Merger of FTC and the CAC to form Jamaica Consumer and Competition Authority,

Durrant Pate/Contributor

The government has moved one step closer to merging the Fair Trading Commission (FTC) and the Consumer Affairs Commission (CAC) to form a new consumer protection and regulatory body to be called the Jamaica Consumer and Competition Authority.

This came after the Senate on Friday approved legislation for the establishment of the new regulatory body to protect the rights of consumers and treat with competition matters in the country. The legislation was passed with three amendments.

The merger is a part of the Government’s programme to transform the public sector, which emphasises combining entities that have similar functions.

Creating uniformity and eliminating ambiguity

In his contribution to the debate on the legislation, State Minister in the Office of the Prime Minister, Abka Fitz Henley, emphasised that the new proposed law will create uniformity and eliminate any perception of ambiguity both in terms of the mandate of the entities.

According to him, “the provisions of the Bill align with the intent of the Government to create a more fairer society and are consistent with our objective to put in place a fundamentally strong and consistent mechanism whereby the Jamaican consumer is protected and companies, including small businesses, have safeguards and means of recourse while at the same time fair competition is encouraged in our economy.”

He said the legislation offers a sound platform for the establishment of a strong but fair mechanism to protect consumers and ensure that fairness in enforcement is meted out to those who are accused, inviting the Jamaican public to contemplate passage of the law, as not merely a process intended to increase efficiency by the merger but a vested effort by the Government to modernise and make stronger the institutional framework for safeguarding consumers.

This, while maintaining a climate where an equitable competitive environment is allowed to be the order of the day. Senator Fitz Henley is adamant that Jamaican consumers deserve strong safeguards against unlawful, unethical, and unfair business practices.

Closing the debate on the legislation, Minister of Industry, Investment and Commerce, Aubyn Hill indicated that consultation was sought regarding the legislation, penalties and the issue of charges and imprisonment.

Finding the right balance

“When the matter of fees was being considered, we looked at the existing regulation that looks at tribunals and the fees; we did our research, and we decided that in the current settings, these fees were set some years ago; they should be changed. We don’t believe that if you fail to answer a question, you should pay $2 million and possibly two years in jail,” he told the Upper House of Parliament.

Continuing, he explained, “we dropped it to a million dollars and imprisonment for a term not exceeding three months… we have to find proportionality… for the crime… and the same thing for the rest of the issues here, and make sure that we have a much fairer smorgasbord of charges and imprisonment.”

Senator Hill advised that the Transformation Implementation Unit will be critical to the merger, noting that a Steering Committee has been established.

He told Senators, “We expect the transition to be quite quick, six months or less and we expect that once the transition is completed, that a much more efficient organisation will be in place. The Authority will be clear, and it will have more heft to do the work of both the FTC and CAC.”