ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF LAW
A Critical Analysis of the Enforcement Framework
of Consumer Protection in Ethiopia:
Challenges and Prospects
BY
TESSEMA ELIAS SHALE
June, 2011
Addis Ababa
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ADDIS ABABA UNIVERSITY
SCHOOL OF GRADUATE STUDIES
FACULTY OF LAW
Approval Sheet by the Board of Examiners
A Critical Analysis of the Enforcement Framework
of Consumer Protection in Ethiopia: Challenges
and Prospects
By: Tessema Elias
Approved By Board of Examiners
Advisor ______________________________ ______________________
Signature
Examiners
1. __________________________ ______________________
Signature
2. _________________________ ______________________
Signature
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A CRITICAL ANALYSIS OF THE ENFORCEMENT FRAMEWORK
OFCONSUMER PROTECTION IN ETHIOPIA:
CHALLENGES AND PROSPECTS
BY: TESSEMA ELIAS
A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF LL.M IN BUSINESS LAW IN THE
FACULITY OF LAW OF ADDIS ABABA UNIVERSITY
MAY, 2011
ADDIS ABABA
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ACKNOWLEDGMENT
First of all, I would like to give my heartfelt thanks to my advisor, Ato Harka Haroye, for his
concerned and constructive advice, and material support he extended to me for the successful
accomplishment of this paper.
Really, Ato Zekarias Kenea (Asso. Prof.) is a great person! He has also played a great role not
only for the success of this paper but also for the smooth accomplishment of the whole
program. He is really friendly and concerned person. Thank you Ato Zakarias very much!
I would also like to extend my thanks to all persons participated in the study, specially,
workers of Private Sector Development Hub of Addis Ababa Chamber of Commerce and
Sectorial Association, Ato Biru Olbamo from Ministry of Trade and Ato Yohannes Mina
from SNNPR Trade Bureau for their great and exceptional devotion.
All instructors of Business law stream of the law School of Addis Ababa University are very
smart! I have got great knowledge and experiences from them. Thank you all my instructors.
Finally, I want to thank my lovely family as they have been my intrinsic element all the time
of my life
THANK YOU ALL!
TESSEMA ELIAS
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TABLE OF CONTENTS
Contents Page
Acknowledgements ..................................................................................................................... i
Table of Content .......................................................................................................................... ii
Lists of Figures ........................................................................................................................... iv
Lists of Tables ...............................................................................................................................v
List of Annexes .............................................................................................................................v
Abbreviations and Acronyms..................................................................................................... vi
Abstract ..................................................................................................................................... vii
CHAPTER ONE
1. General Introduction ..........................................................................................................1
1.1. Background of the Study ...............................................................................................1
1.2. Conceptual Framework .................................................................................................4
1.3. Statement of the Problem ..............................................................................................6
1.4. Objective of the Study ...................................................................................................6
1.5. Significance of the Study ..............................................................................................7
1.6. Scope of the Study .........................................................................................................7
1.7. Limitation of the Study..................................................................................................8
1.8. Design and Method of the Study ..................................................................................8
1.8.1. Design of the Study...................................................................................................8
1.8.2. Subjects and Participants of Study ...........................................................................8
1.8.3. Sampling Technique and Data Gazering Instruments ............................................8
1.8.4. Data Analysis Technique ..........................................................................................9
1.8.5. Ethical Consideration................................................................................................9
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CHAPTER TWO
2. The General Overview of Effective Enforcement Strategies and Institutional
Design for Consumer Protection ....................................................................................10
2.1. Introduction .................................................................................................................10
2.2. Common Features and Practices of Effective Enforcement Strategies for
Consumer Protection ...................................................................................................11
2.3. Common Features and Practices of Effective Institutional Design for Consumer
Protection Law Enforcement .............................................................................19
CHAPTER THREE
3. The enforcement Framework of Consumer protection in Ethiopia ..........................26
3.1. Institutional Framework ..............................................................................................26
3.1.1. The Trade Practice and Consumer Protection Authority .....................................26
3.1.1.1. The Structure and Composition .................................................................26
3.1.1.2. Powers and Functions.................................................................................37
3.1.1.3. Qualification ...............................................................................................43
3.1.2. Ministry of Trade and Regional Trade Bureaus....................................................44
3.1.3. Court ........................................................................................................................49
3.2. The Enforcement Strategy, Practice and Remedies for Consumer Protection in
Ethiopia .......................................................................................................................50
CHAPTER FOUR
4. Major Findings and Recommendations .........................................................................58
BIBILIOGRAPHY .................................................................................................................62
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LISTS OF FIGURES
Figure 1 The Relationship Between Competition Law and Consumer Protection Law ...................... 5
Figure 2 Effective and Responsive Enforcement Pyramid .................................................................. 14
Figure 3 Intervention Strategies for Consumer Protection Enforcement ............................................ 15
LISTS OF TABLES
Table 1 The Number of Members and Working Conditions of the Former Investigation
Commission of Ethiopia ......................................................................................................... 33
Table 2 Four Years Performance Report of the Former Commission (2004-2008) ........................... 34
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LISTS OF ANEXES
Annex 1 Interview Guides Prepared for Ministry of Trade and Regional Trade Bureaus .................. A
Annex 2 Interview Guides Prepared for Trade Practice and Consumer Protection Authority ........... B
Annex 3 Interview Guides Prepared for Ethiopian Consumer Association, Addis Ababa
Chamber of Commerce and Sectorial Association, Ethiopia Chamber of Commerce
and Sectorial Association, Consumers and Businesspersons ................................................ C
Annex 4 The Case of Ministry of Trade and Industry V. Ato Khalid Abdurrahman and Ato
Ajeb
