A Critical Analysis of the Enforcement Framework of Consumer Protection in Ethiopia: Challenges and Prospects
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Date
2011-06
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Addis Ababa University
Abstract
Effectiveness of consumer protection in a market economy is highly determined by the quality of the
enforcement framework of competition orland consumer protection law and institutions entrusted to
enforce it.
Despite the efforts that Ethiopia has exerted to bring about effective consumer protection thereby
making comprehensive amendments to the previous proclamation (Proc. no.329/2003) and by
introducing the new proclamation (Proc no. 685/2010) with new institutions, there are still some
shortfalls in the enforcement design of the proclamation and institutions entrusted to enforce it
which could be causes for the actual or potential problems to the consumers. Hence, the basic
objective of the study is to assess and address the problems of the enforcement framework of the
proclamation and practical limitations of the institutions.
In conducting the study, general principle pertaining to effective enforcement framework for
consumer protection and experiences of some purposively selected courtiers based on their
successes and relevance to Ethiopia have been used. In addition, semi-structured depth interview,
legislative analysis, case analysis, content analysis and observation have been used as data
gathering instruments. And purposively selected individuals from the former commission, Ministry
of Trade and Regional Trade Bureaus, Addis Ababa Chamber of Commerce and Sectoral
Association, Ethiopia Chamber of Commerce and Sectoral Association, consumers and
businesspersons have participated in the study.
Accordingly, the study has found that failure to recognize the representation of stakeholders in the
authority, accountability of the authority to the Ministry of Trade (MoT) coupled with powers given
to the MoT and Prime Minister to select and appoint members of the authority which erode the
independency of the authority, failure to give equivalent or parallel power 10 regional concerned
bodies with the MoT to regulate prices of basic goods and services in the regions, failure to provide
for qualification requirements for members of the authority and harsh penalties provided under the
proclamation without providingfor precise guidelines as to the application of more preservative,
educative and less destructive strategy are some of the shortfalls of the enforcement framework of
the proclamation which are capable of posing challenge to the institutions affecting effective
enforcement of the proclamation. While lack of extensive pre-intervention study, failure to give
priority to areas of greater consumer risks and failure to apply more of educative and preventive
approaches and resorting to strong and destructive measures are among the major practical
failures of the enforcing institutions which have actually resulted in present consumer crisis in
Ethiopia. Finally the study has ended up with recommending possible solutions which may serve as
inputs for stakeholders to
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Consumer Protection in Ethiopia:, Challenges and Prospects