Consumer Protection
In Lao PDR, there is no specific law, regulation, or institution on consumer protection. The ‘consumer’ is a recently recognised subject in laws by many Asian countries, even the more advanced market economy. It is, therefore, a completely new subject for Lao legislators and law enforcers. However, whilst those relatively more developed countries already had laws with emphasis on consumer protection, such as those on weights and measures, contracts, product safety and liability, advertising, sale of goods and services, provision of public utilities, etc; Lao PDR does not possess many such bases due to the bad shape of the overall legal system and the limited capability of the administration. Nonetheless, some of the current legislation does have some bearing on consumer protection in Lao PDR.
Most relevant is the Prime Minister’s Decree on Goods Price Control (October 2001). The Decree, to be implemented by the Ministry of Commerce - controlling the prices of strategic goods that have a direct impact on production and on Lao people’s lives - aims to promote business operations, production and commerce, as well as protect the consumers by keeping goods at reasonable prices.
Article 2 of the Decree emphasises that the management of goods prices is determined by market mechanisms under State management. Goods to remain under state control, in terms of prices include some imports, agricultural produce, industrial products, some domestic products, and natural resources for export.
The Decree also points out the rights and obligations of businesses in the areas of commerce and production. Entrepreneurs must hold accounts (book-keeping) according to the law; put price labels on goods for sale; cooperate with officers in the inspection of goods prices; and be entitled to lodge complaints or file appeals against inspectors and bad practices.
The Ministry of Commerce is to be directly responsible to the GOL for the control of prices of consumer goods and raw materials. The Ministry will list goods under state control in each period, and coordinate with relevant services and agencies to ensure the adequate supply of domestic goods to meet consumer demand. The Ministry will also review consumer complaints and oversee the goods management activities of commercial services in the provinces, the municipality, and the special economic zone. An agency in charge of price control management will be specifically set up within the Ministry of Commerce and relevant authorities in the provinces, the municipality, and the special economic zone.
Businesses that violate price control regulations, including those involved in price hiking, hoarding, causing turbulence, and producing counterfeit goods, will have their business operation licences revoked, and be prosecuted according to the law.
Implementation has been underway. The Ministry of Commerce frequently made public, through popular media, information on the average market [sometimes controlled] prices of various types of goods [as well as] services, for widespread reference, to prevent unfair business practices that may harm the consumers. The price control management unit is yet to be set up within the Ministry of Commerce; and the agency currently in charge of relevant issues is the Department of Domestic Trade. However, consumers are yet to be equipped with necessary knowledge about their rights, and the available forum for lodging complaints and seeking redress.
Also relevant are issues related to standards, quality, testing and metrology (SQTM). The Department of Intellectual Property, Standardisation and Metrology (DISM), under the Science, Technology and Environment Agency (STEA), is the government agency in charge. The DISM was established in 1993 under the STEA, consisting of four main divisions. The DISM is empowered to organise the formulation of national standards; provide and implement quality system and product certifications, testing and calibration, etc; supervise and inspect on quality of goods and products and measuring instruments, etc.
Issues related to food safety are under the control of the Food and Drug Administration Commission (FDA), which was established in June 1991, comprising of nine members, representing seven ministries and a permanent bureau. The FDA has been located within the Food and Drug Department (FDD), Ministry of Health (MOH), which carries out all activities of the Commission in practice. The FDA Commission is chaired by the Minister of Health and is responsible for managing, controlling the quality of various food products and drugs that are imported and domestically produced, in order to protect and ensure consumers’ health.
The Food Law has just been adopted by the National Assembly in May 2004 and will soon be implemented. Based on the Codex Alimentarius Commission guidelines, good manufacturing practices and some necessary food standards of Lao have been established, such as the Standard for drinking water, ice cream, tomato sauce, idolisation salt, Mineral water and ice....