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Consumer justice for all Fijians

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Compiled by RACHNA LAL and RANOBA BAOA

Welcome to Hard Talk, where we pose questions to both top executives and budding entrepreneurs on some of the major issues involving business.

The Consumer Council of Fiji, as a watchdog, protects the rights and interests of consumers by promoting a fair and just delivery of goods and services.
The Consumer Council is an advocacy organisation, conducting rigorous research and policy analysis on key consumer issues.
The insight of the council focuses on consumer need which is a powerful tool for influencing decision-makers to bring about change.
The council has been in existence since August 1, 1973 however the Consumer Council of Fiji Act came into effect on February 16, 1977.
And the woman behind this powerful tool of influence, fighting the battle for the everyday ordinary consumer is Premila Kumar. She has been working with the council as chief executive officer since 2006.
Her passion to seek consumer justice led her to the profession and from passion has enabled her to become an influential person within business in Fiji.
“Consumer injustice on a daily basis drives me to do my job without any fear of favour and I love what I do,” Ms Kumar said.
“My passion for the job comes from the consumers who are treated unfairly and it’s their helplessness that drives me.
“I have seen many miserable consumers who cannot afford lawyers and therefore live in pain and misery.”
Redress mechanism is not cost effective and most laws are written from producer perspective, she said.
She adds: “The greatest power of consumer is the power not to buy from unscrupulous traders. However, consumers seldom use this in solidarity and expect others to sort their problems.”
Consumer power is an effective deterrent which is much stronger than any law or legislation.

1.   What is one major thing the Consumer Council of Fiji is currently working on?
The Council is focused on “Financial Services” and this has been a major undertaking from 2010 with the launch of the Council’s report on banking services.  The reasons why we are focusing on this sector is because there are no effective mechanisms to protect consumers in financial services although consumer spending drives the economy.
In other words, consumer credit plays an important role in keeping the economy going and yet consumers who take loan or credit are not adequately protected.  The Council believes that abusive practices persist in the financial services sector due to weak or deficient laws/regulations to protect consumers.
2. Name three biggest successes achieved by the council in the recent past?

  •  Gas under price control: The Council’s unrelenting lobbying for price control was of great benefit to consumers when the Fiji Commerce Commission placed LPG under price control. A more realistic price for consumers was evident as prices dropped by a whopping 20 per cent. The regulation of LPG prices is one victory that had taken the Council a long time to achieve.
  • Dollars & Sense: The Consumer Council of Fiji in partnership with AusAID and Fiji TV successfully produced Fiji’s very own consumer TV show called “Dollars & Sense”.  The weekly programme was designed to educate and empower the general public on their rights and responsibilities when accessing credit. The TV show also generated a lot of public interest on the issues.
  • Recovery of Consumers’ Money: In the last 5 years the Council recovered $5.6 million through mediation which consumers would have lost.
  •  Removal of ALDI products: In 2010, the Consumer Council’s market surveillance found that a supermarket chain was dumping nearly expired ALDI products into Fiji market.  The Ministry of Industry and Trade’s support led to disposal of 12 pallets of damaged and expired products. The supermarket was also  ordered to ship two containers of ALDI products back to their suppliers.

3. What are some common issues facing the consumers? How does the council tackle these?
n Landlord & Tenancy: Complaints against landlords have consistently been in the top most recurring complaints lodged with the council for the last 7 years. The Council has put forward a draft law on residential tenancy for consideration by the policymakers.

  •  Lack of information and proper labelling of non-food items: This is a major issue in Fiji where equipments, appliances, cosmetics etc are sold without proper instruction to use or other details that the user should know. The Council is working with the Trade Standards Advisory Council (TSAC) of the Ministry of Industry & Trade in the formulation of information standard.
  •  Second-hand cars: The Council is inundated with complaints on dodgy and deceptive second-hand car dealers who with their smart sales tactic sell defective vehicles to consumers. The unscrupulous business practices of some dealers finally results in repossession of the vehicle where consumers end up with more debt. The Council is working closely with Commerce Commission on this issue.

4. Is the consumer always right? What happens in cases where the trader or the vendor is right?
No. Consumers are not always right. We do not entertain cases where the consumer is wrong or he/she has neglected his/her consumer responsibilities. Complaints are scrutinised and vetted first with evidences and then takes their cases further with the traders. The Council simply refuses to spend its resources and time on unsubstantiated cases.
5. How much difference has the Consumer Council made in Fiji?
This is better answered by consumers and the general public. The Council has done a lot and we acknowledge that we need to do more; but it is for the public to judge on how much difference we have made. It is for consumers who have sought our services to judge what we have delivered in terms of service and responding to their concerns.
6. What is the difference between the Consumer Council and the Commerce Commission?
The Fiji Commerce Commission (FCC) has enforcement powers that the Council does not have. However we have a broader mandate to look at the interests of consumers. While the Council specifically works on consumer protection, the FCC on the other hand has other responsibilities such as price and competition regulation.
7. Has the Consumer Council got enough resources? If you can get more, what would you like to see?
The Council does need more resources so that we can expand and upgrade our Lautoka and Labasa offices which cover a good section of Fiji’s rural community. We also would like to provide services through the use of new information technologies. For example, we would like to have smart phone technologies that would allow consumers to quickly access important information, advice and updates on issues. With the increasing advancement and development of new technologies, the Council would like to take advantage of these as a cost effective means of engaging with consumers.
8. What is one case (big/small) that has given you the most satisfaction?
Mortgagee Sale: A Consumer started facing financial hardship when his wife was diagnosed with cancer and he had to take 50 per cent salary cut when his organisation went through major restructure. He defaulted several payments on his mortgaged property and his bank decided to put the property under mortgagee sale upon issuing demand notice.
The Complainants instituted legal proceedings in the High Court seeking an injunction to restrain the bank from selling the property via mortgagee sale. They further sought an order from the Court to restructure their loan account upon sale of another property. Instead of giving an order for injunction on the basis that the Complainants were facing hardship, the judge ordered the parties to resolve the matter amicably within 7 days.
This led the bank to demand full and final settlement in the sum of $569,403.74 within 48 hours. The complainant sought Council’s help and the Council managed to stop mortgagee sale and get the loan account restructured with the kind assistance of the Bank’s General Manager who just started with his new job in Fiji.
9. What are some challenges you are facing? How can these be addressed?

  • Lack of complaints culture in Fiji and “laid back” attitude of consumers: Consumers are often too complacent and do not proactively raise issues of concern. Issues affecting consumers don’t take centre stage in national debates/forums, letters-to-editor, etc. People tend to spend more energy debating about the national rugby 7s team rather than be vocal on issues such as financial services, mortgagee sales, hire purchase, etc. It is also true that the Universities in Fiji hardly engage in research on consumer issues.
  • Right to Choice: Consumers in Fiji often do not exercise their right to choice. For example, instead of going to another retailer that may offer better quality, prices and services, they continue to nag about one particular retailer. Consumers lack the foresight to “shop elsewhere” despite the fact that availability of choice has increased greatly in the past two decades.
  •  Silent mentality of consumers: Fijian consumers lack the initiative to take action in solidarity with others on issues affecting them. Thus, the burden falls heavily on the Council. The Consumers should support efforts when it concerns their rights.

10. Consumer Council of Fiji is a statutory arm of the Government.  How much influence does Government have in matters concerning the Consumer Council?
The Council works within the confines of the Consumer Council of Fiji Act and the Government expects the Council to work within the ambit of this law. The Council enters into a Service Agreement each year with the line Minister and implements its work plan accordingly, within the budget allocated.

PREMILA KUMAR

  • Inspiration –I am inspired by the challenges I unravel as I deal with consumer issues
  • Hobbies – Watching TV, traveling, interior decoration, reading
  • Ambition in life  – to be a better human being
  • Most passionate about – I am passionate about social justice
  • Biggest achievement most proud of – Issues that I am able sort out for consumers
  • Best advice ever received – After every storm there is sunshine
  • Skills or qualities wish you had – I wish I had the skills of a journalist, shrewdness of a lawyer and passion of a philanthropist.
  • How to achieve work-life balance – maintaining work-life balance is not easy when the consumer expectation is high and the trust they have in the Council. Unfortunately I have to take work home. I focus on exercise to de-stress and have a maid to assist in household chores. However, there are certain things at home that I do no matter what.
  • Most valued possession – My family
  • If there was one person you could meet, who would it be? I have already met
  • Consumer Council of Fiji CEO Premila Kumar


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