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Momodou
Denmark
11823 Posts |
 Posted - 02 Nov 2009 : 15:20:46
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Terrible Abuse of Consumers Rights
By Saikou Jammeh
Both the government and private business sector in the country are involved in anti-competitive business practices that abuse the rights of consumers as they pay their monies for the goods and services they need, a draft Country Research Report reveals.
The report that investigates the existing competition abuses and distortions also reveals glaring examples of such practices, which includes development of cartel, price fixing, market sharing, bid rigging, exclusive dealing, collusive agreements and tied selling.
The report was presented on Friday at Sea View Hotel where various stakeholders were engaged in reviewing the findings. The program was organized by Pro-PAG, in collaboration with Consumer Unity and Trust Society (CUTS) International.
Admitting the findings of the report, The Gambia’s Minister for Trade Mr. Yusupha Kah said anti competitive practices exist in all sectors resulting in rife of the economy.
“Anti competitive practices harm consumers and prejudice economic operators,” he said, noting that over-priced goods and unsuitable products harm the poor tremendously.
The reports attributed the shortcomings to lack of clear-cut government policies to curb corruption and associated distortions due to the desire by private sector operators to maximize profit at the expense of the state and other competitors through revenue leakages.
As such, the interplay of private operatives in the transaction environment is abounding with examples of anti competitive practices that harm the consumers particularly the poorest segment of the Gambian community.
In the commodity sectors of rice, onion, Irish potatoes and flour, there exist series of collusive agreement in the selling price wherein main importers concur to fix prices, thus leading to the price hikes in retail prices in the shops. The rigging of bids is a reality in both state and non-state actors, though difficult to prove.
A wholesaler interested in sugar has to buy rice albeit on credit from the importers as a condition for accessing certain goods on credit basis whilst paying for others upfront. The same system is replicated between the wholesaler and the retailers, where a wholesaler will exercise control over retailers by subjecting them to some condition arrangements.
The report went on, “private doctors running their own clinics and having pharmacies is a clear instance of vertical agreements which easily lead to possible tied-selling. The worrying has to do with the delivery of drugs to patients. While some doctors would have high ethical standards and would prescribe what the patient may need, there could be lapses with some others that could result in prescribing medicines which patients may not need and which they must sell or loose money.
Likewise, many schools in the Gambia urge their students to buy uniforms and other products from them at a price that may be above the market prices. Customers are being lured by mobile telephone operators to acquire their SIM cards, but one has made its telephone incompatible with other operators’ SIM cards forcing customers who may need to interchange SIM cards for convenience purposes to purchase other handsets.
Perception survey on whether action is being taken in the event of violation as well as the level of confidence in competition enforcement or in the regulatory system of competition is mixed, while others believe that action is sometimes taken, others say action is never taken because laws are not enforced, corruption and strong lobbying rife.
The Executive Secretary of The Gambia Competition Commission, Mrs. Jainaba Sambou said consumers in the Gambia have been left in limbo, adding that there are frequent price fluctuations that cause inconsistency in the market. She added that consumers of goods and services lack awareness of their rights to be able to raise questions on the goods and services that they pay their monies for.
According to her, this will soon no longer be the case with the enactment of a Competition Act, establishment of Competition Commission, which will have quasi judicial powers to oblige business enterprises to be more transparent and to treat consumers fairly.
For Mr. Bai Matarr Drammeh, the chairman of Gambia Chamber of Commerce and Industry there is a communication gap between government and Civil Society Organizations on awareness of a consumer competition law.
Mr. Drammeh also bemoaned their inability to regulate many business enterprises that refuse to register with the chamber because they lack the legal back up. Accordingly, the reports state that market inefficiency is one of the most conspicuous aspects of the Gambia’s economic regime.
“Upholding public interest is a function of good governance and implies that states like Gambia in their quest and drive to promote efficient markets must of necessity be aware that market does not always function properly due to lack of information, vested interest and outright corruption.
Commercial interest remains a driving force of business organizations; it says thus the responsibility of the government and its regulatory agencies is to protect the poor.
Creating regulatory agencies, passing a competition act and establishing a commission is good but what ultimately matters is the mechanism and measures and having its purview in the promotion of public interest.
The Gambia is presently beset with various constraints, weak institutional environment, absence of consumer awareness and strong consumer groups and stakeholders who are ill prepared to accept the rules of engagement.
More importantly, policy makers, lobby groups, political clients and other actors driven by vested interest must shield regulators and the commission from undue interference.
Source: The Daily News
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A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12314 Posts |
Posted - 02 Nov 2009 : 16:21:22
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"The Executive Secretary of The Gambia Competition Commission, Mrs. Jainaba Sambou said consumers in the Gambia have been left in limbo, adding that there are frequent price fluctuations that cause inconsistency in the market. She added that consumers of goods and services lack awareness of their rights to be able to raise questions on the goods and services that they pay their monies for.
According to her, this will soon no longer be the case with the enactment of a Competition Act, establishment of Competition Commission, which will have quasi judicial powers to oblige business enterprises to be more transparent and to treat consumers fairly."
OK very laudable I am sure,how many more years of talking will there be before these words are put into effect and those who breach the new act be forced to pay money,not in the lifetime of may of us and maybe not in out childrens lifetime,after all, its BUSINESS,isnt it? fairness, what's that all about then ?
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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