2013 CCPC Consumer Protection and Competition Highlights

Livingstone, Zambia10-12 September 2013

The Fifth Annual African Dialogue Consumer Protection Conference

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 ZambiaLegal 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 such as those provided and 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.The Tribunal•One of the key highlights this year has been the sitting of the Tribunal which has began deliberating on a number of cases appealed by the parties against the decisions of the Commission.•Lessons are being learnt by the Commission from the Tribunal sittings and deliberations.

Protecting Consumers in a Developing Economy

As Zambia’s economy continues to develop, investment opportunities in the retail trade sector (and others) have increased resulting in a number of consumer abuses that are in Contravention of PART VII of the Act. The most prevalent of the abuses is the sale of Defective, Counterfeits and substandard Products.

Law Enforcement:•HAZIDA (Defective Samsung Fridge)•Radian Stores (Defective Water Dispenser)•Chloride Zambia (Defective Car Battery)

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

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The 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.

Challenging Misleading Representations

Law Enforcement:•Zamtel (Advert w.r.t bonus K5 worth of airtime)•MTN & Muvi TV (Yellow Xmas Promo – Brand New)•Muvi TV Cash Call Game Show •Transport Sector

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Studies: Transport Sector

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:•Handyman’s Paradise •Mama Africa•Scorpion Bus Services

Outreach and Education: •Sensitization & Education of Businesses and consumers on the existence of the Act in relation to Disclaimers

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Lack of Awareness on Consumer Rights and Obligations

Most consumers are not aware of their rights and obligation. The CCPC being the Agency at the Apex of Consumer Protection has been undertaking country wide awareness and education activities to ensure that the citizens are aware of their rights and obligations as consumes.

Outreach:•Presentations in Institutions of higher Learning•Country wide Tours•Media activities – Radio & TV Progs.

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In a growing economy, the CCPC as the top authority on matters related to Competition has ensured that market players in the economy conform their businesses to the prescribed conducts by not engaging in matters relating to anti-competitive practices and RBPs.A key highlight here is that a leniency Programme is in place but however, it is not yet operational.

Fostering Competition in a Developing Economy

Law Enforcement: •Multi-Choice (RBP)•Nyiombo & Omnia (RBP)•Car Garages(RBP)

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Studies:•Cement•Sugar •Wheat

Approval of Mergers is another component that the CCPC has effectively been handling in Zambia as the economy continues to develop. Significant amounts of time and resources are invested by the CCPC to ensure that consumers are not negatively affected by any mergers approved by the CCPC.

Fostering Competition in a Developing Economy cont’d

Law Enforcement:•ZB Plc (Merger)•Mining Sector (Lumwana Mine etc – Merger)•Petroleum Sector (BP, Engen etc-Merger )•Diary Sector (Parmalat-Merger)

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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 e.g. Malawi,

Botswana & SA • ICPEN• ICN

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