Our Associate, Nawra Abdulaziz Abdulla explains the framework of consumer rights protection in Bahrain.
Consumer protection refers to the measures taken by governments, organizations, and businesses to safeguard the rights of consumers and ensure fair treatment in the marketplace. It encompasses various laws, regulations, policies, and initiatives aimed at preventing fraudulent, deceptive, or unfair practices by businesses to protect consumers from harm. Key aspects of consumer protection include product safety standards, fair pricing, transparent advertising, accessible information, and avenues for grievance redressal. The ultimate goal is to empower consumers to make informed choices, promote trust and confidence in the marketplace, and uphold their welfare and rights.This article explores the framework of consumers rights protectionin Bahrain, highlighting key regulations, avenues for redressal, and ongoing initiatives to enhance consumer welfare.
Legal Framework
Bahrain's journey towards establishing comprehensive consumer protection law has been marked by significant milestones. The evolution of these rules reflects a growing recognition of the need to protect consumers from unfair trade practices and ensure their well-being in the marketplace. From early advocacy efforts to the formulation of dedicated consumer protection legislation, Bahrain has made steady progress in enhancing consumer rights. Bahrain's commitment to consumer protection is enshrined in various laws and regulations. The primary legislation governing consumer rights is the Consumer Protection Law No. 35/2012 (Consumer Protection Law) which outlines the rights and responsibilities of both consumers and businesses prior to and after the formation of a contract, specifically guaranteeing the following rights of consumers as listed under Article 2 of the Law:
- Right to Safety: Consumers have the right to purchase safe and quality products. Manufacturers and sellers are obligated to ensure that goods meet safety standards and do not pose any threat to the health or safety of consumers.
- Right to Information: Consumers have the right to access accurate information and data concerning the purchased products/services. Including pricing, ingredients, and terms of sale. Misleading advertising or deceptive practices are prohibited under the law.
- Right to Freedom: Consumers have the right to freely choose products meeting legally approved quality standards.
- Right to Redress: In case of defective products or unsatisfactory services, consumers have the right to seek redress and compensation. This may include refunds, replacements, or repairs, depending on the nature of the complaint.
- Right to Knowledge: Consumers have the right to obtain knowledge of the protection of their legitimate rights and interests.
- Right to Privacy: Consumers have the right of privacy to maintain their personal information and not exploit them for other purposes unless consent if provided.
Supplier's obligations
Consumer Protection Law defined the Supplier as "A person providing products as wholesalers, retail sellers, merchants, commercial agents, manufacturers or service providers". Pursuant to Article 3 of Consumer Protection Law, a supplier shall comply with the laws, regulations and technical requirements or any other requirements concerning the product, guarantee of its safety and suitability for use according to the guidelines and conditions to be determined by virtue of a Minister's resolution. Additionally, Article 7 outlines the specific requirements relating to defective products, if a supplier discovers a defect in a product that poses a risk to consumer health or safety, they must immediately cease production or distribution, warn consumers against using the product and notify the relevant Directorate of the defect and potential harm. In such cases, the supplier is obligated, upon the consumer's request to replace or refund the product at no additional cost. Invoices cannot include language prohibiting product return or replacement, and any billboards conveying such messages are prohibited. This has been confirmed by the Bahraini Court of Cassation Challenges Nos. 1246 J.Y 2018 and 81 J.Y 2019 wherein the court held that "The supplier is obliged upon the consumer's request to replace the goods or refund their cost without any additional charges if the goods are defective or do not conform to the legally approved specifications or the purpose for which they were contracted".
Overall, the law and regulations are consistently imposing a variety of obligations on suppliers to protect the consumer rights. These obligations include ensuring product safety, providing accurate information, compliance with the required standards, fair trading practices and addressing consumer's complaints effectively. The evolving legal landscape aims to uphold fairness and transparency in commercial transactions, emphasizing the importance of ethical business practices and accountability in meeting consumer expectations.
Prohibition
Article 13 of Consumer Protection Law sheds the light on marketplace prohibition, it stipulates the prohibition and forbidding agreements that violate the principles of fair competition principles. Such as price manipulating product prices without valid justification, restricting product availability in markets through unlawful means like hoarding or withholding, misleading advertising, artificially flooding markets with products to drive down prices and harm competitors and deliberately concealing products from specific individuals. However, agreements aimed at improving production or distribution conditions are exempt from this prohibition if they significantly benefit consumers and adhere to specified guidelines.
Minister's discretionary power
- Crisis or exceptional circumstances under Article 15: If a crisis or exceptional circumstances in the market lead to an unusual rise in prices of essential goods, the concerned Minister is authorized to make informed decisions to implement temporary measures aimed at reducing such price increases. The Minister has the authority to take actions that could potentially violate or harm consumers' rights and cause. However, in all circumstances, the Minister is required to implement measures aimed at preventing monopolistic practices in accordance with the detailed guidelines.
- Immediate or imminent threat under Article 16: the Minister is authorized to issue a resolution suspending the import or export of a certain product or display in the market and potentially destroying the product if necessary to eliminate risks.
- Additional precautions: the Minister is empowered to issue alerts and take any necessary precautions. These measures are aimed to safeguard public health and safety in response to identified risks.
Penalties
Consumer Protection Law establishes several penalties for non-compliance and violations. These penalties aim to deter activities such as counterfeiting, misleading product promotion, importing hazardous goods, and other violations that harm consumers or public safety. Fines and/or imprisonment may be imposed to essentially ensure compliance with the relevant rules and regulations to safeguard public safety particularly concerning imported products.
Implementation and enforcement methods
Effective implementation and enforcement of consumer protection laws are essential to their success. In Bahrain, the Consumer Affairs Directorate, operating under the Ministry of Industry and Commerce (MOIC) plays a central role in overseeing compliance with consumer protection regulations. Through rigorous inspection and monitoring processes, supplemented by penalties for non-compliance, The Directorate actively receives, investigates consumers' complaints, and takes appropriate action against businesses found violating consumer rights to ensure that businesses adhere to established consumer rights standards.
Redressal Mechanisms
Consumers in Bahrain have several avenues for seeking redress in case of disputes with businesses. They can file complaints directly with the Directorate of Consumer Protection or seek assistance from consumer rights organizations, such as the Bahrain Consumer Protection Society. Alternative dispute resolution mechanisms including mediation and arbitration are also available to resolve conflicts outside of the court system.
Current approach and ongoing initiatives
Bahrain is continuously striving to enhance consumer protection measures. This includes strengthening enforcement mechanisms, increasing public awareness through educational campaigns, and updating existing laws to adapt to changing market dynamics and emerging consumer concerns. Ongoing initiatives such as "The consumer friend" initiative to encourage solidarity and social responsibility, provide more affordable alternatives of food commodities products. Bahrain has recently launched "Tawasul" system which facilitates a direct communication between consumers and various government entities to easily share any inquiries or complaints with the relevant authority. This system supports better decision-making and improves the quality of life and services provided. A specialized team within each government entity handles the inquiry or complaint, adhering to a specified timeframe based on the category of the case. Looking ahead, future challenges in promoting consumer protection include balancing regulatory requirements with business innovation, addressing the complexity of global supply chains, and ensuring adequate resources for enforcement and education initiatives. Additionally, the rapid pace of technological advancements requires continuous adaptation of consumer protection frameworks to effectively safeguard consumer interests in a digital and interconnected world.
Concluding remarks
Consumer protection is essential for maintaining a fair and competitive marketplace that benefits both buyers and sellers. In Bahrain, robust laws, and regulations, along with effective enforcement mechanisms ensure that consumers are empowered to make informed choices and seek redress in case of grievances. By upholding consumer rights, Bahrain aims to foster trust and confidence in its economy while promoting a culture of fairness and accountability in business practices. The ongoing commitment is to remain secure and fair environment that mitigate risks and promote consumer welfare.
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