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Consumer protection in The Bahamas
Consider This...
BY PHILIP C. GALANIS
An educated consumer is our best customer. – Sy Syms
In the 1980s, in an effort to educate TV viewers, clothier Sy Syms frequently reminded his audience that, “An educated consumer is our best customer.” He was a pioneer in consumer education and empowerment and persons like consumer advocate Ralph Nader were also well known for protecting the average consumer.
This week, we would like to Consider This... do we have a progressive consumer protection environment in The Bahamas?
Consumer protection laws
Consumer protection is often provided by laws and organizations that are designed to ensure consumers’ rights and to foster fair trade competition and the free flow of truthful information in the marketplace.
Consumer protection laws are designed to prevent businesses from engaging in fraudulent or unfair practices that would enable them to gain an unfair advantage over competitors or to mislead consumers. Governments often use consumer protection laws to regulate businesses from such practices or to protect the rights of consumers. For example, the United Kingdom has several statutes to protect consumers in specific areas of consumer credit and contract terms. The Australian Competition and Consumer Commission, along with individual state consumer affairs agencies, are responsible for consumer protection. Germany has a federal Cabinet minister who is responsible for consumer rights and protection. In India, the Consumer Protection Act of 1986 governs consumer protection. The Bahamas Parliament passed a Consumer Protection Act of 2006 which is intended to provide consumers who are disadvantaged by exorbitant prices, substandard products and the unscrupulous practices of merchants and service providers with a forum to have their complaints addressed on a timely basis by a consumer protection commission. The law requires merchants and service providers to be more accountable and ensures that in their dealings with consumers, value is exchanged for goods and services provided.
The Bahamian experience
Today there are many areas where consumer protection can be greatly enhanced in The Bahamas. For example, in the area of commercial banking, we are familiar with the practice of some banks overcharging their customers for various “services” of which consumers are unaware until they are referred to the fine print in the bank mandates – a document that 99.9 percent of consumers fail to read or understand when opening bank accounts. In some circumstances, when called out, commercial banks have had to reverse such charges. Unless the vigilant consumer closely scrutinizes his bank statement, he could end up paying excessive charges that are neither substantiated nor justified.
Then there is the famous “float”. Notwithstanding the introduction of an automatic check clearing system, it is commonplace for commercial banks to hastily withdraw funds from customers’ accounts, while simultaneously placing a “hold” on deposited funds for several days. The consequence is that this practice puts the customer’s account into overdraft, resulting in bank charges of as much as $25 for having “insufficient funds” on the account because the deposited funds were still “on hold”. Unfortunately there is absolutely no one to whom the consumer can turn for relief from this practice, not even the Central Bank.
Then there are well-known cases where many consumers have experienced enormous encounters with essential service providers, especially in the areas of telephony and electricity. Since our telephone company, BaTelCo, was “given away” by an incompetent government on the ill-conceived advice of equally incompetent advisors, the delivery of quality service by that public corporation has drastically deteriorated. Prior to that ill-fated sale of one of our most precious national assets, BaTelCo was managed by Bahamians and, while there were intermittent complaints about the delivery of quality of service, the experience of the “new and unimproved” BTC is now nothing short of cataclysmic. It is virtually impossible to complete a cellular call without that call dropping off the network. And never before in the history of telephony in The Bahamas have landline consumers experienced such difficulty in placing simple local calls or obtaining timely service when experiencing problems. To whom can the consumer turn for protection? The theoretical answer is URCA, but the practical answer is “not a soul”. There is no penalty, no protection and no compensation.
In the past two years, in the wake of the historically worst-managed capital project in the life of our Commonwealth, namely the New Providence Road Improvement Project, we have repeatedly experienced electrical blackouts, ostensibly from road workers who accidently and inadvertently cut power lines while trenching our roads. This has resulted in thousands of man-hours in lost productivity in a myriad of businesses and incalculable inconvenience to individuals and households. From whom can consumers so affected seek redress for the lost hours of work, the damage to appliances and the general disruption of life resulting from such “accidents”? In truth and in fact, the answer is “no one”. There is no consumer protection.
Cable TV and Internet service might not quite qualify as essential services, although some might argue to the contrary, but we are all familiar with the repeated disruptions that many consumers experience from Cable Bahamas. Again, it is very difficult to expect any real satisfaction for such disruptions from the agency that is supposed to protect consumers from abuses by the cable company. URCA, which does little to compensate consumers from telephone company abuses, performs an equally deplorable job in protecting cable TV and Internet consumers from poor service.
Then we have regulated products such as food and fuel. There are certain foods that are price-controlled at our food stores. The real question that an educated consumer should ask is whether the Price Control Commission methodically monitors foods that are subjected to price control. It is extremely rare that we hear of food stores being sanctioned for pricing breaches by the Price Control Commission. Is this because the food stores are virtually compliant or have they been able to circumvent the price control regime? It is not an exceptional experience for consumers to observe vastly different prices on various food items. Is this also the case with respect to price-controlled items?
The price of fuel is also regulated and importers and end-service providers are allowed to earn pre-determined margins. Who monitors the pricing behavior of service providers to ensure that the consumer is not being gouged at the fuel pump? We do not frequently, if ever, hear of any violations of the established margins by fuel merchants or of any penalties imposed for attendant breaches.
Finally, the Bahamian consumer needs protection relative to local food production and distribution. In the absence of any sanitary and phytosanitary standards relative to the production of food, plants and vegetables, the all-important question of food safety will remain elusive at best and questionable at worst. One of the benefits of the country’s accession to the World Trade Organization (WTO) is that such standards must be established. However, until those standards relative to food, plant and vegetable production, harvesting and distribution are implemented and enforced, consumers will never know just how safe the food is that they are consuming.
Conclusion
It is vitally important for all Bahamians to be educated and vigilant about our rights as consumers and to whom we can turn for abuses or violations to be redressed. Until we become educated consumers, we will not be good customers. Instead, we will indeterminately wander and wallow in the quagmire of ignorance and abuse. We must no longer put up with things we should not even tolerate for a moment. We must become empowered to not only stop those abuses for ourselves but end them for each and every Bahamian consumer.
• Philip C. Galanis is the managing partner of HLB Galanis & Co., Chartered Accountants, Forensic & Litigation Support Services. He served 15 years in Parliament. Please send your comments to: pgalanis@gmail.com
April 15, 2013
A misguided crusade
What war is Rodney Moncur’s army of one fighting?
BY JUAN McCARTNEY
Guardian Broadcast Editor
juan@nasguard.com
Last week, three people died in a horrifying accident on Mayaguana, Bahamas Electricity Corporation workers tussled with police, armed hooligans invaded homes practically unchecked and we learned that the country’s gross domestic product didn’t grow as much as was forecasted last year.
But don’t let any of that, or growing allegations of police brutality, distract you from the carnival-barking sideshow brought to you courtesy of Rodney Moncur over the past several days.
As major developments unfolded throughout the country, Moncur became the cause de jour for many Bahamians on social media after he was charged with committing an indecent act for posting photos of Jamie Smith’s dead body on his Facebook page.
Smith was one of two men who died in police custody within hours of each other at separate locations on New Providence in February.
Moncur’s Facebook page is fashioned somewhat like a news blog.
Despite the fact that it is replete with inaccurate information, many Bahamians swallow it hook, line and sinker and spread his posts as genuine articles.
Moncur perhaps tested the patience of police when a photo of him standing next to Smith’s corpse as it lay on a preparation table at a local mortuary was published on his Facebook page several weeks ago.
However, over the holiday weekend, another photo of Smith’s corpse appeared on Moncur’s Facebook page.
This one, that showed Smith vivisection and other autopsy scars as his tongue lolled inside his open jaw, was particularly disturbing.
Smith’s family members, who have denied Moncur’s assertion that he is related to them, asked Moncur to take the pictures down.
He did not.
That picture, and another that showed the bruised buttocks of another man who claimed police beat him, apparently ticked off the police enough for them to arrest Moncur.
After his release that same day, Moncur wrote about it in great detail on his Facebook page.
He was arrested again and charged days later.
Other than once again directing attention to himself, it is unclear what Moncur was attempting to do by posting pictures of Smith’s body, as the Coroner’s Court is scheduled to hear the matter this month.
Moncur’s arraignment, his failure to make bail on Thursday and his posting bail on Friday, all made headline news.
Not so much because anything Moncur did was particularly noble, but because his shenanigans often generate public discourse, and a lot of it.
That Moncur, who subscribes to no journalistic standard, would use pictures of a dead man against the wishes of his family to aggrandize himself should come as no surprise.
This is the man who claims that women who use birth control are not true Christians. This is the man who describes himself as the ‘secret leader’ of Haitians in The Bahamas (whatever that means).
This is the man who listed eight fruit trees and a dictionary as assets on his declaration form when he was a candidate in the 2012 general election.
And his bizarre behavior has been consistent only in the frequency with which he has changed positions since the Pindling era.
What surprised me was that the police would waste their time charging Moncur.
And it was equally surprising to see how enthralled people became with his ordeal.
More than 3,000 people followed the Facebook page ‘Free Rodney Moncur’, with some misguided folks comparing him to Nelson Mandela.
Many told me that Moncur’s arrest represents some bold power grab on the part of Police Commissioner Ellison Greenslade in his master plan to abolish our freedom of expression.
I’m unconvinced.
However, Greenslade himself didn’t help matters by speaking about how important it was to make sure people don’t abuse their social media privileges.
And with the number of armed robberies and home invasions on the rise here in New Providence, many also rightly questioned the Police Force’s priorities.
Moncur has promised not to relent in the face of the charge.
Knowing him, this certainly won’t be the last we hear from him on this and many other issues.
April 08, 2013