Competition & Consumer Protection Commission

1. CASE SELECTION FOR CONSUMER/COMPETITION PROTECTION AGENCIES- THE ZAMBIAN CASE BY BRIAN M. LINGELA DIRECTOR-CONSUMER AND EDUCATION COMPETITION AND CONSUMER PROTECTION COMMISSION 5th African Dialogue Conference 10-12th September 2013 Zambezi Sun Livingstone Competition & Consumer Protection Commission

2. CASE SELECTION-ZAMBIA OUTLINE Introduction Legal Framework Resources vs Demand Case Selection Criteria Ambit of the Act Merit Other Laws Evidence Priority Examples Conclusion Competition & Consumer Protection Commission

3. CASE SELECTION-ZAMBIA • INTRODUCTION-Legal Framework • The overarching Law on Consumer Welfare is the Competition and Consumer Protection Act No. 24 of 2010 (“the Act”). • The functions of CCPC include- • investigating unfair trading practices and unfair contract terms and impose such sanctions as may be necessary • act as the primary advocate for competition and effective consumer protection in Zambia Competition & Consumer Protection Commission

4. CASE SELECTION- ZAMBIA • INTRODUCTION-Resources vs Demand • The Commission has a staff complement of 38, serving a population of 13 million people. • Two operational offices in Lusaka, Kitwe recently Chipata Inspectors from Local Councils assist the Commission in the rest of the districts. Competition & Consumer Protection Commission

5. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA • The Act under Section 55(1) gives the Commission power to undertake investigations on its own initiative or on a complaint made by any person, if it has reasonable grounds to believe that there is, or is likely to be, a contravention of any provision of the Act Competition & Consumer Protection Commission

6. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA-AMBIT OF THE ACT • The first thing the Commission considers is whether the complaint is covered by the Act. Complaints that are not covered by the Law are immediately dropped/and or referred to other agencies for further consideration. Competition & Consumer Protection Commission

7. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA-MERIT • The first thing the Commission considers is whether the complaint has merit or not-i.e. frivolous and vexatious allegations are not taken up • The Commission is mandated to take up all cases received from complainants that have merit Competition & Consumer Protection Commission

8. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA - OTHER LAWS • There are several Sector Regulators in Zambia whose mandate includes Consumer protection. • Energy Regulation Board - Energy • Bank of Zambia - Banking • Securities & Exchange Commission - Capital Markets • Pensions & Insurance Authority - Pensions and Insurance • Local Councils - Public Health • National Water Supply and Sanitation Council - Water & Sanitation. • The Commission has signed MOU’s with these bodies. If a case can be resolved expressly by the Sector Regulators, then its referred to the Regulator with no further role by the Commission. • Cases that require both laws and expertise are resolved through Joint Working Committees (JWCS) under the MOUs. Competition & Consumer Protection Commission

9. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA – EVIDENCE • Evidence is key in concluding a case. The Commission does not take up cases were its absolutely clear that there is no evidence or the evidence is not admissible in court. Competition & Consumer Protection Commission

10. CASE SELECTION - ZAMBIA • CASE SELECTION CRITERIA – PRIORITY • The Commission selects investigations to conduct on its on initiative based on the following- • Emerging trends. • Number of People affected or likely to be affected by the conduct. • Degree of Injury to the Consumer. Competition & Consumer Protection Commission

11. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA-EXAMPLES • Mobile Phone Scams - The Commission made a Press Statement warning the public against sms’s that alleged that they had won a prize and needed to send some money to redeem their prize. • The Commission carried out a successful campaign against the display of disclaimers like “No Return, No Refund, No Exchange” by enterprises. • The Commission has given priority to combating the supply of defective goods, which currently accounts for the majority of the cases. Competition & Consumer Protection Commission

12. CASE SELECTION-ZAMBIA • CASE SELECTION CRITERIA-CONCLUSION • In the Zambian situation cases are selected based on the following criteria- • Ambit of the Act • Merit • Evidence • Priority-Emerging Trends, Number of Consumers affected and Degree of Injury. • The Commission is mandated to investigate all cases that have merit. Competition & Consumer Protection Commission