By Mgeta Mganga
The Guardian; 01.April.2009
Tanzania Consumers Advocacy Society, TCAS which has received affiliation membership to the world Consumer International, has wowed to be more active in protecting consumers against poor quality product,
Speaking in an interview in Dar es Salaam on Monday, the TCAS executive director Bernard Kihiyo said: “it is good to let consumers know that; since March, 2009; Tanzania Consumer Advocacy Society had been accepted by a very reputable world consumers association known as it’s affiliated member”, he said.
Kihiyo said the move had been possible after collective efforts by all TCAS members for the past two years. “This will allow TCAS to join about 255 other consumer associations in fighting for consumer rights in Tanzania and the world over”, he said.
He noted TCAS will be pushing for the enforcement of product standards and quality laws to protect consumers from consumption of products of poor quality. He asked the government to put in place a mechanism to enhance the enforcement of standard and laws in the wake of massive circulation of low-quality products in the country.
He said enforcement of legal procedures and regulations to protect consumer against poor-quality products was difficult as many consumers were still unaware of their rights. Kihiyo said domestic markets were flooded with low-quality products, including edible oil and spare parts.
“Apart from foodstuffs, there several imported products with are below standard, lives and health of consumers,” he said. In addition to that he said “It’s high time the government, through relevant authorities and organs, started protecting consumers against the dangers posed by poor-quality products imported into the country”.
Wednesday, May 6, 2009
Friday, April 17, 2009
CONGRATULATION TFDA
I, the chairman of Tanzania Consumer Advocacy Society, Mr Daimon Jim Mwakyembe would like to take this opportunity to congratulate TFDA team for their tremendous job of testing, identify, and inform the general public on the problem of fake medicines in our market. These TFDA efforts have helped consumers to be well informed and protected if the recommended efforts; including the calling back all fake identified medicine will be implemented in full force. TFDA have to make sure they keep up the good work they have started.
Based on the efforts done by individual consumers from Moshi, Mwanza, Dar es Salaam, Mbeya and Arusha of reporting some violation cases to the authority, these have shown that; if consumers will be informed, educated on their rights and responsibilities the war against substandard goods and consumer’s rights violation will be easier. If consumers are at the forefront of this war; they can be the best protectors of their rights.
This is a very serious war, as we still have, so many substandard goods including so many fake medicines and worst enough unscrupulous traders are continuing importing substandard goods into our markets; with the results of consumers not getting back actual value for their money and on the worst scenario, killing of innocent consumers through these products. For instance TFDA has proved that; some of malaria drug has only 0.4% of substances required (sulphametropyrazine) instead of 90% to 110%; one can see how fatal and serious this war of fighting for substandard medicine in our market is to our country.
These unscrupulous traders should be regarded as killers of innocent people; their charges among others, should all include killing charges.
Tanzania Consumer Advocacy Society is as an independent non governmental consumer organization; will always work hand in hand with all sectoral regulatory authorities, including TFDA to promote, protect, advocate, for consumers’ rights and responsibilities including the spirit of reporting any irregularities found in our markets.
Based on the efforts done by individual consumers from Moshi, Mwanza, Dar es Salaam, Mbeya and Arusha of reporting some violation cases to the authority, these have shown that; if consumers will be informed, educated on their rights and responsibilities the war against substandard goods and consumer’s rights violation will be easier. If consumers are at the forefront of this war; they can be the best protectors of their rights.
This is a very serious war, as we still have, so many substandard goods including so many fake medicines and worst enough unscrupulous traders are continuing importing substandard goods into our markets; with the results of consumers not getting back actual value for their money and on the worst scenario, killing of innocent consumers through these products. For instance TFDA has proved that; some of malaria drug has only 0.4% of substances required (sulphametropyrazine) instead of 90% to 110%; one can see how fatal and serious this war of fighting for substandard medicine in our market is to our country.
These unscrupulous traders should be regarded as killers of innocent people; their charges among others, should all include killing charges.
Tanzania Consumer Advocacy Society is as an independent non governmental consumer organization; will always work hand in hand with all sectoral regulatory authorities, including TFDA to promote, protect, advocate, for consumers’ rights and responsibilities including the spirit of reporting any irregularities found in our markets.
CUTS International proposes adoption of World Competition Day
National governments, international agencies, donors and the global policy community are increasingly realising the need for effective implementation of competition policy and law (especially in the developing and least developed countries) in order to derive the benefits of trade and economic liberalisation, and evolve well-functioning markets. In addition to stimulating efficient and equitable growth patterns in an economy, a healthy competition regime helps preserve consumers’ interests.
Given that the history of competition administration in most developed countries has been longer as compared to that in most developing and least developed countries (where competition regimes are at an extremely juvenile stage in many countries), it is imperative that the more experienced ‘Northern’ countries commit to cooperate with the less experienced ‘Southern’ countries to provide technical assistance and capacity building support for evolution and implementation of competition legislations therein.
For the advanced countries, the outcomes of such cooperation would be helpful to raise the confidence of their investors to invest in these developing (and least developed) countries; while for the developing (and least developed) countries such cooperation would help them have access to higher levels of understanding and better skills to implement their national competition regimes. It would therefore be a ‘win-win’ situation for both the cooperating parties.
It is however important that the framework for such cooperation and the road map for its implementation is carefully constructed. For this to happen, it is critical that the norms of such international cooperation are developed under the auspices of an international organisation. CUTS proposes this function be attributed to the International Competition Network (ICN), and that it features as a permanent element in all ICN annual conferences.
In order to ensure continuity in this process of cooperation on competition and to facilitate its formal endorsement/ adoption by the international community, it would be useful to announce the initiation of such a process on a date that is recognised as World Competition Day.
Given ICN’s engagement with this process, this date could be earmarked for kick-starting the annual ICN conference, every year.
ICN is the biggest gathering of competition practitioners from across the globe. World Competition Day, each year would therefore mark an occasion when elements of global competition governance are discussed and determined.
It would be befitting for such a landmark decision (pertaining to international cooperation on competition) is taken in Switzerland – the venue of the forthcoming ICN Conference (2009).
Having a day assigned as World Competition Day would provide an occasion to celebrate and propagate the needs and benefits of a functional competition regime, worldwide, and build up an impetus for competition reforms globally.
World Competition Day would be an occasion for civil society organisations and international development partners to announce their solidarity to continue raising public understanding and support for implementation of competition regimes, globally. It would also be an occasion for national governments to pledge their commitment for integrating competition policy into their national development plans.
COMMENTS INVITED
Given that the history of competition administration in most developed countries has been longer as compared to that in most developing and least developed countries (where competition regimes are at an extremely juvenile stage in many countries), it is imperative that the more experienced ‘Northern’ countries commit to cooperate with the less experienced ‘Southern’ countries to provide technical assistance and capacity building support for evolution and implementation of competition legislations therein.
For the advanced countries, the outcomes of such cooperation would be helpful to raise the confidence of their investors to invest in these developing (and least developed) countries; while for the developing (and least developed) countries such cooperation would help them have access to higher levels of understanding and better skills to implement their national competition regimes. It would therefore be a ‘win-win’ situation for both the cooperating parties.
It is however important that the framework for such cooperation and the road map for its implementation is carefully constructed. For this to happen, it is critical that the norms of such international cooperation are developed under the auspices of an international organisation. CUTS proposes this function be attributed to the International Competition Network (ICN), and that it features as a permanent element in all ICN annual conferences.
In order to ensure continuity in this process of cooperation on competition and to facilitate its formal endorsement/ adoption by the international community, it would be useful to announce the initiation of such a process on a date that is recognised as World Competition Day.
Given ICN’s engagement with this process, this date could be earmarked for kick-starting the annual ICN conference, every year.
ICN is the biggest gathering of competition practitioners from across the globe. World Competition Day, each year would therefore mark an occasion when elements of global competition governance are discussed and determined.
It would be befitting for such a landmark decision (pertaining to international cooperation on competition) is taken in Switzerland – the venue of the forthcoming ICN Conference (2009).
Having a day assigned as World Competition Day would provide an occasion to celebrate and propagate the needs and benefits of a functional competition regime, worldwide, and build up an impetus for competition reforms globally.
World Competition Day would be an occasion for civil society organisations and international development partners to announce their solidarity to continue raising public understanding and support for implementation of competition regimes, globally. It would also be an occasion for national governments to pledge their commitment for integrating competition policy into their national development plans.
COMMENTS INVITED
Monday, March 23, 2009
How Tanzania celebrated WCRD-2009
For the second time after celebrating WCRD in 2008; Tanzania Consumer Advocacy Society (TCAS) celebrated WCRD-2009 in style, this time we collaborated with five government sectoral regulatory authorities, including their attached Consumer Consultative Councils-CCC; these include, Surface and Marine Transport Regulatory Authority (SUMATRA)-CCC, Energy, Water and Utility Regulatory Authority (EWURA)-CCC, Tanzania Communication Regulatory Authority (TCRA), and Fair Competition Commission with its National Consumer Advocacy Council to mark the event.
Among other things, there had been a one day seminar on 13th.March.2009 which involved 150 participants, whereby three nutritionists presented papers on the magnitude of junk food problems in Tanzania; they gave facts and figures on the matter. At the end of the seminar, we came-up with a way forward of involving school children so that the campaign to have a long term impact.
13th.03.2009 seminar on Junk food; Participants of the seminar in a group pictures and on the left cross-section of a venue.
There had been high media coverage from; news papers, radio and TV stations about this year’s theme Junk food Generation-Cause for Action against marketing of junk food to children and more so consumer rights issues in general were addressed. For instance; seventeen articles were published in all local newspapers depicting the WCRD theme and were written in both English and Swahili languages, 30 minutes TV talk show conducted depicting the WCRD-2009 theme.
At the pick of it all; we had covered a four kilometres street rally from Mnazi Moja to Karimjee Hall at Dar es Salaam, Deputy minister of industry, marketing and Trade; Dr Cylian Chami was the guest of honour. While addressing the rally in his speech, he gave government support and willingness to support the campaign on junk foods as well as war against substandard goods in our markets.
Tanzania Consumers on street rally to mark WCRD-15th.March.2009
This year we have involved about 105 primary school pupils of the ages between 8 to 13 years old; they participated on commemorating the event as well as getting to know the concept, dangers of junk foods, and consequences of junk foods to their health; now and during their adult hood.
On the left a group picture of deputy minister, with school pupils and on the right consumers listening the message from deputy minister
This is how Tanzania Consumer Advocacy Society in collaboration with other five Sectoral regulatory Authorities and their Consumers’ Councils celebrated WCRD-2009.
Best Regards
Bernard E Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Among other things, there had been a one day seminar on 13th.March.2009 which involved 150 participants, whereby three nutritionists presented papers on the magnitude of junk food problems in Tanzania; they gave facts and figures on the matter. At the end of the seminar, we came-up with a way forward of involving school children so that the campaign to have a long term impact.
13th.03.2009 seminar on Junk food; Participants of the seminar in a group pictures and on the left cross-section of a venue.
There had been high media coverage from; news papers, radio and TV stations about this year’s theme Junk food Generation-Cause for Action against marketing of junk food to children and more so consumer rights issues in general were addressed. For instance; seventeen articles were published in all local newspapers depicting the WCRD theme and were written in both English and Swahili languages, 30 minutes TV talk show conducted depicting the WCRD-2009 theme.
At the pick of it all; we had covered a four kilometres street rally from Mnazi Moja to Karimjee Hall at Dar es Salaam, Deputy minister of industry, marketing and Trade; Dr Cylian Chami was the guest of honour. While addressing the rally in his speech, he gave government support and willingness to support the campaign on junk foods as well as war against substandard goods in our markets.
Tanzania Consumers on street rally to mark WCRD-15th.March.2009
This year we have involved about 105 primary school pupils of the ages between 8 to 13 years old; they participated on commemorating the event as well as getting to know the concept, dangers of junk foods, and consequences of junk foods to their health; now and during their adult hood.
On the left a group picture of deputy minister, with school pupils and on the right consumers listening the message from deputy minister
This is how Tanzania Consumer Advocacy Society in collaboration with other five Sectoral regulatory Authorities and their Consumers’ Councils celebrated WCRD-2009.
Best Regards
Bernard E Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
TCAS is now an affiliate member of Consumers International
It is good to let you know that; Since 6th.March.2009; Tanzania Consumer Advocacy Society had been accepted by a very reputable world consumers association known as Consumers International as it's affiliate member. This had been possible after collective efforts of all TCAS members for the past two years.
TCAS is now the first active Non governmental organization to be CI member from Tanzania. This will allow TCAS to join other consumers' associations about 255 in fighting for consumer rights in Tanzania and world over.
Within TCAS this is a great achievement toward building a strong consumer's association in Tanzania.
Regards
Bernard Kihiyo
Executive Director
Tanzania Consumer advocacy Society
TCAS is now the first active Non governmental organization to be CI member from Tanzania. This will allow TCAS to join other consumers' associations about 255 in fighting for consumer rights in Tanzania and world over.
Within TCAS this is a great achievement toward building a strong consumer's association in Tanzania.
Regards
Bernard Kihiyo
Executive Director
Tanzania Consumer advocacy Society
Saturday, February 21, 2009
How can Tanzania develop its horticultural Industry?
By Bernard Kihiyo
Tanzania practiced socialism policy for about twenty years 1967-1987; due to this it hadn’t took economic advantage on most of its resources due to presence of a weak private sector to support the current open market economy without the support of foreign direct investments (FDI) and expertise; we had been used to have state controlled economy; where government was the provider of social services at the same time doing business, horticultural industry was not one of the government priorities.
For several years; Tanzania flowers growers were using Jomo Kenyatta international Airport and not Kilimanjaro was purely caused by lack of enough cargo of fresh flowers for a commercial charter to land at Kilimanjaro International Airport
Hopefully; with the inauguration of flight - Boeing 747-200 cargo aircraft from Kilimanjaro International Airport to lift the flower has gone hand in hand with increases in production which led to have enough cargo of fresh flowers. I believe there are long term strategies in place with the support of US government to make this dream to come true.
Viewing the idea from all points of views; it has a great impact to our economy as it is going to increase the number of employment opportunities to Tanzanians, it will increase foreign currency from the export earnings; however there must be tight control on what had been exported and what is the actual income from those exports; let us not repeat the same mistake on what happened to our minerals auditing (Alex Stuart Scandals and the like)
We; Tanzania Consumer Advocacy Society (TCAS) see the future of horticulture industry to be more of export oriented rather than been for domestic production, as the economic welfare of most of Tanzania consumers continue to struggle to attain certain basic needs and not wants, very few will afford to buy flowers for their loved ones, as majority will prioritize their little income to satisfy their basic ‘’needs’’ or necessary goods or services for their survival. These include things that if not met will jeopardize health, safety or their well being.
Whereas flowers are goods that make our lives more comfortable and enjoyable, they provide lifestyle for people whom think so, therefore flowers are just ‘’wants’’. Majority of Tanzania consumers might wish to have and acquire flowers as a personal affection and to have social identity but any human being can survive even without them.
I have a very little advice to make to all concern in horticultural industry in Tanzania; to focus and diversify their attention to; some nice tropical flowers and herbs production, as there are several pharmaceutical industries looking for herbs especially from African tropical countries. This sort of creativity will boost the horticultural industry to have more competitive advantage over other flowers growers in the world.
Kenya private sector had been doing and develop the horticultural industry over years even before independence, there had been long term strategies to exploit and acquire the world market share over flowers to Kenya’s advantages, for instance focusing on flowers which other big growers could not produce due to weather barrier; Kenya managed to create its own brand in terms of flowers.
If Tanzania would like to invest onto horticultural industry it should be able to demonstrate strong firm-level capabilities on the supply side to market products and services worldwide, in order to win willingness of sophisticated consumers on the demand side, whom will be ready to pay for Tanzania firm’s flowers and it should not operates under the shadow of Kenya.
To elaborate more on the above; competition over flowers production has been massive from other growers and even artificial flowers have acquired a significant world market share. I believe Tanzania has all necessary potentials to enable the industry to grow, one being having ample and arable land, supportive climate, ample natural resources, enough skilled and cheap labour.
What is missing in our mix is seriousness on using these potentials for our economic development. Tanzania will only leap more than Kenya only if it takes a triple-bottom-line approach to their performance that is: sensitivity to international standards, quality and business best practice should be on our finger tips if we real want to survive in this new era of globalized economy-horticultural industry if one is to be more specific.
Tanzania practiced socialism policy for about twenty years 1967-1987; due to this it hadn’t took economic advantage on most of its resources due to presence of a weak private sector to support the current open market economy without the support of foreign direct investments (FDI) and expertise; we had been used to have state controlled economy; where government was the provider of social services at the same time doing business, horticultural industry was not one of the government priorities.
For several years; Tanzania flowers growers were using Jomo Kenyatta international Airport and not Kilimanjaro was purely caused by lack of enough cargo of fresh flowers for a commercial charter to land at Kilimanjaro International Airport
Hopefully; with the inauguration of flight - Boeing 747-200 cargo aircraft from Kilimanjaro International Airport to lift the flower has gone hand in hand with increases in production which led to have enough cargo of fresh flowers. I believe there are long term strategies in place with the support of US government to make this dream to come true.
Viewing the idea from all points of views; it has a great impact to our economy as it is going to increase the number of employment opportunities to Tanzanians, it will increase foreign currency from the export earnings; however there must be tight control on what had been exported and what is the actual income from those exports; let us not repeat the same mistake on what happened to our minerals auditing (Alex Stuart Scandals and the like)
We; Tanzania Consumer Advocacy Society (TCAS) see the future of horticulture industry to be more of export oriented rather than been for domestic production, as the economic welfare of most of Tanzania consumers continue to struggle to attain certain basic needs and not wants, very few will afford to buy flowers for their loved ones, as majority will prioritize their little income to satisfy their basic ‘’needs’’ or necessary goods or services for their survival. These include things that if not met will jeopardize health, safety or their well being.
Whereas flowers are goods that make our lives more comfortable and enjoyable, they provide lifestyle for people whom think so, therefore flowers are just ‘’wants’’. Majority of Tanzania consumers might wish to have and acquire flowers as a personal affection and to have social identity but any human being can survive even without them.
I have a very little advice to make to all concern in horticultural industry in Tanzania; to focus and diversify their attention to; some nice tropical flowers and herbs production, as there are several pharmaceutical industries looking for herbs especially from African tropical countries. This sort of creativity will boost the horticultural industry to have more competitive advantage over other flowers growers in the world.
Kenya private sector had been doing and develop the horticultural industry over years even before independence, there had been long term strategies to exploit and acquire the world market share over flowers to Kenya’s advantages, for instance focusing on flowers which other big growers could not produce due to weather barrier; Kenya managed to create its own brand in terms of flowers.
If Tanzania would like to invest onto horticultural industry it should be able to demonstrate strong firm-level capabilities on the supply side to market products and services worldwide, in order to win willingness of sophisticated consumers on the demand side, whom will be ready to pay for Tanzania firm’s flowers and it should not operates under the shadow of Kenya.
To elaborate more on the above; competition over flowers production has been massive from other growers and even artificial flowers have acquired a significant world market share. I believe Tanzania has all necessary potentials to enable the industry to grow, one being having ample and arable land, supportive climate, ample natural resources, enough skilled and cheap labour.
What is missing in our mix is seriousness on using these potentials for our economic development. Tanzania will only leap more than Kenya only if it takes a triple-bottom-line approach to their performance that is: sensitivity to international standards, quality and business best practice should be on our finger tips if we real want to survive in this new era of globalized economy-horticultural industry if one is to be more specific.
Do telecommunication operators in the country exploit consumers?
By Bernard Kihiyo
Since the establishment of cellular firms in Tanzania; this sector is one of the fast growing service industry in Tanzania. I do have the feeling that; service users (consumers) are enjoying the services of telecommunication operators as it has been very easy to communicate amongst themselves any where in Tanzania, some in very rural areas and charges for telecommunication services in Tanzania had been a bit cheaper when one compares the figures/charges from the past five years; this has been caused by the presence of several operators competing to acquire significant percent of a market share.
However the marketing strategy in use by some telecommunication operators when selling their products; on some occasions appears to be unethical.
I believe telecommunication companies are moneymaking corporations just like any other: they exist to create profit. The overarching aim of corporate telecom promotion, therefore, is to increase profits by raising consumer demand for telecommunication products as effective ways to influence consumer opinion.
But; this approach fuels unethical service promotion in several ways; the most common violations include: promoting misleading or false claims about a telecommunication services, and deliberately suppressing risks such as radioactive effects of some telecommunication devises by using product awareness campaigns for service promotion rather than consumer’s health promotion.
For instance; you might be told; you will be given free minutes or text messages but you have to pay a certain amount of money as one of the condition; in other words this is not free service but a discounted charges for a service. This approach and many others lead to irrational use of some services by consumers and cause exploitation on consumer income and consumer receives less value for their money in return.
What is the way forward?
First and foremost one has to ask this question; ‘’who regulates telecommunication service promotion in Tanzania?’’ One could say Tanzania Communication Regulatory Authority (TCRA) but unfortunate the answer to this question is predominantly the telecommunication companies themselves, TCRA and the government are not highly active in monitoring corporate abuses with this note consumers are the one to suffer.
Prevailing issues such as having; weak consumer associations, low awareness of consumers themselves on their rights and obligations, weak regulations make our markets an easy target for unethical marketing, TCRA’s lack of equipment and technology to prove a point on unethical conducts are added constraints in the monitoring of corporate unethical promotion activities in Tanzania.
Countries with self regulatory promotional strategy such as Europe and America do have strong consumers’ movements which can check and balance the market but not for Tanzania. The current market situation is clear evidence that self regulation does not protect consumers against unethical and sometimes illegal promotion tactics.
Consumers have a strong interest in effective competition policy and regulation. Rules are needed to control anti-competitive behaviour in all market economies, whatever their mix of private and state enterprise, to ensure lower prices, better choice and quality, and access to essential goods and services
Tanzania Consumer Advocacy Society wants regulation that fully covers all areas of telecommunication and we also want to see telecommunication service information is regulated on its genuineness by an independent, accountable watch dog. A deliberate effort should be done by all sectoral regulatory authorities; in this case Tanzania Communication Regulatory Authority (TCRA) and other key stakeholders to raise consumer awareness on their rights and obligations.
TCAS believes the best way to ensure service users in Tanzania get rational, impartial treatment from telecommunication operators is for consumer to be able to understand easily the call cost of each call s/he is making whenever s/he wants for self cost control.
There should be a national campaign aims to reduce undue risks to consumer health and safety posed by radioactive effects of telecommunication devises. Moreover Telecommunication operators should be hold accountable for compliance with global codes for ethical product promotion
We have to hold TCRA accountable for rigorous enforcement of regulations on telecommunication services product promotion in order to uphold consumer rights to safety and information. There must be deliberated efforts to improve consumer access to credible, reliable and transparent service information.
Many Tanzania consumers today want to behave sustainably, but find it is not easy to translate that aim into action. There is often a gap between the consumer’s interest and their everyday action, TCAS is hereby to complement government and other key stakeholders efforts to bridge the gap.
Since the establishment of cellular firms in Tanzania; this sector is one of the fast growing service industry in Tanzania. I do have the feeling that; service users (consumers) are enjoying the services of telecommunication operators as it has been very easy to communicate amongst themselves any where in Tanzania, some in very rural areas and charges for telecommunication services in Tanzania had been a bit cheaper when one compares the figures/charges from the past five years; this has been caused by the presence of several operators competing to acquire significant percent of a market share.
However the marketing strategy in use by some telecommunication operators when selling their products; on some occasions appears to be unethical.
I believe telecommunication companies are moneymaking corporations just like any other: they exist to create profit. The overarching aim of corporate telecom promotion, therefore, is to increase profits by raising consumer demand for telecommunication products as effective ways to influence consumer opinion.
But; this approach fuels unethical service promotion in several ways; the most common violations include: promoting misleading or false claims about a telecommunication services, and deliberately suppressing risks such as radioactive effects of some telecommunication devises by using product awareness campaigns for service promotion rather than consumer’s health promotion.
For instance; you might be told; you will be given free minutes or text messages but you have to pay a certain amount of money as one of the condition; in other words this is not free service but a discounted charges for a service. This approach and many others lead to irrational use of some services by consumers and cause exploitation on consumer income and consumer receives less value for their money in return.
What is the way forward?
First and foremost one has to ask this question; ‘’who regulates telecommunication service promotion in Tanzania?’’ One could say Tanzania Communication Regulatory Authority (TCRA) but unfortunate the answer to this question is predominantly the telecommunication companies themselves, TCRA and the government are not highly active in monitoring corporate abuses with this note consumers are the one to suffer.
Prevailing issues such as having; weak consumer associations, low awareness of consumers themselves on their rights and obligations, weak regulations make our markets an easy target for unethical marketing, TCRA’s lack of equipment and technology to prove a point on unethical conducts are added constraints in the monitoring of corporate unethical promotion activities in Tanzania.
Countries with self regulatory promotional strategy such as Europe and America do have strong consumers’ movements which can check and balance the market but not for Tanzania. The current market situation is clear evidence that self regulation does not protect consumers against unethical and sometimes illegal promotion tactics.
Consumers have a strong interest in effective competition policy and regulation. Rules are needed to control anti-competitive behaviour in all market economies, whatever their mix of private and state enterprise, to ensure lower prices, better choice and quality, and access to essential goods and services
Tanzania Consumer Advocacy Society wants regulation that fully covers all areas of telecommunication and we also want to see telecommunication service information is regulated on its genuineness by an independent, accountable watch dog. A deliberate effort should be done by all sectoral regulatory authorities; in this case Tanzania Communication Regulatory Authority (TCRA) and other key stakeholders to raise consumer awareness on their rights and obligations.
TCAS believes the best way to ensure service users in Tanzania get rational, impartial treatment from telecommunication operators is for consumer to be able to understand easily the call cost of each call s/he is making whenever s/he wants for self cost control.
There should be a national campaign aims to reduce undue risks to consumer health and safety posed by radioactive effects of telecommunication devises. Moreover Telecommunication operators should be hold accountable for compliance with global codes for ethical product promotion
We have to hold TCRA accountable for rigorous enforcement of regulations on telecommunication services product promotion in order to uphold consumer rights to safety and information. There must be deliberated efforts to improve consumer access to credible, reliable and transparent service information.
Many Tanzania consumers today want to behave sustainably, but find it is not easy to translate that aim into action. There is often a gap between the consumer’s interest and their everyday action, TCAS is hereby to complement government and other key stakeholders efforts to bridge the gap.
Thursday, February 19, 2009
BOAT FARES PROBLEMS
Currently, am residing in Zanzibar (Unguja), but my permanent home is in Dar es salaam. I wish to draw your attention concerning the frequent rise in BOAT FARE as if there is no regulating body. Normally a boat fare ranges from TSHS 10,000 to 35,000/=. The boat owners just decide to raise the fares without considering the ability of passengers to pay.
email:laumagudo@yahoo.com
email:laumagudo@yahoo.com
Thursday, February 12, 2009
Banking fees / levies are too high in Tanzania
By Patrick Kinemo.
I am concerned by the level of fees and other levies charged by our banks. The banking sector is a unique and important sector of the economy as a whole, i am concerned with what i think is excessive fees charged to customer/consumers particularly depositors & savers.
The banks use our deposit to buy treasury bills & other financials instruments where they make a lot of money & pass on very little to its savers; whilst at the same time charging for withdrawals, balance statements, monthly account maintaining fees etc.
I think these fees need to be regulated to ensure that they are fair!!Who protects the depositors/ savers?
Phone no:+255712930648
email:kinemo@aol.com
I am concerned by the level of fees and other levies charged by our banks. The banking sector is a unique and important sector of the economy as a whole, i am concerned with what i think is excessive fees charged to customer/consumers particularly depositors & savers.
The banks use our deposit to buy treasury bills & other financials instruments where they make a lot of money & pass on very little to its savers; whilst at the same time charging for withdrawals, balance statements, monthly account maintaining fees etc.
I think these fees need to be regulated to ensure that they are fair!!Who protects the depositors/ savers?
Phone no:+255712930648
email:kinemo@aol.com
Friday, January 23, 2009
Tanzania has weak real estate firms
By Robert Hozza.
Tanzania has apple land and people are building their properties without streact monitoring in terms of the quality of the buildings and arrangement hence we end up having poor building as well as unplanned cities and villages.
The plans by the newly established real estate firm known as Parasol Real Estate Agent and Developer (Tz) ltd can help to compliment government efforts on the same.
Keep it up the good work; consumers on the same are happy with the charity work they are going.
Tanzania has apple land and people are building their properties without streact monitoring in terms of the quality of the buildings and arrangement hence we end up having poor building as well as unplanned cities and villages.
The plans by the newly established real estate firm known as Parasol Real Estate Agent and Developer (Tz) ltd can help to compliment government efforts on the same.
Keep it up the good work; consumers on the same are happy with the charity work they are going.
Sunday, January 18, 2009
REGULATION NECESSARY TO ENHANCE BENEFITS FROM LIBERALISATION, SAYS RANGARAJAN
New Delhi, 16 January, 2009
“In the reformed Indian economy where the stress is on efficiency maximisation, competition law and market correcting regulation have assumed great importance, particularly in the infrastructure sectors which constitute the backbone of the economy. The new CUTS Centre dealing with training and research in these issues will therefore play a major role in this modern setup.”
These were the words of C. Rangarajan, Member of Parliament and President, Governing Council of the newly minted CUTS Institute for Regulation and Competition (CIRC), while presiding over the Roundtable on Developing Infrastructure through an Ideal Regulatory Framework organised by CIRC at the Russian Culture Centre, New Delhi .
Rangarajan laid stress on the need to achieve the right balance between overregulation and under regulation.
In his opening address Pradeep S. Mehta, Founder Secretary General of CUTS and Secretary, CIRC traced the evolution of CUTS from a consumer protection organisation at its initiation in 1983-84 to a Southern NGO working on a wide gamut of issues from the empowerment of women to international trade.
According to Mehta, it was only natural then that this involvement in international trade issues would result in a corresponding interest in competition and regulation, culminating in the establishment of CIRC in 2005.
Mehta informed the audience that this centre would engage in training and research in three fields: infrastructure regulation, competition law and policy and commercial and economic diplomacy. He expressed great happiness over the former Commerce Secretary, Dipak Chatterjee assuming office as the Director General of CIRC .
Moderating the discussion, Vinayak Chatterjee, Chairman, CII National Council of Infrastructure cited various steps taken by the UPA government in developing general and then sector-specific regulatory norms.
N. K. Singh, Member of Parliament who was the first panellist raised several important issues in his speech: political mindset in the country lagging far behind the literature on regulatory issues; delineation of regulatory functions among the executive, legislature and judiciary; cultivation of an arm’s length relationship between the line ministry and the regulators; human capital formation for regulatory purposes, etc.
Nandan Nilekani, Co-chairperson, Infosys Technologies stressed that regulatory design in each sector should be determined by the specifics of both market structure and the network structure of supply. He also said that regulatory systems all over the country had to evolve from being providers of indirect subsidies to that of direct benefits. According to Nilekani, this would result in profitability of investment and yet serve redistributive goals.
Nripendra Mishra, Chairman, TRAI stressed that regulatory powers allocated to regulators by the government are a key determinant of economic outcomes. He pointed out how many technologically progressive steps such as ‘number portability’ and ‘3G reforms’ recommended by TRAI had been stalled because of the influence exerted by powerful vested interest groups.
Vikram S. Mehta, Chairman, Shell focussed on the issue of regulatory mandate and opined that the regulator was a law keeper rather than a policy maker. He also called for greater specialisation among regulators.
Arvind Mayaram, Additional Secretary, Government of India highlighted the very different problem of how rural/urban infrastructure such as water/sewerage/ roads has to be regulated so that it becomes a sustainable driver of development – the most essential regulatory function here is how competitive outcomes can be attained without open competition.
Pramod Deo, Chairman CERC drew attention to the limitations faced by regulators, particularly those in the electricity sector, in preventing the flouting of regulatory laws.
The initial speeches by the panellists were followed by a lively interaction session and a succinct summary by Dipak Chatterjee in the concluding address.
In summary, the deliberations of the afternoon were very fruitful and quite successful in highlighting the intricacies of competition and regulation of infrastructure, a much misunderstood subject in this country.
For more information, please contact: Pradeep S Mehta: +91.9829013131, psm@cuts.orgBipul Chaterjee: +91.9871995921, bc@circ.in
“In the reformed Indian economy where the stress is on efficiency maximisation, competition law and market correcting regulation have assumed great importance, particularly in the infrastructure sectors which constitute the backbone of the economy. The new CUTS Centre dealing with training and research in these issues will therefore play a major role in this modern setup.”
These were the words of C. Rangarajan, Member of Parliament and President, Governing Council of the newly minted CUTS Institute for Regulation and Competition (CIRC), while presiding over the Roundtable on Developing Infrastructure through an Ideal Regulatory Framework organised by CIRC at the Russian Culture Centre, New Delhi .
Rangarajan laid stress on the need to achieve the right balance between overregulation and under regulation.
In his opening address Pradeep S. Mehta, Founder Secretary General of CUTS and Secretary, CIRC traced the evolution of CUTS from a consumer protection organisation at its initiation in 1983-84 to a Southern NGO working on a wide gamut of issues from the empowerment of women to international trade.
According to Mehta, it was only natural then that this involvement in international trade issues would result in a corresponding interest in competition and regulation, culminating in the establishment of CIRC in 2005.
Mehta informed the audience that this centre would engage in training and research in three fields: infrastructure regulation, competition law and policy and commercial and economic diplomacy. He expressed great happiness over the former Commerce Secretary, Dipak Chatterjee assuming office as the Director General of CIRC .
Moderating the discussion, Vinayak Chatterjee, Chairman, CII National Council of Infrastructure cited various steps taken by the UPA government in developing general and then sector-specific regulatory norms.
N. K. Singh, Member of Parliament who was the first panellist raised several important issues in his speech: political mindset in the country lagging far behind the literature on regulatory issues; delineation of regulatory functions among the executive, legislature and judiciary; cultivation of an arm’s length relationship between the line ministry and the regulators; human capital formation for regulatory purposes, etc.
Nandan Nilekani, Co-chairperson, Infosys Technologies stressed that regulatory design in each sector should be determined by the specifics of both market structure and the network structure of supply. He also said that regulatory systems all over the country had to evolve from being providers of indirect subsidies to that of direct benefits. According to Nilekani, this would result in profitability of investment and yet serve redistributive goals.
Nripendra Mishra, Chairman, TRAI stressed that regulatory powers allocated to regulators by the government are a key determinant of economic outcomes. He pointed out how many technologically progressive steps such as ‘number portability’ and ‘3G reforms’ recommended by TRAI had been stalled because of the influence exerted by powerful vested interest groups.
Vikram S. Mehta, Chairman, Shell focussed on the issue of regulatory mandate and opined that the regulator was a law keeper rather than a policy maker. He also called for greater specialisation among regulators.
Arvind Mayaram, Additional Secretary, Government of India highlighted the very different problem of how rural/urban infrastructure such as water/sewerage/ roads has to be regulated so that it becomes a sustainable driver of development – the most essential regulatory function here is how competitive outcomes can be attained without open competition.
Pramod Deo, Chairman CERC drew attention to the limitations faced by regulators, particularly those in the electricity sector, in preventing the flouting of regulatory laws.
The initial speeches by the panellists were followed by a lively interaction session and a succinct summary by Dipak Chatterjee in the concluding address.
In summary, the deliberations of the afternoon were very fruitful and quite successful in highlighting the intricacies of competition and regulation of infrastructure, a much misunderstood subject in this country.
For more information, please contact: Pradeep S Mehta: +91.9829013131, psm@cuts.orgBipul Chaterjee: +91.9871995921, bc@circ.in
Sunday, December 28, 2008
Why do Countries Adopt Competition Laws-Tanzania as a case study
Since independent (1961), Tanzania had adopted three types of domestic economic policies which can be classified as; early years of post colonial era, post Arusha Declaration and free market economy; all these aimed at improving trade and enhance economic development however they had been used in line with international obligations and regional settings to influence the pattern of trade development amongst Tanzanians.
In view of the above mentioned domestic policies adopted in three regimes one can be able to come up with what transpired and what is the main reasons as to why Tanzania had been motivated to all kind of shifts from one regime to another on competition laws aiming on stimulating domestic production, promote exports, safeguarding domestic industries against dumping, national politics, security and consumer protection.
The Rationale of maintaining competition regimes from Tanzania perspective can be viewed onto three economic and political regimes;
1) Early years post colonial era (1961-1967);
This was liberal economy inherited from colonial era whereby private sector played a big role as engine of growth, export was basically unprocessed and in form of semi-processed agricultural commodities (Traditional exports) and other raw materials
a) There was free market economy though too much protectionism on the economy
b) Trade and consumer protection based on colonial laws (British)
c) Business conducts was not open, its was in favour of colonial master-British
2) During and Post Arusha declaration 1967-1985
a) Tanzania adopted socialism policy
b) There was government intervention and control over major economic resources
c) Confinement policy” adopted in 1972 to control all major economic activities including trade
d) Trade policy was based on tariffs and quantitative restrictions
e) Policy instruments used were price controls, import quotas, rationing, administrative resource allocation and the use of permit to control movement of goods and services.
f) Protectionism was imposed with import duty used as control tool
g) The was too much of state monopoly
3) During Liberalization and free market economy (1985- to date)
a). There was privatization of public investments to the private sector,
b). Tanzania adopted open door policy and structural adjustment programs
c). There was emerge of market forces; demand and supply instead of price control
d). Private sector tends to be an engine of economic growth
e). There is free market economy with less protection on the economy
III) The motivations in which Tanzania adopted its current competition laws
Due to failure of the socialism in Tanzania and its restrictive policies to achieve the desired objectives; infant Tanzania industries failed to meet even local demand caused by limited internal capacity, series of oil price increments, inadequate resource mobilization, and inefficient allocation of resources, decline private sector activity and foreign direct investment (FDI) due to nationalization of major economic sectors carried after Arusha Declaration 1967.
Consequently to that; Tanzania experienced severe macroeconomic hardship like; rising inflation rate, severe scarcity of essential goods and services, falling real GDP growth rate, widening fiscal and trade deficits, for this matter therefore Tanzania had not other best option than to adopt rescuer pills (IMF) on structural adjustment programs (SAP) including introduction of cost sharing on all social services, staff retrenchment, liberalization of imports, interest rates and exchange controls, devaluation of shilling; price decontrol, privatization and restructuring of state owned firms – to improve efficiency in domestic production
Therefore; following the mid 1980’s economic reform in Tanzania which led to state withdraw as a direct economic player (manufacturer and distributor), price controller, service provider and the like; consumers and producers have experience the shift of roles from the state monopoly to open market policies.
For instance; National distributional agencies such as National Milling Corporation (NMC), Regional Trading Company (RTC) were replaced by private companies, the former price commission during controlled economy was abolished and replaced by market forces; demand and supply; generally the government was advised not to involve itself in production as a result majority of profitable government business ventures/industries were privatized.
Rapid trade liberalization has made Tanzanians more vulnerable to shocks and removal of policies and state owned distribution and service companies. In other words; the shift caught Tanzanians unaware and unprepared with very little knowledge on how they can respond to current opportunities and threats associated with globalized economy. For instance Consumers lacked reliable and timely information; they were unaware of existing institutional mechanisms for their rights protection and at the same time; there were so many constraints which inhibited growth and competitiveness of the private sector. Therefore this is one of the factors forced Tanzania to adopt new competition law.
Moreover, human-beings are by nature very greed and when it comes to business; they exist to create a super profit with such vacuum (absence of competition law) the impact is always negative; without a well structured competition laws, unscrupulous traders will always take advantage of the situation, therefore Tanzania knowing the fact of human nature and consumer healthy and safety issues must come above corporate profit; the competition laws are vital to control and arrest the situation; for this matter. Tanzania had tried to its level best to the establishment of several sectoral regulatory authorities include ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ Tanzania Civil Aviation Commission just to mention some few
Apart from all the above; efforts by United Nations bodies such as UNCTAD, WTO, ILO, UNIDO, UNESCO, UNDP, and other international Non Governmental Organizations such as Consumers International, CUTS International, OXFAM, ISO, COPOLCO, CODEX, individual country, their grouping (EU, EAC, SADC etc), global business approach such as regional business strategy and forums such as DOHA round table, United Nations Guidelines for Consumer Protection (as expanded in 1999), and the like has catalyzed countries to adopt more fair business practices and competition laws.
In connection with the above; challenges of globalization including unfair business terms amongst nations do catalyses countries to adopt competition laws for business fairness within and in support of broader UN goals, such as the Millennium Development Goals (MDGs)-2000 aim on improvement of the quality of life and social well-being, with particular focus on the poorest and most vulnerable groups improved (e.g. education, survival, health) across geographic, income, age, gender and other groups are reduced, competition laws are there to strike the balance
Cognizant of above challenges and reforms through the world economic order-the open market economy, the government of Tanzania sought appropriate skills acquisition, and adaptation that would respond better to the new realities and needs of the emerging open market economy and at the same time promote environmentally friendly consumption, production and distribution practices to protect consumers, business and other stakeholders in Tanzania market.
IV)How do these motivations and contexts define the timing of introduction and content of the newly-adopted law
First and foremost to understand motivations on this matter we have to understand the object of Tanzania Competition law 2003, as per Part I Preliminary Provisions, subsection 3, Object of the Act, is to enhance the welfare of the people of Tanzania as a whole by promoting and protecting effective competition in markets and preventing unfair and misleading market conduct throughout Tanzania in order to:
a) Increase efficiency in the production, distribution and supply of goods and services;
b) Promote innovation;
c) Maximise the efficient allocation of resources; and
d) Protect consumers.
The contents of Tanzania Competition Law of 2003 appear to be comprehensive and well structured as shown below. It properly focuses on weakness areas such as enhancement of consumer welfare and regulates trading conducts to be fair amongst traders to promote and protect effective competition in trade and commerce to attract more foreign direct investment (FDI).
Contents of the New Tanzania competition law, Competition Act 2003
Part I; Preliminary Provisions
Part II; Restrictive Trade Practices
Part III; Misleading and Deceptive Conduct
Part IV; Unfair Business Practice's
Part V; Unconscionable Conduct
Part VI; Implied Conditions In Consumer Contracts
Part VII; Manufacturer's Obligations
Part VIII; Product Safety and Product Information
Part IX; Product Recall
Part X; Offences, Penalties and Remedies
Part XI; Appeals to the Fair Competition Tribunal
Part XII; Fair Competition Commission
Part XIII; Fair Competition Tribunal
Part XIV; National Consumer Advocacy Council
Part XV; Inconsistency with Other Laws
Part XVI; Miscellaneous Provisions
Part XVII; Consequential Amendments
The new laws contents specify three types of anticompetitive agreements, abuse of a dominant position, and anticompetitive mergers. The legal standards that apply to these three types of abuses under this document are consistent with good practice in competition law enforcement worldwide aiming to protect business and consumers from unfair, misleading market conduct to prevent the existence of cartels, monopolies and oligopolies, which hurt consumers and producers through monopolistic pricing policies.
By so doing all Sectoral Regulatory Authorities present in Tanzania are required by new competition law to support and act within their sphere of influence, sets of core values in the areas of business development, consumer and producer welfare, human rights, standards, the environment, and good business best practices.
V) What are the major developments of the new legislations or the distinguishingly different approach as compared to the old legislations?
In comparison between early years of post colonial era (1961-1967) and free market economy 1985 onwards; appears to be one and the same as both adopted capitalist ethics and principles whereby private sector is an engine of economic growth and monopolistic tendencies were somehow discouraged however the greatest distinction are; the new system adopt what is called open door policy whereby all nations, investor/s from any where in the world with comparative advantage items of capital, right skills, strategies and resources can take advantage of investing in Tanzania instead of colonial master and its allies.
Another distinction is, during post colonial era, there was what was called economic embargos including restrictive terms and conditions aiming on import control to protect domestic industries, however not in favour of domestic consumers to enable them to have a wide range of choice of goods and services from a wide variety of sources with different quality and price but only to the advantage of investors; to have ready market due to purposeful set monopolistic tendencies.
On the other hand by comparing between post Arusha declaration 1967-1985 and free market economy; both legislations were influenced by political doctrine adopted, for instance during Arusha declaration Tanzania decided to build a socialist state, whereby all major means of economy will be controlled by the state, the state tend to be the only provider of goods and services, with maximum protection of internal market and consumers at larger. All laws and policies were designed in favour of building socialism-development of the betterment of the general public and not individuals.
But due to weaknesses encountered during implementation of socialism (kindly refer section III of this document para 1, 2, and 3) Tanzania failed; instead open market economy is prevailing; to improve internal supply of goods and services restriction on imports were removed, private sector has to flourish to reduce state red-tapism,
However dealing with open market policy is a very trick phenomenon especially when it comes to consumer’s right of choice, fairness on competition, quality, standard and safety. The delicate part of the story is need of more products in the market to give consumers a wide range of choice at reasonable prices but in the process unscrupulous traders take the advantage of flooding the market with unsafe products, counterfeits, unethical trading and by using dirty tricks always are the signaling factors for a current competition law.
VI) Has the new legislative and enforcement developments successfully addressed those problems leading to the scrapping of old laws and adopting new laws?
This is the best part of all to me, as I’m Executive Director of an independent NGO consumer association known as Tanzania Consumer Advocacy Society; I had been actively and closely watching the play, despite the fact that; Tanzania has a good number of legislatures and government owned Sectoral Regulatory Authorities (SRAs) which aim at protecting consumers and business such as the ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ etc. However the problem of consumers’ abuse and violation on their rights is still on the rise and it is affecting lives of many innocent consumers and businesses.
There are severe consumer’s rights violation and unfair business conducts in Tanzania Market one can not imagine, for instance some few media evidence on the same;
a) Mwananchi, 23rd.April.2007, Swahili newspaper had a title; Fake malaria drugs; kill many Tanzanians.
b) Sunday Citizen 10th.Dec.2006, had the article with the title; Many Tanzanians not fully aware of their rights.
c) The Guardian dated 11th July2007, for example, reported that banned HIV/AIDS life prolonging drug –EMTRI 30 - 40 from India that was disqualified by the WHO and its importation banned by the Ministry of Health and Social Welfare, was still circulating in Kisarawe district, Coast region despite an outcry by anti-AIDS activists.
d) The Citizen of 28th,July.2007, had a title; ‘’In for an injection, out with a limp’’ some people come out of the injection room with a abscess only shows up several weeks later; others come out with disabilities for life.
e) The Guardian of 19.August.2007; had the title ‘’Fake goods impedes producers - Producers are deeply alarmed by the flood of counterfeit products in the local market harming quality and undercut their efforts to thrive.
f) The Guardian of 12.Sept.2007; reported that; Bulk of Kariakoo imported goods fake - about 50 per cent of all imported goods from China and sold in Kariakoo shops in Dar es Salaam are counterfeit
g) The Guardian of 04.Nov.2007; Fake Medicines Pose Big Threat-Counterfeit Medicines In Tanzania; the story continued
i. In August 1999, fake Metakelfin labeled as a genuine product from the original manufacturer, Pharmacia and Upjohn, was found in circulation in some pharmacies in the country.
ii. Laboratory analysis confirmed that the counterfeit Metakelfin actually contained paracetamol. In May 2000, counterfeit Ampicillin capsules (250mg) were found circulating in some retail pharmacies.
iii. Laboratory analysis confirmed the capsules contained potato starch. In June 2001, expired Chloroquine Injection (from an unregistered Indian company) was relabeled as Quinine Dihydrochloride Injection 600mg/2ml from a company in Cyprus.
iv. In January 2005, fake Gentrisone Cream (a product of Shin Poong, South Korea) was reported. In this case, the active ingredient was replaced with hand and body lotion.
h) The Guardian of 08.Nov.2007; had the title; Consumer awareness is no laughing matter.
i) The Business Times of 06.01.2008; had the title; Stakeholders urge for more awareness education.
j) Nipashe of 14th.March.2008; had the title; Importation of counterfeit goods is a threat to consumers. More than 80% of Tanzania consumers are not aware of their rights…
k) Uhuru, a Swahili newspaper of 4th.April.2008, had front page story with the title, ‘’Expired toothpaste chemicals were found for Tanga Sabuni Detergent’’-The chemicals were meant for making a famous toothpaste in the country – Aha
l) Guardian of 27th.March.2008; had the title; Vision 2025: Shall we achieve `Green Revolution`? The prices of fertilizers and farming implements remain higher due to cheating by the distributors of fertilizers.
Fair competition commission has been working so hard to reduce the problem of counterfeit products in the market by destroying them and giving severe punishment in accordance to the law yet still the problem is on the rise.
Despite on the rise in numbers on the acts of unethical business conducts, violation of consumer’s rights; partnership with independent Civil societies to curb the situation is almost zero and had been seen as a very new phenomenon; however this is not a new phenomenon in our country; there are a lot of government programs on child and maternal healthy, HIV/AIDs through its ministries, hospitals, commissions, agencies like TACAIDS but yet still there are NGOs such as AMREF, UMATI, Marie Stopes, SHIDEPHA, Pathfinder, Engender-Healthy, Family Healthy International (FHI) just to mention some few whom are working day and night to supplement government efforts on reducing the effect of HIV/AIDs, and unsafe motherhood that affect majority of Tanzanians.
I) The way forward.
Having Competition law in Tanzania have been seen as the end in itself, the cure of it all; but the way forward to it is to forge a strong Consumer, Private, Public Partnership with a shared commitment and efforts to achieve the intended object of the new law, all key stakeholders including government itself (in this case sectoral regulatory authorities), consumers, producers, distributors, service providers, professionals, civil societies, NGOs, consumers’ associations and others should work toward supplementing government goals of seen business act responsively to consumer’s needs and interests and at the same time there is fairness on business conducts in the end strengthening business environment for Tanzania for the betterment all key stakeholders.
Bernard Elia Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Office +255 732 991 409
Cell +255 757 170 555
+255 715 170 555
Email; consumeradvocacytz@yahoo.co.uk
Website; http://www.tcas.or.tz/
In view of the above mentioned domestic policies adopted in three regimes one can be able to come up with what transpired and what is the main reasons as to why Tanzania had been motivated to all kind of shifts from one regime to another on competition laws aiming on stimulating domestic production, promote exports, safeguarding domestic industries against dumping, national politics, security and consumer protection.
The Rationale of maintaining competition regimes from Tanzania perspective can be viewed onto three economic and political regimes;
1) Early years post colonial era (1961-1967);
This was liberal economy inherited from colonial era whereby private sector played a big role as engine of growth, export was basically unprocessed and in form of semi-processed agricultural commodities (Traditional exports) and other raw materials
a) There was free market economy though too much protectionism on the economy
b) Trade and consumer protection based on colonial laws (British)
c) Business conducts was not open, its was in favour of colonial master-British
2) During and Post Arusha declaration 1967-1985
a) Tanzania adopted socialism policy
b) There was government intervention and control over major economic resources
c) Confinement policy” adopted in 1972 to control all major economic activities including trade
d) Trade policy was based on tariffs and quantitative restrictions
e) Policy instruments used were price controls, import quotas, rationing, administrative resource allocation and the use of permit to control movement of goods and services.
f) Protectionism was imposed with import duty used as control tool
g) The was too much of state monopoly
3) During Liberalization and free market economy (1985- to date)
a). There was privatization of public investments to the private sector,
b). Tanzania adopted open door policy and structural adjustment programs
c). There was emerge of market forces; demand and supply instead of price control
d). Private sector tends to be an engine of economic growth
e). There is free market economy with less protection on the economy
III) The motivations in which Tanzania adopted its current competition laws
Due to failure of the socialism in Tanzania and its restrictive policies to achieve the desired objectives; infant Tanzania industries failed to meet even local demand caused by limited internal capacity, series of oil price increments, inadequate resource mobilization, and inefficient allocation of resources, decline private sector activity and foreign direct investment (FDI) due to nationalization of major economic sectors carried after Arusha Declaration 1967.
Consequently to that; Tanzania experienced severe macroeconomic hardship like; rising inflation rate, severe scarcity of essential goods and services, falling real GDP growth rate, widening fiscal and trade deficits, for this matter therefore Tanzania had not other best option than to adopt rescuer pills (IMF) on structural adjustment programs (SAP) including introduction of cost sharing on all social services, staff retrenchment, liberalization of imports, interest rates and exchange controls, devaluation of shilling; price decontrol, privatization and restructuring of state owned firms – to improve efficiency in domestic production
Therefore; following the mid 1980’s economic reform in Tanzania which led to state withdraw as a direct economic player (manufacturer and distributor), price controller, service provider and the like; consumers and producers have experience the shift of roles from the state monopoly to open market policies.
For instance; National distributional agencies such as National Milling Corporation (NMC), Regional Trading Company (RTC) were replaced by private companies, the former price commission during controlled economy was abolished and replaced by market forces; demand and supply; generally the government was advised not to involve itself in production as a result majority of profitable government business ventures/industries were privatized.
Rapid trade liberalization has made Tanzanians more vulnerable to shocks and removal of policies and state owned distribution and service companies. In other words; the shift caught Tanzanians unaware and unprepared with very little knowledge on how they can respond to current opportunities and threats associated with globalized economy. For instance Consumers lacked reliable and timely information; they were unaware of existing institutional mechanisms for their rights protection and at the same time; there were so many constraints which inhibited growth and competitiveness of the private sector. Therefore this is one of the factors forced Tanzania to adopt new competition law.
Moreover, human-beings are by nature very greed and when it comes to business; they exist to create a super profit with such vacuum (absence of competition law) the impact is always negative; without a well structured competition laws, unscrupulous traders will always take advantage of the situation, therefore Tanzania knowing the fact of human nature and consumer healthy and safety issues must come above corporate profit; the competition laws are vital to control and arrest the situation; for this matter. Tanzania had tried to its level best to the establishment of several sectoral regulatory authorities include ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ Tanzania Civil Aviation Commission just to mention some few
Apart from all the above; efforts by United Nations bodies such as UNCTAD, WTO, ILO, UNIDO, UNESCO, UNDP, and other international Non Governmental Organizations such as Consumers International, CUTS International, OXFAM, ISO, COPOLCO, CODEX, individual country, their grouping (EU, EAC, SADC etc), global business approach such as regional business strategy and forums such as DOHA round table, United Nations Guidelines for Consumer Protection (as expanded in 1999), and the like has catalyzed countries to adopt more fair business practices and competition laws.
In connection with the above; challenges of globalization including unfair business terms amongst nations do catalyses countries to adopt competition laws for business fairness within and in support of broader UN goals, such as the Millennium Development Goals (MDGs)-2000 aim on improvement of the quality of life and social well-being, with particular focus on the poorest and most vulnerable groups improved (e.g. education, survival, health) across geographic, income, age, gender and other groups are reduced, competition laws are there to strike the balance
Cognizant of above challenges and reforms through the world economic order-the open market economy, the government of Tanzania sought appropriate skills acquisition, and adaptation that would respond better to the new realities and needs of the emerging open market economy and at the same time promote environmentally friendly consumption, production and distribution practices to protect consumers, business and other stakeholders in Tanzania market.
IV)How do these motivations and contexts define the timing of introduction and content of the newly-adopted law
First and foremost to understand motivations on this matter we have to understand the object of Tanzania Competition law 2003, as per Part I Preliminary Provisions, subsection 3, Object of the Act, is to enhance the welfare of the people of Tanzania as a whole by promoting and protecting effective competition in markets and preventing unfair and misleading market conduct throughout Tanzania in order to:
a) Increase efficiency in the production, distribution and supply of goods and services;
b) Promote innovation;
c) Maximise the efficient allocation of resources; and
d) Protect consumers.
The contents of Tanzania Competition Law of 2003 appear to be comprehensive and well structured as shown below. It properly focuses on weakness areas such as enhancement of consumer welfare and regulates trading conducts to be fair amongst traders to promote and protect effective competition in trade and commerce to attract more foreign direct investment (FDI).
Contents of the New Tanzania competition law, Competition Act 2003
Part I; Preliminary Provisions
Part II; Restrictive Trade Practices
Part III; Misleading and Deceptive Conduct
Part IV; Unfair Business Practice's
Part V; Unconscionable Conduct
Part VI; Implied Conditions In Consumer Contracts
Part VII; Manufacturer's Obligations
Part VIII; Product Safety and Product Information
Part IX; Product Recall
Part X; Offences, Penalties and Remedies
Part XI; Appeals to the Fair Competition Tribunal
Part XII; Fair Competition Commission
Part XIII; Fair Competition Tribunal
Part XIV; National Consumer Advocacy Council
Part XV; Inconsistency with Other Laws
Part XVI; Miscellaneous Provisions
Part XVII; Consequential Amendments
The new laws contents specify three types of anticompetitive agreements, abuse of a dominant position, and anticompetitive mergers. The legal standards that apply to these three types of abuses under this document are consistent with good practice in competition law enforcement worldwide aiming to protect business and consumers from unfair, misleading market conduct to prevent the existence of cartels, monopolies and oligopolies, which hurt consumers and producers through monopolistic pricing policies.
By so doing all Sectoral Regulatory Authorities present in Tanzania are required by new competition law to support and act within their sphere of influence, sets of core values in the areas of business development, consumer and producer welfare, human rights, standards, the environment, and good business best practices.
V) What are the major developments of the new legislations or the distinguishingly different approach as compared to the old legislations?
In comparison between early years of post colonial era (1961-1967) and free market economy 1985 onwards; appears to be one and the same as both adopted capitalist ethics and principles whereby private sector is an engine of economic growth and monopolistic tendencies were somehow discouraged however the greatest distinction are; the new system adopt what is called open door policy whereby all nations, investor/s from any where in the world with comparative advantage items of capital, right skills, strategies and resources can take advantage of investing in Tanzania instead of colonial master and its allies.
Another distinction is, during post colonial era, there was what was called economic embargos including restrictive terms and conditions aiming on import control to protect domestic industries, however not in favour of domestic consumers to enable them to have a wide range of choice of goods and services from a wide variety of sources with different quality and price but only to the advantage of investors; to have ready market due to purposeful set monopolistic tendencies.
On the other hand by comparing between post Arusha declaration 1967-1985 and free market economy; both legislations were influenced by political doctrine adopted, for instance during Arusha declaration Tanzania decided to build a socialist state, whereby all major means of economy will be controlled by the state, the state tend to be the only provider of goods and services, with maximum protection of internal market and consumers at larger. All laws and policies were designed in favour of building socialism-development of the betterment of the general public and not individuals.
But due to weaknesses encountered during implementation of socialism (kindly refer section III of this document para 1, 2, and 3) Tanzania failed; instead open market economy is prevailing; to improve internal supply of goods and services restriction on imports were removed, private sector has to flourish to reduce state red-tapism,
However dealing with open market policy is a very trick phenomenon especially when it comes to consumer’s right of choice, fairness on competition, quality, standard and safety. The delicate part of the story is need of more products in the market to give consumers a wide range of choice at reasonable prices but in the process unscrupulous traders take the advantage of flooding the market with unsafe products, counterfeits, unethical trading and by using dirty tricks always are the signaling factors for a current competition law.
VI) Has the new legislative and enforcement developments successfully addressed those problems leading to the scrapping of old laws and adopting new laws?
This is the best part of all to me, as I’m Executive Director of an independent NGO consumer association known as Tanzania Consumer Advocacy Society; I had been actively and closely watching the play, despite the fact that; Tanzania has a good number of legislatures and government owned Sectoral Regulatory Authorities (SRAs) which aim at protecting consumers and business such as the ‘’Tanzania Fair Competition Commission’’, the ‘’Tanzania Bureau of Standards’’ (TBS), ‘’Tanzania Food, Drug and Cosmetics Authority’’ (TFDA), ‘’Electricity, Water and Gas Utility Regulatory Authority’’ (EWURA), ‘’Surface and Marine Transport Regulatory Authority’’ (SUMATRA), ‘’Tanzania Communication Commission’’ ‘’Bank of Tanzania’’ etc. However the problem of consumers’ abuse and violation on their rights is still on the rise and it is affecting lives of many innocent consumers and businesses.
There are severe consumer’s rights violation and unfair business conducts in Tanzania Market one can not imagine, for instance some few media evidence on the same;
a) Mwananchi, 23rd.April.2007, Swahili newspaper had a title; Fake malaria drugs; kill many Tanzanians.
b) Sunday Citizen 10th.Dec.2006, had the article with the title; Many Tanzanians not fully aware of their rights.
c) The Guardian dated 11th July2007, for example, reported that banned HIV/AIDS life prolonging drug –EMTRI 30 - 40 from India that was disqualified by the WHO and its importation banned by the Ministry of Health and Social Welfare, was still circulating in Kisarawe district, Coast region despite an outcry by anti-AIDS activists.
d) The Citizen of 28th,July.2007, had a title; ‘’In for an injection, out with a limp’’ some people come out of the injection room with a abscess only shows up several weeks later; others come out with disabilities for life.
e) The Guardian of 19.August.2007; had the title ‘’Fake goods impedes producers - Producers are deeply alarmed by the flood of counterfeit products in the local market harming quality and undercut their efforts to thrive.
f) The Guardian of 12.Sept.2007; reported that; Bulk of Kariakoo imported goods fake - about 50 per cent of all imported goods from China and sold in Kariakoo shops in Dar es Salaam are counterfeit
g) The Guardian of 04.Nov.2007; Fake Medicines Pose Big Threat-Counterfeit Medicines In Tanzania; the story continued
i. In August 1999, fake Metakelfin labeled as a genuine product from the original manufacturer, Pharmacia and Upjohn, was found in circulation in some pharmacies in the country.
ii. Laboratory analysis confirmed that the counterfeit Metakelfin actually contained paracetamol. In May 2000, counterfeit Ampicillin capsules (250mg) were found circulating in some retail pharmacies.
iii. Laboratory analysis confirmed the capsules contained potato starch. In June 2001, expired Chloroquine Injection (from an unregistered Indian company) was relabeled as Quinine Dihydrochloride Injection 600mg/2ml from a company in Cyprus.
iv. In January 2005, fake Gentrisone Cream (a product of Shin Poong, South Korea) was reported. In this case, the active ingredient was replaced with hand and body lotion.
h) The Guardian of 08.Nov.2007; had the title; Consumer awareness is no laughing matter.
i) The Business Times of 06.01.2008; had the title; Stakeholders urge for more awareness education.
j) Nipashe of 14th.March.2008; had the title; Importation of counterfeit goods is a threat to consumers. More than 80% of Tanzania consumers are not aware of their rights…
k) Uhuru, a Swahili newspaper of 4th.April.2008, had front page story with the title, ‘’Expired toothpaste chemicals were found for Tanga Sabuni Detergent’’-The chemicals were meant for making a famous toothpaste in the country – Aha
l) Guardian of 27th.March.2008; had the title; Vision 2025: Shall we achieve `Green Revolution`? The prices of fertilizers and farming implements remain higher due to cheating by the distributors of fertilizers.
Fair competition commission has been working so hard to reduce the problem of counterfeit products in the market by destroying them and giving severe punishment in accordance to the law yet still the problem is on the rise.
Despite on the rise in numbers on the acts of unethical business conducts, violation of consumer’s rights; partnership with independent Civil societies to curb the situation is almost zero and had been seen as a very new phenomenon; however this is not a new phenomenon in our country; there are a lot of government programs on child and maternal healthy, HIV/AIDs through its ministries, hospitals, commissions, agencies like TACAIDS but yet still there are NGOs such as AMREF, UMATI, Marie Stopes, SHIDEPHA, Pathfinder, Engender-Healthy, Family Healthy International (FHI) just to mention some few whom are working day and night to supplement government efforts on reducing the effect of HIV/AIDs, and unsafe motherhood that affect majority of Tanzanians.
I) The way forward.
Having Competition law in Tanzania have been seen as the end in itself, the cure of it all; but the way forward to it is to forge a strong Consumer, Private, Public Partnership with a shared commitment and efforts to achieve the intended object of the new law, all key stakeholders including government itself (in this case sectoral regulatory authorities), consumers, producers, distributors, service providers, professionals, civil societies, NGOs, consumers’ associations and others should work toward supplementing government goals of seen business act responsively to consumer’s needs and interests and at the same time there is fairness on business conducts in the end strengthening business environment for Tanzania for the betterment all key stakeholders.
Bernard Elia Kihiyo
Executive Director
Tanzania Consumer Advocacy Society
Office +255 732 991 409
Cell +255 757 170 555
+255 715 170 555
Email; consumeradvocacytz@yahoo.co.uk
Website; http://www.tcas.or.tz/
Friday, December 19, 2008
Kellogg's and Lego 'win' bad company award for toy-like candy
Consumers International today awarded its "Blindingly Obvious Danger Award" to the Kellogg's and Lego companies for creating a candy snack in the shape of Lego bricks. After writing about this risky mixed message earlier this year, we were pleased to see CI's announcement, which came as part of its annual Bad Company Awards.
In bestowing this dubious honor, Luke Upchurch, spokesman for Consumers International said, “Sometimes, even the biggest multi-million dollar companies with the most creative minds, need to just stop, take a deep breath, and ask themselves ‘Is this really a good idea?’ Fun Snacks was definitely one of those moments."
We agree, and as Don Mays wrote in July, "It’s not illegal to sell candy that looks like toys or vice versa, but it’s a really bad idea. ... Each year, about 15 children under the age of three choke to death on non-edibles."
Consumers International is a federation of consumer groups including Consumers Union. Also singled out for "ridiculous and irresponsible behaviour" this year were:
Tesco—Sledgehammer Award for silencing criticism"For its $34 million lawsuit against three Thai journalists critical of the British retailer’s expansion plans."
Eli Lilly—The Marketing Overdose Award for rampant promotion"For repeatedly breaching marketing regulations with its blockbuster drug for erectile dysfunction."
Samsung—Nice Little Sideline Award for selling tanks, not just TVs"For the little-publicized fact that this consumer electronics company also builds artillery systems."
Toyota—Green-scrubbing Award for environmental impact"They may make the Prius, but Toyota picks up an award for audacious greenwashing and some rather contradictory marketing exercises."
In bestowing this dubious honor, Luke Upchurch, spokesman for Consumers International said, “Sometimes, even the biggest multi-million dollar companies with the most creative minds, need to just stop, take a deep breath, and ask themselves ‘Is this really a good idea?’ Fun Snacks was definitely one of those moments."
We agree, and as Don Mays wrote in July, "It’s not illegal to sell candy that looks like toys or vice versa, but it’s a really bad idea. ... Each year, about 15 children under the age of three choke to death on non-edibles."
Consumers International is a federation of consumer groups including Consumers Union. Also singled out for "ridiculous and irresponsible behaviour" this year were:
Tesco—Sledgehammer Award for silencing criticism"For its $34 million lawsuit against three Thai journalists critical of the British retailer’s expansion plans."
Eli Lilly—The Marketing Overdose Award for rampant promotion"For repeatedly breaching marketing regulations with its blockbuster drug for erectile dysfunction."
Samsung—Nice Little Sideline Award for selling tanks, not just TVs"For the little-publicized fact that this consumer electronics company also builds artillery systems."
Toyota—Green-scrubbing Award for environmental impact"They may make the Prius, but Toyota picks up an award for audacious greenwashing and some rather contradictory marketing exercises."
Friday, December 5, 2008
EVIDENCE FIRST DEFENSE AGAINST UNFAIR FIRMS: CONSUMER GROUP
Thanh Nien Daily, Vietnam, November 24, 2008
Local buyers need to collect evidence and officially report their complaints if they want to challenge businesses that rip people off, said consumer advocates.
General Secretary of the Vietnam Standards and Consumers Association Do Gia Phan said local consumers have rights; they are just unaware of them.
The group’s deputy chairman Ho Tat Thang said his association can file lawsuits against companies that employ unfair practices but greedy and irresponsible traders are rarely brought to court because consumers who complain about getting cheated fail to provide even the simplest of evidence, such as a receipt. He added that Vietnam had laws that could force firms to compensate consumers they swindle by overcharging, mislabelling or selling counterfeit goods but the association couldn’t spend time chasing lawsuits without evidence.
Thang said unfair trade practices were rife throughout nearly all sectors in Vietnam. The association estimated the average consumer lost between 8 to 10 percent of the value of their purchases so far this year due to unfair practices.
“No group of consumers has ever been hurt by unfair trade practices as much as Vietnamese customers have been recently,” said former general director of Competition Administration Department Dinh Thi My Loan.
George Cheriyan, director of the India-based non-profit organization Consumer Unity & Trust Society, International, said Vietnam should learn from India, which effectively enforces its Consumer Protection Act and National Consumer Disputes Redress Commission through special forums akin to special courts.
For more information, kindly follow this link:
http://www.thanhniennews.com/features/?catid=10&newsid=43994
Local buyers need to collect evidence and officially report their complaints if they want to challenge businesses that rip people off, said consumer advocates.
General Secretary of the Vietnam Standards and Consumers Association Do Gia Phan said local consumers have rights; they are just unaware of them.
The group’s deputy chairman Ho Tat Thang said his association can file lawsuits against companies that employ unfair practices but greedy and irresponsible traders are rarely brought to court because consumers who complain about getting cheated fail to provide even the simplest of evidence, such as a receipt. He added that Vietnam had laws that could force firms to compensate consumers they swindle by overcharging, mislabelling or selling counterfeit goods but the association couldn’t spend time chasing lawsuits without evidence.
Thang said unfair trade practices were rife throughout nearly all sectors in Vietnam. The association estimated the average consumer lost between 8 to 10 percent of the value of their purchases so far this year due to unfair practices.
“No group of consumers has ever been hurt by unfair trade practices as much as Vietnamese customers have been recently,” said former general director of Competition Administration Department Dinh Thi My Loan.
George Cheriyan, director of the India-based non-profit organization Consumer Unity & Trust Society, International, said Vietnam should learn from India, which effectively enforces its Consumer Protection Act and National Consumer Disputes Redress Commission through special forums akin to special courts.
For more information, kindly follow this link:
http://www.thanhniennews.com/features/?catid=10&newsid=43994
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