ECONOMICS and commerce are today mainly free market-driven and many erroneously believe that under such a system there is no room for governmental controls to protect consumers and ensure fair competition and a level playing field.
On the contrary, it is prices and production that are market-driven and free of governmental control and consumer protection laws are designed to ensure fair competition and the free flow of truthful information in the marketplace.
The laws are intended to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves.
Consumer Protection laws are a form of government regulation which aim to protect the interests of consumers. For example, a government may require businesses to disclose detailed information about products — particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of “consumer rights” (that consumers have various rights as consumers), and to the formation of consumer organisations which help consumers make better choices in the marketplace.
“Consumer protection law” or “consumer law” is considered an area of law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions.
Such laws deal with credit repair, debt repair, product safety, service and sales contracts, bill collector regulation, pricing, utility turnoffs, consolidation, personal loans that may lead to bankruptcy and much more. (Source: Wikipedia).
In regard to this issue, there was an extremely useful forum recently at which Minister within the Ministry of Finance, Ms. Yvonne Webster, assured that the government is fully committed towards safeguarding market structures and consumer interests.
She pointed out that competition law is not another level of regulation and it should be viewed as the custodian of a competitive economy, supervising market structures and consumer interests and allowing interventions only in those markets where unfair practices exist.
She said that the Competition and Fair Trading Act of 2006 is aimed at addressing two main issues: abuse of dominant positions, and anti-competitive agreements.
“Importantly, the law does not disallow monopolies, oligopolies or firms with a dominant position. What it disallows is an abuse of a strong position in a marketplace, an agreement between companies solely aimed at unfairly constraining the growth of competitors and hence the development of the market”, she said
The minister added that such legislation is generally executed by competition commissions and that at the Caribbean Community (CARICOM) level, the Revised Treaty of Chaguaramas, which established the Caricom Single Market and Economy, created the Caricom Competition Commission and placed obligations on its member states to establish national competition commissions.
She pointed to the establishment of the Competition Commission which commenced business at the end of 2009 and through its commissioners has begun to contribute to the Guyanese economy.
The minister noted that the commission has begun to review several complaints received over the past year.
“Our government remains committed to supporting and investing in the Competition Commission. We have secured a $150 million grant in funding from the Caribbean Aid for Trade and Regional Integration Trust Fund and $36 million in financing for the support of the Competitiveness Programme to build the commission’s capacity, so that it can meet its obligations under the law in an effective manner that promotes the development of the Guyanese economy,” the minister said.
She said too that very shortly, in the National Assembly, a very comprehensive Consumer Affairs bill will be tabled to enhance the work of the commission and to provide consumer protection to the populace at large in the marketplace.
These are welcome developments but the successful implementation of the laws and regulations will require adequate monitoring, policing and enforcing mechanisms.