Structure & Functions of Competition & Consumer Protection Commission

Structure & Functions of Competition & Consumer Protection Commission By Brian M. Lingela, Director-Consumer & Public Relations Presented to Stakeholders’ Seminar on Competition & Consumer Protection 7 March, 2011 Long Bridge Hotel, Lusaka

Presentation Outline • Introduction • CFTA CAP 417 of Zambia’s Laws • The Advent of CCPC • Preamble to CCP Act • Functions of CCPC • Strategic Focus Areas • Institutional Structure of CCPC • Competition & Consumer Protection Tribunal • Independence of CCPC • Investigatory Powers • Conclusion

Introduction • Zambia liberalised her economy in 1991 following a change in Government by way of privatisation & de-regulation; • Shift from GRZ owned & controlled enterprises to private owned firms; • Challenge of anti-competitive conduct by private owned monopolies; • Government had to ensure a level playing field in the economic sector to avoid market frustrations which could lead to stagnation of the economy; • Competition law introduced in 1994.

CFTA CAP 417 Enacted as primary statutory source of competition law and policy in Zambia in 1994; Established in 1997, ZCC; To prevent anti- competitive conduct thereby ensuring competition and efficiency in business, resulting in the greater choice for consumers in price, quality and service. To ensure the interests and welfare of consumers are adequately protected in their dealings with producers and sellers.

The Advent of CCPC • Competition and Consumer Protection Act No. 24 of 2010 was passed by the National Assembly & assented to on 14th August 2010. • The Act came into operation on 8th October 2010 when it was published as a Statutory Instrument. • Amplified & introduced provisions & changed structure of enforcement

Preamble To CCP Act to continue the existence of the Zambia Competition Commission and re-name it as the Competition and Consumer Protection Commission; safeguard and promote competition; protect consumers against unfair trade practices; provide for the establishment of the Competition and Consumer Protection Tribunal; Repeal and replace the Competition and Fair Trading Act, 1994; and

Functions of CCPC. Sec 5 Review operation of markets in Zambia & the conditions of competition in those markets; Review the trading practices pursued by enterprises doing business in Zambia; Investigate & assess restrictive agreements, abuse of dominant positions & mergers; Investigate unfair trading practices & unfair contact terms & impose such sanctions as may be necessary;

Functions Contd.. (e) undertake & publish general studies on the effectiveness of competition in individual sectors of economy in Zambia on matters of concern to consumers; (f) act as primary advocate of competition & consumer protection in Zambia; (g) advise GRZ on laws affecting competition & consumer protection; (h) Provide information for the guidance of consumers regarding their rights under this Act;

Functions Cntd. liaise & exchange info, knowledge & expertise with competition authorities & consumer protection authorities in other countries; (j) advise Minister on agreements relevant to competition & consumer protection & any matter relating to this; (k) Cooperate with & assist any association or body of persons to develop & promote observance of standards of conduct to ensure compliance with Act.

Strategic Focus Areas Restrictive & Anti-competitive practices Horizontal & vertical agreements Prohibition of abuse of dominant position Regulation of mergers Market enquiries MOU’s with other Regulators Consumer protection

Institutional Structure Section 4 renames the ZCC as CCPC, a statutory body-corporate; Section 6 creates the office of the Executive Director; First Schedule to the Act creates the Board of the Commission to consist of members with suitable qualifications appointed by the Minister as follows:

Institutional Structure • Representative from the Ministry responsible for commerce; • Representative of the Attorney General; and • five other members, with experience and knowledge in matters relevant to this Act, appointed by the Minister; • The Chairperson and the Vice-Chairperson of the Board shall be appointed by the Minister from amongst the members of the Board.

Competition & Consumer Protection Tribunal • PART IX creates the Competition and Consumer Protection Tribunal, which shall hear appeals from the CCPC • The members (all part-time) shall be appointed by the Minister, as follows: • a legal practitioner of not less than ten years legal experience, who shall be the Chairperson; • a representative of the Attorney-General, who shall be the Vice-Chairperson; and • (c) three other members who shall be experts, with not less than five years experience and knowledge, in matters relevant to this Act.

A Graphical Perspective

Is CCPC Independent? • Statutory body corporate by Act of Parliament with administrative autonomy; • CCPC is a GRZ agency implementing GRZ competition & consumer policy; • Though Minister appoints BOC & Tribunal members, he/she does not sit on Board; • Minister custodian of GRZ competition/consumer policy • Civil society needs to monitor Board decisions & ensure accountability

Access to Judicial System Further Appeal – to High Court & Supreme Court Appeal – to Tribunal Decision – by Board Complaints – to commission

Investigatory Powers As before the Commission is empowered to carry out investigations either on its own initiative or based on a complaint made by any person on However the new Act provides for a more detailed explanation of the manner in which investigations will be carried out

Investigatory Powers contd Powers: Issuance of notices to obtain : Information pertaining to any matter specified in the notice which the Commission considers relevant to the investigation; (in the form of a statement signed by a person or in the case of a body corporate, by a director or member or other competent officer or agent of he body corporate);

Investigatory Powers contd document or article; oral statement given by any person who has been served with a notice to appear before the Commission or before a person specified in the notice

Investigatory Powers contd Decision not to investigate – s.56(1) Where a complaint is deemed to be frivolous or vexatious, the Commission will not investigate the matter and will notify the Complainant its decision not to investigate. Alternatively the Commission may refer a complaint to another regulator (NB: S.42-MOUs

Investigatory Powers contd Role of inspectors – Sec 7 • With a warrant may: • Enter & search any premises (business/private) • Search any person on premises (same sex) • Examine any document found at premises • Request information about any document or article from:

Conclusions • CCPA will enhance safeguard competition & enhance consumer protection in Zambia; • Stiffer penalties are what the Commission has lacked; • If successfully enforced, Commission’s visibility & credibility will be enhanced • Need for stakeholder involvement as per S.5(k); • Need for vigorous consumer/business sensitisation;

END Thank you & God Bless You All

Structure & Functions of Competition & Consumer Protection Commission