Towards A Rights-Based Consumer Protection Law for Ghana

By Jean Lukaz MIH

Ghana, while still embarking on the necessary steps towards a new consumer protection law, cannot presently boast of consumer protection legislation but rather a number of legislations that deal with consumer protection issues. The lack of a comprehensive consumer protection law is often to be blamed on defective national trade policies that have evolved over the years.

According to the Ministry of Trade, the Ghana Trade Policy approved by Cabinet in 2004 is set within the context of Ghana’s long-term strategic goal of achieving middle-income status and becoming a leading agro-industrial country in Africa. It was designed to provide the Ministry with clear guidelines for implementing Government’s domestic and international trade agenda as well as ensure a consistent and stable policy environment within which the private sector can operate with certainty. To ensure that these policy objectives are met through the structured implementation of policy prescriptions, a detailed implementation blueprint – the Trade Sector Support Programme (TSSP) - was developed and launched in February 2005. It details out specific activities in 10 thematic areas (which together contain 27 sub-projects) to be undertaken annually for the achievement of the policy prescriptions contained in the Ghana Trade Policy.
The fundamental principle underlying the Trade Policy Is that the private sector is the engine of growth, with Government providing a trade enabling environment to actively stimulate private sector initiatives. This is to be achieved through the full spectrum of trade policy instruments across the ten (10) thematic areas that have been the basis of the Ghana Trade Policy objectives.

The new Ghana consumer protection law is to be based on the Consumer Protection Policy as captured in the Ghana Trade Policy with the sub-themes of Consumer Protection, Health and Safety of Consumers, Economic Interests of Consumers, Access to Adequate Information, Consumption and the Environment, Consumer Representation, Competition Policy and Government Procurement. Short of a single fundamental objective, the new consumer law must ensure a fair and transparent market place in which the rights of consumers are recognized and protected. Protecting consumers’ economic interests is as important as regulation to ensure that the goods and services are available at a reasonable price and are safe.

Ghana being a Third World country, the problems of consumers are more related to the provision of essential services such as drinking water, sanitation, education and health care, than the market-related ones. The new consumer protection law must give special attention to the basic needs of disadvantaged consumers, in both rural and urban areas, including low-income consumers, and those with very low levels of literacy. It must clearly spell out the rights of consumers and the responsibilities of suppliers of goods or services and regulate all aspects of the purchasing cycle for goods and services, from the advertising or marketing of products, the sale of goods, full disclosure of product or service information to consumers, the terms and conditions of contracts and after-sales services including the respect of guarantees and warranties, refund and return policies. The Ghana Consumer Protection Law must integrate the universally accepted consumer rights into law by referring, implicitly or explicitly, to eight specific consumer rights, namely:

1. The Right to Basic needs
2. The Right to Safety
3. The Right to Information
4. The Right to Choice
5. The Right to Representation
6. The Right to Redress
7. The Right to Consumer Education
8. The Right to Healthy Environment

As constitutions of countries have evolved to reflect a citizens’ rights-based approach, so are consumer protection laws. The Consumer Protection Law for Ghana must move beyond mere consolidation of scattered sectoral laws and regulations to crystallizing and reforming consumer rights as enshrined in the various laws of Ghana as well as fair trading regulations.

This will ensure an easily-accessible, consumer-friendly, cross-cutting, rights-based approach to the development of a single, comprehensive legal framework for consumer protection. As the review of existing laws is inevitable considering that there are a number of obsolete consumer protection provisions that need to reflect modern consumer economics It should not be a mere major review of commercial and fair trade laws but must make provision for the drafting of new ones. It must cover much ground to the extent of providing for future innovative business fraud schemes and unfair trade practices.

Many developing countries on the various continents such as Argentina, Brazil, Chile, Botswana, Uganda, Malawi and South Africa have moved towards a comprehensive rights-based approach to their development of legislation for consumer protection that was guided by the UN Guidelines for consumer protection under the themes of Physical Safety, Economic Interests, Standards, Essential Goods and Services, Redress, Education and Information, and Health.
Beyond the establishment of a Consumer Protection Authority and Small Claims Courts, the Ghana Consumer Protection Law must move for the creation of the necessary institutions to take care of general consumer rights, product quality and safety and the specialized area of financial services that will all strengthen the Consumer Protection Regime such as a Consumer Product Safety Commission and a Consumer Financial Protection Commission.

As consumer groups in Ghana are moving for the new consumer protection law, which they believe will protect Ghanaian consumers, the Consumer Partnership is of the opinion that given the present environment of lack of legal enforcement compounded by a lacunae of resources, a new act of law is no guarantee of better consumer protection although it could be a first step in the process. The Consumer Partnership also believes that some of the voluntary standards developed by the Ghana Standards Board, such as the Advertising Code must be passed into law making reference to it as a Legislative Instrument (LI).

Consumer Protection is not a one-way street and requires consumers to act responsibly as no quantum of protection can secure irresponsible consumers. Consumer Protection is a process that involves consumers, service providers, producers and the government in a blend of roles and responsibilities. Thus, a working definition of Consumer Protection proposed by the Consumer Partnership given this background should include

‘the responsible ethical behaviour of consumers, producers or service providers in the respective buying and selling of products or services and the effective control of the marketplace by the government through the enforcement of laws and regulations, the promotion of standards and the dissemination consumer education.’

This presupposes that for consumer protection to exist, prevail, and be effective, the following conditions must be satisfied:
1. Consumers must be aware of their rights and responsibilities
2. Consumers must be responsible in the exercise of their rights
3. Consumers must be aware of the ethical consequences of their consumption
4. Producers and Service Providers must be responsible for the consequences of selling shoddy goods and services
5. Producers and Service Providers must be ethical in the conduct of their business
6. Government must regulate the marketplace through policy, laws and regulations
7. Government must exercise its responsibility of promoting standards, Consumer Education and Consumer Protection through an Ombudsman and other supporting agencies.

Of critical importance is the essence of Consumer and Business Education as a government responsibility even with the enactment of a new consumer protection law. Consumers need consumer education to build their capacity to act as rational and responsible consumers in the market place; Businesspersons need consumer education to build their capacity to become ethical businesspersons, to serve consumer interest, satisfaction and well‐being for a profit, rather than to profiteer from them; and Manufacturers need consumer education to build their capacity to become ethical manufacturers to serve consumer interest, satisfaction and well‐being, also for a profit and not mislead consumers to profiteer from them.

The actions of educated consumers and responsible businesses are often highly effective in minimising the harm caused by shoddy services and unsafe products. More importantly, they do so in a way that poses the least obstacles to business activity and to the ability of consumers to choose the goods and services that they prefer.
Responsible businesses go to considerable lengths to ensure that the products which they market are safe for consumers and that consumers are provided with sufficient information to use products safely. Many Ghanaian consumers take for granted that they need to educate themselves about the safety characteristics of the products which they purchase.

In their own bid to protect themselves, Ghanaian consumers need a set of tools to equip themselves with knowledge for their own safety. These tools of self-protection include protecting and optimizing their limited resources, avoiding product misuse, seeking information on products before buying them, using their buying power intelligently by patronizing quality goods and services while boycotting fake ones.

Consumer advocates in Ghana have often made the mistake of thinking that knowledge of consumer rights and the enactment of consumer protection laws will provide a safe haven for Ghanaian consumers. In every country in the world, even in the absence of a consolidated Consumer Protection Law, various statutes in the various sectors of the economy already contain provisions that are meant to protect the interests of consumers and it is the lack of legal enforcement that has been the bane of the system. Some of these laws and regulations are the mandates of various regulatory agencies in the country that are responsible for their enforcement and there are consumer protection provisions in all of them. Prioritizing consumer protection within their mandate has been the growing concern of Ghanaian consumers as they find very little being done in this area. Most Ghanaian consumers question in whose interest some of these government regulatory agencies are working as they believe that these government agencies are more protective of businesses within their jurisdiction than protecting consumers. This is buttressed by the fact that government regulatory agencies have not got sub-offices in the central business districts and other major markets where most consumer problems persist and are more prominent than their present head offices that are unreachable to most Ghanaian consumers.

Even in those countries where there is an enacted Consumer Protection Law, consumers cannot profess to know its content in totality. However, just like knowing there is a Police Force that looks out for the violation of criminal laws that we may not even be aware of, citizens still have the responsibility of protecting themselves from crime by learning to lock up their property, keeping their homes insured, staying away from infringing on other people’s freedoms and learning which of their own actions constitute civil wrongs and criminal violations, etc.

Even with the presence of consumer protection organizations, consumers, thus, have a responsibility of learning to read labels of products to check the ingredients, date of expiry, etc since no organization or law will do so for them at the point of purchase. Similarly, consumers are to read and understand contracts there are given to sign before appending their signatures.

For more information, contact:
The Consumer Partnership-Ghana [The COP]
KDPM 28
Kanda-Accra

Email: jytlukaz-AT-gmail.com, theconsumerpartnership-AT-gmail.com

http://www.ghanaconsumerwatch.wordpress.com
http://www.ghanaconsumerwatch.blogspot.com
http://www.theconsumerpartnership.wordpress.com

Is Consumer Protection Obama’s New Public Diplomacy Tool?

by Jean Lukaz MIH

Soft as silence, Obama’s Consumer Protection Advocacy has ridden on the waves of the global economic recession and landed on the African Continent, for the past two years, through the Office of International Affairs of the United States Federal Trade Commission (FTC). The African Consumer Protection Dialogue is gaining ground and bringing in its trail big players such as Consumers International (CI) and the World Bank.

This has been part of the FTC’s second year of consumer education outreach to the African continent in its commitment to working towards consumer protection in a global competitive marketplace that knows few boundaries. In a bid to sensitizing consumer protection enforcement agencies in African countries on the need for closer co-operation and a common framework to tackle cross-border fraudulent and deceptive commercial practices, the FTC seems to be laying the groundwork for enhanced international co-operation on a larger number of consumer protection issues in Africa.

As most of existing national laws and enforcement systems designed to address fraudulent and deceptive commercial practices against consumers were developed at a time when such practices were predominantly domestic, and such laws and systems are therefore not always adequate to address the emerging problem of cross-border fraudulent and deceptive commercial practices, the Office of International Affairs of the FTC is working with competition and consumer protection agencies in Africa to promote cooperation and convergence toward best practices and is also actively assisting developing countries in their transition to market-based economies and their development of competition and consumer protection agencies. The FTC also aims at helping current regulatory environment for consumer protection to be consolidated from the fractured array of national agencies and regulatory authorities from the example of the recent move of the US in the establishment of the Consumer Financial Protection Agency (CPFA).

After haggling with African governments with the attendance of Consumers International (CI), the global consumer lobby, the FTC is now globe-trotting from one African country to another gathering consumer protection groups and government regulatory agencies alike in a consultative technical assistance that seeks to persuade African governments adapt the successes of the FTC institutional and legal framework to the African setting.
It appears that the promotion of consumer protection has finally become one of the tools of Obama’s public diplomacy efforts. With the increasing penetration and influence of the Chinese in Africa, it seems that the only way the root out the Asian menace is to cripple the shoddy products that used to be the hallmark of the rogue trade of the awakening giant through co-operation.

In the light of present developments some Africans are quite strongly behind China with her easily accessible credit and technology transfer with softer ties. Quoting Makwaia wa Kuhenga, [The Citizen, Tanzania]: ‘The propaganda against China most often than not is as if China is poised to grab vast swathes of land in Africa to meet this Asian country’s “hunger” for raw materials and energy! But the real worry of those projecting China in this manner with the intent to scare African countries is that the owners of these multinational media agencies are wary that Africa may diversify its trade relations in favour of China, thus ditching Africa’s former colonial powers.’

Third World consumers as well as poor consumers in advanced countries have always been at the vulnerable end of rogue trade as a pitiful result of trade liberalization. Poverty has turned out to be the very nemesis of poor consumers faced with a libidinal bargain hunt for the cheapest offers and multiple choices between various degrees of both locally produced and imported shoddy and hazardous products. In the absence of affordable options and the right to affordable choice, poor consumers only exercise their will and purchasing power in an act of faith with the ‘audacity of hope’ that by chance they shall get value for their money. ‘But compared to the former colonial powers in Africa who seem to sustain an exploitative relationship in Africa via subtle means, it would appear the Chinese want to hand Africa - not free fish already cooked on the table - but hand us fishing nets to go and fish ourselves in the sea; true to their ancient adage and tradition. What are we ready to accept: fishing nets or mosquito nets?’, says Makwaia wa Kuhenga.
On a balance, the stance of the US in relation to China is highlighted be Nye as he says ‘If America treats China as an enemy today, it will ensure future enmity. While we cannot be sure how China will evolve, it makes no sense to foreclose the prospect of a better future. America’s current policy combines economic integration with a hedge against future uncertainty… But, while such hedging is natural in world politics, modesty is important for both sides. If the overall climate is one of distrust, what looks like a hedge to one side can look like a threat to the other’. International relations in the 21st century is no longer exclusive, and there is neither a cold war expectation that countries align to a dominant power as it used to be. Or maybe Africa is presently riding the Non-Alignment Trade Bandwagon and cannot be bothered by hidden agendas as long as the continent gets the support she needs, irrespective of the source?

Obama’s Long Arm of Consumer Protection Reaches out to Ghana

By Jean Lukaz MIH

A delegation from the Council for International Consumer Protection of the United States Federal Trade Commission (FTC) met with the Consumer lobby in Accra-Ghana under the auspices of the Ministry of Trade and Industry on Wednesday to deliberate on ways of leveraging the institutional strength of the FTC in establishing enforcement mechanisms to protect Ghanaian consumers.

This was part of the FTC’s second year of consumer education outreach to the African continent in their commitment to working towards consumer protection in a global competitive marketplace that knows few boundaries.

In a workshop themed ‘Empowering Consumers through Education’, the FTC delegates Deon Woods Bell and Shaundra L. Watson delivered presentations with Ghanaian counterparts on key topics that included common consumer protection challenges in the legal frameworks of both Ghana and the US, financial practices, internet fraud, consumer education tools, and dispute resolution and redress mechanisms.

According to Ms Bell, the principal, but not the only, consumer protection agency at the federal level is the United States Federal Trade Commission (FTC). The FTC works alone, but in concert with other federal agencies, to administer a wide variety of consumer protection laws. The overall goal is to afford consumers a deception-free marketplace and provide the highest-quality products at competitive prices.

Representatives of consumer protection organizations such as the Consumer Partnership (The COP) was in attendance and offered useful suggestions on how to adopt and implement the lessons learned from the FTC cases and consolidate the Consumer Protection Bill in terms of content and the institutional setup of the proposed Consumer Protection Authority (CPA) that will function as a parallel of the FTC. Other consumer NGOs present were Consumers Association of Ghana, Consumer Protection Agency and Consumer Services Association.

Discussing the legal authority of the FTC, Ms Watson indicated that the organisation has enforcement and administrative abilities and has two main goals of protecting consumers by preventing fraud, deception, and unfair business practices in the marketplace and of maintaining competition by preventing anticompetitive business practices. She added that under the FTC Act, the FTC can make victimized consumers whole through restitution and punish wrongdoers through disgorgement of ill-gotten gains. The FTC seeks these remedies when it can objectively determine a clear violation of a law and reasonably calculate the damages payment. The FTC does not have the power to bring criminal charges. Any such federal cases in the consumer protection area would be brought in federal courts by the U.S. Department of Justice.

The Office of International Affairs of the FTC works with competition and consumer protection agencies around the world to promote cooperation and convergence toward best practices and also actively assists developing countries in their transition to market-based economies and their development of competition and consumer protection agencies.

Updating the audience on the status of the Consumer Protection Policy and the long-awaited Consumer Protection Bill, Mr. Ben Peasah, a Director at the Ministry of Trade and Industry, intimated that the Policy is before Cabinet pending approval after which the next steps towards a consultative development of the Bill can commence.

Participants were drawn from various Ministries Departments and Agencies (MDAs) such as Bank of Ghana, Ghana Police Service, Customs Excise and Preventive Services (CEPS), Ghana Law Reform Commission, Judicial Service, Ghana Standards Board (GSB) and Food and Drugs Board (FDB) among others.

Ghana Will Soon Have A National Competition Law, ISSER

Ghana will soon have a National Competition Law that will serve the purposes of ensuring efficiency in the production of goods and services.

The law will enable consumers of products and services to enjoy lower prices, higher quality goods and services with variety of choices.

Dr Charles Ackah, a Research Fellow at the Institute of Statistical, Social and Economic Research (ISSER) announced this at the first meeting of a group called the National Reference Group to discuss issues involved in having a competition policy in Ghana.

The National Reference Group has members from the National Communications Authority, Energy Commission, Public Utility Regulatory Commission (PURC), Bank of Ghana, Trades Union, Non-Governmental Organisations especially those that focus on consumer protection and the Food and Drugs Board.

Dr Ackah explained that a National Competition Law in any developing country like Ghana can play an important role in tackling some abuses of the market power.

For example Ghacem, a cement producing company in Ghana, has been long suspected of price-fixing, he said and noted that prices of cement range from GH¢ 5.6 to GH¢ 10, while calculations commissioned by the Auditor General suggests that cement can be retailed at less than GH¢ 4.6.

Dr Ackah said when the law is passed a Competition Commission will be set up to regulate the Ghanaian Market and will ensure access to affordable and quality products and services.

"Ghana currently lacks a comprehensive consumer protection law," he said and explained that even though there are legal institutions to deal with issues that concerned consumer protection there are also challenges that need to be dealt with.

A competition policy in Ghana will adopt advocacy through the National Reference Group to educate citizens about existing laws and regulations to guarantee people access to the right information about access to affordable and quality products.

Mr Rijit Sengupta, Deputy Head of CUTS International, India based non governmental organisation that focuses on promoting competition policy, consumer protection, human development and trade issues especially in developing countries said there is the need for the right regulatory framework to ensure an effective competition policy in a country.

He said the project featuring in Ghana, Burkina Faso, The Gambia, Mali, Nigeria, Senegal and Togo will engage in research, dialogues, advocacy, networking and training to educate people about competition policy.

Civil society organisations, the business community and governments are expected to be the direct beneficiaries and the National Reference Group members will help enhance knowledge on competition policy and consumer welfare.

Mr Sengupta noted that, the project will promote a healthy competitive culture in the country while establishing communication channels between civil society, the business community and government.

Source: GNA
Posted: 20/09/08

http://www.ghana.gov.gh/ghana/ghana_will_soon_have_national_competition_law_isser.jsp