Mwine Mpaka (Centre), Chairperson Trade and Tourism Committee addressing journalists
Parliament’s Trade Committee has revealed plans to table the Consumer Protection and Management Bill following the failure by the Ministry of Trade and Industries failed to live to its promise to table the legislation.
The pronouncement was made by Mwine Mpaka, the Chairperson Trade and Tourism Committee during a press briefing at Parliament, where he said the law is intended to protect consumers from substandard products and services as well as unfair trade practices.
Mwine, who doubles as Mbarara South MP, added that the new legislation seeks to protect consumers from predatory lending, citing scenarios where Ugandans are hoodwinked into borrowing money that is believed to have easy conditions but end up paying exorbitant interest rates and at times with hidden fees.
“The challenges with the existing laws that should have protected our consumers is that they’re scattered and hard for a simple Ugandan to read because they are scattered in different Acts,” Mwine said.
He added: “Most of these scattered laws that would protect consumers require a person to have a contract yet we are aware that most of our Ugandans are purchasing goods and services through retail shops. So it is very hard for someone to have a contract and therefore, it is very hard for someone to get redress from the existing laws.”
The legislations that regulate consumer protection include; Contracts Act2010, the Sale of Goods and Supply of Services Act, National Drug Policy and Authority Act, Bank of Uganda Financial Consumer Protection Guidelines, 2011 These ensure that financial services as provided for under guideline, the Food and Drugs Act as well as the Uganda National Bureau of Standards Act, which he says are scattered, thus creating need for a comprehensive legislation on consumer protection.
Alfred Edakasi, the Kaberamaido County MP, argued that the law is going to increase competition amongst service providers and manufacturers because it will ensure all traders trade responsibly.
“As you are aware, so much happens in this country to consumers but no one is in control. The law is going to create more responsibility on producers of services and products because for the first time they will be responsible. The banks that provide credit, these days when you bank your money, nut when you are withdrawing, you can only withdraw a certain amount or they ask you to withdraw your money in bits,” said Edakasi.
Richard Muhumuza, the Bwamba County MP, said the legislation is intended to promote fair and ethical business practices, arguing that the business community have manipulated the business model of Uganda operating a liberal economy, by
fronting profit making at the expense of social protection.
“We know that we are running a liberalized economy, but most of the people focus more on the business side. We have looked at so many fake products on the market, misleading information about goods and services and consumers find themselves consuming products they shouldn’t have if there was available information on the market enough information,” he said.
Gomba District Woman MP, Sylvia Nayebale said that the bill will be critical at ending the era of Uganda being a dumping side because some traders have made it a policy to import cheap and poor quality products in the market.
The development comes at the time when last month, the National Drug Authority issued a warning on Chinese contraceptive pills that had hit the Ugandan market, whose contents have the potential to cause cancer and heart diseases, as well as prolonged bleeding and premature puberty for children whose mothers consume the contraceptives before birth.
Farmers have also over the years decried substandard agro-inputs and drugs.
