More Legislation coming to protect consumers

New legislation to increase consumer protection has been drafted and will be passed next year.

This according to Angella Manning, Executive Director of the Consumer Affairs Commission (CAC).

The CAC head said that the Consumer Protection Bill would be broad-based, covering among other things, “issues pertaining to redress and sufficient fines…where the consumer suffered various breaches.”

She added that the Bill would also enable the Commission to take offenders before the courts. “It is a very important piece of legislation. We received comments from the Attorney. General’s Department and other consumer protection agencies as well. It is now to go before the Legislative Committee of Cabinet,” she said.

The legislation, she also noted, went beyond Jamaica, “because there is a CARICOM Model Law on Consumer Protection, which CARICOM is expecting all member territories to have passed.” “With the coming on stream of the CARICOM Single Market and Economy (CSME) which opens up the entire region into one single market, it was also recognised ... that each country needed to have sufficient laws in place,” she continued.

Elaborating on the notion of protection within CARICOM, the Executive Director explained that if a consumer from Jamaica went to another Caribbean country and made a purchase and upon their return home, discovers the item to he defective, they have a right to redress, notwithstanding the fact that they were in another CARICOM state.

Speaking to the background on which the Consumer Protection Bill was drafted, the CAC head said, “when the government of Jamaica decided to pursue a new paradigm, moving away from price controls and exchange controls, towards a free-market liberalised system ... the political directorate saw that there needed to be legislative change, in line with this new direction and this new path.” Hence, she noted, the government gave instructions for drafting of a bill, which would offer protection to consumer the new environment. Presently, the CAC receives an average of 2,500 complaints annually, 90 per cent of which resolved with the year. Manning noted that many of the complaints were in regard to the utility companies, poor quality food, issues pertaining to refunds, rebates, credits and exchanges.

Elaborating on concerns regarding poor food quality, Manning said, “we are seeing increases (in the) ... alleged unwholesomeness of food. People are consuming items and finding foreign matter in them and are incurring medical expenses”.

She noted that the Commission was finding that the initial responses of some businesspersons, was that they are responsible - that someone must have done something to offending product.

She further pointed out that genetically modified foods were particular concern to the agency.

Complaints against the utility companies, she explained, were handled at the level of the individual consumer, while the Office of Utilities Regulations (OUR), dealt predominantly with the sector at the macro or broad level, in terms of regulation.

She did, however, indicate that the two agencies worked together, as the CAC had committed to sending utility complaints to the OUR. This, she said, would help to guide them at the policy level.

The CAC Executive Director said the organization was also concerned about other issues such as household products, child safety, health, trade and competition issues.

As it relates to competition, Manning said that the agency not only looked at the local competitive scene, but also at international competitiveness. She acknowledged, however, that the Fair Trading Commission (FTC) has a greater interest in the area of competition, as they remain on the alert to ensure compliance with the Fair Competition Act.

The CAC is a government institution whose role is to protect the interest of all consumers through public educations. The agency’s stated mission says it is “dedicated to leading change in the society towards a population of knowledgeable, vigilant, assertive and discriminating consumers.” Apart from the OUR and the FTC, the agency works in collaboration with the Bureau of Standards, the Food Storage and Prevention of Infestation Division and non-governmental organisations such as the National Consumers League.

In the past year, the Commission assisted consumers in obtaining cash refunds totalling over $5 million.

Manning informed that the agency’s aim is to resolve complaints received within 10 working days. In fact, upon receipt of a complaint from a consumer, the Commission starts working on a resolution within 24 hours.

The CAC is also the first Jamaican consumer protection agency to formally establish a system to receive complaints online. Most of the persons, who use this facility, the CAC head explained, were Jamaicans living overseas, or foreigners who have returned to their country. About two to three per cent of total complaints are received via this method.

The consumer protection agency’s head also told the gathering that since its inception, the CAC has gained a high level of recognition and respect, in the international arena.

She noted that there have been ongoing requests from Consumers International and other international agencies, for input on a range of issues. The Commission has been invited to international deliberations in seven countries, over the past year.