New law to compel manufacturers to compensate consumers for fake goods
May 26, 2019
The draft bill titled; “Liability for Defective Products Bill, 2019” emphasizes the compensation of consumers who are affected by defective products.
With the increasing substandard goods on the market, the Uganda Law Reform Commission (ULRC) has developed a new bill to hold manufacturers liable for defective products.
The draft bill titled; "Liability for Defective Products Bill, 2019" emphasizes the compensation of consumers who are affected by defective products.
The chairperson ULRC, Vastina Rukimirana Nsanze said the new proposed law imposes liability on manufacturers, sellers or distributors of the unsafe products that may cause injury, damage or death to consumers.
Under the proposed legislation, the manufacturers, distributors, and sellers will have to compensate consumers for injuries and damages suffered as a result of defective goods.
"Our economy has been opened up to foreign investors and distributors. There is an increase in processed consumables such as foods, tobacco, textiles, chemicals, drugs, print products, soap, foam products, and metal fabric products," she noted.
She added; "As the industry grows, the possibility of defective products getting on the market has become a reality, thus calling for a need to regulate the quality of manufactured products."
Nsanze made the remarks while speaking at the ULRC workshop to discuss proposals for the new legislation. The meeting was mainly attended by manufacturers, traders, distributors, and officials from various ministries.
The bill is to impose strict liability for defective products, provide a right of action for consumers who are injured by such products, provide producers with defences to claims, and offer protection to consumers.
She said the media has been reporting on adulterated products circulating the market including; drugs and cosmetics, but more continue to flood the market.
She noted that despite efforts by enforcement agencies such as the Uganda National Bureau of Standards (UNBS) and the National Drug Authority (NDA), nothing has changed.
"Uganda's market heavily relies on imported products, the bulk of these are usually of very low quality. It is, therefore, no surprise that some products on the market are manufactured using hazardous substances that expose consumers to risks," she noted.
Weak laws
Nsanze attributed this to lack of a stringent law that holds manufacturers liable, stressing that the current system of tort and contract law is prohibitive, restrictive and burdensome on claimants/consumers.
While presenting the bill, Kenneth Rutaremwa from ULRC said the chain starts from the retailer where the consumer buys the product to the manufacturer or distributor.
Under section 2 (1) of the bill; "The act shall apply to all moveable products except primary agricultural products which have not undergone initial processing".
The bill will also cater for damage from electricity, resulting from a failure in the process of generation.
Those liable for defective products include; producer of the product, importer, and user of a trademark or other distinguishing mark in relation to the product.
The bill stipulates that the onus of proof of damage and defect shall be on the injured person.
It also stresses that a complainant shall file for action within less than three years before expiration from the date of manufacture.
Rutaremwa (ULRC) said through their study, they realised UNBS has no capacity to handle the problem, stressing that at times UNBS officers get compromised.
"Consumers had very low bargaining power. It is going to force manufacturers and other players to be more responsible to control harm," he added.
The chairperson, Parliamentary committee on tourism, trade, and industry, Robert Kasule Sebunya said the bill is key towards addressing the problem.
"Because of new technologies we see new products on market but we do not know where they come from. Because many consumers are illiterate; they just go by the brand," he added.
Stephen Kamukama from the ministry of trade said there is a need to establish an agency for the complaint procedure to easily help affected consumers.
Hope Atwiine, from Kampala City Traders Association, blamed the problem on UNBS which delays to inspect and certify goods.
"Many people do not take their products to UNBS because they delay and traders cannot wait for their goods to expire," she added.