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Assignment on

Legal Law on Bangladeshi Perspective

Business Ethics Submitted To:

Dr. Md. Shariful Alam Assistant Professor

School of Business

United International University

Course Code: MGT-3342

Section: B

Submitted By:

Name Sl. No. Id. No.

Kazi Towsif Rafi Omar 15 111 093 070

Md. Shakhawatul Islam 13 111 093 033

Shaidul Bashar 18 111 093 163

Md. Rakibul Hasan 21 111 101 251

Md. Farhad Ahmed 22 111 101 319

Md. Sajjat Hossain Akanda 09 111 092 149

Date of Submission: 18thApril, 2014

iii

Executive Summary

This report discusses the laws regarding competitor, protecting consumer, promoting

equity and safety, and protecting the environment of Bangladesh perspective.

competition on business social responsibility arise from the rivalry among business for

customers and profits but when business compete unfair, legal issue can result. No firm

cannot affected bulling by others competitor .Laws have been passed to prevent the

establishment of monopolies, inequitable pricing practices, and other practices that

reduces competition among business. Laws that protect consumers require business to

provide accurate information about product and services and to follow safety standards.

Consumer protection is to protect consumer against unfair, deceptive, or fraudulent

practices. Bangladesh has variety of consumer protection laws but no one strongly

apply.

iv

Table of Contents

1. Introduction ................................................................................................................. 1

2. Competition Policy and Law in Bangladesh ................................................................ 1

2.1 Objective: ............................................................................................................... 1

2.2 Background: ........................................................................................................... 1

2.3 Project Description: ............................................................................................... 2

2.4 Sector Study: .......................................................................................................... 3

3. The Consumer Rights Protection Act, 2009................................................................ 5

4. Laws Protecting the Environment ............................................................................. 10

5. Conclusion .................................................................................................................. 12

6. Reference.................................................................................................................... 13

1

1. Introduction

The ethical issue regarding legal law those are practices in Bangladesh are more

inapplicable in current time. Because most of them were established in British period

and it reviewed every time and have little changes, whether large amount of changes

and lot of legal issues have to be adding for further future. Some of the laws were

added but amount of logical things don’t match with the current situations. Some

laws are strictly followed by the government for the welfare of the people. There are

more less enough laws but the implementation and application are not seen very

often unless any huge massacre takes place. Even though government officials are

not bothered about the implementation of the laws and giving punishments, because

of the bribery. For these reasons most of the organizations are interested or

influenced to take advantage or making fraud openly.

2. Competition Policy and Law in Bangladesh

2.1 Objective:

The objective of the program is to provide technical assistance to the Government of

Bangladesh (GOB) to undertake competition advocacy, public awareness and

training about competition issues. The competition

2.2 Background:

Bangladesh does not currently have any clearly defined competition policy at the

macro level or any sector specific policy that addresses competition issues. The

government does not have any institutional mechanism to review and administer

existing and proposed policies that affect competition or regulate business activities

that are anti-competitive. The Monopolies and Restrictive Trade Practices Ordinance

(MRTPO) was promulgated in 1970 by the Government of Pakistan. Since

independence of Bangladesh, neither the government nor the private sector has

attempted to invoke the law.

The GOB has indicated its intent to pass a competition law in its Poverty Reduction

Strategy Paper. In this connection, during the design phase of the Competition Policy

2

Review component of the Private Sector Development Support Project (PSDSP), a

joint WB-DFID team of experts held a number of meetings in Dhaka and Chittagong

with a wide range of public and private sector officials, including representatives of

government ministries and departments, academic and policy-research institutions,

industry and trade associations, business and commercial law firms, civil society and

non-governmental organizations.

The team of experts proposed a number of steps to assist the Government of

Bangladesh address competition related issues in the domestic economy:

(a) Engage in consultations with private and public sectors, identify, and agree on

three or four critical sectors where competition assessments and regulatory

impact analysis should be conducted by Bangladesh based

consultants/academics and policy-research institutions using methods

discussed at the proposed workshop.

(b) In collaboration with think tanks, consumer protection association, chambers

of commerce, and other civil society, organize a conference aimed at a broad

audience on the role, importance, and benefits of competition policy,

international ‘best practices’. Examples would be drawn from developing

countries so as to alleviate various misconceptions, build better public

understanding and to encourage support for promoting competitive markets.

The team also proposed a longer term approach to build the capacity of Bangladeshi

civil servants through a formal training program in policy analysis and evaluation in

areas such as industrial organization economics, regulation, trade and investment, to

promote future modern policy design and formulation methods.

2.3 Project Description:

The program can be divided into three phases:

a) Awareness rising on competition policy issues among various stakeholders

including the government, businesses, media, think tanks and research

institutions and academia.

b) Create an institutional framework and build capacity within the government

to advocate, enact and enforce competition law and policy in Bangladesh.

3

c) Formation of a committee headed by the commerce minister/advisor and

representation from industries ministry, ministry of home affairs, ministry of

law justice and parliamentary affairs and other appropriate ministries

d) Conduct diagnostic studies on some priority sectors that are in urgent need of

addressing anti-competitive practices. These sectors will be identified based

on detailed consultation with the government, local and foreign experts.

Aware rising would be the first and most critical step of competition policy given the

low level of understanding among the stakeholders. A BEI survey on policymakers,

businesses and consumers revealed that only a small portion of respondents are

aware of the presence of any competition law or policy in Bangladesh. The business

community was the more informed than policymakers and consumers. Another

finding was that 65% of the respondents believed price-fixing to be a major

anticompetitive practice in Bangladesh markets, followed by monopoly and bid-

rigging (48%), discriminatory dealings (39%) and entry barriers (30%).

The relevant officials within the government should be exposed to international and

regional best practices on competition policy to raise the level of understanding and

ensure buy-in. India would be a suitable candidate for regional best practices since

the country underwent major amendments to the Monopolies and Restrictive Trade

Practices Act in 1991 and then passed new Competition Act in 2002. Countries that

are recognized for international best practices on competition policies and law and

strong enforcement would include Australia, UK, USA, Canada etc.

A 1-2 day workshop will be organized to transfer knowledge and build capacity in

appropriate Bangladesh government agencies, academia and policy-research

institutions, and other entities on conducting market studies, competition

assessments and regulatory impact analysis.

2.4 Sector Study:

Below are some potential sectors for assessment of competition scenario based on

some consultation with local experts and the work that Bangladesh Enterprise

Institute (BEI) did with Consumer Unity and Trust Society (CUTS International):

• Essentials: rice, sugar, pulse, edible oil, fresh vegetables

4

• Pharmaceutical, power, telecom, toiletries, tobacco, cement, fertilizer,

corrugated steel, financial services, intercity bus services, health services

Competition Assessment for a particular sector/market needs to take account of

three related elements. First, there is a set of supply and demand factors, which affect

the costs of production and customer demand. Second, regulations that change the

competitive process through directly specifying market outcomes (e.g. specifying a

minimum standard for a product). Third, regulations that directly impact on the

competitive process (e.g. by changing barriers to entry or expansion, or by affecting

industry concentration).

A tool that is part of Competition Assessment is competition filter which is a set of

questions to be answered for each sector/market likely to be affected by the proposed

regulation. It is likely that there will be some regulations that do not change the

competitive process in any way; others could have a substantial impact. The purpose

of the competition filter is to identify quickly those proposals that are most at risk of

having a significant detrimental effect on competition.

1. In the market(s) affected by the new regulation, does any firm have more than 10

per cent/20 per cent or the largest three firms together have at least 50 per cent

market share?

2. Would the costs of the regulation affect some firms substantially more than

others? For example, costs of paperwork or administration affect smaller firms to a

substantially greater extent than larger firms, or if significant costs are imposed on

particular companies because of the resources they use or where they are located.

3. Is the regulation likely to affect the market structure, changing the number or size

of firms? This question will address among other issues, for instance, whether some

firms will be forced to leave the market or will they merge with other firms to survive.

4. Would the regulation lead to higher set-up costs for new or potential firms

compared with the costs for existing firms? This question focuses on the initial entry

barriers in the form of set-up costs.

5

5. Would the regulation lead to higher ongoing costs for new or potential firms

compared with the costs for existing firms? This may include the extent to which

there may be time lags in introducing the regulations for existing firms. If new firms

have to meet requirements immediately while the existing firms have a period of

grace, then the regulation would have discriminatory impact.

6. Is the market characterized by rapid technological change? The reason for

identifying those markets experiencing rapid technological change is that there is a

risk that regulation may restrict innovation in such markets.

7. Would the regulation restrict the ability of firms to choose the price, quality, range

or location of their products? Minimum standards or requirements are ways in which

firms’ freedom to choose product type or quality can be restricted. Other examples

would include restrictions on prices charged, the quantities of certain inputs used or

the location of certain activities which would limit opportunities for firms to

compete.

3. The Consumer Rights Protection Act, 2009

An Actto provide for the protection of the rights of consumers, prevention of anti-

consumer rights practices and for the purpose of making provisions for matters

connected there with. Whereas it is expedient and necessary to provide for the

protection of the rights of consumers, prevention of anti-consumer rights practices

and to make provisions for matters connected there with.

It is hereby enacted as follows:

Preliminary

Short title and commencement

1) This Act may be called the (Consumer Rights Protection Act, 2009)

2) It shall come into force immediately

3)Definitions: ‐ In this Act, unless there is anything repugnant to the subject or context.

i. “Directorate” means the Directorate of national consumer right protection

established under section 18;

6

ii. “Complaint” means any allegation in writing made by a complainant to the

Director General against any trader for any anti-consumer right practices

under this Act;

iii. “Complainant” means the following person or persons, making any complaint

under this Act;

a) One or more consumers, where there are numerous consumers having the

same interest;

b) Any consumer association registered under any law for the time being in

force ;

c) National Consumer Rights Protection Council or any officer authorized to

file any complaint on its behalf;

d) The Government or any Government officer authorized by the Government

in this behalf;

e) concerned wholesaler and retailer ;

(4) “Manufacturer” means a person, who ‐

(a) Makes or manufactures any goods or part thereof ;

(b) Does not make or manufacture any goods but lawfully assembles parts

thereof made or manufactured by others and claims the goods so assembled as

manufactured by him;

(c) lawfully puts or causes to be put his own trademark on any goods made or

manufactured by any other manufacturer and claims such goods to be

made or manufactured by him ; or

(d) Where the goods are manufactured outside Bangladesh and the

manufacturer of the goods does not have any branch office or business office

in Bangladesh, a person who imports and distributes such goods;

Explanation : Where the local manufacturer assembles any goods or parts thereof

to any of its self‐controlled or self‐conducted branch office, such branch office shall

not be deemed to be the manufacturer even though the parts are assembled at such

branch office ;

7

(5) “Medicine” means allopathic, homeopathic, unani and ayurvedic medicine or

any other medicine, used for preventing or curing of diseases of human beings,

fisheries and livestock ;

(6) “Imprisonment” means rigorous or simple imprisonment;

(7) “Foodstuff” means any food including fruits and minerals for the livelihood,

nutrition and preservation of health for human, fisheries and livestock;

(8) “Laboratory” means any laboratory or organization, whatever the name is,

established by or under any law for the time being in force or recognized by the

Government;

(9)“Fake” means making or manufacturing of similar goods without license

imitating the goods licensed for marketing by other and the property, ingredients,

elements or quality of the goods licensed either exist or not in such fake goods ;

(10) “Prescribed” means prescribed by Rules and until such Rules are made,

prescribed by written Order of the Director General;

(11) “Goods” means any movable commercial commodities which the buyer buys or

contracts to buy from any trader in exchange of money or price;

(12) “Council” means the National Consumer Rights Protection Council established

under section 5 ;

(13) “Regulations” mean any Regulations made under this Act;

(14) “Code of Criminal Procedure” means the Code of Criminal Procedure, 1898

(Act No. V of 1898);

(15) “Rules” means any Rules made under this Act;

(16) “Trader” means any manufacturer, maker and supplier of any goods and also

includes wholesaler and retailer;

(17) “Person” means a person, company, society, partnership firm, statutory or

other organization and also includes representatives there of;

8

(18) “Adulteration” means adulteration defined in section 3(1) of the Pure Food

Ordinance, 1959 (Ordinance No. LXVIII of 1959) and mentioned in section 25C of

the Special Powers Act, 1974 (Act No. XIV of 1974) or any other Act ;

(19) “Consumer” means any person ‐

(a) who without resale or commercial purpose ‐

(i) buys any goods for a consideration which has been paid or promised

to be paid ;

(ii) buys any goods for a consideration which has been partly paid and

partly promised ;

(iii) buys any goods for a consideration under any system of deferred

payment or installment basis ;

(b) Who uses any goods bought under clause (a) with the approval of the

buyer ;

(c) Who buys any goods and uses it commercially for the purpose of earning

his livelihood by means of self‐employment;

(d) Who ‐

(i)Hires or in any other manner avails of any service for a consideration

which has been paid or promised to be paid; or

(ii) Hires or in any other manner avails of any service for a consideration

which has been partly paid and partly promised; or

(iii) Hires or in any other manner avails of any service for a

consideration under any system of deferred payment or installment

basis; or

(e) Who enjoys any service under clause (d), with the approval of the person

who hires or avails it;

9

(20) “Anti‐ consumer rights practices” means ‐

(a) to sell or offer to sell any goods, medicine or service at a higher price than

the fixed price under any law for the time being in force ;

(b) To sell or offer to sell adulterated goods or medicine knowingly;

(c) to sell or offer to sell any goods containing any ingredient which is

extremely injurious to human health and the mixing of which with any food item is

prohibited under any law for the time being in force ;

(d) To deceive consumers by untrue or false advertisement with the purpose of

selling any goods or service;

(e) Not to sell or deliver properly any goods or services sold and promised in

consideration of money;

(f) To sell or deliver less than the offered weight to the consumers while

delivering or selling any goods;

(g) If the weight stone or any other weight measuring instrument used for

measuring weight in selling or delivering goods shows more than the actual weight ;

(h) To sell or deliver less than the offered amount while delivering or selling

any goods;

(i) If the length measuring gauge or anything else used for measuring

length in selling or delivering goods shows more than the actual length ;

(j) To make or manufacture any fake goods or medicine;

(k) To sell or offer to sell goods or medicine the date of which has expired;

(l) To do an act which may endanger life or security of the consumer and which

is prohibited by any law for the time being in force;

(21) “Director General” means the Director General of the Directorate of National

Consumer Rights Protection; and

10

(22) “service” means transport, telecommunication, water supply, drainage, fuel,

gas, electricity, construction, residential hotel and restaurant and health services,

which is made available to users in exchange of price but does not include the

rendering of services free of cost ;

3. This Act to be deemed as additional: The provisions of this Act shall be in

addition to, and not in derogation of, the provisions of any other law apparently

connected matters for the time being in force.

4. Exemption from this Act. ‐The government may, by notification in the official

Gazette, exempt any service or area from the application of this Act for a specific

period of time.

4. Laws Protecting the Environment

Clean Air Act: The government will enact a Safe water and sanitation titled " Clean

Air Act/Regulation" under the ongoing World Bank Financed 'Clean Air and

Sustainable Environment (CASE)' project to check air pollution causing threat to

millions of citizens in the capital. The law will keep a provision to set level of air

pollution for those industries including brickfields responsible for emitting thick

black smoke, the main cause of capital's air pollution.

Environmental Policy Act: Under Bangladesh perspective this law is known as

Bangladesh Environment Conservation Act. Bangladesh Environment Conservation

Act (BECA) is set of laws enacted by the government of Bangladesh in 1995.

The Act gives operational definitions of terms that historically did not exist,

including ecosystem, pollution, waste and hazardous substance. Seven areas in

Bangladesh are defined as Ecologically Critical Areas under this law beyond the

scope of the Forest Act of 1927 enacted by the British Raj. Other major preservation

laws enacted by the government of Bangladesh include the Bangladesh Wild Life

(Preservation) Order of 1973, the Marine Fisheries Ordinance of 1983 and the Brick

Burning (Control) Act of 1989. Other major preservation laws enacted before the

independence of Bangladesh include the Public Parks Act of 1904, the Agricultural

and Sanitary Improvement Act of 1920, the Protection and Conservation of Fish Act

of 1950.

11

In September 2009, the four rivers around the capital city Dhaka - Buriganga

River, Shitalakshya River, Turag River and Balu River - have been declared by the

Department of Environment as ECAs.

The Act followed the establishment of the Ministry of Environment and Forest in

1989 and the National Environment Management Action Plan (NEMAP) in 1992, as

well as the Forest Policy in 1994 and the Forestry Master Plan (1993–2012) in

1993. Despite the Act and its supporting laws and policies the environmental

degradation of Bangladesh continues principally under the population pressure

Coastal Zone Management Act: Under Bangladesh perspective this law is known

as Coastal Zone Policy. The Government has made the coastal zone policy statements

in relation to development objectives. These policies provide general guidance so that

the coastal people can pursue their livelihoods under secured conditions in a

sustainable manner without impairing the integrity of the natural environment.

Federal Water Pollution Control: Noise Pollution Control Act: This act is known

as sound pollution act, 2005 in Bangladesh. This act is designed to control the noise

problem all over in the country.

Endangered Species Act: Endangered species act gives us rules about the

threatened and endangered plants and animals in the area of our country.

Safe Drinking Water Act: This act is known as Safe water and sanitation Act,

1998 in Bangladesh. Safe water and sanitation are essential for the development of

public health. The goal of this act is to ensure that all people have access to safe water

and sanitation services at an affordable cost. To achieve this goal and to ensure that

development in the water supply and sanitation sector is equitable and sustainable,

formulation of National Policy for Safe Water Supply and Sanitation is essential.

Pollution Prevention Act: This act is known as The Environment Pollution

Control Ordinance. This ordinance is to provide for the control, prevention and

abatement of pollution of the environment of Bangladesh. Whereas it is expedient to

provide for the control, prevention and abatement of pollution of the environment of

Bangladesh.

Food Quality Protection Act: Under Bangladeshi law this act is known as Pure

Food Ordinance 1959. This law was established to ensure food quality that is

delivered to the people of the country.

12

5. Conclusion

This report discusses the laws regarding competitor, protecting consumer,

promoting equity and safety, and protecting the environment of Bangladesh

perspective. competition on business social responsibility arise from the rivalry

among business for customers and profits but when business compete unfair, legal

issue can result. No firm cannot affected bulling by others competitor .Laws have

been passed to prevent the establishment of monopolies, inequitable pricing

practices, and other practices that reduces competition among business. Laws that

protect consumers require business to provide accurate information about product

and services and to follow safety standards. Consumer protection is to protect

consumer against unfair, deceptive, or fraudulent practices. Bangladesh has variety

of consumer protection laws but no one strongly apply. Most important thing in

business that the laws promoting equity and safety. This law can’t apply Bangladesh

because maximum worker work in unhealthy or damage environment that prove

from number of accident in the industry. Environment protection laws apply in

Bangladesh but its not proper use of laws. Sometimes active but more times this laws

not use against when organization polluted the environment.

13

6. Reference

1. http://www.lawcommissionbangladesh.org/

2. http://www.lawcommissionbangladesh.org/

3. http://bdlaws.minlaw.gov.bd/index.php?page=html&language=english

4. http://bdlaws24.blogspot.com/

5. http://www.bangladesh.gov.bd/index.php?option=com_content&task=cat

egory&sectionid=27&id=126&Itemid=157

6. http://myadvisoryspace.org/bicf/KM%20Library/02_Improving%20PSD

%20and%20Investment%20Climate/04_Competition%20Policy/Competi

tion%20Policy%20Note_Atiur%20Rahman.pdf