Why Uganda needs a Comprehensive National Consumer Law

Consumer choices and demand are largely influenced by the availability of information about the products and services they purchase. A market with limited product information limits consumer confidence and lures them into mistreatment or being misled by businesses. Consumer protection policies, laws and regulations therefore help increase consumer welfare by ensuring that businesses can be held accountable.

Whereas there are a number of consumer protection provisions in the various legislations in Uganda, most of the sectors are not properly regulated and even in cases where they exist, they are not comprehensive enough to provide effective protection to the consumers. Sectors with such provisions include the electricity regulatory law, regulations on standards, professional laws, the banking and insurance sector, ICT, communication and publication laws, among others. However other sectors like transport, retail chains and manufacturing, among others are not so regulated. The existing regulations do not also address the aspect of guaranteeing consumer rights and provisions for redress mechanisms.

Consumers in Uganda are not properly protected from unfair practices including misrepresentations, misleading advertisement, unconscionable conducts, discriminatory marketing, failure to disclose reconditioned or gray market goods, unreasonable prices and supply of defective or unsafe goods and services.

The above situation implies that the market is not properly regulated and this leads to low consumer confidence and limitations to attracting investments. A market that guarantees consumer protection and treats consumers fairly well, gains a reputation and consumer confidence. This increases the profitability and competitiveness of businesses which, in turn leads to economic growth.

A market that elicits consumer confidence increases consumer demand and consequently innovations and product development by the businesses in order to effectively meet consumer needs. This leads to fair prices and good quality products and services. A well regulated market keeps businesses in check which ensures consumer welfare.

With the advent of regional integration, effective consumer protection regime is even more important today than ever before. As Uganda participates in the regional integration processes, increasingly there need to ensure that the domestic market is at the same level of consumer confidence with other markets under EAC, COMESA, CFTA or the Tripartite. As the region becomes one market, a segment that remains below the expected standard, could result in trade diversion or trade deflection instead of trade creation. Currently Uganda is the only one under EAC and one of the few countries under COMESA without a comprehensive consumer protection law.