Competition and Consumer Affairs Authority collects over Nu 1 million in fines for unethical business practices

As of 30 April 2024, the Competition and Consumer Affairs Authority (CCAA) has successfully collected fines amounting to Nu 1,027,200 for unethical business practices.

Additionally, CCAA has facilitated refunds amounting to Nu 30,000 for aggrieved consumers.

A total of nine consumer complaints were registered in April, with 5 cases successfully resolved and 4 currently under investigation and mediation.

The complaints varied, with 2 related to breach of sales terms and conditions, 2 concerning the delivery of poor-quality goods and services, 5 involving other unethical business practices, and 1 suspected case of a pyramid scheme or Ponzi scheme in the market.

Market surveillance efforts were focused on Tsirang and Dagana, with a total of 261 business firms inspected over a 14-day period from 6 to 19 April, 2024.

The surveillance team, supported by the Bhutan Standards Bureau (BSB) and Bhutan Food & Drug Authority (BFDA), covered Petroleum Retail Outlets (PRO), groceries, meat shops, garment and tailoring shops, hardware stores, as well as restaurants and hotels.

From the 108 groceries and bakeries, 8 percent did not meet minimum labeling requirements. Issues with inadequate labeling were particularly prevalent with locally made and re-packed products.

Furthermore, expired stocks were discovered in 12 grocers in Dagana and 1 grocery store in Tsirang, including biscuits, processed cheese and juice.

While the density of Motor Spirit (MS) and High-Speed Diesel (HSD) at all 4 PROs was within permissible limits, some minor violations were noted. For instance, measuring jars at a PRO in Tsirang required standardization, and fire extinguishers at another PRO did not have expiry dates displayed.

Also, all the PROs had calibrated weighing machines in place which are required for consumers to verify the LPG cylinders. LPG stores or outlets were still found to be operating from the PRO premises and not from a separate location.

As for the action taken or to be taken, the complete list of all business entities that required weights, measures, calibration, and recalibration was dispatched to BSB for support to standardize.

CCAA directed all PROs to rectify these violations to comply fully with the Standard Operating Procedure on Safe Handling and Storage of LPG, 2024.

In response to the findings, fines totaling Nu 4,673 and Nu 405 were imposed on shops in Dagana and Tsirang, respectively, for stocking expired products. BFDA seized the expired items, and further actions were taken to ensure compliance with consumer protection regulations.

Also, the PRO at Tsirang was directed to maintain a valid calibrated 5L brass can in the outlet.

The Department of Trade (DOT) was notified about LPG outlets operating from PRO premises in Tsirang and Dagana, emphasizing the need to separate them as per safety guidelines.

Moreover, cement distributors in Phuentsholing and Thimphu were monitored to ensure adherence to rectification measures aimed at improving business practices.

The inspections focused on verifying compliance with critical requirements outlined in the Consumer Protection Act, 2012, and the Consumer Protection Rules and Regulations, 2015.

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