CONSUMER LAW PROTECTION
EFFECTIVE COOPERATION WITH
A Development
THE MEDIA guide
Hong Kong Congress, May 2011
by Robert Michel
Rmichel@consint.org
Robert Michel
Praia
February 2011
CONSUMERS INTERNATIONAL
consumersinternational.org
Background to the Project
• Many African countries have enacted consumer laws
since 1996
• And while South Africa f.e. boasts one of the most
progressive consumer laws, neighbouring countries like
Namibia, Lesotho and Swaziland have none
• The regional body SADC has nobody in charge\ to look
after consumers
• With all of the above in mind OSISA expressed an
interest to improve the above situation.
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Illiteracy levels in Southern Africa are coupled
with a relatively low population density of 23.5
people per square kilometre
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the SADC region is a scattered, largely
underserved market
the SADC region is a very poor region;
some 45 % of all people in SADC live on
1 US $ a day
Increased difficulties exist in accessing
and solving consumer abuses
the poor in general and poor people
living in rural areas in particular often
have a “poverty premium” to pay for
goods and services that are generally of
less quality than in urban areas
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Illiteracy rate among 15 to 24 year olds
in assorted SADC countries
UNESCO 2006
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Botswana
DR Congo
Lesotho
Madagascar
Malawi
Mauritius
Mozambique
Namibia
South Africa
Swaziland
6.2 %
7.2 %
5.8 %
11.4 %
19.4 %
3.2 %
23.6 %
4.4 %
5.6 %
4.7 %
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The resulting product:
A guide to developing
Consumer law protection
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Contents
page 7 Introduction
page 8 Consumer protection regulation
page 9 Is consumer protection a right or a policy?
page 9 The consumer in the SADC region
page 10 The regulator and the market
page 11 Private law or public law?
page 12 Benchmarking international regulations
page 14 Databases for foreign regulation
page 14 Checklist: a tool for comparative analyses
page 17 Regulatory assessment
page 18 Needs analysis and indicators for success
page 20 Key issues
page 20 Institutional framework for consumer
protection
page 21 The challenge of utilities regulation
page 22 Financial services
page 23 Access to redress
page 25 Tools for legal advocacy
page 25 Targeting the audience for lobbying
page 27 Partners, potential donors and fundraising
page 30 References
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Benchmarking Best Practice
• Don’t make a leap of faith and assume there are
no regulations or no laws
• Always do your own due diligence on others’
‘best practice’
• Do you need to harmonise or to co-ordinate with
other states?
• Start with comparative law research (check SADC,
EAC, COMESA, WTO treaties, national
constitutions, sectorial laws, laws that would
allow for redress (civil procedures, legal aid…)
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A Guide to Consumer Law Protection
was needed in Southern Africa!
But what is a Consumer Protection Law?
• Consumer protection can be treated as an
extension to criminal law
• Consumer protection is also implied in the
contract process (it is assumed that each party
to the contract will do everything in its power
to honour the agreement)
• Consumer Protection can also be seen as a
civil or human right
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Checklist for comparative research
analysis
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Lawmakers and regulations under drafting
Legal sources for consumer protection
Commercial practices and advertisement regulations
Form of contracts
Regulation of contract content and legislation on
liabilities and guarantees
Competition Law
Specific Industry regulations
Dispute resolution mechanisms and resources
Other generic consumer issues
Other related rights
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Be aware
Legislative tools are often in place on paper but
are not enforced often due to a combination of
or lack of
– Will
– Funding
– Legislative clarity
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Key issues for a consumer protection
framework
• Independence
• Enforcement of existing regulations (are there
consumer protection agencies and how well
do they function?)
• Consultative activities for future regulators
• Consumer advisory councils and committees
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Redress Mechanisms are at the core of
all consumer protection regulations
In the SADC region business – to – business redress
in 2010 was as follows (extremely optimistic):
– Number of procedures to enforce a contract
• 37.1 procedures
– Total time to enforce a contract
• 645.1 days
– Costs
• 52 % of the total value of the claim
For the average consumer delays are usually too long and
can cost up to 100 % of the claim and can thus become a
barrier to redress and thus justice
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Apart from the Courts
Consumer can seek justice and redress through
- Sector ombudsmen
- Statute-based tribunerals
- Chambers of Commerce
- Class action
- Standing regulations
- Effective legal aid
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Lastly…. The guide
provides
• Tips where one can get
legal support
• The guide provides some
international contacts
• As well as some
foundations one can
approach for funding
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The End
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