Ghana: Thick-Skin Consumer Protection

By Jean Lukaz MIH, MTS

Where there is no consumer protection law, it does not really make a difference when you are living in the jungle. In such an evolutionary environment in nature’s farm, everyone develops a thick skin: from the elephant to the cockerel to the umbrella tree and even to the eagle.

In a dog-eat-dog world, consumers in the Third World and in some advanced countries are only protected by their own immune systems other than external Machiavellian forces that only militate against them in the end.

What is Consumer Protection in the absence of a backing law and self-motivated civil society organizations?

In Platonic and Machiavellian terms, having the appearance of Consumer Protection than the reality of its existence in the manifestation of laws and institutions and the apprehension thereof has become the present predicament of Ghana and Ghanaian consumers. Weak government institutions and the semblance of regulatory enforcement and their reality as lame ducks have become the enemies of both Consumer Protection and the rule of law.

Anyone used to mosquito bites is likely to be living in a developing country. In the same manner consumers that are exposed to most consumer problems are dwellers of developing countries, most likely to be citizens of a utopian Consumers’ Commonwealth for the Anglophones and anglophiles or a politically assimilated DOM-TOMs, for the Francophones, including francophiles.

Let us do some scuba diving by making a naïve observation of the naked perambulating ‘traditional madman’ in Ghana, who is discarded by psychiatry, that prowl the cities reclaiming the streets, excepting the environs of the heavily guarded ghost haunted Fortress Ghana that is ironically fully exposed on Google Earth considering that even Diplomatic Missions have been heavily smudged beyond detection and their coordinates undeclared.

Our traditional madman, like the moon, goes round and comes around in many forms: sometimes as a consumer, sometimes as a manufacturer, wholesaler, seller or service provider and at times as the government.

In retrospect, Consumer Protection has evolved in all forms in Ghana: sometimes in the form of political persecution or public scourging in the name of ‘Kalabule’ [consumer rip-off], or price control laws in a quasi-communist milit-o-cracy determined by Machiavellian ‘armed prophecy’.

Given this status quo, Ghanaian consumers have been anaesthetised by rhetoric, breakdown in the rule of law, deceptive appearances and empty pre-election promises ever unfulfilled.

The aforementioned traditional madman sleeps in the streets in rain or shine, fully exposed to the capricious elements and most importantly, to zillions mosquito bites yet he hardly contracts malaria. Is it because he has become immune to the bites of this minuscule vampire bearing leviathan parasites of political lies and unscrupulous business exploitation or is it because malaria is only a condition of the mind far from a disease?

Whether in limbo or out on a limb the Ghanaian consumer, it appears, has developed a thick skin. After all, regulatory enforcement institutions can be simulated as distinguished consorts of unscrupulous businesses. To put your faith in them ‘It shall even be as when an hungry man dreameth, and, behold, he eateth; but he awaketh, and his soul is empty: or as when a thirsty man dreameth, and, behold, he drinketh; but he awaketh, and, behold, he is faint, and his soul hath appetite:…’ [Isa 29:8 KJV].

To cry ‘Consumer Protection’ is all a vexation of the spirit and a chase after the wind, a Hobbesian attitude to life as a consumer in ‘the state of nature,’ in the absence of authority and the law:

“…think about how you behave: when going on a journey, you arm yourself, and try not to go alone; when going to sleep, you lock your doors; even inside your own house you lock your chests; and you do all this when you know that there are laws, and armed public officers of the law, to revenge any harms that are done to you. Ask yourself: what opinion do you have of your fellow subjects when you ride armed? Of your fellow citizens when you lock your doors? Of your children and servants when you lock your chests? In all this, don’t you accuse mankind as much by your actions as I do by my words? Actually, neither of us is criticizing man’s nature. The desires and other passions of men aren’t sinful in themselves. Nor are actions that come from those passions, until those who act know a law that forbids them; they can’t know this until laws are made; and they can’t be made until men agree on the person who is to make them. But why try to demonstrate to learned men something that is known even to dogs who bark at visitors—sometimes indeed only at strangers but in the night at everyone?” [Thomas Hobbes, Leviathan, XIII, ‘The natural condition of mankind as concerning their happiness and misery’]

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.

Generator safety: Deaths from CO poisoning on the rise

Deaths from carbon monoxide poisoning associated with the use of portable generators are increasing, according to new information released by the Consumer Product Safety Commission.

There were 85 carbon monoxide poisoning deaths attributed to the use of generators in 2006, the year covered in the latest CPSC study. The estimated number of generator-related CO fatalities doubled in 2005 and 2006 from the two prior years, with a combined estimate of 182 fatalities in 2005 and 2006 compared to an estimated 92 in 2003 and 2004, the agency reported. One reason for the sharp spike in 2005 was likely a high number of severe weather events that caused widespread power outages, including hurricanes Katrina and Rita.

Non-weather related CO fatalities associated with generator use are also on the rise—by 53 percent from 2004 to 2005, and another 41 percent from 2005 to 2006. In contrast to 2005, the busiest hurricane season since records have been kept, there were no hurricanes that made landfall in the U.S. in 2006.

Recently, Underwriters Laboratories asked us to help get the word out on generator safety and to call attention to its first standard for portable generators, which took effect in March. The standard—UL 2201—addresses hazards associated with the typical use of generators, primarily those related to CO poisoning.

According to UL, the new performance requirements facilitate safe outdoor use of UL-listed portable generators during storms or poor weather conditions, as well as provide clear usage labels for consumers to help reduce the known risks of CO poisoning and electrocution.

Here are some tips on generator safety that our readers have found helpful..

• Never operate a generator indoors or in any enclosed or partially enclosed area—even if you think you can adequately ventilate the space.
• Keep generators away from windows, doors, air conditioners, and vents where gases can enter the house. Outside, always be conscious of where the exhaust gas is moving, and stay out of its path.
• Maintain working carbon-monoxide detectors throughout your home.
• Properly store and handle the gasoline. Never refuel the generator while it's running; stop the engine and allow it to cool first.
• Store gasoline safely. Keep it outside in a cool place away from the house or a heat source. Treat gas with a stabilizer (about $5 to treat 25 gallons) to preserve it for up to a year. And dispose of old fuel by using it in mowers and other outdoor equipment.
• Be sure the generator is properly grounded, and use extreme caution around wet electrical cords. Use a portable GFCI device with extension cords whenever you use your generator.
• Never connect a generator directly to a home's wiring. If the generator is used to power home circuits, always use a properly installed transfer switch (about $600 installed).
• Keep connections safe. For small generators, use extension cords rated for the wattage they're carrying.

For more information see our most recent report on generators including Ratings and recommendations.

http://www.cpsc.gov/cpscpub/pubs/portgen.html

Ghana to host conference on consumer protection in Africa

Ghana is to host an international conference on consumer protection in Africa, coming September 8-9, 2009 in Accra.

More than 250 policy makers, regulators, journalists and representatives from financial institutions and their apex organizations, the education sector, consumer protection agencies, and development partners from over 30 countries will participate in the conference.

The conference would be hosted in collaboration with the Partnership for Making Finance Work for Africa (MFW4A) on the theme “Promoting Financial Capability and Consumer Protection – A step forward towards financial inclusion in Africa.”

A statement from the Ministry of Finance and Economic Planning issued in Accra on Thursday, quoted Dr Kwabena Duffuor, Minister of Finance and Economic Planning saying "Promoting financial capability is about raising awareness, promoting knowledge, building trust, and changing behaviour.”

“And it is not limited to educating consumers and enabling them to take informed decisions on savings, loan and investment products”, he added.

According to him, management and staff of financial institutions need to be trained to become more responsive to the needs of their clients, and supervisors need the capacity to protect consumers against fraud and other bad business practices.

The conference is being organized against the background that low-income households in Africa often have limited access to demand-oriented and affordable financial services.

They include savings, loans, and insurance, which means they have to revert to more expensive and less secure traditional alternatives of saving and borrowing and remain vulnerable to adverse shocks.

Research has shown that in order to strengthen financial institutions in Africa, there is the need to promote financial capability, to empower people to be capable of managing their financial assets and liabilities and to better understand their rights and responsibilities vis-à-vis financial institutions.

However, strengthening the financial capability of the population is not sufficient since governments also have a role to play in protecting consumers by ensuring that financial institutions apply recognized standards and suitable codes of conducts.

In order to create sustainable ‘win-win situations’ in this long-run, it is believed that financial capability measures need to go hand in hand with responsible, transparent and reliable services provided by financial institutions.

In moderated regional and national working groups, participants will have the chance to develop ideas and proposals as to what they think should be done in their country or region to improve financial capability.

A panel on social marketing will show films and discuss which marketing channels can be used best to address the different target groups of financial capability campaigns.

The Government of Ghana, together with the Ghana Microfinance Institutions Network (GHAMFIN), will hold as a prelude to the conference, a day’s Pre-Conference on “Promoting Financial Capability and Consumer Protection in Ghana” on September 7, 2009.

According to Mr Seth Terkper, Deputy Minister of Finance and Economic Planning, “Financial capability is very high on the political agenda of the Government.”

He said “Ghana is one of the first countries in Africa that have developed and started to implement a National Strategy for Financial Literacy and Consumer Protection in the Microfinance Sector”.

Over the past two years, “financial literacy road shows” have been carried out in all 10 regions of Ghana, easy-to-understand educational materials have been developed and distributed, high school quizzes have been organized, and radio programs on saving and responsible borrowing as well as television sitcoms on insurance have been telecast.

All activities will culminate at the Ghana Financial Literacy Week, which will take place from 28 September 28 to October 3, 2009.

Against this background, over 150 Ghanaian and international financial sector champions from the public sector and the financial sector as well as representatives from academia, consumer protection agencies, non-governmental organizations and development partners will discuss and evaluate whether “Ghana is on track and set the right priorities in financial capability and consumer protection”.

Additionally, innovative topics such as “Integrating Financial Capability into High Schools” and “Promoting Financial Capability through Mass Media” will be addressed.


Source: GNA

Global consumer movement sets out conditions for a new financial order

· Consumer education not enough, protection is vital

· Measures to restrict emerging monopolies needed

· Ringfence retail banking to protect consumer deposits

· No bailouts without essential services investment obligations

Consumers International (CI), the global federation of consumer organisations, today set out its solutions to the financial fix calling for effective, affirmative, preventative consumer protection as an essential foundation for moving beyond the economic crisis.

Following worldwide consultation with its membership, CI is submitting its position to the UN Conference on the World Financial Crisis, 24-26 June. This follows ongoing contributions to the UN’s Stiglitz Committee and the OECD.

Joost Martens, Director General of Consumers International, stated that “While CI research has shown most consumers manage their finances responsibly, they have been unfairly blamed by governments, media and industry for creating this crisis through irresponsible borrowing, and then prolonging it through insufficient spending. It is high time the so-called experts start listening to consumers, rather than blaming them for the mess the bankers and governments have created.”

In mapping out the consumer movement’s call for a new financial order, CI argues that the financial crisis began with a failure to protect consumers from bad loans in the US and other mortgage markets. A viable fix for the global economy must include greater regulatory oversight of a far more transparent banking industry.

However, whilst transparency is important, more information for consumers is not enough. The system is simply too complex at present and needs regulatory intervention to remove incomprehensible financial products and services.

Robin Simpson, Senior Policy Advisor at Consumers International, has hinted that “Consumer education is a right, but avoiding financial ruin in the current climate takes more than access to information. No doubt the clients of Bernie Madoff thought their money was in good hands, but the billions he embezzled shows we are all susceptible to the faults in the financial system. Better law, as well as better understanding, is needed”.

The meltdown of the financial industry has also led to bank mergers being hurried through by competition authorities. CI is gravely concerned that the banking monopolies emerging from this crisis pose a danger to consumer choice and protection. We therefore call for strict monitoring and reporting requirements to be established to ensure the new financial services landscape works for the consumer.

There must also be a clear distinction between retail and investment banking activities. Only then can consumer deposits be protected from the irresponsible behaviour and risky speculation of the investment bankers.

CI is also concerned that the current seizure of bank activity is denying millions of poor consumers access to basic bank account services and starving critical public utility developments of investment. This is of particular concern in the developing world where the flow of funds is a vital means of achieving improved consumer access to electricity, water, sanitation and financial services.

CI is therefore demanding that taxpayer bailouts come with mandatory obligations to provide basic consumer banking services and investment in major social infrastructure projects.

According to Robin Simpson “The banking sector has elbowed its way to the front of the public expenditure queue as a result of the threat of collapse, effectively holding a gun to the head of government. They cannot simply swallow taxpayer money and carry on as before; firm commitments to provide for basic consumer needs and services must accompany these bailouts. ”

For more on CI’s work in this area, visit www.consumersinternational.org/financialcrisis

Fake, Fake And Fake Again!

By Prof. Lade Wosornu
Saturday, 01 December 2007
http://www.newtimesonline.com/content/view/12726/222/

Fake, fake and fake again. Bogus… Imitation… Counterfeit…You see them everywhere… Currencies spare parts perfume DVDs CDs cosmetics fabric dresses shoes booze bags accessories watches brief cases suit cases cigarettes cigars diamond gold bishops priests….

What makes you think that medicines should be free of fakes? Because human lives are directly at stake?

To whom can you turn?

The barons of fake drugs (fakes for short) do not give a jot about your life or mine. Money is their craze. And, it is war out there. They, in one camp, regulators in the other. They do not care what collateral damage is done as they pursue their ill-gotten gains. If Madam Aku Shika, fish monger at Chorkor, gets shot in the cross-fire, just too bad.

Of all the chilling manifestos of these new slave traders, few can be frostier than this: "If God didn’t want them sheered, He won’t have created them sheep."

So, to whom can you turn? Concerning drug regulation systems, it has been shown that only 20 per cent of WHO member states have well-developed ones; 30 per cent have none. In any event, governments and agencies can look out for you so far, but no further. You must learn to look after yourself.

Few fakes get caught, and even fewer deaths from fakes are detected. Best of all, if they get caught, the penalties are less severe.

Fake dealers know all that. They count on all that, as they tot up their dollars but ignore the corpses off whose flesh they feed.


The individual?

What can the individual do to protect himself or herself? Not much! Madam Veronica Gargo, chair, Tsokor Vigilantes, was explaining: "Don’t blame Aku Skika. The ‘pharmacist’ took her new Cedis and gave her capsules for fever. He even said: ‘Actually, Aku, you are lucky. These are the last six capsules left."

So, Madam Gargo shrugged her shoulders and sighed: "How for do!"

She is in good company as witness this report. "In developing countries, public education is also poor. A study in Laos showed that over 60 per cent of peddlers and 80-96 per cent of consumers knew nothing about fakes."

The report adds: "Better education might not make that great a difference. Over 50 per cent of the world lack access to hospitals. A sick man is a desperate man. He will take whatever he can get." Even if it’s fake?

"Ohiafo heor nii ke djirawale." This is Gã: "The poor buy expensively!" And, some times, it would seem, they pay with their lives. But, in this corner, who is counting the dead?

This is G "The poor buy expensively!" And, some times, it would seem, they pay with their lives. But, in this corner, who is counting the dead?

Even the enlightened

What makes you think that only un-lettered stereotypes are hood-winked, conned and down-right robbed in day light? Mr. Oto Weley, faceless ‘aplanke’ and stand-by driver who, first thing in the morning, shows up at the lorry park reeking of ‘fumes’? Or, Madam Mercy Badu, dealer in second-hand beads?

Professor Dr. Dr. Kofi Bosu, PhD, MB, ChB, is current president, Skin Researchers’ Guild. (Pardon me, but the gentleman really prefers the triple appellation: professor, doctor and again doctor.) An experienced traveler, the professor-double-doctor was buying another rolex at Laguna International.

"Is it genuine?" "Fake? Sir? How? Of course…Give you good discount." "How much?"

Gerald Abu, 25, unemployed, of no fixed abode, could scent blood. "You special customer… First today. 50 per cent.... 60…75 per cent..." And so, the professor-double-doctor paid $ 500 ($1,750 in duty-free) ….Smiles…Handshakes…. Two weeks later, in James Town, the ‘gold’ started to fade and the rolex stopped.

For ‘rolex’ substitute Viagra, Multivitamins and the unending life-style products.

Source

Technology makes fakes easier to produce and the Internet speeds the pace of commerce. Sales of fakes will reach $75 billion globally in 2010, an increase of over 90 per cent from 2005.

Fakes have found a natural home in some countries. There has grown a deadly industry. The poorest nations are paying the price, where 50-70 per cent of medicines are fake (WHO). It has been called "One of the greatest atrocities of our time… Mass murder… A form of terrorism against public health…Economic sabotage."


Serious imitation, serious business

Today’s fakes are often impossible to distinguish without chemical testing. The packaging is identical to the real McCoy.

"It used to be amateurs. Now scientists have entered the fray. They can replicate products quickly, complete with perfectly copied packages in amazing detail. Mind you, the content can be boric acid, floor wax and yellow paint."

The business may be criminal. But it is serious and highly organised. The countries which house the perpetrators, also have their share of victims. "Bi ni ker enye akawor ler, ler hu ewong." This is Ga. The child who says his mom should not sleep, also shall not sleep."

See how organised crime runs their fake businesses: networks with suppliers, buyers, distributors, financiers, markets. They have CEOs and CFOs with managers for production, shipping and follow-up.

The manufacturing is a multi-step process in the same town. One factory makes the pills, another ingredients, a third labels and even holographs…Then wholesale markets across the country, followed by global distributors – overland, by air and by ship and so to Africa. Shipments tend to go through mega-ports. Why? Because, where is the safest place to conceal pebbles? Pebble beach…

They also know the markets well. Different drugs for different populations: life-style versus life-saving. There’s also a price-point differential: Expensive (fake) brand names go up to rich Texas. Fake generics and over-the-counter stuff come down to Hwidiem.

Not all economies are created equal

The big boys take care of themselves. In developed countries, the big Pharmas are Alsatians. They jealously guard their brand, their market share and customers. Not so in developing countries. Our markets are less profitable, brand loyalty is fickle and societies less litigious. So, why should they look out for the likes of us?

Tackle the roots

Efforts are being made to cut the problem off at source. Central governments are becoming more effective in the war on fakes. But, problems remain at local authorities. Rules passed in capital cities are not always enforced in Kejebi.

Take this market as an example. A city, 650,000…Six hours south of a capital. Over 30,000 wholesale distributors…Over 40,000 different types of products. Between 80 to 90 per cent are perfect fakes. A host of other businesses support the market and employees. These include hotels, night clubs, transportation and storage.

A new slave trade

If an official were to shut down the fake market, that would ruin the local economy, bankrupt businesses, raise unemployment and create social unrest. This, social unrest, is one thing governments fear most- even more than the black plague.

Therefore, cracking down on known fake cities may be too little, too late. For one thing, factories shall move to shadier, less regulated places. For another, buyers from your town and mine will pursue the loot and not allow them to be closed.

Such are the moguls of this new slave trade. And, here is their favourite value statement: "If God didn’t want them sheered, He won’t have created them sheep".

You’d better watch out for yourself.

**Lade Worsonu is a Professor in Surgery, King Faisal University, Dammam, Saudi Arabia.

Hidden Flow: The Rising Tide of European e-Waste in West Africa- GHANA

Consumer Protection: A Panacea For Shoddy Goods & Services?

by Jean Lukaz

Pundits in Ghana have always pointed fingers at the ineffectiveness of consumer protection associations in the country in the face of the proliferation of shoddy goods and services. Why consumers are thinking along these lines are a wonder. It is as if consumer protection will get into factories and offices and literally rid the country of this menace.  On the other hand, consumer activism stimulates the market to provide products, processes and services that are better and safer.

Hard or Soft Power?

Consumer protection is not about hard power, the use of physical force. It is rather on the contrary. It is about soft power: dialogue, persuasion, understanding, and joint action by consumers, producers and the government. Hard consumer power rather alienates consumers and consumer activists from the government and producers of goods and services. It is in this light that some people feel that lawyers are probably the best activists when it comes to consumer protection but let’s get this right: is consumer protection about litigation and legal threats? Consumers are generally assumed to be laymen, otherwise irrational in their thinking when they are uninformed. The aim of consumer protection is to present safe products and services in plain lay universal language that is understandable by all so that consumers will put products and services to the right use for which they were purposed.

The Weapon

Consumers are not specialists but in consumption. And the only adverse way consumers react is by way of complaints and boycott. An influx of complaints on a particular product or service is an alarm bell and a call to action. Action is not necessarily litigation, which rather ends up antagonising producers of goods and services. Action is about alerting the producer who may not even be aware of the impact of their products on consumers. Complaints, by way of feedback, arm consumers with the reason to proceed to the next level in case of inaction on the part of producers. When consumer complaints are met with arrogance and denials, industry associations are the next places to visit with the complaints. Consumers may collectively channel their complaints through a consumer protection association or other and request for feedback on the action that will be taken by the industry association within a specified timeframe. Where the industry association compromises or is ineffective, the regulator of the industry is the next point of call and consumers may well put their complaints and grievances in writing even after verbally doing so. One would ask about what to do if the regulator fails to act…in that case there is something definitely wrong with the whole process of consumer complaints management process in the industry or country. This requires a microscopic examination of the structures that have been established to give consumers their value for money. The lawsuit is the last resort if you have the money to bring commercial giants into the courtroom. It may not be worth your complaint to sue unless it is intended to generate negative publicity for the producer in order to sensitise the public about their insensitivity.

The Practicals

To put the above into practice, if you are aggrieved for buying a faulty new automobile and the seller or distributor refuses to repair or replace it, you just make sure you put your complaint or grievance into writing and copy it to a consumer protection association such as The Consumer Partnership (THE-COP). The next step is to send another letter on how you have been treated unfairly by the distributor and what action you request to the Automobile Distributors Association (if there is any), attaching a copy of your previous letter to the distributor. Make sure a copy of this letter is also sent to the consumer protection association that received your first letter (this will help them to monitor and fight on your behalf where the occasion arises). If the industry association in question compromises or does not act on your complaint after the timeframe you requested expires (unless they reply to explain) you then proceed to the regulator of the automobile industry in Ghana: I’m not sure who does…Where there is no regulator or a national consumer ombudsman, the Ministry of Trade in this case may be the next point of contact with your new complaint letter detailing the various actions you have taken that have not received any attention and what action you are requesting. Remember to copy this final letter to your correspondent consumer protection association and attach copies of all correspondence to the Ministry of Trade including relevant receipts and contracts (do not send original copies). If the Ministry fails to respond without explanation within a timeframe it is time to talk to some litigant lawyers. In Ghana the Centre for Public Interest Law (CEPIL) may be of help. They may however take a commission from your claim for their effort even if you do not pay any fees initially. Remember the media at this stage but consult the consumer protection association first as they may give your story the right twist. Other consumers will definitely need to share your experience with such an arrogant distributor so they may not fall victim to their wiles.

To Be or Not to Be?

The question under review here is: Does consumer protection bring sanity into a system? The answer may be a yes and no depending on where you are coming from. If you are coming from the USA, where industry regulation is quite effective, then Ralph Nader has already done most of the work so the answer may be a yes. If you are fortunate to come from Ghana, where regulation of industry is rather ineffective, the answer is a big NO! Consumer protection is just one of the answers and its effectiveness is dependent on a number of factors.

Competition, regulation and standards all go hand in hand in giving consumer protection a boost.

Competition forces otherwise producers of shoddy goods and services to put their best before consumers in order to win a market share. Competition, in the face of the market forces of demand and supply, keeps the best actors in business whilst phasing out the bad and ugly. Lack of competition gives consumers no alternatives to substitute shoddy goods and services for as a monopolistic environment may not be a fertile ground for consumer protection fundamentalism.

Regulation outlines legal norms for those in industry and is bound by law that is mandatorily enforced. The contents of regulations are usually a prerequisite for entry into the industry and pre-establish conformity. However, poor regulation is an epitome of a porous enforcement mechanism and corrupted enforcement agents. In a system where there is virtually no enforcement, there is usually a lack of consumer confidence and consumers may resign to their fate. Consumers in such a system will not formally complain as it ridicules them and makes a mockery of the process and will, thus, become apathetic to the activities of consumer protection associations. Complaints are then replaced with word of mouth moaning to friends and relatives. 

Standards when mandatory are part of regulation and provide an automatic platform for consumer satisfaction. Standards are ‘…rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context’ (ISO/IEC Guide 2). Standards may also be voluntary whereby members of a body establish a code of conduct to guide their operations. Recognition may be in the form of the use of a well-recognised quality mark or trustmark. Companies and individuals use and adhere to standards voluntarily, or because they are required to by law. When compliance with a standard is not mandated by law, companies and individuals follow the terms of the standards simply because it is in their interest to do so — standards improve the quality of products, processes or services, reassure customers and open up markets. The terms of standards may also be incorporated into government statutes and regulations, in which case companies and individuals must follow them as a matter of law. In some cases, governments initiate and participate in standards development so the standard can be included in legislation. In other cases, governments find that an existing standard can be used to deal with a public policy problem and include it in new legislation.

Complaints, in the face of standards, are also endemic in an environment characterised by corruption, non-conformity and non-enforcement of standards. Consumers, acting rationally, would want the best products and services at the least cost that is readily available. Thus, consumers would look out for certain elements that have been traditionally infused into standards such as health and safety, fitness for purpose (performance), product information and labelling, environmental protection, fair pricing, interoperability (ability of a product to be used in different countries and within a product range) and systems of redress. However, oblivious to the prevalence of shoddy goods and services, consumers may also presume that all products and services on offer are safe for their use- a danger to their health and safety.

So if you find yourself in a country where competition is virtually non-existent, regulation lacks enforcement and where standards are not really working, the only way forward is consumer participation in standardization. When consumers are represented in the standards-making process, their views are taken into account and it subsequently forms an automatic basis for consumer satisfactions albeit this will still require a stringent enforcement mechanism to be manifest.

Consumer participation is also beneficial for manufacturers, because goods and services that adopt standards developed with consumer participation may be more easily accepted in the marketplace.

 

Published in Public Agenda on 11th December, 2006: www.ghanaweb.com/public_agenda

http://www.theconsumerpartnership.org

Towards A Consumer Protection Policy In Ghana

The Constitution of any country spells out the rights of citizens and the state policy defines the remedies. These are then reflected in the legislations, enforcement mechanisms and the administrative structures. So, one needs a clear policy statement from the government, before legislations can be enacted.

Businesses have always found ingenious ways of ripping consumers off and governments have managed to intervene by enacting laws to protect consumers. Laws to control, and punish businesses indulging in, adulteration and short weighing have existed in nearly all ancient civilisations: China, Mesopotamia, etc.

Economics propositioned that ‘the sole and end purpose of all production is consumption’ (Adam Smith). National economic planning policies, thus, aim at allocating scarce resources, as far as possible, to the satisfaction of consumers’ basic needs.

Then there is considerable logical, moral and political force in the proposition that the right person to make the decision about the allocation of resources to his or her own needs is the consumer himself or herself. In earlier times, limited choices made transactions much simpler through the barter system. Trade and the monetisation of societies and their economies were accompanied by innovation and the development of new products and their distribution channels. International trade in modern times is far from bringing perfection and fairness in the market.

Consumers’ Interest as National Interest

American President John F Kennedy moved the consumers’ bill of rights in 1962 in the US Congress saying.. “If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened and national interest suffers.”

Kennedy equated consumers’ interest with national Interest. His speech delivered on 15 March 1962 is what generated the global consumer rights. This date, 15^th March, is now observed as the World Consumer Rights Day, as well as the national consumers’ day in several countries by the global consumer protection movement.

The UN Guidelines for Consumer Protection

The United Nations Guidelines for Consumer Protection adopted by the UN General Assembly of April 1985 call upon governments to develop, strengthen and maintain a consumer policy, and provide for enhanced protection of consumers by communicating it through various means on seven major themes: 1. Physical Safety, 2. Economic Interests, 3. Standards, 4. Essential Goods and Services, 5. Redress, 6. Education and Information, and 7. Health. Implicitly it spells out what governments need to do to buttress the eight rights of consumers.

Guidelines set out and codify the main elements of consumer protection, and create an international framework within which national consumer protection policies can be worked out. They give consumer policy a clear set of objectives and provide a checklist against which governments can measure their own policies. Being guidelines, they are meant to be adopted and reviewed according to changing times, innovations and new developments such as sustainable consumption.

Even when the Guidelines were being debated in the ECOSOC during 1983-85, sections of the business community lobbied against the adoption by the UN of any Guidelines at all, as well as against specific provisions. Consequently, there were attempts by some governments to remove whole sections. The main argument put forward by business interests against the Guidelines were that they favour an interventionist approach to economic management, were hostile to private enterprise, and that the UN has no role to play in what is essentially an area of national policy.

The US government expressed reservations about the Guidelines and some of its specific provisions on Transnational Corporations (TNCs). The US successfully lobbied for the deletion of specific references to TNCs from the final text. This met the criticism of the former Soviet Union that said that the consumer protection work of the UN was “... justified only if and when it promotes the .... protection of the interests of developing countries in the realm of international economic relations and also the protection of the broad working masses in the world against the dictates of transnational corporations.”

The Guidelines were passed in April 1985 and further reviewed in 1995 after 10 years. The present Consumers International (formerly IOCU) fought for this inclusion of certain elements that protected the poor in the Third World during the review.

Consumer Rights as Human Rights

Every welfare state seeks to provide the protection of the Right to Basic Needs of consumers particularly for the have-nots. The right to basic needs is not just a consumer right, but a human right as well. Article 25 of the UN Declaration of Human Rights says: “Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care and necessary social services.” But this right has not found a place in legislations yet.

Former centrally planned economies had this as well the right to work enshrined in their constitutions, and did succeed to a large extent through appropriate state interventions. In the bargain their economies suffered through high deficits and indebtedness. Rather than create enabling mechanisms for a consumer to create opportunities for acquiring the means, the state relied on price controls and heavy subsidies. With capitalism, the poor are becoming poorer, and more needs to be done to alleviate poverty. It has, therefore, become increasingly important for the State to intervene in the demand and supply markets.

Aims of A Consumer Protection Policy

Governments are urged in the UN Guidelines to give special attention to the needs of disadvantaged consumers, in both rural and urban areas, including low-income consumers, and those with very low levels of literacy. But in addressing the basic needs of consumers it covers only three areas: pharmaceuticals, food standards and drinking water. It also addresses policies that ensure the distribution of essential goods and services, but not the entirety of basic survival needs of the ordinary consumer: food, clothing, shelter, education, health care and sanitation.

Energy and transportation are the two other areas of basic needs are not ordinarily basic to the Third World rural consumer. In several developing countries, government policies focus on ensuring food security through an effective public distribution system. In Ghana, where over 30% of the population live below the poverty line, there are no consumer policies to ensure the survival of the poor. A consumer policy and law for Ghana must ensure the survival and protection of the poor from unscrupulous businessmen who exploit their ignorance to sell them expired and hazardous food and substances.

Many countries now have a number of legislations concerning consumer issues. A Consumer Ombudsman in the form of a central body oversees all consumer protections issues with the support of consumer protection laws. It encourages complainants to use its free services for dispute resolution rather than going to a civil court.

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. There is a consumer dimension to almost every state policy and therefore there is a need to take consumer interest into account in all policy decisions through public consultation. Consumer policy is not only about legislation governing consumer interest nor restricted to redressing consumer complaints.

Conclusion

A Consumer policy generally is “To inform the consumer of goods and services in such a way that his purchasing decisions contribute to the functioning of competitive markets, and to protect him where his position in the market is not strong enough to allow him to play this role”. In most developing countries, 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. There is sufficient political, economic, social and legal rationale for governments to adopt an integrated and holistic consumer protection policy that will guide all Ministries, Departments and Agencies (MDAs) towards genuine consumer welfare.

 

Published in Public Agenda on 4th September 2006: www.ghanaweb.com/public_agenda 

Http://www.theconsumerpartnership.org

 

 

Consumers’ Right to Ghana’s Water

by The Consumer Partnership (THE-COP)

Access to a basic supply of water and sanitation is widely recognised in principle as a fundamental human right. The United Nations Committee on Economic Social and Cultural Rights adopted a General Comment on the Right to Water in November 2002. This puts an obligation on governments to extend access to sufficient, affordable and safe water and sanitation services progressively to all citizens without discrimination. This right, which we support, is also established in Agenda 21, in the Declaration of the 2002 World Summit on Sustainable Development and by the 4th P7 Summit on Water (a meeting dedicated to the world’s poorest countries).

To meet the Millennium Development Goals of halving the number of people without access to water and sanitation by 2015, 400,000 new connections need to be made each day for water and 500,000 for sanitation. This is estimated to cost approximately U$25 billion of investment per year. Debates about water policy focus on how to find the funds for this large investment and how to manage water resources to meet the basic rights of all.

Some of the sharpest disputes have been about private sector participation, often promoted as a means to inject capital and management expertise. Consumers International’s (CI) research shows that private sector involvement, which can take many forms, has in some cases been very valuable (eg rapid network extension, community involvement in informal settlements, leakage reduction, integration of informal vendors) and in others has been disastrous for consumers (eg rapid price rises, premature contract renegotiation, failure to meet expansion targets). In the same way, some public supply systems are excellent, and others are very bad. There should be a code of practice for water utility operators, be they public or private operators.

CI therefore promotes a set of principles which should be applied to all water supply systems, whether in the public sector, entirely privately managed, or a mixture of the two. These principles reflect and support the statements adopted within the United Nations.   

Consumer principles

1.      Consumer rights  Water is a basic need and access to it is therefore specifically recognised in the first of the eight internationally accepted consumer rights. Access to sufficient safe water is essential for life itself, as a vital contributor to public health, and for personal dignity and fulfilment. Water is not just a commercial product like any other and it is a primary obligation on responsible government to make the right to water a reality.

2.      A public good  Water itself is a public good and must remain so. Rights to extract water from sources such as natural reservoirs, rivers and aquifers should be controlled by public authorities, with due regard for the needs of producers, consumers and the environment.

3.      Shared resources Natural water resources are shared between states and cross their boundaries along river basins. Access to water for all consumers must be the overriding objective in reaching equitable agreements about water use across geographical and political boundaries. 

4.      Regulation  Whether provided by public institutions, the private sector, or a combination of the two, water treatment and distribution systems should be subject to effective state regulation to promote and protect the public interest. Regulation should cover access - including as necessary, pricing policy, safety, and service quality (cut-offs, pressure maintenance, billing, for example). Regulation should also cover small scale vendors  where relevant.

5.      Consumer involvement  Consumers should be involved in the regulatory process, including in both establishing and implementing of these regulations. Stakeholder involvement should start with the assessment of needs and objectives and the analysis  of possible utility management models to meet these. The provision of full and timely information is essential for effective stakeholder involvement at all stages.

6.      Pricing  Water pricing, and the use of any subsidies, should be transparent and also equitable between groups of users in similar circumstances. Poverty should never be a barrier to access to a basic supply of clean water and to effective sanitation.

7.      Payment and subsidies  Paying for the water supply should be properly costed and the means to pay for it identified and planned. This includes both capital and operating costs. But recovery of full costs from charges to users should not be the only approach. Public interest objectives such as improving public health and enabling communities to escape from the unproductive drudgery of time-consuming water collection, should be taken into account and if necessary supported by subsidies.

8.      Avoiding waste  Water is a scarce resource and making it available to all, especially the poor, is a challenge for all countries and communities. Consumers have an obligation to respect the wider public interest by avoiding wasteful use, ensuring that they do not contaminate the supply, and paying their due share of the costs of supply.

9.      Private sector obligations  Private companies providing water services have an obligation to respect and support effective regulation, to play a responsible part in delivering social objectives and, where they operate internationally, to apply good safety and service quality standards in all countries.

10.  Polluter pays The polluter pays principle, covering both preventive measure and clean-up costs, should apply to natural water resources and to water distribution and sanitation systems.

Credit: Consumers International (CI) and Water & Sanitation Program (WSP)