CCZ engages stakeholders over prices

The Consumer Council of Zimbabwe (CCZ) is engaging various stakeholders including manufacturers, bakers, the Reserve Bank of Zimbabwe (RBZ), among many others, over skyrocketing prices of basic goods, which have now gone beyond the reach of many consumers.

Business Times reporter, Regis Chingawo (RC)  caught up with CCZ acting executive director, Rose Mpofu (RM) to discuss the rocketing prices, other issues that affect consumers, the  effectiveness of the Consumer Protection Act, recently promulgated, and many other issues.

Below are excerpts of the interview:

RC: Some consumers have labelled CCZ  a toothless bulldog. How effective is CCZ  in advocating and protecting consumer issues? 

RM: The statement is just thrown without careful consideration. The CCZ has a long history in consumer protection dating back to 1950s then as pressure groups mainly composed of women who had a passion for consumer issues resulting in the formation of the present day CCZ.

We  have managed to protect consumers even in the absence of adequate legislation. In addition,  in a milestone achievement, CCZ lobbied for the enactment of Consumer Protection Act Chapter 14:14 in 2019. Consumers can now access justice wherever they are in Zimbabwe using the effective structures provided in the Act.

RC: How would you rate Zimbabwe in comparison to regional and global trends?

RM: In the past, that is before the enactment of Consumer Protection Act  Zimbabwe had lagged so much behind. However, the Consumer Protection Act has brought Zimbabwe on the map again as it is one of the few countries in SADC with  comprehensive consumer legislation.

CCZ is also a member of the COMESA Consumer Protection Committee. Zimbabwe is also a board and council member of the Consumers International, a global voice for consumers.

CCZ uses all these platforms to advocate for consumer issues at global level.

RC: How effective is the Consumer Protection Act in addressing consumer concerns, complaints as the market is still rampant with use of unethical business practices such as non price disclosure and disclaimer clauses ?

RM: The Consumer Protection Act chapter 14:14 is very effective. In actual fact CCZ has already begun implementing some of the provisions in the Act.

However, in order to fully implement the Act regulations need to be developed first and the CPC is in the process of doing that.

Non price disclosure is adequately covered in section 26 and use of disclaimer clauses is covered in section 42 with penalties of offenders spelt out clearly.

As we do not work in isolation we have partnered other enforcement bodies such as ZRP by conducting operations country wide such as Operation dubbed  AFAYA we carried out in August 2021 enforcing the compliance of section 26 and section 42. The operation restored normalcy in the market.

RC: What major achievements has CCZ done in protecting and advancing consumer issues?

RM: Lobbying for the enactment of Consumer Protection Act, production of the monthly lower income urban earner  family basket of six, complaints handling, resolution and also lobbying for various legislation such as the patients charter, Competition and Tariffs Act, Class Action Act.

RC: Prices of goods and services continue rising. What is CCZ  doing? 

RM: The issue of pricing is just a component in consumer protection. We are in the process of engaging various manufacturers, especially those who produce basic commodities and benefit from the foreign currency auction system. Section 51 of the Consumer Protection Act states that “service providers shall not offer to supply, or enter into an agreement to supply any goods or services at unfair, unreasonable and unjust prices and terms. However, we appreciate the economic fundamentals at play. It is uncompetitive behaviour and profiteering that in turn disadvantages the consumer.

RC: How visible is your organisation and represented in provinces?

RM: Visibility is a critical issue that we have been addressing through our various programmes in partnership with the media, various stakeholders doing  community meetings and mobilisation and also setting grassroot structures at community level by way of setting Consumer Action Clubs. These are organised CCZ members who have a passion for consumer issues and interests who regularly meet to discuss issues of concern, making recommendations that we take along in our various lobbying platforms.

RC: What are the plans for this year’s World Consumer Rights Day commemorations?

RM: On World Consumer Rights Day we are educating consumers to claim their digital rights in the financial services sector. We are educating the financial services sector to ensure they educate their customers on how to use their digital online platforms. We also appeal that they should always ensure efficiency of their systems to avoid disadvantaging ring consumers.

RC: How are you working with law enforcement agencies and other stakeholders such as Confederation of Zimbabwe Retailers, Zimbabwe Chamber of Commerce and Confederation of Zimbabwe Industries?

RM: We work with many stakeholders including sector associations, regulatory authorities, civic society, government ministries among others.  We also work with international consumers under the umbrella of Consumers International.

At the moment, we are engaging the sector associations. For example we are in talks with the National Bakers Association where we condemned their collusion in coming up with cost drivers and reporting those to the Government in order to justify their price increase.

We have said that is wrong. Competition and Tariff Commission our stakeholder has supported us. We have also sought the Central bank’s intervention. Because the bakers do receive forex through the Reserve Bank of Zimbabwe auction system, we have told the Governor that the forex he is allocating the bakers is supposed to trickle down to lower the price of bread that consumers are buying. But, bread is being priced using the black market rate.

RC: You have been appointed to the Consumer Protection board, what   will be your mandate?

RM: As the only commissioner who has been in the consumer movement before, I have a big responsibility to guide the chair and other commissioners’ particularly in the very vital consumer issues.