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Tied Selling
November 25 2009,
Lusaka
CONSUMER Unity and Trust Society (CUTS) International wishes to
comment on the increasing practice of tied selling in the
country.
Tied selling is a situation where a certain group of people are
only allowed to buy a certain product from one source.
In tied selling, usually the supplier enjoys monopoly and can
sometimes abuse the consumers by either raising the price or
using other monopolistic tendencies due to lack of imminent
competitors.
It should be noted that based on the Laws of Zambia, consumers
have the right to choose a product that suits and appeals to
them, however, in some quarters of the Zambian society, some
consumers are only allowed to buy a certain product from one
prescribed supplier.
Currently in Zambia, a large number of private schools have
emerged after privatisation of the primary education sector.
This development has brought certain practices to the fore that
violates consumers’ rights. A number of schools are forcing
parents and pupils to buy uniforms stationary and books from one
particular person or shop.
As a non-governmental organisation working towards consumer
protection, CUTS International urges all those engaged in this
practice to desist from it as it is an infringement of consumer
rights (and constitute ‘tied-selling’ a type of unfair trade
practice).
CUTS International observes that tied selling is common in
schools were only one supplier is authorised to sell a
particular uniform. In this case, parents/pupils who are
consumers are only supposed to buy from this supplier hence
being an infringement on their right to choice.
A recent CUTS International survey across some Lusaka-based
schools revealed that most of them both in private and public
sectors have been forcing and instructing pupils and their
parents to buy books and uniforms from a particular place. This
development is a violation of consumer rights and can be
penalised.
Further, some schools also bar their pupils from buying food
from other shops apart from the school tuck shops.
We further remind consumers that there are laws such as the
Competition and Fair Trading Act of 2004 that are meant to
ensure fair competition and consumer protection in the country.
Consumers need to know that such laws also empower them to seek
redress should they find themselves in situations as is
indicated above (as victims of tied selling or similar other
unfair trade practices).
Tied selling is not welcome in an open economy as it forces
consumers not to exercise their right to choice. It is illegal
and is prohibited in the Competition and Fair Trading Act of
1994. More specifically, it is against the law for schools to
impose undue pressure or coerce a pupil to obtain a product from
one particular provider.
CUTS urges parents to stand up and protest against such
practices in schools. As a consumer rights organisation, CUTS
would also take cognisance of complaints that parents might
bring to our attention and bring it to the notice of relevant
authorities such as the Zambia Competition Commission (ZCC) so
that remedial actions can be taken
For more information, please contact
Angela Mwape Mulenga,
Center Coordinator,
Africa
Resource Center,
Lusaka, CUTS International
Email:
amm@cuts.org
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