Structure Functions of Competition Consumer Protection Commission By

Structure & Functions of Competition & Consumer Protection Commission By Brian M. Lingela, Director-Consumer & Public Relations Presented to Stakeholders’ Seminar on Competition & Consumer Protection 7 March, 2011 Long Bridge Hotel, Lusaka 1

Presentation Outline w w w Introduction CFTA CAP 417 of Zambia’s Laws The Advent of CCPC Preamble to CCP Act Functions of CCPC Strategic Focus Areas Institutional Structure of CCPC Competition & Consumer Protection Tribunal Independence of CCPC Investigatory Powers Conclusion 2

Introduction • Zambia liberalised her economy in 1991 following a change in Government by way of privatisation & deregulation; • Shift from GRZ owned & controlled enterprises to private owned firms; • Challenge of anti-competitive conduct by private owned monopolies; • Government had to ensure a level playing field in the economic sector to avoid market frustrations which could lead to stagnation of the economy; • Competition law introduced in 1994. 3

CFTA CAP 417 w Enacted as primary statutory source of competition law and policy in Zambia in 1994; w Established in 1997, ZCC; w To prevent anti- competitive conduct thereby ensuring competition and efficiency in business, resulting in the greater choice for consumers in price, quality and service. w To ensure the interests and welfare of consumers are adequately protected in their dealings with producers and sellers. 4

The Advent of CCPC § § § Competition and Consumer Protection Act No. 24 of 2010 was passed by the National Assembly & assented to on 14 th August 2010. The Act came into operation on 8 th October 2010 when it was published as a Statutory Instrument. Amplified & introduced provisions & changed structure of enforcement 5

Preamble To CCP Act (i) to continue the existence of the Zambia Competition Commission and re-name it as the Competition and Consumer Protection Commission; (ii) safeguard and promote competition; (iii) protect consumers against unfair trade practices; (iv) provide for the establishment of the Competition and Consumer Protection Tribunal; (v) Repeal and replace the Competition and Fair Trading Act, 1994; and 6

Functions of CCPC. Sec 5 (a) Review operation of markets in Zambia & the conditions of competition in those markets; (b) Review the trading practices pursued by enterprises doing business in Zambia; (c) Investigate & assess restrictive agreements, abuse of dominant positions & mergers; (d) Investigate unfair trading practices & unfair contact terms & impose such sanctions as may be necessary; 7

Functions Contd. . (e) undertake & publish general studies on the effectiveness of competition in individual sectors of economy in Zambia on matters of concern to consumers; (f) act as primary advocate of competition & consumer protection in Zambia; (g) advise GRZ on laws affecting competition & consumer protection; (h) Provide information for the guidance of consumers regarding their rights under this Act; 8

Functions Cntd. (i) liaise & exchange info, knowledge & expertise with competition authorities & consumer protection authorities in other countries; (j) advise Minister on agreements relevant to competition & consumer protection & any matter relating to this; (k) Cooperate with & assist any association or body of persons to develop & promote observance of standards of conduct to ensure compliance with Act. 9

Strategic Focus Areas w Restrictive & Anti-competitive practices w Horizontal & vertical agreements w Prohibition of abuse of dominant position w Regulation of mergers w Market enquiries w MOU’s with other Regulators w Consumer protection 10

Institutional Structure w Section 4 renames the ZCC as CCPC, a statutory body-corporate; w Section 6 creates the office of the Executive Director; w First Schedule to the Act creates the Board of the Commission to consist of members with suitable qualifications appointed by the Minister as follows: 11

Institutional Structure (a) Representative from the Ministry responsible for commerce; (b) Representative of the Attorney General; and (c) five other members, with experience and knowledge in matters relevant to this Act, appointed by the Minister; w The Chairperson and the Vice-Chairperson of the Board shall be appointed by the Minister from amongst the members of the Board. 12

Competition & Consumer Protection Tribunal w PART IX creates the Competition and Consumer Protection Tribunal, which shall hear appeals from the CCPC w The members (all part-time) shall be appointed by the Minister, as follows: (a) a legal practitioner of not less than ten years legal experience, who shall be the Chairperson; (b) a representative of the Attorney-General, who shall be the Vice-Chairperson; and (c) three other members who shall be experts, with not less than five years experience and knowledge, in matters relevant to this Act. 13

A Graphical Perspective SUPREME COURT THE HIGH COURT COMPETITION & CONSUMER PROTECTION TRIBUNAL BOARD OF COMMISSIONERS EXECUTIVE DIRECTOR 14

Is CCPC Independent? w Statutory body corporate by Act of Parliament with administrative autonomy; w CCPC is a GRZ agency implementing GRZ competition & consumer policy; w Though Minister appoints BOC & Tribunal members, he/she does not sit on Board; w Minister custodian of GRZ competition/consumer policy w Civil society needs to monitor Board decisions & ensure accountability 15

Access to Judicial System Further Appeal – to High Court & Supreme Court Appeal – to Tribunal Decision – by Board Complaints – to commission 16

Investigatory Powers w As before the Commission is empowered to carry out investigations either on its own initiative or based on a complaint made by any person on w However the new Act provides for a more detailed explanation of the manner in which investigations will be carried out 17

Investigatory Powers contd Powers: w Issuance of notices to obtain : i. Information pertaining to any matter specified in the notice which the Commission considers relevant to the investigation; (in the form of a statement signed by a person or in the case of a body corporate, by a director or member or other competent officer or agent of he body corporate ); 18

Investigatory Powers contd i. document or article; ii. oral statement given by any person who has been served with a notice to appear before the Commission or before a person specified in the notice 19

Investigatory Powers contd Decision not to investigate – s. 56(1) w Where a complaint is deemed to be frivolous or vexatious, the Commission will not investigate the matter and will notify the Complainant its decision not to investigate. w Alternatively the Commission may refer a complaint to another regulator (NB: S. 42 MOUs 20

Investigatory Powers contd Role of inspectors – Sec 7 w With a warrant may: Ø Enter & search any premises (business/private) Ø Search any person on premises (same sex) Ø Examine any document found at premises Ø Request information about any document or article from: 21

Conclusions w CCPA will enhance safeguard competition & enhance consumer protection in Zambia; w Stiffer penalties are what the Commission has lacked; w If successfully enforced, Commission’s visibility & credibility will be enhanced w Need for stakeholder involvement as per S. 5(k); w Need for vigorous consumer/business sensitisation; 22

END Thank you & God Bless You All 23