Fair Trading Commission (FTC) Annual Report 2020 The FTC exceeds its revised targets in 2020 |31 August 2021
Mr Lebon (left) presents a copy of the report to Minister Hassan (Photo: Jude Morel)
The outturn for 2020 in comparison with the revised target for each programme shows overall that the performance of the Fair Trading Commission has been maintained and in some instances exceeded.
This came out of the commission’s annual report for 2020 which was handed over to the Minister for Finance, Economic Planning and Trade Naadir Hassan by the chief executive of the Fair Trading Commission (FTC) Francis Lebon during a short ceremony at Liberty House yesterday morning.
Mr Lebon explained that like many businesses and organisations, the commission had to make changes to its operation due to the ongoing Covid-19 pandemic.
He said 75% of the work done by the FTC was in relation to consumers while the remaining 25% was in the competition area.
Mr Lebon explained that the commission’s response to the crisis was to refocus its resources on three broad areas namely advocacy and education, its contribution to the High-Level National Food Security Committee and working with the Retailers Association in the wholesale and retail sector to ensure compliance at a time of government restrictions.
In 2020, out of 185 investigations, 72% were related to inspection and 27% to other investigations, while around 70% of inspections came from tip-offs received.
In all the businesses inspected, 17% were fully compliant, 23% were in breach of one provision, while 60% were in breach of several provisions of the Consumer Protection Act.
A total of 90% compliance notices were issued to retailers, while a total of 28 other matters were referred to the Public Health Authority and 16 to Seychelles Licensing Authority (SLA).
The Board of Commissioners (BOC) delivered rulings in seven cases, all of which ruled in the commission’s favour, with a total of R133,400.00 imposed as fines.
There were 94 cases at different stages of the adjudication process before the BOC and seven before the Appeal Tribunal.
The board delivered a total of 12 rulings in the second semester of 2020 compared to four in the same period in 2019.
The most prominent category of complaints came from the construction and architectural services with 51 cases (57.3% of the total consumer services cases) and electronic goods with 62 cases (77.5% of the total consumer services cases).
Mr Lebon explained that construction cases take on average nine (9) months to finalise investigations and the tripartite consisting of the SLA, the FTC and the Planning Authority continues to engage to address recurrent respondents in the construction sector.
He said 15 contractors sat for their exam and none had a complaint to date, while roll-over of cases continues to improve year on year with performance of service at 12 and settlements five (5) at the end of 2020.
As for the goods cases, Mr Lebon explained that they take two to three months on average to finalise and most cases were remedied at investigation stage with a total of R52,645 spent on technical reports.
For the electronic goods survey, the total value of goods cases was at R1.5million, while the total repair of products stands at seven (7), refunds at 35, and replacements at 10.
In terms of challenges and constraints, Mr Lebon said the issues are regarding the commission’s outdated incentive scheme, the time in delay in the BOC and appeal decisions, the sourcing of technicians to provide assistance with technical reports, lack of manpower, lack or no feedbacks from other authorities in relation to matters referred to them.
Mr Lebon also mentioned the need for continuous follow-up at their end, delay in obtaining requested information from stakeholders that is required to determine cases and also delay in cases sent to the Commercial Crime Unit for prosecution by the Attorney General’s office.
Lack of mandatory standards which makes it difficult to apply the law to full extent is also a concern according to Mr Lebon, who further added that the main constraint remains resources since a lot of the projects come with a financial cost.
He however noted that the FTC will soon be better equipped in its task to safeguard the interests of consumers, promote competition and fair trade in Seychelles through the consolidated Fair Trading Bill which will be brought before the National Assembly for approval in September.
Once approved, the bill which was considered by the cabinet of ministers in June will consolidate and revise the law relating to fair trading, competition and consumer protection and repeal the current Fair Trading Commission Act (Cap 267), the Fair Competition Act (Cap 266) and the Consumer Protection Act (Cap 257).
It contains provisions and international legal tools that will enable the FTC to serve as the investigative body to press on with robust enforcement and effectively deliver on its mandate.
It will also allow for the setting up of a tribunal to adjudicate on all consumer and competition matters under the Judiciary and create the ideal channel for timely and effective redress for consumers and businesses, while introducing spot fines.
The new Bill reflects the government’s commitment to see the desired results for consumers and businesses as well as demonstrate the importance attached to consumer protection and fair competition in Seychelles, regionally and internationally.
Mr Lebon also noted that the FTC’s main asset is the people delivering the service and its success relies upon the effective administration of human resources and strengthening of employer-employee relationship.
Based on that, he thanked the entire management team and staff of the commission for the prominence they continue to give to the institution through their hard work, professionalism, and excellence.
He also acknowledged the support extended by Minister Hassan and colleagues from the department of trade, stakeholders and members of the National Assembly.
On behalf of the government of Seychelles, Minister Hassan commended the FTC for the hard and difficult tasks undertaken and promised the full support of the government in its quest to achieve its goal and mission.
The FTC is an independent government body established under the Fair Trading Commission Act 2009.
Its aim is to safeguard the interests of consumers, promote competition and fair trade in Seychelles to benefit consumers, businesses and the economy.
It strives to ensure compliance of individuals and businesses to the laws administered by the Commission – namely: the Fair Trading Commission Act 2009; the Fair Competition Act 2009 and the Consumer Protection Act 2010.
It is empowered to carry out investigations in relation to the conduct of business in Seychelles to determine if any enterprise is engaging in practices that are in contravention of our laws.
Roland Duval