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Competition & Consumer Protection Commission

CASE SELECTION FOR CONSUMER PROTECTION AGENCIES THE ZAMBIAN CASE BY MASAUSO PHIRI INVESTIGATOR-CONSUMER DIRECTORATE COMPETITION AND CONSUMER PROTECTION COMMISSION Sixth Annual African Consumer Protection Dialogue Conference Lilongwe, September 2014.

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Competition & Consumer Protection Commission

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  1. CASE SELECTION FOR CONSUMER PROTECTION AGENCIES THE ZAMBIAN CASE BY MASAUSO PHIRI INVESTIGATOR-CONSUMER DIRECTORATE COMPETITION AND CONSUMER PROTECTION COMMISSION Sixth Annual African Consumer Protection Dialogue Conference Lilongwe, September 2014 Competition & Consumer Protection Commission

  2. CASE SELECTION-ZAMBIA OUTLINE Introduction Legal Framework Resources vs Demand Case Selection Criteria Ambit of the Act Merit Other Laws Evidence Priority Examples Conclusion Competition & Consumer Protection Commission

  3. CASE SELECTION-ZAMBIA • INTRODUCTION-Legal Framework • The overarching Law on Consumer Welfare is the Competition and Consumer Protection Act No. 24 of 2010 (“the Act”). • The functions of CCPC include- • investigating unfair trading practices and unfair contract terms and impose such sanctions as may be necessary • act as the primary advocate for competition and effective consumer protection in Zambia Competition & Consumer Protection Commission

  4. CASE SELECTION- ZAMBIA • INTRODUCTION-Resources vs Demand • The Commission has a staff complement of 51, serving a population of 13 million people. • 6 operational offices in the Country. Inspectors from Local Councils assist the Commission in the rest of the districts. • Over 450 cases handled in 2013. Competition & Consumer Protection Commission

  5. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA • The Act under Section 55(1) gives the Commission power to undertake investigations on its own initiative or on a complaint made by any person, if it has reasonable grounds to believe that there is, or is likely to be, a contravention of any provision of the Act • The level of Consumer Education and awareness has necessitated CCPC to capture all cases • As awareness levels rise, CCPC will follow a more selective approach • 2016 onwards, CCPC will be targeting cases with greatest impact Competition & Consumer Protection Commission

  6. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA-AMBIT OF THE ACT • The first thing the Commission considers is whether the complaint is covered by the Act. Complaints that are not covered by the Law are immediately dropped or referred to other Agencies. Competition & Consumer Protection Commission

  7. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA-MERIT • The Commission takes into consideration the merits of the complaint i.e. frivolous and vexatious allegations are not taken up • The Commission is mandated to take up all cases received from complainants that have merit Competition & Consumer Protection Commission

  8. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA - OTHER LAWS • There are several Sector Regulators in Zambia whose mandate includes Consumer protection. • Energy Regulation Board - Energy • Bank of Zambia - Banking • Securities & Exchange Commission - Capital Markets • Pensions & Insurance Authority - Pensions and Insurance • Local Councils - Public Health • National Water Supply and Sanitation Council - Water & Sanitation. • The Commission has signed MOU’s with these bodies. If a case can be resolved expressly by the Sector Regulators, then its referred to the Regulator with no further role by the Commission. • Cases that require both laws and expertise are resolved through Joint Working Groups. Competition & Consumer Protection Commission

  9. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA – EVIDENCE • Evidence is key in concluding a case. The Commission does not take up cases were its absolutely clear that there is no evidence or the evidence is not admissible in court. Competition & Consumer Protection Commission

  10. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA – PRIORITY • The Commission selects investigations to conduct on its on initiative based on the following- • Emerging trends. • Number of People affected or likely to be affected by the conduct. • Degree of Injury to the Consumer • More resources are being spent on cases to do with safety and health • This is likely to change overtime once consumers become more aware. Competition & Consumer Protection Commission

  11. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA-EXAMPLES • Mobile Phone Scams - The Commission made a Press Statement warning the public against sms’s that alleged that they had won a prize and needed to send some money to redeem their prize. • The Commission carried out a successful campaign against the display of disclaimers like “No Return, No Refund, No Exchange” by enterprises. • The Commission has given priority to combating the supply of defective goods, which currently accounts for the majority of the cases. • The Commission has developed brochure highlighting the rights of commuters using public transport. Competition & Consumer Protection Commission

  12. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA-CONCLUSION • In the Zambian situation cases are selected based on the following criteria- • Ambit of the Act • Merit • Evidence • Priority-Emerging Trends, Number of Consumers affected and Degree of Injury. • The Commission is mandated to investigate all cases that have merit. Competition & Consumer Protection Commission

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