2013-2014 Consumer Protection and Competition Highlights

Zambia

Masauso PhiriInvestigator-Consumer Department

Sixth Annual African Dialogue ConferenceLilongwe, MalawiSeptember, 2014

COMPETITION AND CONSUMER PROTECTION COMMISSION

CCPC’s Mission and Legal Framework

Mission: •To protect and enhance competition and consumer welfare in the economy for the benefit of the people of Zambia

Legal Framework•The Competition & Consumer Protection Act No.24 of 2010 (“the Act”) covers the usual themes in a contemporary Competition & Consumer Protection Law i.e.

Horizontal agreements (i.e. cartels)Vertical AgreementsAbuse of DominanceMergers & acquisitionsUnfair Trading & Consumer Protection

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Legal Framework cont’d

Consumer Protection:•The Act provides that “consumers are protected against unfair trade practices described under Part VII of the Act (Sections 45-53).

Competition:•The Act is there to “safeguard and promote competition” as proscribed under Parts III, IV and V of the same the same Act.

Defective, Counterfeit & Substandard Products

Products are cheap and thus attract Consumers from the middle and lower class e.g. Cell Phones•1-4 week guarantee/Warranty•Mostly sold by Street Hawkers/Unregistered Businesses.•Use of Advocacy to obtain Redress

Law Enforcement:•The Exodus Company (Defective Phone)•Kalulu Investments (Defective Phone)

Outreach and Education:•Sensitization among traders and consumers•Use of Brochures, media, (Spot Ads) NGAs/NGOs•Formation of CCP School Clubs

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CCPC seeks to ensure that consumers get what they pay for and that traders/businesses support the claims they make about their products and services.

CCPC seeks to ensure that contracts between Enterprises and Consumers are balanced.

Challenging Misleading Representations & Unfair Contract Terms

Law Enforcement:•Hazida Limited (directed to change its warranty conditions)•Mbwe Motorways (Prosecution & Compensation)•Ticklay’s Coach Services (Refund)

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Outreach•Launch of Brochure on Commuters Rights at the Main Bus Terminals.

Collaboration: •RTSA, LCC, ZPS

Protecting Consumers against Disclaimers

The CCPC’s goal is to protect consumers from Traders/Businesses that tend to deny liability for any products they are selling by having disclaimers at their trading premises. This denies consumers the opportunity to enjoy the benefits that a marketplace should ideally offer.

Law Enforcement:•Cropserve Zambia Limited •City Centre Suppliers•Shijay Enterprises Limited•Progress Medical Centre

Studies: Planned Study on Auto Electrical Parts

Outreach and Education:

•Sensitization & Education of Businesses and Consumers on the existence of the Act in relation to Disclaimers

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CCPC’s aim is to expand to every district in Zambia starting with the provincial capitals.

CCPC endeavors to explain and clarify matters relating to the Act through development of guidelines.

Expansion & Legal Development

Published Guidelines•Administrative & Procedural Guidelines•Guidelines on Fines

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New Offices•Solwezi•Kasama•Mongu•Inspectors (Local Councils)

Most sectors of the Zambian economy are concentrated and CCPC is working at ensuring that there is fair competition.

Fostering Competition in the Economy

Law Enforcement:16 Merger Applications received since January2014, 7 of which have come through the ComesaCompetition Commission•Toyota Tusho-CFAO (Merger)•Puma Energy-Total Aviation (Airport Joint Venture Facility)

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Dominance-Studies in the-•Sugar Sector•Cement Sector

Collaborating with International Partners

The CCPC collaborates with Regional and various International Competition Authourities for purposes of adopting the Best Practices. The Collaboration is further meant to promote sound and effective competition and Consumer Protection enforcement internationally.

• COMESA Competition Authority• SADC Competition Authority• Exchange Programmes with Other Competition Authorities in the Region• ICPEN• ICN • African Dialogue

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