CCPC’s Message of Condolences on the Passing of Zambia’s First Republican President
2021-06-18The Board, Management and Staff of the Competition and Consumer Protection Commission (CCPC) wish to extend their heartfelt condolences to the Kaunda family and all Zambians on the passing of Zambia’s founding father and 1st Republican President, His Excellency Dr. Kenneth David Kaunda, who passed away on 17th June 2021 after a short illness.
As we celebrate the life of Dr. Kaunda, we recognize his contribution to the independence struggle, not only of Zambia, but Southern Africa and Africa as a whole. He believed that Zambia would not truly be independent if its neighbours were not, and with this resolve he fought for freedom, love and peace. He shall be greatly missed but we are strengthened by the fact that he was a God fearing man and he rests with our Father in heaven.Dr. Kaunda said, “I believe that man must be the servant of a vision which is bigger than himself, that his path is illumined by God’s revelation and that when he shows love towards his fellow men, he is sharing the very life of God;who is love.
We believe that these were his convictions and he lived up to them. We too, would do well to emulate and live by such a great resolve in our individual lives. Only then will we truly remain ONE ZAMBIA, ONE NATION. May the Soul of our gallant father Rest in Peace.
Mr. Chilufya Sampa
CALL FOR COMMENTS
The Commission is currently working on a paper titled “Consumer Financial Education Strategies on How to Identify and Combat Online Scams”. This paper seeks to highlight and share some important information to consumers on online scams and how to identify them pursuant to the Competition and Consumer Protection Act. In view of the above, the Commission seeks your comments/input on the same. Therefore, kindly download the said paper from the url provided. https://www.ccpc.org.zm/media/guide/Consumer-Financial-Education-Strategies-On-How-To-Identify-And-Combat-Online-Scams.pdf
Google Play Store to require app providers to provide consumers with detailed information regarding data collection and use following growing international pressure
2021-05-20Following international intervention by consumer protection agencies from 27 countries that are members of the International Consumer Protection and Enforcement Network (ICPEN), Google announced that app providers will be required to indicate on the Google Play Store what personal data each app keeps and potentially shares about its users. This follows an open letter from ICPEN to digital businesses in 2018, followed by a letter from the group of 27 agencies to both Apple and Google in 2019 pressuring them to make the requested changes.1 This joint action was endorsed by Global Privacy Enforcement Network (GPEN).
With this update to the Google Play Store these ICPEN members have successfully managed to get the two biggest app stores to provide consumers with clear and comprehensive information enabling consumers to compare and choose apps based on how they use personal data.
Google is planning to roll this feature out in phases and will make this mandatory for all apps from 2022 onward. Apple already made similar changes in 2020. You can read more about this here.
This joint initiative highlights the importance of international collaboration to ensure consumers are safeguarded in a world where they are spending an increasing amount of time online where they interact with multiple apps daily.
The Consumer Authority of Norway, The UK Competition and Markets Authority and The Netherlands Authority for Consumers and Markets lead this joint action. You can find their statements below.
The Consumer Authority of Norway: Google will improve information on how apps collect and use personal data
The Netherlands Authority for Consumers and Markets: Google to require providers to add information about data use to apps in its app store
“In a world where borders between nations are no longer a potential barrier to misconduct, international cooperation and collaboration are fundamental in consumer protection. Ensuring consumers are provided with clear and straightforward language regarding the personal data an app both collects and uses, is important for consumers to make informed decisions before downloading any app.”
-Josephine A.L. Palumbo, President, ICPEN
“We applaud our counterparts in achieving this impactful result organized by 27 ICPEN members, and appreciate the opportunity to participate in the compliance action - a first for inter-network collaboration in the privacy and consumer protection domains. Such collaborative actions in these increasingly intersecting regulatory spheres provide a more holistic and complementary protection to global citizens for both their consumer interests and privacy rights.” -OPC-Canada, UK-ICO, PCPD-HK, PPA-Israel – GPEN Committee Members Listed . . .
• ICPEN is an organization of more than 65 consumer protection agencies from around the world working together to combat fraudulent, deceptive and unfair trading practices. • GPEN is a group of privacy regulators whose mission is to improve cooperation in enforcement of cross-border laws affecting privacy.
• This action against Google follows an international intervention by ICPEN members in 2020 where Apple agreed to indicate on its App Store what personal data each app uses. See more detail here.
Kwacha Industries and Hardware Limited fined for Unfair Trading Practices
2021-04-28A 0.5 percent fine has been imposed on Kwacha Industries and Hardware Limited by the Competition and Consumer Protection Commission (CCPC) Board of Commissioners for engaging in unfair trading practices.
This follows a complaint that was lodged before the Competition and Consumer Protection Commission in which the complainant Mr. Liyungu Muyunda alleged that Kwacha Industries and Hardware Limited failed to deliver roofing materials as per agreed terms and conditions.
Facts of the matter were that the Complainant made a payment of K4, 200.00 between 10th and 24th December 2019 to Kwacha Industries and Hardware Limited for roofing materials worth K20, 820.00 on hire purchase. He was further assured at the time of purchase that the materials would be delivered upon payment of the K4, 200.00.
However, despite paying the agreed down payment of K K4, 200.00. the materials were not delivered and his demands for the K4, 200.00. refund was ignored. Investigation findings by the Commission revealed that Kwacha Industries and Hardware Limited did fail to deliver roofing materials to Mr. Liyungu Muyunda contrary to the agreed period.
As such, the Board of Commissioners has directed Kwacha Industries and Hardware Limited to refund Mr. Liyungu Muyunda a sum of K4, 200 within ten (10) days of receipt of the Board Decision in accordance with Section 5(d) and for breach of Section 49(5) of the Competition and Consumer Protection Act No. 24 of 2010 respectively.
Further, the Board has directed Kwacha Industries and Hardware Limited to submit their latest annual books of accounts to the Commission for calculation of the actual fine within thirty (30) days of receipt of the Board Decision.The decision to fine Kwacha Industries and Hardware Limited was made during the 48th Board of Commissioners for the adjudication of cases held in Lusaka.
Namukolo M. Kasumpa
CCPC Fines Cement Companies for Anti-Competitive Trade Practices and Orders Adjustment of Prices
The Board of Commissioners of the Competition and Consumer Protection Commission (CCPC) has fined Lafarge Zambia Plc and Mpande Limestone Limited 10% of their annual turnovers for the year 2019 and another 10% of their 2020 annual turnovers for price fixing and division of markets, while Dangote Cement Zambia Limited was granted full leniency for having cooperated with the Commission during investigations.
Further, the Board has ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the pre-cartel prices ranging between USD 4.50 – USD 5 for a period of one year from the date of receipt of the Board Decision pursuant to Section 59 (3) (b) of the Act. Additionally, that Lafarge Zambia Plc, Dangote Cement Zambia Limited, Mpande Limestone Limited submit monthly average ex-works prices and any price adjustments be indexed to the exchange rate and be submitted to the Commission for review pursuant to Section 58 (1) of the Act;
The Board has also ordered the three Cement Companies to develop and implement compliance programmes in their respective firms within 90 days of receiving the Board Directive.
Furthermore, the Board has directed Lafarge Zambia PLC, Dangote Cement Zambia Limited and Mpande Limestone to make undertakings within 90 days of receiving the directive that their respective employees should not engage in any anti-competitive behaviour and that the enterprises should not facilitate and/or participate in any anti-competitive conduct including the exchange of information.
The Board of Commissioners also dropped charges against Zambezi Portland Cement Limited after it was established that they were not part of the cement cartel.
The decision to fine Lafarge Zambia Plc and Mpande Limestone Limited was made during the 49th Board of Commissioners Meeting for the Adjudication of Cases held in Lusaka on 30th March 2021.
This was after an exhaustive investigation by the Commission initiated in January 2020, following the Commission’s observations of a sustained increment of cement prices from an average of K55 to K100 per 50Kg bag between July 2019 and January 2020. The continuous price increment of cement by the parties led the Commission to suspect that there was possible collusion and an agreement to fix the prices of cement.
The investigation which lasted for over one (1) year revealed that the parties shared price adjustment proposals seeking approval for price changes before the implementation date and in some cases before they were approved by their respective management. The exchange of commercially sensitive information on future prices and rebates demonstrated that there was a ‘meeting of minds’ among the Respondents to pursue an agreed objective.
The investigation established that company representatives from Mpande Limestone Limited, Dangote Cement Zambia Limited and Lafarge Zambia Plc held discussions and meetings which resulted in the development of a pricing philosophy to stop cement price reductions. The investigations also established that the Cement Companies had agreed on a flat rebate of ZMW3 sometime in December 2019.
The Board of Commissioners determined that the sharing or exchange of commercially sensitive information relating to future prices and rebates by Mpande Limestone Limited, Dangote Cement Zambia Limited and Lafarge Zambia Plc amounted to an agreement. The Board of Commissioners further determined that this agreement was anti-competitive as it was used to fix the price of cement and share markets contrary to Section 9(1) (a) and (b) of the Act respectively.
The Board notes that infrastructure development is the backbone of social-economic development and one of the Government’s key priority areas in the Seventh National Development Plan. The construction industry is very important for Zambia’s economic growth, infrastructural development and employment generation and the cement industry plays a vital part of this infrastructure development. The fixing of cement prices by the three Companies and setting of trade conditions therefore undermined a competitive market and was detrimental to consumers.
While the Board of Commissioners takes cognisance of the role Mpande Limestone Limited, Dangote Cement Zambia Limited and Lafarge Zambia Plc, play in the economy in general and their contribution to employment creation, their conduct had the serious effect of undermining infrastructure development both private and public especially with Government’s continued thrust on infrastructure development projects from roads, schools, clinics and development of district centres among others.
Based on these facts, the Board decided to fine Lafarge Zambia Plc and Mpande Limestone Limited the maximum fine of 10% of their annual turnovers for the two (2) years of 2019 and 2020 for price fixing and market sharing. The Board noted that Dangote Cement Zambia Limited was granted leniency as they were the only Leniency applicant and assisted with investigations.
The Board would also like to take this opportunity to warn businesses that engage in Anti-competitive Business Practises to desist from such conduct. The Commission remains steadfast in its commitment to eliminate any anti-competitive trade practices, which impact negatively on Zambia’s quest to promote a competitive business environment and ensure that ordinary consumers are not exploited.
Cement Price Hike Investigation Concluded
The Competition and Consumer Protection Commission (CCPC) wishes to bring it to the attention of the public that it has been closely observing the operations of the market players in the Cement Market and did in fact institute investigations into possible cartel conduct in January 2020.
To this effect, the Commission wishes to inform the public that it has now concluded its investigation involving the three (3) cement manufacturing companies.
And will, in accordance with guidelines under the Competition and Consumer Protection Act No 24 of 2010, share the investigation findings with the involved parties to ensure adherence to due process, consequently to which the Board of Commissioners will adjudicate on the matter.
The Commission is alive to the high-level public interest in this matter and implores the public to exercise patience allowing the process to reach its logical conclusion at which point, the determination of the Board will be duly communicated.