1 Structure & Functions of Competition & Consumer Protection Commission By Brian M. Lingela, Director-Consumer & Public Relations Presented to Stakeholders’ Seminar on Competition & Consumer Protection 7 March, 2011 Long Bridge Hotel, Lusaka

Presentation Outline  Introduction  CFTA CAP 417 of Zambia’s Laws  The Advent of CCPC  Preamble to CCP Act  Functions of CCPC  Strategic Focus Areas  Institutional Structure of CCPC  Competition & Consumer Protection Tribunal  Independence of CCPC  Investigatory Powers  Conclusion 2

Introduction Zambia liberalised her economy in 1991 following a change in Government by way of privatisation & de- regulation; Shift from GRZ owned & controlled enterprises to private owned firms; Challenge of anti-competitive conduct by private owned monopolies; Government had to ensure a level playing field in the economic sector to avoid market frustrations which could lead to stagnation of the economy; Competition law introduced in

CFTA CAP 417  Enacted as primary statutory source of competition law and policy in Zambia in 1994;  Established in 1997, ZCC;  To prevent anti- competitive conduct thereby ensuring competition and efficiency in business, resulting in the greater choice for consumers in price, quality and service.  To ensure the interests and welfare of consumers are adequately protected in their dealings with producers and sellers. 4

The Advent of CCPC  Competition and Consumer Protection Act No. 24 of 2010 was passed by the National Assembly & assented to on 14 th August  The Act came into operation on 8 th October 2010 when it was published as a Statutory Instrument.  Amplified & introduced provisions & changed structure of enforcement 5

Preamble To CCP Act (i)to continue the existence of the Zambia Competition Commission and re-name it as the Competition and Consumer Protection Commission; (ii)safeguard and promote competition; (iii)protect consumers against unfair trade practices; (iv)provide for the establishment of the Competition and Consumer Protection Tribunal; (v)Repeal and replace the Competition and Fair Trading Act, 1994; and 6

Functions of CCPC. Sec 5 (a)Review operation of markets in Zambia & the conditions of competition in those markets; (b)Review the trading practices pursued by enterprises doing business in Zambia; (c) Investigate & assess restrictive agreements, abuse of dominant positions & mergers; (d)Investigate unfair trading practices & unfair contact terms & impose such sanctions as may be necessary; 7

Functions Contd.. (e) undertake & publish general studies on the effectiveness of competition in individual sectors of economy in Zambia on matters of concern to consumers; (f) act as primary advocate of competition & consumer protection in Zambia; (g) advise GRZ on laws affecting competition & consumer protection; (h) Provide information for the guidance of consumers regarding their rights under this Act; 8

Functions Cntd. (i)liaise & exchange info, knowledge & expertise with competition authorities & consumer protection authorities in other countries; (j) advise Minister on agreements relevant to competition & consumer protection & any matter relating to this; (k) Cooperate with & assist any association or body of persons to develop & promote observance of standards of conduct to ensure compliance with Act. 9

Strategic Focus Areas  Restrictive & Anti-competitive practices  Horizontal & vertical agreements  Prohibition of abuse of dominant position  Regulation of mergers  Market enquiries  MOU’s with other Regulators  Consumer protection 10

Institutional Structure  Section 4 renames the ZCC as CCPC, a statutory body-corporate;  Section 6 creates the office of the Executive Director;  First Schedule to the Act creates the Board of the Commission to consist of members with suitable qualifications appointed by the Minister as follows: 11

Institutional Structure (a)Representative from the Ministry responsible for commerce; (b)Representative of the Attorney General; and (c)five other members, with experience and knowledge in matters relevant to this Act, appointed by the Minister;  The Chairperson and the Vice-Chairperson of the Board shall be appointed by the Minister from amongst the members of the Board. 12

Competition & Consumer Protection Tribunal  PART IX creates the Competition and Consumer Protection Tribunal, which shall hear appeals from the CCPC  The members (all part-time) shall be appointed by the Minister, as follows: (a)a legal practitioner of not less than ten years legal experience, who shall be the Chairperson; (b)a representative of the Attorney-General, who shall be the Vice-Chairperson; and (c)(c) three other members who shall be experts, with not less than five years experience and knowledge, in matters relevant to this Act. 13

A Graphical Perspective 14 SUPREME COURT THE HIGH COURT COMPETITION & CONSUMER PROTECTION TRIBUNAL BOARD OF COMMISSIONERS EXECUTIVE DIRECTOR

Is CCPC Independent?  Statutory body corporate by Act of Parliament with administrative autonomy;  CCPC is a GRZ agency implementing GRZ competition & consumer policy;  Though Minister appoints BOC & Tribunal members, he/she does not sit on Board;  Minister custodian of GRZ competition/consumer policy  Civil society needs to monitor Board decisions & ensure accountability 15

Access to Judicial System Further Appeal – to High Court & Supreme Court Appeal – to Tribunal Decision – by Board Complaints – to commission 16

Investigatory Powers  As before the Commission is empowered to carry out investigations either on its own initiative or based on a complaint made by any person on  However the new Act provides for a more detailed explanation of the manner in which investigations will be carried out 17

Investigatory Powers contd Powers:  Issuance of notices to obtain : i.Information pertaining to any matter specified in the notice which the Commission considers relevant to the investigation; ( in the form of a statement signed by a person or in the case of a body corporate, by a director or member or other competent officer or agent of he body corporate ); 18

Investigatory Powers contd i.document or article; ii.oral statement given by any person who has been served with a notice to appear before the Commission or before a person specified in the notice 19

Investigatory Powers contd Decision not to investigate – s.56(1)  Where a complaint is deemed to be frivolous or vexatious, the Commission will not investigate the matter and will notify the Complainant its decision not to investigate.  Alternatively the Commission may refer a complaint to another regulator (NB: S.42- MOUs 20

Investigatory Powers contd Role of inspectors – Sec 7  With a warrant may:  Enter & search any premises (business/private)  Search any person on premises (same sex)  Examine any document found at premises  Request information about any document or article from: 21

Conclusions  CCPA will enhance safeguard competition & enhance consumer protection in Zambia;  Stiffer penalties are what the Commission has lacked;  If successfully enforced, Commission’s visibility & credibility will be enhanced  Need for stakeholder involvement as per S.5(k);  Need for vigorous consumer/business sensitisation; 22

END Thank you & God Bless You All 23