Consumer Protection and Competition Highlights

Fifth Annual African Dialogue Consumer Protection ConferenceSeptember 10-12, 2013 ● Livingstone, Zambia Consumer Protection and Competition Highlights - Tanzania September, 2013

Introduction The United Republic of Tanzania enacted its first competition law, the Fair Trade Practices Act in 1994 and set up a department within the Ministry of Industry and Trade to oversee its implementation. The 1994 Act was replaced by the Fair Competition Act (FCA) no 8 of 2003, which led to the establishment of the more autonomous and independent agency to oversee competition and Consumer Protection, the Fair Competition Commission (FCC) which become operational in May, 2007.

Consumer Protection Regime Apart from FCA, 2003, Tanzania have various Acts with the view of enhancing competition culture and consumer protection in regulated sector efforts as follows: Surface and Marine Transport Regulatory Authority (SUMATRA) Act (2001); Energy and Water Utilities Regulatory Authority (EWURA) Act (2001); Tanzania Communications Regulatory Authority (TCRA) Act (2003);

… Consumer Protection Regime Occupational Health and Safety Act, (2003); The Food, Drug and Cosmetics Act, (2003); The Industrial and Consumer Chemicals (Management and Control) Act, (2003); Tanzania Bureau of Standards Act,2008 Tanzania Civil Aviation Regulatory Authority (TCAA) Act (2003); and The Weights And Measures Act and The MMA Act,1963 The Environmental Management Act, 2004.

Competition Regime • The core elements of the United Republic of Tanzania’s competition law are prohibition of anticompetitive agreements, mergers, and misuse of market power and consumer protection given under section 9 of the FCA. • Competition regime in Tanzania is characterized into two folds; perfect competition enforcement regime whereby Fair Competition Commission oversee that wider area of economy and natural monopolistic markets where by four sub sector regulators (EWURA, SUMATRA, TCRA and TCAA) have been entrusted to oversee.

Fair Competition Tribunal The Fair Competition Tribunal is a quasi-judicial body with appellate responsibilities on cases from the FCC,SUMATRA,EWURA, TCRA,TCAA and Chief Inspector of MMA,1963. The Tribunal is established under section 83 of FCA and consists of a Chairman, who shall be a person holding the office of a Judge of the High Court appointed by the President after consultation with the ChiefJustice and other members appointed by AG.

Section 92 of the Act creates the National Consumer Advocacy Council (NCAC), which has no enforcement powers but merely advocacy functions. The Council does not only advocate for consumers affected under the Act; • NCAC functions are depicted under section 93 (1) (a,b,c and d) of the FCA. National Consumer Advocacy Council

Priorities and Case study Standard Form Regulations, 2013 This initiative will regulates contract terms and conditions in standard form which are considered to be unfair and which intends to cause a significant imbalance to the detriment of the weaker party (consumer). Products Recall/Barred In the efforts to protect consumer in terms of safety, health and wealth TFDA recalled from the market counterfeited anti malaria and ARVs drugs. In the same efforts TBS banned the purchase, use, distribution, stocking and selling of three brands of imported edible oil.

… Priorities and Case study Education and Awareness Campaign Four universities has introduced competition and consumer policy and law programs. FCC played an active role in persuading the higher learning institutions to join hands in education initiatives. Mobile payments Regulations FCC has been actively involved in the preparation of the Mobile payments Regulations which will apply to banks, financial institutions and service providers offering mobile payment or related services.

… Priorities and Case study Amendments of Anti – Counterfeit Law The Commission spearheads the current amendments (2012) of MMA Act, for the purpose of increasing Commission powers in the fight against counterfeit in the county. FCC Vs NGOs Partnership Strategic partnership with NGOs in training consumer,raising awareness,coordinating and Educating.

Regional Corporations Tanzania through FCC has been an active, participating member in most of regional and international organizations dealing with consumer and competition policy. African Consumer Protection Dialogue; Consumers International; Southern and Eastern African Competition Forum (SEACF); International Competition Network; and East African Community .

Emerging Challenges Infringement of consumer rights as a result of digital marketing, which lack clear legislations; Lack of Leniency Programme as the best practice in fighting Cartel; Lack of proper cross border corporation and enforcement mechanism in enforcing consumer protection and competition; Competency based knowledge and skills in investigation and evidence gathering pertaining to conducts that’s violate consumers rights;

Recommendations AD members to reform their consumer protection policy and legal framework to incorporate ICT related laws and regulation mechanisms into existing frameworks; AD members to introduce Leniency Programme as the best practice in fighting against Cartel; Training/attachments and study tours opportunities among consumer and competition agencies in order to learn from each other experiences and expertise.

Conclusion In order to build confident, informed and empowered consumers who will be making informed decision in the market dynamics – The effective and efficient tailored made education initiative for consumer’s protection is very important to all AD members.

Thanks for your attention Joshua Msoma [Senior Consumer Protection Officer] www.competition.or.tz

Consumer Protection and Competition Highlights - Tanzania