three-year imprisonment, would be lowered to one year, though fines could rise to Tk 2 lakh from Tk 50,000.
In addition, a newly added sub-section states that if any person obstructs the prevention of anti-consumer practices or the settlement of complaints arising from violations of consumer rights, they could be punished with imprisonment for up to two years, or a fine of up to Tk 3 lakh, or both under the proposed law.
The draft further states that if a person illegally engages in activities that may endanger the life or safety of a product or service recipient, they could face two-year imprisonment, or a Tk 3 lakh fine, or both.
Under the current law, the punishment is maximum imprisonment for up to three years, or a fine of up to Tk 2 lakh or both.
Speaking to The Daily Star on August 28, Mohammed Alim Akhter Khan, director-general of the DNCRP, said the initiative to update and modernise the law has been taken with the broader interests of consumers in mind.
“A thorough review of the law revealed fundamental flaws,” he said.
Policy expert Khondaker Golam Moazzem noted that while the draft makes some progress, fundamental reform has been limited.
“What stands out is that with the rise of online and digital transactions, the draft has attempted to include and expand relevant provisions. Some definitions have been extended, but from a broader perspective of rights protection, major areas still need attention,” Moazzem, research director at the Centre for Policy Dialogue, told The Daily Star.
Referring to global practices in countries like India, Sri Lanka, Thailand, and Vietnam, he said Bangladesh has an opportunity to view consumer rights more broadly.
“As the economy expands, various new types of transactions arise that need protection. While the draft addresses digital transactions, the definition of a consumer still largely focuses on end-consumers.
“In other countries, consumers can be anyone at any stage, including in peer-to-peer transactions. Issues such as fraud, forgery, cheques, and contracts are also considered under consumer rights elsewhere,” he stated.
Given this, he said a large-scale amendment would be timely, taking global good practices into account.
He noted that operational structures differ by country.
For example, he said some have a board led by a ministerial-level official with an advisory council. Consumer rights activities there encompass investigation, monitoring, enforcement, research and development, data collection, and analysis.
“In Bangladesh, the institutional structure remains highly bureaucratic, led by the secretary and joint secretary of consumer affairs, with a few private-sector representatives and academics on committees,” said the policy expert.
“In contrast, other countries have boards and councils that handle day-to-day monitoring, investigation, and decision-making without waiting for ministerial meetings. Accountability is often placed with the parliament, allowing independent operation,” he added.
A nine-member committee was formed on 27 March to review and amend the law.
The panel includes Supreme Court lawyer Barrister Jyotirmoy Barua, officials from the Ministry of Commerce, representatives of the Consumers Association of Bangladesh (CAB), the Federation of Bangladesh Chambers of Commerce and Industry, and other key stakeholders.
The draft has been sent to the Ministry of Commerce for further review.
SM Nazer Hossain, vice president of the CAB, welcomed the proposed changes, saying they had long been demanding such amendments to make the law more up to date. “Finally, the government is moving forward with it.”
He said, “In the current law, several provisions regarding online business operations were not clearly defined. The draft has addressed this, which is a positive step.”
However, he cautioned that merely increasing fines and extending jail terms will not bring a real solution. “The DNCRP must be genuinely strengthened.”
