Consumers should be compensated for false and misleading advertisements

Kathmandu. From now on, the party concerned will have to pay compensation if the consumer is harmed by making false or misleading advertisements about the goods or services. The ‘National Advertisement Policy, 2083’ approved by the cabinet meeting held on Thursday has made such provision for the protection of consumer rights by discouraging baseless and misleading advertisements.

Tactic point 9.16 of the policy proposes to prohibit advertisements that are “baseless, misleading, prohibited by law and have a negative impact on consumers”. The policy states that all three levels of regulatory mechanisms — federal, provincial and local — would be activated to control such advertisements.

The policy paves the way for providing justice to consumers who suffer financial or health losses due to misleading advertisements. Clause 9.23 of the strategy states, “Necessary compensation shall be provided to the consumers if they suffer any loss due to the factual and misleading advertisement.” ’

According to the policy, the Ministry of Information and Communications has been given the main responsibility to ban and take action against the advertisements that are baseless and prohibited by the law. The Office of the Prime Minister and Council of Ministers will provide necessary coordination and cooperation in this process.

Similarly, the Advertisement Board has been assigned the responsibility of assessing the loss caused to the consumers due to the advertisement and paying compensation. The Advertisement Board has stated that the advertisement board should increase public awareness, conduct advertisement-related training, training and orientation programs to prevent misleading advertisements and expand consumer education throughout the country.