New lawsuits emerge from delayed competition and consumer protection laws

Kampala, Uganda | THE INDEPENDENT | The COMESA Competition Commission, together with the Fidelis Leadership Institute, have launched a training program on consumer protection and competition laws, amid calls for the implementation of relevant laws in Uganda.

Recently, President Yoweri Museveni passed the Competition Act 2023, but it has not yet been put into practice due to the absence of relevant regulations and policies. But the country still does not have a Consumer Protection Law that directly protects consumers against problems such as unfair prices, poor and inferior products and services, among others, despite the fact that the debate and lawsuit have been going on for more than 10 years. years.

Sam Wetasa, member of the COMESA Competition Commission, said the government itself has been guilty of violating competition and consumer protection rights, because there are no laws. But even with the laws, he says, the Ministry of Commerce, Industry and Cooperatives, which is the supposed custodian of the law, will find it difficult to enforce the laws, especially when the government is the culprit, giving the example of the digital industry. . Motor vehicle registration saga.

Wetasa, also the founder and CEO of the Uganda Consumer Protection Association, also says that the government, through the Bank of Uganda, is responsible for financial institutions freely setting high interest rates. He gave the example of the increase in minimum capital requirements that has caused the fall of some institutions, creating a type of monopoly or dominant players in the industry with the ability to set the cost of money.

Wetasa also calls for laws to become more consumer-focused. He says that, for example, when service providers, such as telecommunications providers, provide poor services and many missed calls, the regulator penalizes them.

However, it is a fine that becomes income for the government, but does not compensate the harmed consumer. To do this, it calls for a specialized agency to be in charge of enforcing the laws.

As demand for laws, regulations and policies continues, questions the training seeks to answer include whether the laws would have any effect even if they were in place and implemented. Jane Nalunga, executive director of regional trade information NGO SEATINI-Uganda, called for flexibility in competition and consumer protection laws to ensure they do not negatively impact local or regional businesses.

Pheona Nabaasa Wall, executive director of the Fidelis Institute, says the training is aimed at the public sector, including government technocrats and political leaders, as well as the private sector, civil society and other interested parties. This, she says, was due to the effects of the lack of proper implementation of laws or the absence of them, not only in Uganda, but also in other African countries, where corporations operated unethically and without proper regulation. .

This is also critical, especially as East African community countries are becoming more integrated into global trade, with the advent of the African Continental Free Trade Agreement.

Hussein Musiho, who represented the Permanent Secretary of the Ministry of Commerce, Industry and Cooperatives, the biggest challenges that the implementation of the laws will encounter will be the lack of knowledge, both on the part of businessmen and consumers.

It says that the proper and effective implementation and success of the laws will depend on consumers providing information about violations committed. However, this requires the public to be fully aware of their rights, hence the need for more training.

On the delay in the implementation of the competition law, Musiho said there was no implementation committee or regulations necessary for the implementation of the law. However, he says there is a process underway to accelerate implementation and the draft regulations will soon be presented to cabinet. Likewise, he says that the committee for the implementation of the Competition Law will be the same as that of the Consumer Protection Law, because they are related.

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