Consumer Protection and Competition Highlights Zambia Masauso Phiri Investigator-Consumer Department Sixth Annual African Dialogue Conference Lilongwe, Malawi September, 2014 COMPETITION AND CONSUMER PROTECTION COMMISSION

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 Zambia Legal 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 Agreements  Abuse of Dominance  Mergers & acquisitions  Unfair Trading & Consumer Protection 2

3 Legal Framework cont’d Consumer Protection: The Act provides that “consumers are protected against unfair trade practices described under Part VII of the Act (Sections ). Competition: The Act is there to “safeguard and promote competition” as proscribed under Parts III, IV and V of the same the same Act.

Defective, Counterfeit & Substandard Products Products are cheap and thus attract Consumers from the middle and lower class e.g. Cell Phones 1-4 week guarantee/Warranty Mostly sold by Street Hawkers/Unregistered Businesses. Use of Advocacy to obtain Redress Law Enforcement: The Exodus Company (Defective Phone) Kalulu Investments (Defective Phone) Outreach and Education: Sensitization among traders and consumers Use of Brochures, media, (Spot Ads) NGAs/NGOs Formation of CCP School Clubs 4

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. CCPC seeks to ensure that contracts between Enterprises and Consumers are balanced. Challenging Misleading Representations & Unfair Contract Terms Law Enforcement: Hazida Limited (directed to change its warranty conditions) Mbwe Motorways (Prosecution & Compensation) Ticklay’s Coach Services (Refund) 5 Outreach Launch of Brochure on Commuters Rights at the Main Bus Terminals. 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: Cropserve Zambia Limited City Centre Suppliers Shijay Enterprises Limited Progress Medical Centre Studies: Planned Study on Auto Electrical Parts Outreach and Education: Sensitization & Education of Businesses and Consumers on the existence of the Act in relation to Disclaimers 6

CCPC’s aim is to expand to every district in Zambia starting with the provincial capitals. CCPC endeavors to explain and clarify matters relating to the Act through development of guidelines. Expansion & Legal Development Published Guidelines Administrative & Procedural Guidelines Guidelines on Fines 7 New Offices Solwezi Kasama Mongu Inspectors (Local Councils)

Most sectors of the Zambian economy are concentrated and CCPC is working at ensuring that there is fair competition. Fostering Competition in the Economy Law Enforcement: 16 Merger Applications received since January 2014, 7 of which have come through the Comesa Competition Commission Toyota Tusho-CFAO (Merger) Puma Energy-Total Aviation (Airport Joint Venture Facility) 8 Dominance- Studies in the- Sugar Sector Cement Sector

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 ICPEN ICN African Dialogue 9