THE ISSUE: Independent body an option

By Natasha Beckles | Wed, January 18, 2012 - 12:00 AM

At a time when many Barbadians are trying to stretch every dollar and businesses are doing their best to stay afloat, it is especially critical that attention be paid to the rights of consumers.

Consumers should benefit from fair competition between firms and the flow of accurate information in the market.

Legislation should guard against unfair and deceptive business practices in order to help individuals make better choices when purchasing goods and services or making investments.

In short, it is expected that customers will be protected. One entity which has responsibility for safeguarding the interests of consumers is the Fair Trading Commission (FTC).

In the FTC’s 2011 annual report, chairman Sir Neville Nicholls noted that the commission which was established in 2001 had issued several important decisions, including decisions on applications for rate increases by telecommunications and electricity service providers, standards of service and interconnection between telecommunications service providers.

He said the FTC had been very proactive in its outreach and had a sustained educational programme with respect to consumer protection.

“The importance of consumers understanding their rights and responsibilities cannot be overemphasized. It is an important dynamic for effecting change in supplier behaviour,” he said.

In addition, Barbados Consumer Research Organization, Inc. (BARCRO) has also sought to defend the interests of consumers.

For example, in the August 9, 2010 BARBADOS BUSINESS AUTHORITY director general Malcolm Gibbs-Taitt recommended more transparency concerning the cost of imports coming into Barbados.

In a paper prepared for the Central Bank of Barbados on the occasion of their 30th Annual Review Seminar, Gibbs-Taitt said Barbadian authorities only find out “the factory and farm-gate prices from the importing country when these products reach our customs officers in the form of invoices at our ports of entry”.

He noted that this is far too late and there needs to be a pricing authority “that will have the teeth to investigate what we buy from overseas and . . . a database of all the sources from where we buy and full knowledge of all products being purchased, with . . . the unit price of each.”

The consumer analyst said this procedure would assist in understanding how prices are arrived at, so that consumers are not surprised when the other add-ons contribute to excessive amounts.

“Amazingly, this may very well assist in the prices that are eventually passed on to the end-users or consumers,” Gibbs-Taitt said.

He added that the consumer movement needs to become part of the Social Partnership since no other body can “represent consumers better than consumers themselves”.

Despite the work of these two bodies, the January 22, 2011 SATURDAY SUN editorial argued that consumers in Barbados need a creditable, independent, apolitical voice to protect their interests more than ever.

“This is evident, given the sustained allegations of price-gouging at supermarkets without the input of a separate research body to furnish any facts on this matter.

“An efficient, well-organized consumers’ entity would be able to furnish evidence to show how prices rose on specific items at individual businesses in the last three years.

“With this proof, Barbadians would have been spared the present drama of accusations and counterclaims from Government ministers and businesspeople, with no definitive action to tackle the problem identified,” the editorial stated.

While high prices are one of the most common consumer concerns, the editorial suggested that a consumer body was also needed to deal with the CLICO International Life debacle, in which the company has admitted it could have difficulty paying the $300 million in Executive Flexible Premium Annuities – short-term deposits with high interest rates – when most become due in 2012.

The editorial went on: “Of course, our call is not intended to discount the valuable contribution through the years of the Barbados Consumer Research Organization under director general Malcolm Gibbs-Taitt.

“Rather, we are saying that a more potent, well-staffed organization with no hint of political affiliation would be best suited to undertake the yeoman task of representing consumers in these tempestuous times.”

It was noted that local consumers are like “a voice crying in the wilderness” as they complain of being overcharged and having substandard goods foisted on them, with little or no recourse.

While the writer acknowledged that the FTC has served a useful purpose, the editorial charged that it is not “the effective deterrent one needs to halt the exploitation of consumers in various ingenious ways by some businesspeople”.

Unfortunately, it said, the FTC’s quasi-Government status lends to a weighty bureaucracy and lengthy delays.

“We need instead a non-governmental agency staffed by professionals who can articulate grievances in quick time and respond in a timely fashion, and, if need be, galvanize support from powerful groups like the Barbados Association of Retired Persons and the credit union movement to lobby on specific issues.

“We envisage, too, that this entity would not only deal with pricing but also seek to demand higher standards for services and products,” the editorial said.

As consumers continue to be burdened by the high cost of living, it is important to ensure that they get value for money. Vibrant consumer representation is critical in ensuring that their rights are upheld and protected.