1. Editorial Comments
The issue of consumer protection in Zambia has become
acute especially since the liberalisation of the Zambian economy in
the early 1990s. This can be observed by the influx of counterfeit
goods in the market, and the number of consumer abuses that have been
dealt with by relevant agencies. It is peculiar to note that consumer
abuses have continued to flourish in spite of the existing law, i.e.,
section 12 of the Competition and Fair Trading Act, Cap 417 of 1994,
which aims to give both consumers and sellers a fair deal.
In addition, the snail pace of judicial system in
dealing with consumer cases discourages most consumers from being
keen to pursue the matter through the courts of law. Worse still,
though Zambia has institutions, which aim at protecting consumers
such as the Zambia Competition Commission (ZCC), the Zambia Bureau
of Standards (ZABS), and Communication Authority, these bodies lack
the capacity to investigate, litigate and monitor the increasing consumer
abuses among retailers, suppliers, and manufacturers.
The Zambia Consumer Association (ZACA) and Consumer
Unity and Trust Society (CUTS) have for a long time now bemoaned the
existing market practices that disadvantage consumers. It is for this
reason that ZACA and CUTS are demanding for the formulation of an
independent regulatory body vested with powers to investigate, litigate
and monitor consumer abuses. Thus, the recent effort by the Ministry
of Commerce Trade and Industry to come up with a draft Consumer Law,
in liaison with the Zambia Law Development Commission is a welcome
development. However, many stakeholders feel that much needs to be
done before the draft law passes to the next stage. For instance,
a particular issue of concern to ZACA is the proposal to institutionalise
the Consumer Act under the ambit of the ZCC.
The issues raised by stakeholders are contentious
and require careful attention that it deserves, if consumers in Zambia
are to benefit from the new draft law. Therefore, it is appropriate
to propose that a new independent body should administer the new law,
which would win the trust of Zambian consumers.
2. Zambia’s Success
in Implementing UN Consumer Guidelines
Taking into account the interests and needs of all
consumers, the United Nations in 1985, formulated and adopted guidelines
for consumer protection. These guidelines, later in 1999, were amended
to further help member governments to develop, strengthen and maintain
a strong consumer protection policy. The guidelines stipulated are
as follows:
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to
assist countries in achieving or maintaining adequate protection
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for their population as consumers;
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to facilitate production and distribution patterns responsive to
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the
needs and desires of consumers;
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to encourage high levels of ethical conduct for those engaged in
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the production and distribution of goods and services to consumers;
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to facilitate countries in curbing abusive business practices by
all
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enterprises
at the national and international levels which adversely affect
consumers;
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to facilitate the development of independent consumer groups;
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to further international cooperation in the field of consumer protection;
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to encourage the development of market conditions which provide
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consumers
with greater choice at lower prices; and
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to promote sustainable consumption.
Approximately 20 years have passed since the UN consumer
guidelines were adopted and Zambia being a member of the UN has shown
significant efforts in meeting the set guidelines. In the area of
consumer protection, the Zambian government had initially linked the
guidelines with competition law, and put in place the ZCC, which is
vested with the powers to investigate consumer abuses, consumer education,
and consumer redress as well as promoting and protecting of economic
interests of consumers.
In addition, the government established institutions
such as the ZABS under an Act of Parliament. ZABS provides information
on standards to traders as well as consumers and ensures that consumers
have access to quality and safe products that meet both national and
international standards. The government has also set up the Drug and
Poisons Board so as to ensure that consumers have access to safe pharmaceutical
products. The board maintains adequate standard and provides regulatory
systems of quality in the use of pharmaceutical products. Zambia has
several other sectoral regulatory boards apart from ZCC and ZABS.
For example, the Energy Regulation Board, Communication Authority,
National Water and Sanitation Council (NWASCO) to mention but a few,
have been mandated to promote consumer interest. All these sectoral
boards aim at protecting consumers from abuse. The government has
also given consumers the freedom to form consumer and other relevant
groups or organisations. The existence of the Zambia Association of
Consumers points to this fact. In order to effectively check consumer
abuse, Zambia is in the process of enacting a comprehensive consumer
law so that consumers can be well protected against unfair business
practices. This law, being drafted by the Ministry of Commerce Trade
and Industry (MCTI), in liaison with the Zambia Law Development Commission
aims to protect the rights and interests of consumers.
However, despite the successes that government has
scored in the implementation of the UN guidelines, the biggest challenge
that remains is how to ensure that all stakeholders adhere to the
law. As it is today, consumer protection associations lack resource
support to adequately support their efforts.
3. Counterfeit Electrical Goods
Pose Safety Risk to Consumers
It is difficult to understand how these counterfeit
goods slip through our borders, and whether these are legally or illegally
imported. Economic liberalisation in Zambia has brought many challenges,
the most notable being counterfeit goods, which are continuously flooding
the market. These include electrical appliances, drugs, computer software,
textiles, etc. A visit to the newly opened shopping complexes confirms
this. Fake electrical goods such as pressing irons, television sets,
DVD players most of which have seemingly genuine labels such as Philips
and Sony can be found on the shelves. While these products cost less,
consumers could end up worse off because they are usually of a poor
standard and sometimes dangerous. For example, fake perfumes could
be harmful to both health and the environment because of the chemicals
used, while fake drugs can in many cases lead to death. Spurious electrical
products are also potentially fatal.
What is a trademark? "A trademark can be a word,
logo, slogan, package, design or other source indicator, or a combination
of them." Trademarks are the most essential of marketing tools.
They are simple modes of communication that companies use to distinguish
their products and services from those of their competitors. Equally
important, trademarks convey to consumers a message of quality, consistency,
safety, and predictability in an easy-to-understand form.
Though consumers are advised to check the trademarks
carefully, often consumers do not either have the time to examine
the labels or the labels sometimes look deceptively similar to the
original. With the present economic hardships prevailing in Zambia,
consumers have may opt for lower prices. These products are very colorful
and cheap, and even if they do not last, they help one fill in the
gap. The prevailing situation has brought challenges both to the Zambia
institute of marketing and the ZABS to ensure that consumers are sold
genuine products with genuine trademarks.
Counterfeiting steals the identity of trademark owners
and robs consumers of comfort, reliability and their personal safety.
Though counterfeiting has became a global problem and many countries
are taking steps to counter it, Zambia seems to lag behind as is evident
by the continued offloading of fake goods thus, putting consumer even
at a greater risks. Today, the level of fake goods in the market is
extremely high in spite of the country having the standards office
in place. The majority of consumers has questioned and continues to
question the role of ZABS in a liberalised economy.
ZABS is a statutory National Standards Body for Zambia
established under the Act of Parliament. The Standards Act no. 22
of 1982 repealed by Act No 20 of 1994 is mandated by law to monitor
the quality of electronic appliances to ensure that they meet local
and international quality standards. ZABS verify electrical appliances
for durability, safety and quality. ZS 106: PART 1:1997 deals with
the safety of electrical appliances for household and similar purposes,
the rated voltage of appliances being not more than 250V for single-phase
appliances and 480V for other appliances.
Act SI 78 of 2003 demands that importers notify ZABS
before importing any electrical goods and also to inform ZABS when
the goods do arrive in the country in readiness for inspection. Upon
inspection, goods that do not meet the quality standards are destroyed.
ZABS emphasis is more on safety as can be attested by ZS 106: PART
1:1997. Thus even when goods are counterfeit if they meet safety standards
then ZABS allows the importer or trader to merchandise arguing that
the jurisdiction to check for trademarks and curtail the proliferation
counterfeit goods on the market is with the Patents and Companies
Registration Office (PCRO), not ZABS.
However, ZABS bemoans the lack of awareness of ISO
87 Act among small-scale importers and attributes the overflow of
unsafe electrical products in Zambia to small-scale importers.
Following this development ZABS has stationed officers
at all major border posts to monitor the safety of goods coming into
the country. Currently ZABS has officers at Chirundu, Nakonde, Livingstone
and Mwami, with the aim of protecting consumers.
4. Spiralling Inflation
Zambia’s consumers continue to experience spiralling
rate of inflation. As of April 2005, the annual rate of inflation
which was recorded at 17.4 percent in March 2005 rose by 1.2 percent
to be recorded at 18.6 percent. The situation experienced is not different
from 2004, when the annual rate of inflation increased by 0.8 percent
from 17.8 percent to 18.6 percent in April 2004.
According to the Central Statistics Commission (CSO),
the rise in inflation rate by 1.2 percent from March to April 2005
is due to the domestic increases in food prices which accounted for
9.6 percentage points and non-food items (house rent household fuel)
that accounted for 9.0 percentage points. The family food basket
as at April 2005 was ZK 662,003 for a family of six, which is expected
to rise to ZK950, 628 for all their food and basic needs.
Zambia’s total exports increased by 21 percent from
ZK474, 659mn in February 2005 to ZK574, 170mn in March 2005 as total
imports also increased by 26 percent from ZK668, 294mn in February
2005 to ZK839, 630mn in March 2005. The net effect of this was a deterioration
of the trade deficit by 37 percent from ZK193, 635mn in February to
ZK265, 460mn in March 2005.
The living condition market survey (2002-2003) results
indicate that 62 percent of households in Zambia cannot afford to
have three meals a day. Slightly more than half of the households
(51 percent) could only manage to have two meals a day, whereas 11
percent of the households could only afford one meal per day, this
leaves only about 38 percent households that could manage to have
three meals or more in a day.
The living conditions continue to worsen, as there
is no significant change in the economy to stimulate a rise in the
living conditions. The inflation rate, which stood at 18.6 percent
as of April 2004, continues to be at the same level as of April 2005.
However, prices of foodstuff continue to show an increase. Although
imports for the month of March 2005 show an increase, it does not
signify an improvement in the standard of living. The increases are
in mineral fuel, chemicals, and crude materials. The product responsible
for this increase is Durum wheat representing more than 90 percent
of the total 37 percent increment in foodstuff.
5. Zambia Moves Swiftly on Spice
Scare
Investigations by the Food and Poisons Board found
that some spices being sold in Zambian supermarkets contained 'Sudan
Red Dye' a substance that can cause cancer. This has forced the Lusaka
City Council department of Health to instruct Shoprite stores and
others to withdraw a number of spice products from their shelves.
Reports of spices contaminated with Sudan Red Dye,
a banned chemical, first surfaced in South Africa after laboratory
tests were prompted by reports from a newspapers in that country.
After receiving reports from countries like South Africa and Botswana
that spice products were contaminated with Sudan Red Dye,
the Food and Poisons Board decided to carry out laboratory experiments
to verify the claims. Laboratory finding revealed that spice products
were contaminated with 'Sudan Red', thus Lusaka City council department
of health responsibility to public safety; moved quickly to withdraw
the spices from supermarket shelves. The spices reported to
contain this banned chemical include Robertson’s peri peri spice,
Osmans Taj Mahal chili powder, Osmans Taj Mahal extra special curry
powder and Allifas extra special curry powder (hot). Others are Bombay
special peri peri spice.
Sudan Red Dye is classified as a carcinogen – cancer-causing
agent – by the International Agency for Research on Cancer. Sudan
dyes are legally used in industry to colour petrol, waxes, floor and
shoe polish and cosmetics.
In Zambia however, apart from withdrawing the contaminated
spices from the market, there has not been much effort to sensitise
consumers on Sudan Red Dye.
6. Corporate Social
Responsibility (CSR) and Zambian Companies
The Privatisation process in Zambia witnessed the
birth of a highly successful energy sector player – the Copperbelt
Energy Corporation Plc (CEC). CEC was part of the conglomerate Zambia
Copper Consolidated Copper Mines (ZCCM) and was known as the Power
Division of ZCCM. CEC today, boasts of being among the few private
business entities in Zambia that is making a difference in the lives
of many people as can be evidenced by the numerous projects that the
company has continued to undertake.
Notwithstanding the fact that majority of the privatised
companies have failed to embrace CSR, CEC’s over the years has demonstrated
good corporate citizenship record thus dispelling the long held notion
that associates private business solely with the profit motive. CEC
has made the community its business out of the belief that promoting
human well-being is core to good corporate citizenship. CEC has recognised
the benefits of corporate social responsibility and the link between
this responsibility and sustainable competitiveness within a stable
environment. This recognition is evidenced by the numerous projects
the company is supporting and continues to undertake in the areas
of education, health to mention but a few.
Notable support in the area of education includes
the rehabilitation and restoration of the sanitation system at Riverain
Basic School and the donation of over 3,000 books and library furniture
to Ministry of Education. It must be noted that the Riverain Basic
School had been without a proper sanitation system thus posing a serious
health hazard to the children, teachers and homes in the vicinity.
CEC recently rendered its support to the Ministry of Education by
donating textbooks, which are to be distributed to a number of resource
centres under the ministry’s jurisdiction throughout the province.
CEC has also been rendering assistance to centres
that support orphans and vulnerable children. One such beneficiary
is CINDI (Children in Distress), which is attended about 60 children.
CEC has undertaken major works to make the CINDI School conducive
for learning by carrying out rehabilitation and extension work. Currently,
the centre boasts of two blocks of toilets, improved sanitary facilities,
a security wall and more learning space.
Similarly, CEC employees are encouraged to give of
their time and resources in service to the community and those less
privileged than them. Through the Mutende Community Service Group,
employees have voluntarily undertaken various projects, such as:
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Bumi
Orphanage-building of security brick wall, planting lawn, donation
of building materials;
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Chande Orphanage-donation of cement, laying foundation for orphanage
structure;
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St Martins Orphanage-erection of chicken run, cleaning and feeding
orphans, donation of foodstuff;
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Ndeke Catholic Church and Friends of the Street Children-donations
of foodstuffs to orphans cared for by the church;
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Kitwe Central Hospital-donation of festive season gifts;
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Village of Hope-mowing grass and cleaning surroundings, donation
of foodstuffs, toiletries and other items; and
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Mitanda Home for the Aged (Ndola) and Chibolya Old People’s Home
(Mufulira)-donation of foodstuffs, toiletries, clothing and other
items.
CEC has, for the past two years, supported children’s
wards at the local Kitwe Central Hospital: the Lunsemfwa and Luntembwe
wards. Major work carried out at the two wards includes tiling of
floors, painting, replacement of defective fixtures, provision of
curtains and continued maintenance work.
CEC also has also put in place an HIV/AIDS Policy
that, among others, enables employees and spouses to undergo voluntary
counselling and testing (VCT) and provides for life-enhancing anti-retroviral
therapy to infected employees, their spouses and young children who
may have contracted the virus through parental transmission, at no
cost at all to the employee.
The company’s roll-back malaria programme includes
free spraying of employees’ homes and provision of subsidised insecticide
treated mosquito nets.
7. Slots on Consumer Issues
in Zambia
Draft Consumer Law Crawls to Next Step
Following the Retreat that took place on November
22-25, 2004 to draft the consumer protection legislation for Zambia,
the Zambia Law Development Commission has finally released the draft
to the MCTI for presentation of the Bill to parliament. However,
some stakeholders including ZACA feel that much needs to be done before
the draft is even written into a Bill. Of particular concern to ZACA
is the proposal to institutionalise the Consumer Act under the ambit
of the ZCC.
Substandard Goods Worry ZACA
Zambia Consumer Association has bemoaned overflow
of sub-standard goods on the Zambian market, most of which are suspected
to originate from the Far East. This scenario has disadvantaged consumers
as many of these goods fail to perform to expectation and consumers
loose out.
As a remedy, ZACA has proposed that a committee comprising
of MCTI, ZCC, ZABS, Zambia Chamber of Commerce Industry and Zambia
Consumers Association be constituted to address this matter and make
policy recommendation to Government.
(Source: ZACA)
Complaints on Mobile Phone Service in Zambia
Since January 2005, the Communications Authority
has received numerous complaints from consumers with regard to the
mobile telecommunications services in Zambia. The most common ones
being:
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poor network particularly Celtel (effect of the change of switch);
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difficulties by callers from outside Zambia to access Telecel and
Celtel networks.
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inflated bills; and
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restricted window calling. Telecel decided to reduce the calling
window after having allowed its customers to have a liberal arrangement
over this. Some customers have found it difficult to accept the
change.
(Source: CAZ)
Electricity Tariff Hiked By 11 Percent
A proposal by power supply company, ZESCO to increase
the cost of electricity by 15 percent met fierce opposition at a recent
public hearing conducted by the regulator, Energy Regulation Board
(ERB) in Lusaka.
The opposition came from the Manufacturers Association
of Zambia, Zambia Consumers Association and an electricity expert,
Charles Haanyika submitting in his private capacity.
Leading the protest, ZACA Executive Secretary Muyunda
Ililonga, charged that increasing tariffs on the already costly electricity
would compromise the ability of many domestic consumers to pay and
therefore access electricity. Further, the effect will be an increase
in production cost and hikes in a number of commodity prices.
(Source: ZACA)
“Slow Coach” Zambia Fails to Ratify the FCTC.
While many World Health Organisation (WHO) member
states rushed to sign the world’s first public health treaty, the
Framework Convention on Tobacco Control (FCTC), the Zambian government
is apparently still “consulting”.
Adopted in May 2003, the FCTC seeks to reduce global
demand for tobacco. Tobacco consumption is responsible for millions
of deaths worldwide. WHO estimates that tobacco related diseases
kill five million people a year worldwide and many of these are in
the developing world.
ZACA calls upon the government to take advantage
of this year’s World No Tobacco Day, on May 31, 2005, to append its
signature to the FCTC.
Lusaka Experiencing Water Blues
The ZACA has expressed outrage at the persistent
water shortages experienced in some parts of the capital and has demanded
for immediate remedial measures by the utility company, Lusaka Water
and Sewerage Company. Parts of Chelstone residential area had experienced
water shortages for weeks forcing consumers to walk long distances
in search of water.
In a statement, ZACA Executive Secretary, Muyunda Ililonga demanded
“immediate restoration of normal water supply” from LWSC and threatened
legal action in the event of failure.
Boards to run markets and bus stations
ZACA has welcomed Government policy to introduce
Boards to oversee the management of markets and bus-stations in the
Country. “Consumers have great stake in these sectors. It’s important
that they have a voice in the management of these public utilities.
Efficiently managed markets and bus-stations will bring benefits to
consumers” says Muyunda Ililonga, Executive Secretary of ZACA.
(Source: ZACA)
Zambia
Drafts Standards on GMO’s.
The ZABS has set up a technical committee to draft
the standards for genetically engineered foods and feed products.
The draft Zambian Standard applies to the labelling and advertising
of food and feed in order to distinguish whether or not such food
and feed are products of genetic engineering, are made by or contain
or do not contain ingredients that are products of genetic engineering
irrespective of whether the food/feed or ingredient contains DNA or
protein.
Represented on the committee are: University of Zambia,
National Scientific and Technical Council, Ministry of Science and
Technology, Ministry of Health, National Institute of Scientific and
Industrial Research, Food and Drug Control Laboratory and Zambia Consumers
Association.
About the Newsletter
Consumer Watch Newsletter is a joint initiative of
the Consumer Unity & Trust Society-Africa Resource Centre (CUTS-ARC)
and Zambia Consumer Association (ZACA), published with the objective
of enhancing consumer welfare through sensitisation, information dissemination
and capacity building of consumers, business entities and government.
While addressing consumer concerns, the newsletter will focus on bringing
out issues such as violation of consumer rights and measures to be
taken by the relevant authorities to protect stakeholders.
CUTS-ARC and ZACA will strive to support and lobby
the Government and stakeholders to ensure resumption of the process
to eventually enact a functional Consumer Protection Law in the country
and also establish a functional institutional mechanism to implement
the law. This is in line with the changes taking place in other countries
in the region in the wake of globalisation and liberalisation. Apart
from carrying consumer related information the publication will also
give an analysis on current consumer concerns in the country.
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