Phub Dem

Following numerous reports of fake authorisation letters submitted in official tendering of works, the Office of Consumer Protection issued a notification warning businesses against such practice last week.

The notification stated that the department has observed some business entities engaging in unfair trade practices such as submitting fake authorisation letter from manufacturers as a part of the bidding document to participate in government tenders.

 Other practices such as sales of products claiming “Made in Bhutan” without approval or certificate of origin from the competent authority, sale of products in market falsely claiming to be an authorized dealer from overseas principal companies without endorsement of competent authority were also included in unfair trade practices.

The notification also states that the supply or sale of products and services without proper labelling in terms of weight and measure, content, price, expiry date and other relevant commercial information are considered false and misleading representation as per the Consumer Protection Act (CPA) 2012.

Director of OCP, Sonam Tenzin said that such practices not only distorted the economic behaviour of the consumer but also altered the fair trading culture in the market.

He said that the department received written complaints regarding such practices.  “All the business entities are directed to refrain from engaging in such unfair trade practices.” 

According to CPA, chapter three on Misleading and False Representation states: “No person shall make a false or misleading representation stating that the goods are of a particular kind, standard, quality, grade, quantity, composition, style or model; the goods are new or reconditioned; the goods or services have any sponsorship, approval, endorsement or affiliation; concerns the place of origin of the goods among others”.   

“Those who fail to comply with the law shall be dealt as per the provisions of CPA 2012, rules and regulation and other relevant laws including cancellation of business licence.” the notification stated.