The Consumer Protection Commission has deployed price
monitors to flush out businesses that flagrantly hike prices of goods and
services, in an operation it has embarked on in collaboration with law enforcement agencies.
The Government has ruled out price controls. The Sunday
Mail has gathered that investigators from the statutory consumer watchdog are
carrying out impromptu site visits to business premises to audit their pricing
structures.
CPC chairperson Dr Mthokozisi Nkosi told The Sunday Mail
that there was no justification to pricing “madness”.
“The Commission in consultation with other arms of the
Government is closely following this behaviour with keen interest,” said Dr
Nkosi.
“We are receiving updates on a regular basis from our price
monitoring team on these service providers.
“There is very little justification for these price hikes
as the cost of inputs is relatively stable. Our investigators are on the ground
to unearth the motive behind this madness.
“We urge the sectorial associations to reign in their
members before we take the drastic action which include revoking licenses of
habitual offenders.”
Recently, some businesses hiked prices after the Government
gazetted new regulations to protect consumers from unfair pricing.
Statutory Instrument (SI) 127 of 2021 came into effect on
May 28 to address the rampant abuse of foreign currency accessed through the
Reserve Bank of Zimbabwe (RBZ)’s weekly foreign currency auction.
It compels businesses to price their goods and services at
the prevailing official exchange rate. He said the Commission will soon
introduce new regulations to arrest indiscipline.
Specialised consumer rights courts, he said, will be
established, warning that the days of using moral suasion to solve consumer
disputes were over.
“The Commission is currently working with the Attorney General’s office on
regulations covering different sectors of the economy. In addition, we are also
in discussion with the Judicial Services Commission for specialised consumer
courts. Very soon the exercise will be complete.
“The days of moral suasion in solving consumer disputes are
over. We expect service providers to do the right thing. Consumers have
suffered enough abuse.”
Dr Nkosi said consumer protection was an integral part of a
modern, efficient, effective and just market place.
“Confident consumers are one of the important drivers of
industry competitiveness. By demanding competitive prices, improved product
quality and better service, consumers provide an impetus for innovation and
enhanced performance by business.
“This is important for the attainment of the 2030 upper middle-income class vision as pronounced by President Emmerson Mnangagwa.”
The CPC came into being through the Consumer Protection Act
in 2019. It has the power to fine businesses for unethical practices, including
unfair pricing.
In addition, businesses that engage in multi-tier pricing
and display unpriced goods are liable to hefty fines in terms of the law. Consumers are entitled to full refunds for
defective or sub-standard goods.
Other offences that attract deterrent penalties include
fraudulent offers, failure to label products properly and the disclosure of
consumers’ personal information to third parties. Sunday Mail
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