The Competition and Consumer Protection Commission (CCPC) has embarked on an exercise to review the reported non–issuance of small-denominated change to consumers by retailers in the country.
In a statement this morning, CCPC Executive Director Brian Lingela said this follows numerous consumer complaints received by the Commission to the effect that retailers do not give consumers small change after transacting.
He said the Commission has since issued a Call for Comments pursuant to Sections 5(d) and 85 of the Competition and Consumer Protection Act No. 24 of 2010 (“the Act”).
Mr. Nalwendo further stated that the Commission has commenced engagements with the retail sector to make submissions on this general practice towards the successful completion of the review.
He said while the private sector is at liberty to set prices and pursue pricing strategies based on their commercial considerations, the Act prohibits trade practices that are determined to be unfair and detrimental to consumers.
Mr. lingela said these provisions are designed to protect public interest in case of market failure and unconscionable conduct.
“While the psychological pricing strategy is one of the most adopted pricing strategies in the retail sector, particularly in the Fast-Moving Consumer Goods (FMCG) sub-sector, this strategy is still expected to take cognizance of the existing country realities such as the availability of denominated coins or dispensable small change.” Mr. Lingela said
Mr. Lingela says Consumers exercise purchasing decisions on the belief that the difference between the product price and the amount tendered would be returned as change regardless of the amount.
“By adopting certain pricing strategies, retailers equally impliedly commit to providing change regardless of the amount to consumers. Currently, Zambia has six banknotes and four coins in circulation. These are K100, K50, K20, K10, K5, K2 banknotes, and K1, 50N, 10N, and 5N coins. The Commission understands that the current set of denominations and coins only support a specific type of pricing such as those denominated in 10N and 5N.”
“These include prices that end with a 5N such as K99.95 or those with a 10N such as K99.90. With inflation having a bearing on this, lower-value coins such as 5N and 10N coins tend to lose value in the eyes of the public. Additionally, the public tends to hold on to these coins out of circulation. 2 The Commission therefore is calling on the retail sector and other interested stakeholders to make submissions to the Commission on the practice of non issuance of small change to consumers. Where it will be established that such a practice constitutes a violation of the Act, the Commission will issue an Advisory Note indicating the grace period required to wind up this conduct, after which enforcement of the provisions of the law will be effected.” Mr. lingela said
This is contained in a statement issued by Competition and Consumer Protection Commission Senior Public Relations Officer MUBIANA NALWENDO.
Hello there, just became aware of your blog through Google,
and found that it is truly informative. I’m gonna watch out for brussels.
I will be grateful if you continue this in future.
Many people will be benefited from your writing. Cheers!
Escape room
Hi mates, how is the whole thing, and what you would like to say
concerning this piece of writing, in my view its actually remarkable designed for me.
This is a great tip particularly to those fresh to the blogosphere. Brief but very accurate information… Many thanks for sharing this one. A must read article.
I want to to thank you for this very good read!! I absolutely loved every bit of it. I’ve got you book marked to look at new things you post…
I was pretty pleased to find this site. I want to to thank you for your time just for this wonderful read!! I definitely loved every part of it and i also have you bookmarked to see new stuff on your website.
After looking over a few of the blog posts on your website, I seriously appreciate your way of writing a blog. I bookmarked it to my bookmark webpage list and will be checking back soon. Please visit my website as well and let me know what you think.