THE long-awaited Consumer Protection Bill 2011, which was tabled in the House on April 29, Thursday evening received overwhelming support from the People’s National Congress Reform (PNCR) and the Alliance for Change (AFC); but as requested by the PNCR prior to the debate, it was sent to a Special Select Committee.
The bill, fully supported by the Opposition, provides for the promotion and protection of the interests of consumers in relation to the supply of goods and services, and renames the Competition Commission as the Competition and Consumer Affairs Commission, which will administer the Competition and Fair Trading Act 2006, as well as the Consumer Affairs Act.
In his opening remarks, Minister of Tourism, Industry and Commerce, Manniram Prashad, said that for far too long consumers have had to conduct business with no legislative protection and that now his ministry will be better equipped to serve and protect their rights.
“In Guyana, we have an open economy, and economic activities will flourish more when consumers can trust producers,” he said.
He pointed out that often the assurance of quality and safety of products is absent, as producers seek to maximise profits and minimise cost, while consumers seek lower prices.
As producers compete in the market, consumers are the ones who are often caught in the middle, even though the economic benefits of consumer legislation stem from ensuring adequate information is available to consumers and suppliers.
This legislation ensures that suppliers provide sufficient information to consumers to inform their decision on whether or not to buy a product or service, based on the price, quality, and functionality of the product, and contractual rights and obligations of the supplier and the consumer.
“When consumers have access to adequate information, this will ensure that businesses benefit more by being able to supply the right goods and services in the market place… it is important for consumers to receive adequate protection and for government to promote market conditions which will provide consumers with greater choices at lower prices,” Minister Prashad said.
The Guyana consumer market is an intricate network of suppliers, purchasers, retailers and customers, and the Consumer Affairs Act provides assurances at all stages, which assist in the confidence-building process so that the benefits of the free market can filter through to consumers.
Minister Prashad explained that at present, in Guyana, if a consumer purchases a faulty good or a mis-labelled product, he or she has little ability to enforce the contract of that purchase.
“A lack of legislation means that the regular man in the street does not have the necessary means of redressing such ill-practices,” the minister said.
However, once this bill is enforced, consumers will be educated on their rights and suppliers of their obligations and responsibilities to the consumers.
The bill goes beyond the scope of the Consumer Protection Act of 2006 which was not brought into force. It was advocated for in the late 90s by Minister Prashad when he was head of the Private Sector Commission (PSC) and President of the Georgetown Chamber of Commerce and Industry (GCCI).
This bill also benefited from extensive consultations with consumer affairs bodies such as Guyana Consumers Association, Consumer Advisory Bureau, Guyana Consumer Movement, PSC, Guyana Manufacturing and Services Association, Association of Regional Chamber of Commerce, Regional Administrations and other community bodies, governmental agencies and statutory bodies, including the Guyana National Bureau of Standards and the Food and Drugs Administration, commercial banks, insurance companies, women’s organisations, Guyana Bar Association, Small Business Association, and political parties.
With regard to enforcement of this bill, the Commission may apply to the court for action to be taken against a person for compensation, damages and any other remedies as it may see fit.
The Commission also has the power to seek a warrant to enter a place to search or seize goods on the basis of information received.
“If one commits an offence under this Act, the court may order penalties for breach of any provision of the bill. Such penalties can range from $20,000 to $1,000,000 and up to one year imprisonment,” Minister Prashad said.
PNCR MP, Clarissa Reihl, said that bill was long overdue and is fundamentally good; however she is of the view that a tribunal should be set up for consumers to lay their complaints, instead of to the courts. Meanwhile, AFC MP, Sheila Holder, also expressed her party’s wholehearted support for the Bill.
The Ministry of Tourism, Industry and Commerce will be embarking on a series of educational programmes and initiatives geared at educating the public on the provisions of the bill. i