New consumer protection laws reins in on errant businesses

26 Oct, 2014 - 06:10 0 Views
New consumer protection laws reins in on errant businesses

The Sunday Mail

Experts predict that the Consumer Protection Act will not only protect consumers but create a conducive environment for business to thrive

Experts predict that the Consumer Protection Act will not only protect consumers but create a conducive environment for business to thrive

While the Consumer Council of Zimbabwe is set to spearhead the establishment of the Consumer Protection Act, in an effort to address the glaring disparities currently existing between businesses and consumers, consultation between government, the CCZ and relative stakeholders are set to commence in a fortnight.

Chief on the agenda will be the establishment of the bill which is meant to address the weaknesses of outdated legislation like Consumer Contract Act, Small Claims Court and other frivolous instruments which have failed in the core mandate of protecting the consumer, often rending the CCZ toothless.

While the bill is still at it infancy stage, experts are unanimous in the need to give the CCZ more power and make them a key player in the protection of the consumer as opposed to the use of persuasion which it has been operating at.

Talks are expected sailed through as all the relative stakeholders seem on the same page on the need for change.

The consumer rights watchdog, the CCZ believed the existing laws are flaccid and are in desperate need of review.

Although the Government is due to begin consultations for the consumer protection Bill soon, CCZ who will head the consultations say the process should be sped up since the enacting of the bill is long overdue.

In the absence of the consumer protection Act, CCZ says it can only use persuasive means and not the obligatory regulations to make business adhere to ethical practices.

“We need to protect the rights of consumers and the consumer protection Act will go a long way to help us achieve that,” CCZ executive Director Ms Rosemary Siyachitema.

“With this Act, businesses will be bound by law rather than persuasion, and they will now be charged in a court of law should they act in an unethical way.”

Ms Siyachitema said the consultations which are likely to begin in the coming two weeks will be held in most parts of the country including Harare, Gweru, Mutare and Masvingo.

Her sentiments were echoed by a local expert, who preferred anonymity, saying that change is long overdue and what is needed now are drastic measures that will give the CCZ more bite when addressing the needs and wants of the consumers.

“History has shown us that the relationship between business and consumers has always been a rocky one with the latter often accusing the former of unscrupulous and unethical trade behavior.

“In Zimbabwe, consumer protection seems to have become more of a privilege than a right as businesses usually get away with unfair practices such as distorted pricing and delivery of sub-standard goods and services,” he said.

He went to say that with a highly depressed economy and porous regional border posts -which are tolerating the influx of banned products- customer rights violations could escalate if consumer protection laws are not reformed.

“Zimbabwe has relied on outdated legislation like Consumer Contract Act, Small Claims Court and other frivolous instruments to protect consumers and reign in on a glut of errant businesses.

Speaking at the launch of the draft Consumer Protection Bill, Industry and Commerce minister, Cde Mike Bimha also said the country’s consumer protection laws were not comprehensive.

“Since independence in 1980, we have not had a comprehensive Consumer Protection Act. Instead, we had pieces of legislation that are implemented through line ministries to protect and advance interests of consumers,” he said.

“The launch of this draft is an important landmark for both industry and, especially consumers, as it is a culmination of all the work that various pressure groups and the ministry have been doing.”

If enacted, the Bill will establish the Consumer Protection Commission, a body that will be capable of suing and being sued in its corporate name and subject to the Act, of performing all acts that bodies corporate may by law perform.

The commission will co-ordinate and network consumer activities and liaise with consumer organisations, promote fair business practices.

It will also regulate the formation of some consumer protection bodies for specific sectors and have an oversight on sector-specific bodies established under the Constitution.

Apart from the Commission various other consumer protection organisations are expected to be established to help with the job which has so far been done by CCZ alone.

Marketing expert Mr Lesley Ngoro acknowledged the importance of the consumer protection Act but said it may still fail to bring the desired change as the customer violation happening in the country is a product of harsh economic conditions rather than laws.

“The Act is a good development. I hope it can bring the change we are seeking but it may be difficult in the existing economic conditions because we have too many informal businesses that are almost difficult to regulate,” he said.

“Also the so called big companies are making huge profits from selling banned products after smuggling them through sophisticated syndicates which even involve authorities sometimes.”

Ngoro said stopping smuggling syndicates will almost be difficult since the rackets are sometimes led by some individuals in the public service.

Some of the smuggled items are GMO foods, banned pharmaceutical products and other counterfeited items.

It has also been difficult for CCZ to monitor the informal sector market although it is the one which has been grossly violated in terms of consumer rights.

A snap survey carried out by The Sunday Mail Extra in the city last week revealed that most clients were hesitant of making their complaints about a product or service known by the supplier.

A 45 year old Harare resident and Pharmacist Yvonne Tsikira said customers are not treated like kings in Zimbabwe adding that most business do not realise how detriment it is to short change customers.

“I have visited many places around the world and I have also visited many places in this country, and have since realised that in Zimbabwe a customer is no longer a king that he was back in the 80s.

“Most of the business people are now bullying us and they know we cannot take it anywhere because many of them have the money and the resources to make everything come out in their favour. Tsikira said poor customer services were rampant in all sectors of the economy in the country.

“You can go to a supermarket, bank or even clinic, and it is everywhere. You are meeting with hostile people who make you feel stupid for complaining about a service or a product but that is not right because it kills your business.”

According to CCZ the dates for the Bill’s outreach program would be announced this next week but the whole process is expected to take close to four months before the bill can be passed into law.

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