The Sunday News
Debra Matabvu, Harare Bureau
PROFITEERING businesses that unjustifiably hike prices of their goods and services could soon have their licenses revoked for unfair business practices under an operation meant to reign in market indiscipline.
The Consumer Protection Commission (CPC), in an operation being undertaken in collaboration with various law enforcement agencies, has deployed price monitors to flush out businesses that flagrantly hike prices of goods and services without justification.
The Government has, however, ruled out price controls. Our Harare Bureau has gathered that investigators from the statutory consumer watchdog are carrying out impromptu site visits to business premises in order to audit their pricing structures. Recently, some businesses hiked prices of their goods and services after the Government gazetted new regulations to protect consumers from unfair pricing.
Statutory Instrument (SI) 127 of 2021 came into effect on May 28 to address the rampant abuse of foreign currency accessed through the Reserve Bank of Zimbabwe (RBZ)’s weekly foreign currency auction.
It compels businesses to price their goods and services at the prevailing official exchange rate. CPC chairperson Dr Mthokozisi Nkosi told our Harare Bureau that there was no justification for pricing “madness”.
“The Commission in consultation with other arms of Government is closely following this behaviour with keen interest. We are receiving updates on a regular basis from our price monitoring team on these service providers.
There is very little justification for these price hikes as the cost of inputs is relatively stable. Our investigators are on the ground to unearth the motive behind this madness. We urge the sectorial associations to reign in their members before we take the drastic actions which include revoking licenses of habitual offenders.”
He said the Commission will soon introduce new regulations to arrest indiscipline. Specialised consumer rights courts, he said, will also be established, warning that the days of using moral suasion to solve consumer disputes were over.
“The Commission is currently working with the Attorney General’s office on various regulations covering different sectors of the economy. In addition, we are also in discussion with the Judicial Services Commission for specialised consumer courts. Very soon the exercise will be complete. The days of moral suasion in solving consumer disputes are over. We expect service providers to do the right things. Consumers have suffered enough abuse.”
Dr Nkosi said consumer protection was an integral part of a modern, efficient, effective and just market place.
The CPC came into being through the Consumer Protection Act in 2019. It has the power to fine businesses for unethical practices, including unfair pricing. In addition, businesses that engage in multi-tier pricing and display unpriced goods are liable to hefty fines in terms of the law. In terms of the law, consumers are also entitled to full refunds for defective or sub-standard goods. Other offences that attract deterrent penalties include fraudulent offers, failure to label products properly and the disclosure of consumers’ personal information to third parties.
