Transcript Structure & Functions of Competition & Consumer Protection Commission By Brian M. Lingela, Director-Consumer & Public Relations Presented to Stakeholders’ Seminar on Competition & Consumer Protection 7

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
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Presentation Outline
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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 & deregulation;
•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
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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
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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
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knowledge, in matters relevant to this Act.
A Graphical Perspective
SUPREME COURT
THE HIGH COURT
COMPETITION &
CONSUMER
PROTECTION TRIBUNAL
BOARD
OF COMMISSIONERS
EXECUTIVE DIRECTOR
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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 System
Further Appeal – to High Court & Supreme Court
Appeal – to Tribunal
Decision – by Board
Complaints – to commission
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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 contd
Decision 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.42MOUs
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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 premises
Request information about any document
or article from:
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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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