Mr Lebon (Photo: Thomas Meriton) |23 April 2020

Mr Lebon (Photo: Thomas Meriton)

‘The FTC has no power to set up any margin or price control on the market’

The Fair Trading Commission (FTC), an independent government body established under the Fair Trading Commission Act 2009, does not have any mechanism for price control, and therefore has no power to set any margin or price control on the market.

The commission was created as part of the conditions set up by the International Monetary Fund (IMF) as part of its economic reform programme following the country’s conversion from being a state-controlled economy – where prices were being dictated – to a free market economy .

The FTC is tasked with evaluating and investigating complaints lodged by consumers in relation to the supply of services.

FTC’s chief executive Francis Lebon gave explanations on the commission’s mandate and assigned power during a press conference yesterday afternoon, following concerns and complaints from members of the public in regards to the rise in the prices of basic commodities on the local market, all in relation to the coronavirus disease (COVID-19) pandemic.

Mr Lebon explained that on its own initiative or at the request of a person, the FTC can carry out investigations in relation to the conduct of business in Seychelles in connection with matters falling within the provisions of the Fair Competition Act and the Consumer Protection Act only, while they can also monitor commercial activities and consumer market(s) to ensure that business practices are not affecting the interest of consumers.

Its mandate is limited to preventing the abuse of dominant enterprises, eliminating anti-competitive practices and preventing or controlling anti-competitive mergers and also to educate and assist consumers in resolving complaints.

It was made clear that in an open market, the pricing of goods or services is driven predominantly by the principles of supply and demand with limited interference from government agencies.

This is rather dictated by the exchange rates in line with the depreciation of the Seychelles rupee.

Open markets go hand in hand with free trade policies, which are designed to eliminate discrimination against imports and exports, while buyers and sellers from different economies may voluntarily trade without a government applying tariffs, quotas, subsidies, or prohibitions on goods and services, which are considerable barriers to entry in international trade.

Mr Lebon explained that since the beginning of the pandemic, the FTC has been advising people on safe shopping practices, including how to avoid buying unnecessary goods, panic buying and also scams that have been circulating.

The commission has also been collaborating with the Retailers Association of Seychelles regarding complaints on excessive pricing by shops which hiked their prices and exploit customers, using the pandemic as an excuse.

Retailers are being asked to behave responsibly throughout the coronavirus outbreak and not to make misleading claims or charge vastly inflated prices for basic commodities.

The FTC is also working alongside the High-Level Committee for Food Security Surveillance, whose main objective is to ensure the country’s food security, assessing ongoing needs and advising government on measures to effectively manage food supplies and essential commodities in this time of crisis.

The main role of the FTC 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. Such investigations may be self-initiated by the FTC or may be carried out following a complaint.

Its initiatives also include promoting the education of consumers and businesses through advocacy and publications.

Roland Duval