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Fair competition bodies must be impartial
2006-01-04 14:20:13
By Editor
For about ten years , the Fair Trade Practices Act was accumulating dust in the Fair Competition Commissioner’s office.
For unknown reasons, the instruments that would enable the Act to become operational had not been put in place, though some complaints relating to violation of fair play in the market place have been noted.
Since adoption of a market-led economy in the early 1980s, the free-market has been misconstrued as freedom to do business without any legal restraint that sets out rules and regulations for guiding the conduct of all businesses.
We had witnessed in the mid 1980s some unscrupulous Pakistanis selling expired tomato sauces and beverages, and they could do so scot-free for years before getting nabbed because of the legal void for dealing with such business malpractices.
The days of uncertainty are apparently over with the inauguration last week of the Fair Competition Commission (FCC) and two other bodies whose prime responsibility is to ensure fair play in business conduct.
Two other organs formed to regulate the activities of the players on the market are the Fair Competition Tribunal (FCT) and the National Consumer Advocacy Council (NCAC).
Fair competition means that every stakeholder is given an unfettered opportunity to produce a good or provide a service in the anticipation that consumers would tune to the price on offer.
So, what is the common playing ground for entrepreneurs producing similar products or providing related services? Production costs which ultimately determine market price, and of course, the quality and time of availability.
That way, it will be unfair for a player in one industry to run an advert claiming that a similar product produced by a competitor is of inferior quality. If one thinks such a claim has some ground to stand on, one should forward the complaint to the FCC for further investigations and possible ruling by the Fair Competition Tribunal (TFCT).
The duties bestowed on the three bodies demand a high level of discipline and accountability, for it also means dealing with such international conmanship as dumping and price discrimination in pricing services across the border.
For some time, consumers in this country have been treated as novices when it comes to information about products’ awareness, or the quality of certain services they often buy from the market.
The void had been complicated by lack of any institutionalised consumer advocacy organ able to advise consumers about products, as well as dealing with complaints from them.
In the few weeks to come, we expect that the newly inaugurated NCAC will publish information about its modus operandi via various media outlets in a bid to awaken consumers to its role and how aggrieved consumers would channel complaints to it.
All means of communication must be left open to allow the public to interact freely with the fair competition bodies. Their effective performance will directly encourage players to achieve greater efficiency in their business endeavours.
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