History of the Consumer Affairs Commission
(formerly the Prices Commission)
How it all Began…
Legislation amending the Trade Act, which was passed in July 1970, resulted in the establishment of the Prices Commission. The Agency began operation on January 6, 1971, under a Prices Commissioner, who apart from being Chairman of the Board of Directors was also responsible for the Agency’s day to day operation.
This situation was changed in 1976 when the positions were separated. An Executive Director had the responsibility for day to day activities and a Chairman of the Board was appointed with oversight responsibility.
The main function of the Prices Commission as established under the Act, was to operate as advisor to the Minister, who in this and every subsequent case, was the Minister of Government, with portfolio responsibility for the Country’s commerce. At the time of its being established, the Minister was the Hon. Robert Lightbourne, Minister of Trade and Industry.
At its inception, the main emphasis of the Prices Commission as part of its consumer protection mandate was that of price control. Under this mandate it sought to regulate the prices at which goods and services were sold, by setting and rigorously monitoring the prices in the consumer outlets - shops, supermarkets and bars. Price Controls were maintained in three categories known as “A”, “B”, and “C” List items, indicating the varied degrees of control. Categorised items were put in force by what was known as “Price Orders” signed by the relevant minister of Government and thereafter gazetted.
The Commission also had investigative authority into reports of breaches such as hoarding and “marrying” of goods, with the power to prosecute. Additionally, the Prices Commission devoted time to consumer and business education while seeking to address consumer complaints, which were mostly related to prices.
Changes…
The period of heavy control of prices would just about have ended in 1980. 1981 saw a reduction in the number of goods, which had been under price control, as the Government during that time, began to pursue a path whereby prices were determined by the market forces, demand and supply; in other words, demand would determine the price at which goods and services were made available.
During the 1980s, there was a constant reduction of the number of goods under price control, culminating in there being less than 10 items left under price control at the end of 1985, coming from over 60 in 1980. However, 1986 brought about a mild reversal when over 12 items previously decontrolled were put back under price control in May 1986.
It was also during this period, in 1985 that Jamaica became a signatory to the UN Guidelines on Consumer Protection recognising the eight basic rights of the consumer, namely:
I. The Right to Safety
II. The Right to Choose
III. The Right to be Informed
IV. The Right to be Heard
V. The Right to Redress
VI. The Right to the Satisfaction of Basic Needs
VII. The Right to a Healthy Environment
VIII. The Right to Consumer Education
However, in 2015, these were amended. The updated UN Guidelines on Consumer Protection provides new references and updated policies to tackle emerging consumer protection issues in financial services, privacy, energy, travel and tourism. New key added areas are:
- Access to essential goods and services, and the protection of vulnerable and disadvantaged consumers are recognized as new consumer legitimate needs;
- New guidance on e-commerce, parity of treatment between online and offline consumers and protection of consumer privacy;
- New guidance on financial services, public utilities, good business practices and international cooperation; and
- A new Inter-governmental Group of Experts (IGE) on consumer protection law and policy to monitor the implementation of the UNGCP, serving as a forum for exchange.
Trade Liberalization…
1989 - This year saw the continuation of a reduction in the number of controlled items and by February 1990, most items had been decontrolled. Those remaining were Petrol in all forms, Brown ‘dark’ Sugar, Liquid Petroleum Gas, Motor Vehicles and Motor Vehicle Parts.
Today, there is no control in the price of these goods.
1990 to Present - This period marked the change of the Prices Commission to the Consumer Affairs Commission (CAC), beginning with Ministry Paper #12, which was presented to Cabinet on February 13, 1990. By Cabinet decision in 1992, there was an official name change heralding the birth of the Consumer Affairs Commission.
During this period, Jamaica moved from strictly Price Control to a liberalised market driven economy. Therefore the Agency expanded its Consumer Education Programme with the goal of empowering consumers through the provision of information about their rights and responsibilities, to better equip and cope in this new economy. The Agency continued with its conduct of surveys on Grocery Items, Petrol and Pharmaceutical items with the emphasis being more on equipping consumers with information in making their purchasing decisions.
The CAC in its outreach programs tries to participate in all forms of activities and events, namely expositions, group presentations, workshops and seminars. It endeavours to reach individuals at all levels and age groups and to this end, it has an active school program.
Matters relating to consumer education form a part of the school curriculum and the CAC is willing on most, and if not all occasions, to participate in school activities geared towards enhancing the transmission of this curriculum.
The Agency also continues to provide Complaints Resolution services to its clients through a Complaints Bureau, with the focus however no longer being on price related grievances but instead on difficulties being experienced by consumers such as refusal or delays in repairing, or replacing defective goods; breach of contract, among others.
Stemming from this was further development of its Business Education programme, to provide entrepreneurs with information as to proper and fair business practice in their interaction with customers.
Being highly involved in consumer education, the Agency in previous years acted as a resource agency for the Non-government advocate groups such as the National Consumers League, United Consumers in Action (no longer in existence) and The Combined Disabilities Association.
Consumer Protection Act (CPA) 2005
In 2005, the Consumer Protection Act (CPA) came into being. It is the legislation which enables the CAC to operate and is applicable to all persons involved in trade and business through the purchasing or vending of goods and/or services. It provides a balance between consumers and businesses in the Jamaican marketplace by acknowledging internationally recognised basic rights and responsibilities of consumers. It also outlines the legal obligations of both businesses and consumers in commerce. In 2012, the CAC identified areas where the CPA could be amended to achieve a more adequate balance between the interests of consumers and those of providers. This resulted in the passage of the Consumer Protection (Amendment) Act (2012).
The 2012 amendments afford the Commission more options to pursue marketplace breaches, and simultaneously give regard and credence to the rights of providers of goods and services within Jamaica.
Prior to the CPA’s amendment, the legislation empowered the Commission to investigate contraventions upon complaints being made to the agency by consumers. Section 6(3) of the Act has been amended to continue this function but it has also been expanded to allow the Agency, on its own initiative, to investigate any breach of the Act, by a provider of goods or services.
Furthermore, by virtue of Section 7(4) the Commission now has the discretion to institute legal proceedings in its own name on behalf of any aggrieved complainant, or can provide legal support and assistance to any such complainants. Prior to this, the Agency could only make legal representations on behalf of certain categories of complainants.
The cumulative effects of these changes are that the Commission can now be proactive in launching investigations where it sees the need. Also, the Commission can now file criminal and civil proceedings in its own name, on behalf of consumers who are adversely affected by any breach of the CPA.
The Consumer Protection Tribunal
Arguably, the most far-reaching amendment to the CPA is that of the establishment of a Consumer Protection Tribunal (the new Sections 44A-44F).
This Tribunal is a quasi-judicial body, which means that it has the power to make decisions concerning the rights of the parties brought before it. It has been intrinsically established to hear and determine matters in breach of the CPA, but not settled through mediation. Either the provider or the consumer may refer such unresolved matters to this Tribunal.
Legal rules of administrative justice require that hearings should be placed before an independent and impartial arbiter. Further, the authority of the arbiter should be separate from the administrative agency created to investigate, supervise and regulate that particular area of governmental concern. In keeping with this fundamental principle, the adjudicative functions of the Consumer Protection Tribunal are separate and distinct from the investigative and administrative arms of the Commission.
Partnerships
On March 14, 1999, the CAC joined the Consumers International, a global consumer body, as an Affiliate/Government Member. Recognising the need for greater regional involvement, the Agency became a part of the Regional grouping, the Caribbean Consultative Consumer Committee that was formed June 1999 at the Jamaica Conference Centre and later changed in June 2001, to the Caribbean Consumer Committee, to which it acted as chair and convenor.
The Consumer Affairs Commission provides regional training to assist in the establishment of territorial agencies and the attending legislation.
Notes provided by the Consumer Affairs Commission
