Consumer Protection and Competition Authority coming

The House of Representatives on Tuesday commenced debate on legislation to establish the Jamaica Consumer and Competition Authority, a new entity tasked with protecting consumers’ rights and overseeing competition matters in the country.

Piloting the Jamaica Consumer and Competition Authority Act, Minister of Finance and the Public Service, ayval Williams, explained that Cabinet approved the rationalisation of the public sector in 2009 as part of efforts to enhance government operations.

She noted that the Public Sector Transformation Unit was established with the mandate to lead, monitor, evaluate and facilitate the implementation of public-sector restructuring, aimed at ensuring a more efficient, effective and economical government.

Williams said the primary reasons for the public-sector rationalisation included overlapping and duplicated mandates and functions, a high wage bill relative to gross domestic product (GDP), limited financial and material resources, and inadequate collaboration both within and across ministries.

“Subsequently, Cabinet Decision No. 36/16, dated October 24, 2016, and Cabinet Decision No. 15/18 dated April 30, 2018, approved the policy for the categorisation and rationalisation of public bodies and the acceleration of the rationalisation of the public bodies respectively,” she stated.

“In order to give effect to the policy, the Government of Jamaica mandated the merger of the Fair Trading Commission and the Consumer Affairs Commission into a new merged entity in accordance with Cabinet Decision No. 20/18, dated June 4, 2018,” the Minister added.

Williams said the move will result in the establishment of a single dedicated entity to protect consumers’ rights and oversee competition matters in Jamaica.

The Fair Trading Commission (FTC), established under the Fair Competition Act, currently handles both competition policy and consumer protection matters, while the Consumer Affairs Commission (CAC), established under the Consumer Protection Act, is responsible for the oversight and enforcement of consumer protection issues.

Williams noted that the merger of the FTC and the CAC forms part of the Government’s public-sector transformation programme, which emphasises the consolidation of entities with similar functions to achieve more efficient and effective service delivery.

“Having a single entity that handles competition enforcement and consumer protection matters is common throughout the world and has existed for many years,” she said.

As a result, the Minister said Cabinet approved the issuance of drafting instructions to the Office of the Parliamentary Counsel to amend the Fair Competition Act and the Consumer Protection Act, as well as to develop new legislation establishing a merged entity that will assume the administrative functions of both the CAC and the FTC.

“Upon the commencement of this Bill, the Consumer Affairs Commission and the Fair Trading Commission shall be dissolved. Consequently, the functions of the Fair Trading Commission and the Consumer Affairs Commission shall be merged and vested in the newly established Jamaica Consumer and Competition Authority, which shall be the responsible entity mandated to administer and enforce the Fair Competition Act and the Consumer Protection Act,” Williams stated.

Debate on the legislation was subsequently suspended in the House of Representatives.

- JIS News

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