The Consumer Affairs Bill 2011, long called for, was last Thursday laid in the National Assembly by Minister of Finance, Dr. Ashni Singh.
The Minister tabled the Bill in the House in the absence of Minister of Tourism, Industry and Commerce, Manniram Prashad. The Consumer Affairs Bill 2011 provides for the promotion and protection of consumer interests in relation to the supply of goods and services, and renames the Competition Commis-sion as the Competition and Con-sumer Affairs Commission, which will administer the Competition and Fair Trading Act 2006 and the Consumer Affairs Act when it becomes law, the bill’s explanatory memorandum says.
According to the explanatory memorandum, the Bill is based on an earlier version of a Consumer Protection Act of 2006, which was not brought into force. This draft Bill, however, goes far beyond the scope of that Act. The 2006 legislation lapsed after President Bharrat Jagdeo failed to assent to it.
The Bill, when it becomes law, will compel suppliers to give consumers information about goods; provide measuring equipment that meets the standards imposed by law for use by consumers when selling goods and services by reference to measurements; and issue receipts and explicit warranties to consumers for goods and services.
It will also impose duties on the suppliers to compensate consumers for damage caused by goods and services during normal use; replace or repair defective goods and services; refunds for goods and services that are materially different from those requested; exchange or refund faulty goods and services as well as keeping records on repairs and providing accurate claims for payment of installments by consumers.
The Bill will ban a range of misleading practices or deceptive conduct in relation to the supply of goods and services including false or misleading information or conduct liable to mislead the public about goods and services. It will also ban the advertising of goods or services at a special price unless the supplier intends to supply those goods and services at the price; accepting payment for goods and services where the supplier intends to supply those goods and services, or where the supplier intends to supply materially different goods or services and; bait advertising, referral selling and pyramid selling.
The Bill would also prevent suppliers from excluding or restricting their liability for a good or service by reference to a contractual term or a notice, unless the term or notice is fair and reasonable. Excluding or restricting liability for death or personal injury arising from negligence is unlawful.
Meanwhile, the Bill will establish safeguards for consumers when entering into contract for goods and services by means of distance communication, including electronic means, mail order, and house-to-house selling.
The Bill would empower the Commission with the approval of the minister, to make regulations binding in law, an industry, trade or a profession, and all participants into its code. Once this is done, non-compliance by the industry, trade, or profession to the code, subject to the regulation, constitutes a breach of the regulation. The Bill also sets out penalties for the breach of any provision of the Act. These penalties range from $20,000 to $1M and up to one year imprisonment.
