Fair Competition Tanzania for science and

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1. Fair competition commission 1
Fifth Annual African Dialogue Consumer
Protection Conference
September 10-12, 2013 ●Livingstone, Zambia
Consumer Protection and Competition Remedies
And The Impact On Consumers And Businesses
:
How Do We Find Solutions.
September, 2013

2. Fair competition commission 2
Introduction
•Consumer protection and competition laws provide a
broad range of statutory (legal) rights, warranties,
obligations and remedies.
•Remedies is a means by which the violation of a
right is prevented, redressed and/or compensated.
•Remedies can be enforced by a court of law when
injury or harm is imposed upon another individual or
expressed by a particular statute.

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Consumer Protection and Competition
Remedies in Tanzania
•Consumer Protection and Competition remedies
are issued by courts of law and the Fair
Competition Commission which, is entrusted to
administer Fair Competition Act,2003( FCA).
•However, consumer protection remedies are
scattered in various legislation enacted to serve
other matters but also protect the consumers i.eThe
Merchandise Marks Act,1963; The Sale of Goods
Act1931,The Food,DrugsandCosmeticsAct,2003
etc.

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Competition Remedies under FCA.
•The remedies available under competition provisions
of the FCA range from pecuniary remedies such as
compensatory orders, damages such as compliance
orders, injunctions and/or interim orders, adverse
publicity of orders by respondents and fines.
•Compliance orders and compliance agreements may
require the respondent to refrain from conduct in
contravention of the FCA or take actions to comply
with the FCA(section 57).
•The order shall state the time within which it shall be
complied with as well as its duration.

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Competition Remedies under FCA
cont.
•In the case of Fair Competition Commission vs
The Bank of Africa, the Bank(respondent) was
issued with compliance order for failure to notify a
merger. It was also, required to publish a notice
of compliance to the public(in a newspaper with
wide circulation) and expressing to the public on
how it acted contrary to the provisions of the
FCA.
•The compensatory orders may require the
respondent to pay money; to supply goods or
services for specified time and conditions.

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Competition Remedies under FCA
cont.
•an order declaring void, terminating or varying a
contract and an order requiring the respondent to pay the
costs of the applicant or of any person appearing at the
hearing or producing documents(section 59).
•A fine of not less than five per cent of respondent’s turn
over and not exceeding ten per cent of his annual
turnover can be imposed on him. Additionally, the
Commission is empowered to impose fines on every
person who at the time of the commission of the offence
was a director, manager or officer of the body corporate
convicted of the offence (section 60).

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Consumer Protection Remedies under
FCA
•The FCA requires the goods to be of
merchantable quality;theconsumer to undertake
their duties;sellersand manufacturer’s to adhere
to implied conditions and warranties, among
others.
•The services to be carried out with care and skill
(Part III-XII,XIV).
•The seller commits breach of contract when he
does not perform his obligations, infringes
statutory rights, conditions and warranties.
Hence, consumers are entitled to remedies.

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Consumer Protection Remedies
under FCA cont.
•The remedies available pertaining to supply of
goods, provision of services and misleading and
deceptive conduct include but not limited to:-
•refunds, replacement and repair of the goods.
•the supplying of the services again or the payment
of the cost of having the services supplied again.
•compliance and compensatory orders.
•Quit possession of the goods or title by the
consumers etc.

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Consumer Protection Remedies under
FCA –salient features to note.
•the remedies to consumers are limited to an act of
default of a person, damage of the goods by using
them in a way they were not meant to be used etc.
•the Consumers can be refunded within “reasonable
time after purchase” -the issue is how long is the
reasonable time.
•the limitation period to an action is three years after
the day on which the cause of action accrued.
•the consumers are required to recover loss or
damages through action in a court of competent
jurisdiction( Part VI and VII).

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Thechallenges
•In Tanzania, there are specific and general
consumer protection remedies set out in various
legislation which, makes it difficult for the
consumers to pursue their rights and businesses
to meet compliance costs.
•It is costly for consumers to recover a loss or
damage through action in a court of competent
jurisdiction as it is provided for under Part VI and
VII of FCA.

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The Impact On Business and
Consumers
•Remedies such as fines, injunctions, litigations by
individuals(consumers or competitors),class
actions as a result of liability in contract or tort,
instituted against businesses, brings about costly
disputes with consumers thus, creating
burdensome for businesses.
•Generally, consumers do not directly benefit from
competition remedies which, focus on behavioural
and structural change of the market, because
their effect to consumer protection take longer
than consumer remedies.
•With regard to consumers, litigation may be costly
to the extent of denying them right to redress.

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•Theunderlistedfactorsmaybringaboutsolutionsto
thecurrentsituation:-
•Putinplacemechanismsfordisputeresolution
whicharecheap,accessibleandquick,thatwill
savetimeforconsumersandbusinessesieADR.
•Simplifyandclarifyconsumerandcompetitionlaws
toreducebusinesscompliancecostsaswellas
empowerconsumerstomakeinformeddecisionsin
themarketplace.Thiscanbedonethroughlaw
reformsandeducationprogrammes.
•EncouragebusinessestocomeupwithstrongCode
ofConductthroughself-Regulationinitiatives.
Conclusion : How Do We Find Solutions

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References
•Australian Competition and Consumer Commission: Warranties
and Refunds : A guide for Consumers and
Businesswww.accc.gov.au/...competition
•The Fair Competition Act, 2003.
•http://www.gov.uk/governmentaccessed on 06/08/2013
•www.autraliancompetitionlaw.org/overview.html accessed on
17/07/2013
•http://www.clasf.org/ComPLRev/Issues/voi3Issues2ArtHaracogl
ou.pdf Accessed on 17/08/2013
•http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft.9
11.pdf acessedon 14/07/2013

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Thanks for your attention
Martha M. Kisyombe
[ Head –Consumer Protection Department ]
www.competition.or.tz