CCPC REVIEWS ITS 2023 PERFORMANCE

By Daily News Reporter

The Competition and Consumer Protection Commission (CCPC) in Zambia reviewed the performance of various sectors last year and by various players with impunity while reckoning the assenting to the amendment bill into law-giving impetus to the regulator to defend, deliver effective enforcement, compliance and ensure fair play by all.

The law to refine the consumer rights has undergone various metamorphosis since the Commission was established in 1997 then under Zambia Competition Commission (ZCC). The name was then changed in 2010 to the Competition and Consumer Protection Commission (CCPC).

This followed the enactment of the new Act, the Competition and Consumer Protection Act (CCPA) No. 24 of 2010 and repeal of the old Act.

The recently revised and amended Bill, which on 22 December last year and assented by President Hakainde Hichilema into the Competition and Consumer Protection Act of 21 of 2023 to be read side by side with the 2010 has elated the Zambian consumer regulator.

The amended Act, now gives more latitude and power for CCPC to among other roles, enhance the maintenance of acceptable levels of competition in the market.

It prohibits restrictive agreements (Where a person or an enterprise connives to enter into an agreement which may have the potential to prevent, distort or restrict competition to an appreciable extent), cartels and other uncouth practices that disadvantage others from fair business practices.

The amended Act will now broaden the scope of CCPC and enhance competitiveness of players in various sectors at home and beyond.

“We are excited that the Act will enhance competition and consumer welfare legal framework which will better equip the commission to address challenges in the economic landscape occasioned by developments and advancements in trade,” Brian Lingela, CCPC Chief Executive told the media in Lusaka during end of year review meeting.

“It will further foster regional integration through the enforcement of the Common Market for Eastern and Southern Africa Competition Regulations, 2004 which have through the said Amendment been domesticated and now form part of Zambia's competition law”. he said.

The amendment, arguably empowers the CCPC to redress issues relating to movement of core company assets out of the country, unlike before when the country was eroded to its industrial base as companies freely moved essential production equipment out of the country, making the industrial uncompetitive.

Previous legislation-the then Competition and Fair Trading Act of 1997 and the 2010 legislation, did not legally support fair trading and other supervisory powers to plug cartels, unfair competition, and collusion, among other abuses that were committed with impunity by various sector players.

Under the amended Act many abrogation's enjoyed previously have now been plugged and will attract various fines, annually.

Defaulting business houses are now at risk of fines or severe penalties including custodial sentencing.

Under clause 24 of the CCPC Act, amended to section 52 of the principal Act, sector players are prohibited from selling, supplying, importing, or displaying expired products and services.

During the fiscal year 2023, CCPC undertook various supervisory undertakings including monitoring acts of unfair trading and had during the last 12 months arbitrated over 1,854 cases, involving 2,219 provisions of the Act compared to 2,064 cases involving 2,412 provisions resolved a year earlier.

The downturn in the number of cases, Mr. Lingela attributed to the commission’s collaboration with other competent authorities.

This collaboration resulted in 21 traders being fined for violating consumer protection provisions of the Act with fines ranging from 0.5 percent to 0.8 percent of their respective annual turnovers.

CCPC recovered ZMW8, 642, 194. 61 from 24 erring enterprises fined. It collected ZMW31, 043,219.29 in statutory fees which were deposited in the national treasury.

CCPC remains resolved to ensure its exercise its mandate, now expanded to the regional sphere as enshrined under the new Act in a robust manner in the interest of consumers it seeks to serve diligently as supported by law.

And CCPC has reiterated its resolve to intensify educational awareness programmes for various consumers that are often defrauded by business houses on among other issues, non-refunds on expired or defective products and service and failure to secure receipts on products bought, among other concerns and allow their unequivocal beneficiation from the law.

“Yes, we have not done much to sensitise our consumers on their rights, now the commission will harness stakeholder collaborative efforts with sector regulators to safeguard the interests of the consumers and traders alike” Mr. Lingela noted adding:

“We will devise new, convenient, and effective systems of capturing and resolving cases; we will scale up our sensitization and inspections as well as education efforts in order to foster better compliance in line with our 2022-2026 strategic plan,”