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Law Reform Commission Law Reform Commission Review of Aspects of Consumer Review of Aspects of Consumer Laws Laws Presentation of Findings Presentation of Findings and Recommendations and Recommendations Pierre Rosario DOMINGUE Pierre Rosario DOMINGUE Chief Executive Officer Chief Executive Officer 12 January 2011 12 January 2011 1

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Page 1: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

Law Reform CommissionLaw Reform Commission Review of Aspects of Consumer Review of Aspects of Consumer

Laws Laws

Presentation of Findings Presentation of Findings and Recommendationsand Recommendations

Pierre Rosario DOMINGUEPierre Rosario DOMINGUE

Chief Executive OfficerChief Executive Officer

12 January 201112 January 2011

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Page 2: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(A) Background and (A) Background and Scope of ReviewScope of Review

Request from MINISTRY to review aspects of Request from MINISTRY to review aspects of consumer lawsconsumer laws

• Consumer Protection Act [1991] Consumer Protection Act [1991] • Consumer Protection (Price and Supplies Control) Act [1998]Consumer Protection (Price and Supplies Control) Act [1998]• Essential Commodities Act [1991]Essential Commodities Act [1991]• Fair Trading Act [1979]Fair Trading Act [1979]• Hire Purchase and Credit Sale Act [1964]Hire Purchase and Credit Sale Act [1964]• Prices and Consumer Protection Advisory Committee Act Prices and Consumer Protection Advisory Committee Act

[1983][1983] And the subsidiary legislation made under those Acts as well as And the subsidiary legislation made under those Acts as well as

regulations made under the repealed Supplies Control Act regulations made under the repealed Supplies Control Act No. 20 of 1974No. 20 of 1974

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Page 3: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (1)(1)

33

(a) Benchmarking of current law with (a) Benchmarking of current law with best international practicesbest international practices

(+) International Standards(+) International Standards(+) Laws and Practices in various jurisdictions(+) Laws and Practices in various jurisdictions International Trends and Strategies evolved for fair markets and for International Trends and Strategies evolved for fair markets and for

enhancing consumer confidence [Consumer Empowerment]enhancing consumer confidence [Consumer Empowerment][Government intervention to correct market failures and to redress [Government intervention to correct market failures and to redress

inequalities of information and power in the context of a dynamic inequalities of information and power in the context of a dynamic market environment characterized by trade liberalization and market environment characterized by trade liberalization and globalization, increased reliance on technology and a faster pace of globalization, increased reliance on technology and a faster pace of innovation]innovation]

Page 4: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (2)(2)

(+) (+) International StandardsInternational Standards

=UN Guidelines for Consumer Protection =UN Guidelines for Consumer Protection (1985, amended in 1999)(1985, amended in 1999)

*Framework for Governments to use in elaborating *Framework for Governments to use in elaborating consumer protection policies and legislationconsumer protection policies and legislation

*Recognition of the following consumer rights: (a) Right to *Recognition of the following consumer rights: (a) Right to Satisfaction of Basic Needs, (b) Right to Safety, (c) Right Satisfaction of Basic Needs, (b) Right to Safety, (c) Right to Choice, (d) Right to Information, (e) Right to Consumer to Choice, (d) Right to Information, (e) Right to Consumer Education, (f) Right to Redress, (g) Right to Education, (f) Right to Redress, (g) Right to Representation, and  (h) Right to a Healthy Environment.Representation, and  (h) Right to a Healthy Environment.

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Page 5: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (3)(3)

= UNCTAD’s Work = UNCTAD’s Work

= EU law (Consumer Directives)= EU law (Consumer Directives)= Standards laid down by other regional = Standards laid down by other regional

organizations organizations [such as Council of Europe, CARICOM, Inter-[such as Council of Europe, CARICOM, Inter-American System]American System]

= Standards laid down by OECD Committee = Standards laid down by OECD Committee on Consumer Policy on Consumer Policy [eg OECD Recommendation on [eg OECD Recommendation on Consumer Dispute Resolution & Redress (2007)]Consumer Dispute Resolution & Redress (2007)]

= NGOs: Consumers International = NGOs: Consumers International [Model Law for [Model Law for Africa: Protecting the African Consumer (1996)]Africa: Protecting the African Consumer (1996)]

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Page 6: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (4)(4)

(+) (+) Laws and Practices in various Laws and Practices in various jurisdictionsjurisdictions

[Examination of Current legislation, Government policy documents, [Examination of Current legislation, Government policy documents, as well as Government/NGO proposals for reform and reflections of as well as Government/NGO proposals for reform and reflections of law reform agencies, whilst bearing the economic, social and law reform agencies, whilst bearing the economic, social and environmental circumstances of those countries and the needs of environmental circumstances of those countries and the needs of their population]their population]

• India [Consumer Protection Act 1986 (amended in 2002)]India [Consumer Protection Act 1986 (amended in 2002)]

• Malaysia [Consumer Protection Act 1999]Malaysia [Consumer Protection Act 1999]

• Singapore [Consumer Protection (Fair Trading) Act 2004]Singapore [Consumer Protection (Fair Trading) Act 2004]

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Page 7: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (5)(5)

• Australia [Australian Consumer Law (cif 1 January Australia [Australian Consumer Law (cif 1 January 2011)]2011)]

• New Zealand [Consumer Guarantees Act 1993]New Zealand [Consumer Guarantees Act 1993]

• UK & Jersey [Consumer Safety (Jersey) Law 2006, UK & Jersey [Consumer Safety (Jersey) Law 2006, Distance Selling (Jersey) Law 2007, and Supply of Distance Selling (Jersey) Law 2007, and Supply of Goods and Services (Jersey) Law 2009]Goods and Services (Jersey) Law 2009]

• EIRE [Consumer Protection Act 2007]EIRE [Consumer Protection Act 2007]

• France [Code de la Consommation]France [Code de la Consommation]

• Barbados [Consumer Protection Act 2003 and Barbados [Consumer Protection Act 2003 and Consumer Guarantees Act 2003]Consumer Guarantees Act 2003]

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Page 8: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (6)(6)

• South Africa [Consumer Protection Act 2008]South Africa [Consumer Protection Act 2008]

• Jamaica [Consumer Protection Act 2005]Jamaica [Consumer Protection Act 2005]

• Other Jurisdictions [Canada, US, Trinidad & Other Jurisdictions [Canada, US, Trinidad & Tobago, Argentinean and Brazilian Consumer Tobago, Argentinean and Brazilian Consumer Protection, Denmark Consumer Protection Protection, Denmark Consumer Protection legislation, Latvia Consumer Rights Act 2001, legislation, Latvia Consumer Rights Act 2001, Sarajevo Consumer Protection Act 2001]Sarajevo Consumer Protection Act 2001]

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Page 9: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(B) Methodology (B) Methodology (7)(7)

(b) Consultations with (b) Consultations with Stakeholders/Empirical StudiesStakeholders/Empirical Studies

• Administrative Cadre & Officers of Consumer Administrative Cadre & Officers of Consumer

Protection UnitProtection Unit

• NGOs: ICP (Institute for Consumer Protection) & NGOs: ICP (Institute for Consumer Protection) & ACIM (Association des Consommateurs de l’ile ACIM (Association des Consommateurs de l’ile Maurice)Maurice)

• Field Assessment of Consumer Awareness and Field Assessment of Consumer Awareness and Experience of Consumer Legislation Experience of Consumer Legislation

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Page 10: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (1)Framework (1)(a) Safety Standards are laid down (a) Safety Standards are laid down

only in respect of goods [Consumer only in respect of goods [Consumer Protection Act and Reg (toys, laser Protection Act and Reg (toys, laser pointers, plastic and polyethylene pointers, plastic and polyethylene pipes and fittings], not in respect of pipes and fittings], not in respect of servicesservices

-Protection afforded is far from being comprehensive: need for -Protection afforded is far from being comprehensive: need for enactment of safety standards in respect of a wider range enactment of safety standards in respect of a wider range of goodsof goods

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Page 11: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework(2)Framework(2)

Regulations badly drafted [eg First Schedule to Laser Pointers Regulations badly drafted [eg First Schedule to Laser Pointers (Safety) Regulations 2007, which was meant to contain the (Safety) Regulations 2007, which was meant to contain the essential safety requirements had not been enacted]essential safety requirements had not been enacted]

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Page 12: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (3)Framework (3)(b) The manner in which the Consumer (b) The manner in which the Consumer

Protection (Price and Supplies Control) Protection (Price and Supplies Control) Act [aimed at providing protection to Act [aimed at providing protection to the consumer against abusive trade the consumer against abusive trade practices, by regulating trade, supply practices, by regulating trade, supply and price of goods] and the regulations and price of goods] and the regulations made there under, is administered made there under, is administered give rise to constitutional problemsgive rise to constitutional problems

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Page 13: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (4)Framework (4)(Responsibility for administration/enforcement of (Responsibility for administration/enforcement of

Act to two different Ministers/Ministries Act to two different Ministers/Ministries unconstitutional)unconstitutional)

(Fixing of price of goods in Rodrigues is the (Fixing of price of goods in Rodrigues is the responsibility of RRA, not that of the Minister)responsibility of RRA, not that of the Minister)

(Regulations made ultra vires the Act: eg Consumer (Regulations made ultra vires the Act: eg Consumer Protection (Maximum Recommended Retail Price) Protection (Maximum Recommended Retail Price) (Code of Practice) Reg 2008] (Code of Practice) Reg 2008]

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Page 14: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(c) The provisions as to consumer (c) The provisions as to consumer guarantees in respect of the supply of guarantees in respect of the supply of goods and services, as to unfair business goods and services, as to unfair business practices, are insufficient.practices, are insufficient.

(Existing provisions in Fair Trading Act need to be (Existing provisions in Fair Trading Act need to be complemented by more elaborate provisions; consumer complemented by more elaborate provisions; consumer guarantees to be expressly laid down in our law)guarantees to be expressly laid down in our law)

(Sections 3 and 10 of Fair Trading Act in breach of section (Sections 3 and 10 of Fair Trading Act in breach of section 68 of the Constitution)68 of the Constitution)

(Many of the Regulations made under Fair Trading Act (Many of the Regulations made under Fair Trading Act drafted in a very unsatisfactory manner)drafted in a very unsatisfactory manner)

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(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (5)Framework (5)

Page 15: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (6)Framework (6)

(d) There is no provision as to unfair (d) There is no provision as to unfair contract terms in consumer contract terms in consumer agreements. agreements.

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Page 16: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (7)Framework (7)

(e) Distance selling, doorstep selling (e) Distance selling, doorstep selling and unsolicited consumer and unsolicited consumer transactions are not regulated. transactions are not regulated.

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Page 17: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(C) Findings: Some of the (C) Findings: Some of the Lacunas in the Current Lacunas in the Current

Framework (8)Framework (8)

(f) The enforcement framework (f) The enforcement framework relating to consumer transactions relating to consumer transactions and agreements needs to be and agreements needs to be strengthened; need to develop a strengthened; need to develop a mechanism for consensual resolution mechanism for consensual resolution of disputesof disputes

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Page 18: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (1)for Reform of the Law (1)

The overall objectives of the New Consumer Regime The overall objectives of the New Consumer Regime should be to promote and advance the social and should be to promote and advance the social and economic welfare of consumers by establishing a economic welfare of consumers by establishing a legal framework for the achievement and legal framework for the achievement and maintenance of a consumer market that is maintenance of a consumer market that is accessible, fair, efficient, responsible and accessible, fair, efficient, responsible and sustainable for the benefit of consumers sustainable for the benefit of consumers generally, and which provides adequate generally, and which provides adequate safeguards to vulnerable consumers. safeguards to vulnerable consumers.

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Page 19: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (2)for Reform of the Law (2)The consumer law should protect both natural The consumer law should protect both natural

persons and legal entities when goods and persons and legal entities when goods and services are supplied to them, as well as (a) any services are supplied to them, as well as (a) any user of such goods, or (b) any beneficiary of such user of such goods, or (b) any beneficiary of such services. However, goods acquired or the services services. However, goods acquired or the services availed of must not have been for a commercial availed of must not have been for a commercial purpose.purpose.

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Page 20: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (3)for Reform of the Law (3)(a) Provision should be made for consumer (a) Provision should be made for consumer

rights, including the freedom of consumers rights, including the freedom of consumers to associate and form groups to advocate to associate and form groups to advocate and promote their common interestsand promote their common interests

• Right to be protected against products, production Right to be protected against products, production processes and services, which are hazardous to health or processes and services, which are hazardous to health or life; life;

• Right of access to basic goods and services; Right of access to basic goods and services;

• Right to true, sufficient, clear and timely information Right to true, sufficient, clear and timely information concerning goods and services;concerning goods and services;

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Page 21: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (4)for Reform of the Law (4)• Right to choose and to return unsafe or defective goods; Right to choose and to return unsafe or defective goods;

• Right to fair, nondiscriminatory treatment by suppliers of Right to fair, nondiscriminatory treatment by suppliers of goods and services;goods and services;

• Right to prompt, timely and adequate compensation for Right to prompt, timely and adequate compensation for any damages caused by the supply of goods and services; any damages caused by the supply of goods and services;

• Right to be heard and to make complaints to the Right to be heard and to make complaints to the appropriate authority for redress against unfair practices;appropriate authority for redress against unfair practices;

• Right to associate and join or form consumer unions and Right to associate and join or form consumer unions and associations;associations;

• Right to consumer education.Right to consumer education.

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Page 22: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (5)for Reform of the Law (5)(Prohibition of Retaliatory measures against a consumer (Prohibition of Retaliatory measures against a consumer

who exercises his rights)who exercises his rights)

(When a consumer’s rights have been infringed, impaired or (When a consumer’s rights have been infringed, impaired or threatened, or that prohibited conduct has occurred or is threatened, or that prohibited conduct has occurred or is occurring, not only the consumer may seek redress but occurring, not only the consumer may seek redress but also any of the following persons:also any of the following persons:

• an authorized person acting on behalf of another person who cannot an authorized person acting on behalf of another person who cannot act in his own name;act in his own name;

• a person acting as a member of, or in the interest of, a group or class a person acting as a member of, or in the interest of, a group or class of affected persons;of affected persons;

• an association acting in the interest of its members; oran association acting in the interest of its members; or

• a person acting in the public interest, with leave of the Court.a person acting in the public interest, with leave of the Court.))

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Page 23: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (6)for Reform of the Law (6)

(b) Responsibilities of the State (b) Responsibilities of the State towards consumers to be spelled outtowards consumers to be spelled out

= To disseminate consumer education and = To disseminate consumer education and information in conjunction with consumer information in conjunction with consumer associations and appropriate NGOs.associations and appropriate NGOs.

= To provide or facilitate the provision of requisite = To provide or facilitate the provision of requisite financial and logistical support for the operation financial and logistical support for the operation of consumer groups and associations. of consumer groups and associations.

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Page 24: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (7)for Reform of the Law (7)

(c) The consumer regime should (c) The consumer regime should provide for “information standards” to provide for “information standards” to be complied with by any supplierbe complied with by any supplier

Requirement for very supplier to provide consumers Requirement for very supplier to provide consumers with true, sufficient, clear and timely information with true, sufficient, clear and timely information on goods and services offered to enable on goods and services offered to enable consumers to make proper and reasonable choicesconsumers to make proper and reasonable choices

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Page 25: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (8)for Reform of the Law (8)(d) The consumer regime should provide (d) The consumer regime should provide

for guarantees to consumers in respect of for guarantees to consumers in respect of the supply of goods and servicesthe supply of goods and services

= In respect of Supply of Goods= In respect of Supply of Goods* An implied guarantee as to title* An implied guarantee as to title

* An implied guarantee as to acceptable quality* An implied guarantee as to acceptable quality

* An implied guarantee as to fitness for a particular * An implied guarantee as to fitness for a particular purpose, where the consumer makes known, expressly purpose, where the consumer makes known, expressly or by implication, to the supplier the purpose for which or by implication, to the supplier the purpose for which the goods are being acquiredthe goods are being acquired

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Page 26: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law (9)for Reform of the Law (9)* An implied guarantee that goods comply with description * An implied guarantee that goods comply with description

when they are supplied by description to a consumerwhen they are supplied by description to a consumer* An implied guarantee that goods comply with sample when * An implied guarantee that goods comply with sample when

they are supplied to a consumer by reference to a sample they are supplied to a consumer by reference to a sample or demonstration modelor demonstration model

* An implied guarantee as to price: that the consumer shall * An implied guarantee as to price: that the consumer shall not be liable to pay to the supplier more than the not be liable to pay to the supplier more than the reasonable price of the goodsreasonable price of the goods

*An implied guarantee as to Repairs and Spare Parts *An implied guarantee as to Repairs and Spare Parts (that the (that the manufacturer and the supplier will take reasonable action to ensure manufacturer and the supplier will take reasonable action to ensure that facilities for the repair of the goods and the supply of spare parts that facilities for the repair of the goods and the supply of spare parts for the goods are reasonably available for a reasonable period after for the goods are reasonably available for a reasonable period after the goods are so supplied, unless the consumer has otherwise been the goods are so supplied, unless the consumer has otherwise been notified)notified)

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Page 27: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (10)(10)Need for provisions as to availability of redress Need for provisions as to availability of redress

against suppliers and manufacturers where goods against suppliers and manufacturers where goods fail to comply with the guarantees (including the fail to comply with the guarantees (including the right to reject the goods)right to reject the goods)

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Page 28: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (11)(11)= In respect of Supply of Services= In respect of Supply of Services* An implied guarantee that the services will be * An implied guarantee that the services will be

carried out with reasonable care and skill;carried out with reasonable care and skill;*An implied guarantee as to fitness for any particular *An implied guarantee as to fitness for any particular

purpose where the consumer makes known to the purpose where the consumer makes known to the supplier, before or at the time of the making of the supplier, before or at the time of the making of the contract for the supply of the services, the particular contract for the supply of the services, the particular purpose for which the services are required or the purpose for which the services are required or the result that the consumer desires to achieve;result that the consumer desires to achieve;

*An implied guarantee as to completion within a *An implied guarantee as to completion within a reasonable time;reasonable time;

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Page 29: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (12)(12)* An implied guarantee as to price: that the consumer * An implied guarantee as to price: that the consumer

shall not be liable to pay to the supplier more than the shall not be liable to pay to the supplier more than the reasonable price for the services.reasonable price for the services.

Need for provision as to availability of Need for provision as to availability of redress against suppliers where services redress against suppliers where services or product resulting from the services or product resulting from the services fail to comply with any of the implied fail to comply with any of the implied guaranteesguarantees

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Page 30: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (13)(13)(e) Provision for Safety standards that (e) Provision for Safety standards that

have to be complied with when goods have to be complied with when goods and services are suppliedand services are supplied

(Power conferred to Minister to prescribe safety (Power conferred to Minister to prescribe safety standards in respect of any goods or class of goods, standards in respect of any goods or class of goods, any services or class of services)any services or class of services)

(Courts empowered to grant ancillary relief to any (Courts empowered to grant ancillary relief to any person who has suffered loss or damage as a result person who has suffered loss or damage as a result of a breach of safety standards)of a breach of safety standards)

(Provision for liability in respect of defective products (Provision for liability in respect of defective products supplied to consumers)supplied to consumers)

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Page 31: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (14)(14)(f) The consumer regime must make (f) The consumer regime must make

provision for unfair contract terms in provision for unfair contract terms in consumer agreementsconsumer agreements

(Contractual terms or conditions which are unfair, (Contractual terms or conditions which are unfair, unreasonable or unjust, to the consumers should be unreasonable or unjust, to the consumers should be null and void)null and void)

(Courts to be vested with sufficient powers for them to (Courts to be vested with sufficient powers for them to ensure fair and just conduct, terms and conditions, in ensure fair and just conduct, terms and conditions, in respect of consumer transactions)respect of consumer transactions)

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Page 32: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (15)(15)(g) The consumer regime should prohibit (g) The consumer regime should prohibit

in a comprehensive manner unfair in a comprehensive manner unfair commercial/business practicescommercial/business practices

(A commercial practice should be regarded as unfair when (1) it (A commercial practice should be regarded as unfair when (1) it is contrary to the general principle of good faith in the trader’s is contrary to the general principle of good faith in the trader’s field of activity and/or the standard of skill and care that the field of activity and/or the standard of skill and care that the trader may reasonably be expected to exercise in respect of trader may reasonably be expected to exercise in respect of consumers; and (2) it would be likely to cause appreciable consumers; and (2) it would be likely to cause appreciable impairment of the average consumer’s ability to make an impairment of the average consumer’s ability to make an informed choice in relation to the product concerned, and informed choice in relation to the product concerned, and cause the average consumer to make a transactional decision cause the average consumer to make a transactional decision that the average consumer would not otherwise make)that the average consumer would not otherwise make)

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Page 33: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (16)(16)=Misleading commercial practices, as well as misleading =Misleading commercial practices, as well as misleading

marketing or advertisement, should be prohibited marketing or advertisement, should be prohibited [Eg omission or concealment of material information, provision of [Eg omission or concealment of material information, provision of

false information or information likely to deceive the average false information or information likely to deceive the average consumer]consumer]

= Aggressive commercial practices, such as harassment, = Aggressive commercial practices, such as harassment, coercion or undue influence which would likely cause coercion or undue influence which would likely cause significant impairment of the average consumer’s significant impairment of the average consumer’s freedom of choice or conduct and cause the average freedom of choice or conduct and cause the average consumer to make a transactional decision that the consumer to make a transactional decision that the average consumer would not otherwise make, should average consumer would not otherwise make, should also be prohibitedalso be prohibited

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Page 34: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (17)(17)=Other unfair practices, such as referral selling, =Other unfair practices, such as referral selling,

pyramid promotional schemes, bait advertising, pyramid promotional schemes, bait advertising, would also have to be prohibited.would also have to be prohibited.

= Protection should be afforded to recipients of = Protection should be afforded to recipients of unsolicited goods or of invoices in respect of unsolicited goods or of invoices in respect of unordered goods or services. unordered goods or services.

= Agreements with persons lacking legal capacity = Agreements with persons lacking legal capacity would be treated as void or voidable would be treated as void or voidable

=Discriminatory business practices to be prohibited=Discriminatory business practices to be prohibited

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Page 35: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (18)(18)(h) Distance selling (and doorstep) selling (h) Distance selling (and doorstep) selling

needs to be regulatedneeds to be regulated(Distance selling regulations would inter alia contain provisions (Distance selling regulations would inter alia contain provisions

• regulating the advertising and marketing (including advertising and marketing regulating the advertising and marketing (including advertising and marketing by mail-order or doorstep selling) of business that is to be conducted by way of by mail-order or doorstep selling) of business that is to be conducted by way of distance contracts;distance contracts;

• with respect to the information that must be supplied to persons to whom with respect to the information that must be supplied to persons to whom distance contracts are offered;distance contracts are offered;

• with respect to the transparency, clarity and fairness of distance contracts;with respect to the transparency, clarity and fairness of distance contracts;

• requiring information to be given to any such person as may be determined by requiring information to be given to any such person as may be determined by or under the regulations for the purpose of enabling that person to exercise any or under the regulations for the purpose of enabling that person to exercise any function conferred on him by the regulations;function conferred on him by the regulations;

• for the resolution of disputes and differences between parties to distance for the resolution of disputes and differences between parties to distance contracts, including resolution of such disputes and differences otherwise than contracts, including resolution of such disputes and differences otherwise than by a court.)by a court.)

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Page 36: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (19)(19)(i) Provision should be made in respect (i) Provision should be made in respect

of consumer credit for responsible of consumer credit for responsible lending conduct lending conduct

(No dealer, under the Hire Purchase and Credit Sale (No dealer, under the Hire Purchase and Credit Sale Act, should enter into a credit contract with a Act, should enter into a credit contract with a consumer unless he has ascertained the credit consumer unless he has ascertained the credit contract will meet the consumer’s requirements contract will meet the consumer’s requirements and that the consumer has the capacity to fulfill and that the consumer has the capacity to fulfill his obligations under the contract)his obligations under the contract)

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Page 37: Law Reform Commission Review of Aspects of Consumer Laws Presentation of Findings and Recommendations Law Reform Commission Review of Aspects of Consumer

(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (20)(20)(j) Establishment of a National Consumer (j) Establishment of a National Consumer

Council, which would encourage consumer Council, which would encourage consumer participation in decision-making processes participation in decision-making processes concerning the marketplace and the interests concerning the marketplace and the interests of consumersof consumers

(Composed of representatives of Government, consumer organizations or (Composed of representatives of Government, consumer organizations or groups and NGOs, and business; groups and NGOs, and business; Its functions would include: advising the Its functions would include: advising the Minister on research to be conducted on consumer issues, formulating Minister on research to be conducted on consumer issues, formulating Policy and legislative proposals in the interest of consumers, and advising Policy and legislative proposals in the interest of consumers, and advising the Minister on consumer education programs and activities.)the Minister on consumer education programs and activities.)

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(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (21)(21)(k) Provision for an effective enforcement (k) Provision for an effective enforcement

framework: The Consumer Protection framework: The Consumer Protection Unit to be given the necessary powers to Unit to be given the necessary powers to enable it to perform its functions enable it to perform its functions effectively and efficientlyeffectively and efficiently

(Power to obtain information, search premises, and seize incriminating (Power to obtain information, search premises, and seize incriminating materials)materials)

(Power to accept and enforce undertakings)(Power to accept and enforce undertakings)(Power to seek an injunction to restrain a person from engaging in conduct (Power to seek an injunction to restrain a person from engaging in conduct

that constitutes or would constitute a breach of consumer law)that constitutes or would constitute a breach of consumer law)(Protection from civil and criminal liability for actions taken in good faith in (Protection from civil and criminal liability for actions taken in good faith in

performance of functions)performance of functions)

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(D) Recommendations (D) Recommendations for Reform of the Law for Reform of the Law (22)(22)(l) Provision for an accessible, (l) Provision for an accessible,

effective, efficient system of redress effective, efficient system of redress for consumersfor consumers

(Courts empowered to award compensation, where appropriate, and (Courts empowered to award compensation, where appropriate, and to issue any appropriate order) to issue any appropriate order)

(Alternative dispute resolution mechanisms, as well as forms of (Alternative dispute resolution mechanisms, as well as forms of “collective actions”, by or on behalf of consumers, should be “collective actions”, by or on behalf of consumers, should be available as redress mechanisms for consumer grievances)available as redress mechanisms for consumer grievances)

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(E) The Way Forward: (E) The Way Forward: LRC’s ViewsLRC’s ViewsFormulation of a Consumer Protection Policy

Provision for a New Consumer Regime (Drafting Instructions)

Role of Ministry to be reassessed: Need for research on consumer issues (Surveys) so as to effectively combat consumer detriment

Operational Capability enhanced: the knowledge and skills of Administrative Cadre at the Ministry and of Officers of Consumer Protection Unit should be enhanced by training locally and overseas

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