Consumer protection legislation

Guyana is moving towards enacting modern consumer protection legislation which seeks to ensure the rights of consumers are safeguarded. The enactment of this new piece of legislation will see the country joining the league of other Caricom countries that have already passed adequate consumer protection legislation in keeping with the changing times. Countries such as Barbados, Jamaica, St Lucia, Trinidad and Tobago, St Vincent and the Grenadines among others, have already enacted relevant consumer legislation and have established effective institutions to carry out enforcement activities.

Once enacted, this bill will bring all businesses under tight scrutiny in ensuring that they comply with the provisions of the law. It should be noted that the legislation also provides for expansion of the current Guyana Competition Commission to be renamed the Guyana Competition and Consumer Affairs Commission. This body will be tasked with monitoring compliance with the law, and carrying out other enforcement activities such as responding to consumers’ complaints and ensuring that adequate information is available so that consumers can make informed choices.

Guyana has an open economy, and economic activity will only flourish when consumers can trust businesses. Consumers value not only quality and safety of a product, but also the assurance of quality and safety and the necessary protection whenever they become engaged in a business transaction. This is often absent in all markets, as producers seek to minimize costs while consumers seek lower prices. It is nothing strange for businesses to put on false advertising to attract consumers in an effort to market their products and services. Further, as producers compete with each other in a competitive marketplace, consumers are often caught in the middle. Although competition is good for the consumer, as prices are reduced, the product in itself and services attached to that product are often below standard.

The introduction of this piece of legislation shows that the administration has recognised that consumers face imbalances in bargaining power in the market, hence consumer protection is relevant as a form of government regulation to protect the interests of both consumers and businesses. It is therefore important for consumers to receive adequate protection, and for the government to promote market conditions which provide consumers with greater choices. The Consumer Affairs Act (2011) provides assurances at all stages of a business transaction, and would no doubt assist in building confidence, so that the benefits of a free market can filter down to ordinary consumers.

Among the many provisions of the legislation is that it seeks to ensure that suppliers provide sufficient information to consumers so that they can make informed decisions whether or not to buy a product or service, based on the price they are being charged, the quality and functionality of the product and/ or service, and the contractual rights and obligations of the supplier and of the consumer. From an economic perspective, this is highly beneficial since goods that are produced and services provided would better reflect the desires and needs of consumers.

Currently, in Guyana, if a consumer purchases a faulty good or receives poor service, he or she has very limited options in enforcing the contract (if any) in that purchase, because such unfair trade practices are not explicitly disallowed in the contract. A lack of legislation means that the regular man in the street does not have the necessary means of seeking redress.

We are very optimistic about the introduction of this legislation in Guyana; and, no doubt, it will receive broad-based support from the entire Guyanese populace. Once the legislation is enacted, it is expected that the necessary programmes and activities will be carried out to ensure that consumers are educated of their rights, and likewise suppliers are educated of their obligations and responsibilities to the consumers. Perhaps a small booklet or leaflet summarizing the rights and responsibilities of consumers in very simple language may be a good way to start. This can be followed up with radio and TV programmes specifically aimed at providing useful information to consumers and businesses alike.

The authorities also need to seriously consider making consumer education more visible in the schools’ curriculum, as it is one sure way to tackle the level of ignorance in the society regarding consumers’ rights and responsibilities and consumerism as a whole. As it currently stands, not many of our students understand consumer-related issues; and this would certainly need to be change in order to attract more broad- based support and understanding of the provisions of the legislation.