DAWA ZANGMO | Thimphu
As Bhutan’s marketplace increasingly shifts from physical stores to digital platforms, the Competition and Consumer Affairs Authority (CCAA) is advancing a comprehensive effort to modernise the country’s consumer protection framework to address emerging risks in the digital economy.
With transactions now occurring across fast-moving, borderless online environments, consumers face growing exposure to threats such as phishing, identity impersonation, fraudulent e-commerce platforms, and misleading digital advertisements.
These challenges were not envisaged when Bhutan’s existing Consumer Protection Act was enacted over a decade ago.
In response, the CCAA is in the final stages of preparing amendments aimed at aligning the law with contemporary market realities.
The revision process has involved extensive stakeholder consultations conducted across several regions, including Bumthang, Phuentsholing, Samtse, Samdrupjongkhar, Trashigang, and Mongar.
The discussions culminated in a two-day public consultation session held in Thimphu from 22 to 23 April, where participants reviewed and refined the proposed changes.
Parallel to this effort, a new Competition Bill has been drafted to address anti-competitive practices such as price-fixing, abuse of market dominance, and other forms of market distortion.
Rather than advancing the two legal instruments separately, the CCAA has proposed consolidating them into a single, unified legislative framework.
Officials from CCAA note that, both consumer protection and competition regulation ultimately serve the same objective safeguarding consumer welfare.
“Whether harm arises from deceptive trade practices or from reduced competition in the market, the effects are borne by consumers. A unified law is therefore expected to provide a more coherent and effective approach to regulation,” CCAA officials said.
This integrated model draws from international practices seen in jurisdictions such as Australia and Singapore, where consumer protection and competition laws are administered within a consolidated framework.
By adopting a similar approach, Bhutan aims to streamline enforcement, reduce regulatory overlap, and improve institutional coordination.
Once finalized, the consolidated bill will be submitted to the Ministry of Industry, Commerce and Employment (MoICE) and subsequently to the Lhengye Zhungtshog for approval. Authorities intend to table the legislation during Parliament’s winter session in 2026.
According to CCAA officials, the proposed amendments introduce explicit recognition of e-commerce transactions and digital marketplaces within the legal framework.
They also seek to strengthen protections against unfair and deceptive practices in the online space, including fraud, phishing schemes, and misleading digital promotions.
The revised provisions are expected to impose clearer responsibilities on online sellers and digital platforms, particularly in areas such as transparency, disclosure of information, and accountability to consumers.
In addition, the amendments aim to enhance enforcement mechanisms and improve grievance redressal systems to ensure that consumer complaints especially those arising from digital transactions are resolved more efficiently.
Speaking on the development, CCAA Chief Programme Officer Gopal Pradhan stated that the amendments are designed to strengthen consumer safeguards in an increasingly digital marketplace.
He added that the revised framework would formally incorporate online transactions into the law while reinforcing measures to address fraudulent and misleading practices in digital environments.
“The changes would also establish clearer obligations for online businesses regarding transparency and accountability, alongside improvements in enforcement and complaint resolution mechanisms to ensure timely redress for consumers,” Gopal Pradhan said.
On the decision to merge the Consumer Protection Act with the Competition Bill, he noted that the unified approach would create a more consistent and integrated legal framework addressing both consumer welfare and market efficiency.
The official said the consolidation is intended to minimize regulatory fragmentation, remove overlapping provisions, and strengthen coordination in enforcement efforts.
Furthermore, he indicated that the combined law would enhance the Authority’s ability to address market distortions, anti-competitive conduct, and unfair trade practices in a comprehensive manner, while also improving institutional capacity for more effective regulation.
The timeline for implementation will depend on the legislative process. The consolidated bill is expected to be submitted to the Cabinet in August 2026, after which it will proceed to Parliament for deliberation during the winter session.
If enacted, the new legislation is anticipated to significantly strengthen Bhutan’s consumer protection regime. It is expected to provide consumers with clearer rights, more robust enforcement mechanisms, and improved access to grievance redressal.
At the same time, businesses are likely to benefit from greater regulatory clarity and a more predictable operating environment.
Authorities also indicate that the law will promote fair competition and responsible business conduct, contributing to a more transparent and efficient marketplace.
By addressing both consumer protection and competition issues within a single framework, the reform aims to represent a structural shift in how Bhutan regulates its markets in the digital age.
