1 Structure & Functions of Competition & Consumer Protection Commission By Brian M. Lingela, Director-Consumer & Public Relations Presented to Stakeholders’

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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

Presentation Outline 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

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Introduction • Zambia liberalised her economy in 1991 following a change in Government by way of privatisation & de-regulation;•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.

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CFTA CAP 417 Enacted as primary statutory source of

competition law and policy in Zambia in 1994; Established in 1997, ZCC; To prevent anti- competitive conduct thereby

ensuring competition and efficiency in business, resulting in the greater choice for consumers in price, quality and service.

To ensure the interests and welfare of consumers are adequately protected in their dealings with producers and sellers.

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The Advent of CCPC Competition and Consumer Protection

Act No. 24 of 2010 was passed by the National Assembly & assented to on 14th August 2010.

The Act came into operation on 8th October 2010 when it was published as a Statutory Instrument.

Amplified & introduced provisions & changed structure of enforcement

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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

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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;

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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;

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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.

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Strategic Focus Areas

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

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Institutional Structure

Section 4 renames the ZCC as CCPC, a statutory body-corporate;

Section 6 creates the office of the Executive Director;

First Schedule to the Act creates the Board of the Commission to consist of members with suitable qualifications appointed by the Minister as follows:

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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;

The Chairperson and the Vice-Chairperson of the Board shall be appointed by the Minister from amongst the members of the Board.

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Competition & Consumer Protection Tribunal

PART IX creates the Competition and Consumer Protection Tribunal, which shall hear appeals from the CCPC

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)(c) three other members who shall be experts, with not less than five years experience and knowledge, in matters relevant to this Act.

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A Graphical Perspective

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SUPREME COURT

THE HIGH COURT

COMPETITION & CONSUMER

PROTECTION TRIBUNAL

BOARD OF COMMISSIONERS

EXECUTIVE DIRECTOR

Is CCPC Independent? Statutory body corporate by Act of Parliament

with administrative autonomy; CCPC is a GRZ agency implementing GRZ

competition & consumer policy; Though Minister appoints BOC & Tribunal

members, he/she does not sit on Board; Minister custodian of GRZ

competition/consumer policy Civil society needs to monitor Board decisions &

ensure accountability

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Access to Judicial SystemFurther Appeal – to High Court & Supreme Court

Appeal – to Tribunal

Decision – by Board

Complaints – to commission16

Investigatory Powers

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

  However the new Act provides for a more

detailed explanation of the manner in which investigations will be carried out

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Investigatory Powers contd

Powers: 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);

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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

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Investigatory Powers contdDecision not to investigate – s.56(1) 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.

Alternatively the Commission may refer a complaint to another regulator (NB: S.42-MOUs

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Investigatory Powers contd

Role of inspectors – Sec 7 With a warrant may:Enter & search any premises

(business/private)Search any person on premises (same sex)Examine any document found at premisesRequest information about any document

or article from:21

Conclusions CCPA will enhance safeguard competition &

enhance consumer protection in Zambia; Stiffer penalties are what the Commission has

lacked; If successfully enforced, Commission’s visibility

& credibility will be enhanced Need for stakeholder involvement as per S.5(k); Need for vigorous consumer/business

sensitisation;

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END

Thank you & God Bless You All

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