Briefing of the Honourable Ministers of Trade and Investment CONSUMER PROTECTION COUNCIL (CPC)

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Presentation on the mandate and activities of the Consumer Protection Council July 2011 Briefing of the Honourable Ministers of Trade and Investment CONSUMER PROTECTION COUNCIL (CPC)

Transcript of Briefing of the Honourable Ministers of Trade and Investment CONSUMER PROTECTION COUNCIL (CPC)

Presentation on the mandate and activities of the Consumer Protection Council

July 2011

Briefing of the Honourable Ministers of Trade and Investment

CONSUMER PROTECTION COUNCIL (CPC)

INTRO

DU

CTION

WHO WE ARE

The Consumer Protection Council (CPC) is the apex consumer protection agency of the Federal Government of Nigeria

Following the United Nations Economic and Social Council resolution, urging Governments to develop, strengthen or maintain a strong consumer protection regime in their countries, CPC was established by Act No. 66 of 1992, but started partial operations only in 1999

Our mandate requires us to encourage businesses to adopt best practices & thereby ensure the well-being of consumers

VISION

AND

MISSIO

NOUR VISION

To be a dynamic, effective and responsible apex consumer protection agency of the Federal Government of Nigeria, championing the cause of fully sensitised consumers to achieve a caring and sufficiently consumer-friendly community

VISION

AND

MISSIO

NOUR MISSION

Committed to protect and enhance consumers’ interest through information, education and enforcement of appropriate standards for goods and services and to promote an environment of fair and ethical trade practices

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ORGANISATIONAL STRUCTURE

CPC has a Board, which formulates policies for the running of the Council; & a Director General, responsible for its day to day running

Six Departments:- Consumer Education, Surveillance & Enforcement, Quality Assurance & Development, Planning Research & Statistics, Administration & Finance

Three Units:- Legal, Public Relations & Internal Audit

FUN

CTION

SOBJECTIVESThe objectives of the CPC are to:• Check & minimise imperfections in the

marketplace• Balance the power relations between

consumers and producers of goods and services • Enhance collaboration among regulatory

bodies to better the lot of Nigerian consumers• Create a level playing field for businesses to

operate effectively

FUN

CTION

SOBJECTIVES… IIOther objectives of the CPC are to:• Ensure robust legislation for consumer

protection• Take consumer protection activities to the

grassroots in order to protect vulnerable consumers• Get Nigerian consumers to imbibe the culture

of being responsible & assertive consumers (particularly from the young age)

KEY FUN

CTION

SCORE RESPONSIBILITIES

• Providing speedy redress to consumers complaints

• Eliminating fake and substandard products from the market

• Organising & undertaking consumer awareness programmes

KEY FUN

CTION

SCORE RESPONSIBILITIES…cont’d

• Issuing guidelines to producers of goods and services• Ensuring that consumers interest receive due

consideration at appropriate forum• Encouraging businesses to adopt best practices• Encouraging the formation of voluntary

consumer groups or associations

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TARGETS OF THE ORGANISATION

The following targets have been set by the Council for the period 2011 – 2015:• Achieve 80% average level of awareness of

consumer rights in Nigeria• Successfully resolve not less than 85%

consumer complaints• Reduce the current level of sub-standard

goods and services in Nigeria by 75%• Reduce incidences of injuries and deaths

resulting from hazardous products

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TARGETS OF THE ORGANISATION…. II

For the period 2011 – 2015, we also intend to:

• Reduce sharp/ fraudulent business practices by 50%• Increase consumers value for money by 65%• Increase the Council’s visibility to 90%• Increase operational efficiency of the Council

by 50%

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STRATEGIES TO MEET THE TARGETS

To achieve our targets for the period, 2011 - 15, we shall embark on the following:• Intensification of enforcement operations to

rid the market of fake, counterfeit, hazardous, expired & banned products• Speedying up the Council’s complaints

resolution process• Sustaining on-going consumer awareness

campaigns & introducing new ones• Registering and monitoring products, services & sales

promotions in the country

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STRATEGIES TO MEET THE TARGETS …. II

Other steps we will be taking are:• Encouraging producers of goods and services to

adhere to quality standards/specifications• Issuing appropriate guidelines and regulations to

providers of goods & services to check new trends in consumer abuses in the marketplace

• Engaging/collaborating with producers of genuine products in eliminating fake products from the market

• Prosecuting offenders of consumer protection laws• Naming and shaming companies that indulge in

malpractices

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STRATEGIES TO MEET THE TARGETS …. III

We will also be:• Carrying out regular quality checks and tests

on products to ascertain their quality• Conducting research on consumer satisfaction

with products & services in all sectors of the economy & publishing same• Collaborating with other regulatory agencies

(for seamless delivery of service) & international development partners (to enhance capacity)

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STRATEGIES TO MEET THE TARGETS …. IV

During the same period, we hope to:• Set up alternative dispute resolution (ADR) centres in

all states of the Federation • Sustaining the Council’s Consumer Information and

Response Centres in the 774 LGAs in Nigeria• Increase the capacity of existing zonal offices and the

Lagos Office, & establish state offices• Work towards the introduction & implementation of

Consumer Education in Schools Curricula• Improve in staff training and level of manpower

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STRATEGIES TO MEET THE TARGETS …. V

Transformation of CPC into Nigeria Trade & Competition Commission (NTCC):

• There is an NTCC bill in the National Assembly, which proposes the transformation of CPC into the new Commission comprising the following four related bodies, each of which shall be governed by its specific legislation, namely; Anti-dumping Authority; Anti-Trust Competition Authority; Consumer Protection Council; and Weights and Measures

• We will be working towards the passage of this Bill, which is more comprehensive than the one being proposed by the BPE, which is very narrow in its scope

• More so, many of the abuses suffered by consumers in the marketplace are competition related

OPERATIO

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KEY ACHIEVEMENTS

• Issuing Regulations (which constitute subsidiary legislation) to curtail consumer abuses in the market place (E.g. Consumer Protection Sales Promotions Monitoring Regulations and Products/Services Monitoring & Registration Regulations)

• Producing Guidelines to enable industry and professional associations to develop and enforce in their various fields quality standards designed to safeguard the interest of consumers (E.g. Guidelines on Sales Promotion & Registration Monitoring; Guidelines for Inspection of Motor Vehicle Garages; Guidelines on Bus Transport Services & Complaint Redress Mechanism Guidelines)

OPERATIO

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KEY ACHIEVEMENTS. II

• Creating awareness on the rights & responsibilities of the consumer & enhancing the visibility of CPC (by hosting radio/tv programmes, making presentations to various audiences, delivering lectures, speaking to individuals/groups, organising workshops and seminars, erecting billboards, mounting displays at events like trade fairs, exhibitions, etc)

• Undertaking periodic research and evaluation on the performance of products & service providers, consumer satisfaction in vital areas of the economy, etc (i.e. health services, telecom/postal services, electricity, transport, banking & finance, water & sanitation and consumer satisfaction in the aviation sector)

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KEY ACHIEVEMENTS… III

• Undertaking surveillance & enforcement operations in different markets across the country (e.g. Sokoto, Kano, Aba, Port-Harcourt, Onitsha, Enugu, Lagos, Abuja, Katsina, Zaria, Ilorin, Benin, Ibadan, etc)

• Resolving successfully thousands of consumer complaints through negotiation, mediation & conciliation• Conducting quality tests & analysis on

products and services• Prosecuting offenders in Kano, Zaria, Kaduna &

Lagos successfully

INTERVEN

TION

IST PROG

RAMM

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KEY ACHIEVMENTS… IV

• Setting up six zonal offices in Awka, Katsina, Bauchi, Minna, Port-Harcourt & Osogbo; & Lagos office for the country’s commercial hub• Facilitating the inauguration of State Consumer

Protection Committees in Imo, Lagos, Cross-River, Niger, Ondo, Kano, Jigawa & Osun States• Setting up information & response centres in

some local government areas across the Federation• Setting up a call centre to increase our reach –

0700 CALL CPC

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KEY ACHIEVEMENTS… V

• Hosting quarterly meetings for sector regulators, the national standards body & security agencies to deepen cooperation among the agencies & thereby enhance the protection of consumers in the country

• Collaborating with sector regulators & the national standards body in achieving better regulations/standards for products & services

• Partnering with the Federal Trade Commission (FTC) of the United States of America (exchanged visits & held a joint capacity building seminar in Abuja, Nigeria)

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KEY ACHIEVEMENTS… VI

• Undertaking study visit to South African Agencies to learn best practices, share information & intelligence & facilitate staff exchange programmes, etc

• Securing membership of the International Consumer Protection & Enforcement Network (ICPEN) made up of organisations from over 40 countries & participating in the organisation’s activities

• Securing membership of Consumers International (CI) & collaboration with member organisations

• Participation in teleconference sessions/activities of the Informal African Dialogue on Consumer Protection

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KEY INITIATIVES & DELIVERABLES

•Our key initiatives & deliverables for the period shall include

Activity/Project

Consumer Information and

Response Centres(Community Consumer Policing)

Market Presence Scheme

Key Deliverable

Operation of centres in local government

areas for information

dissemination and conflict/complaints

resolution

Opening of outlets and deployments of

staff in major markets across the

country

Total % Deliverable for One Year

40%

50%

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KEY INITIATIVES & DELIVERABLES …. II

•Our key initiatives & deliverables for the period shall include

Activity/Project

Re-design, management and

increase in bandwidth on our interactive website by Galaxy Backbone

PlcConducting research

and surveys on consumer satisfaction

in products and services in different

sectors of the economy, across the six geo-

political zones of the Federation

Key Deliverable

Establishing IT platform to

automate CPC processes for

optimal performance &

reach at least 50% of Nigerian consumers

Undertaking a proactive

assessment of the performance of

products & services and reporting same

Total % Deliverable for One Year

100%

100%

CHALLEN

GES

•Some noticeable weaknesses•Some new market trends not properly captured and provided for in the Act (E.g. Safeguards for ICT consumers)

Problems with the CPC

Act

•Lack of some basic operational facilities •Lack of resources to implement relevant programmes

Inadequate Operational

Facilities/Resources

•Lack of presence in every state of the Federation•Low staff strength to effectively protect Nigeria’s over 140 million consumers•Lack of staff training

Limited Capacity

RESOLVIN

G TH

E CHALLEN

GES

•CPC is working hard to have its law amended•The proposed amendment provides for establishment of state offices, expanded powers of investigation/sanctions & codification of consumer rights for the first time in Nigeria

Undertaking Legal

Reforms

•This is aimed at acquiring basic operational facilities •Securing increased funding will also make for the unhindered implementation of relevant programmes

Pushing for Increased Funding

•Opening additional offices , hiring more personnel & training the workforce•Seeking the collaboration of development partners to build capacity

Building Capacity

NEW

FOCU

S OF TH

E MIN

ISTRY

Investment

• Creating a level playing field for businesses to thrive• Encouraging businesses to adopt best practices for the purpose of gaining consumer confidence & increased

patronage

Impact on the Economy

• Promoting genuine businesses, thus sustaining existing employment & creating new ones• Enhancing the quality of available products & services• Engendering healthy competition needed for a thriving economy

Enhancing productivity

• Development & implementation of ProServe as a listing regime that will establish a code of practice for the traceability & monitoring of products & services in Nigeria

NEW

FOCU

S OF TH

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ISTRY

Job creation & skills

enhancement for skills relevant to the economy

•Partnering with relevant bodies to train & enhance the capacity of artisans under the ProServe programme

Development of SMEs and industrial

Clusters (where applicable)

•Building the patronage of SMEs by encouraging them to adopt best practices

CON

CLUSIO

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CONCLUSION

• It is apparent from the above that the Council has continued to witness a lot of progress in spite of its challenges

• As the Council becomes more effective and efficient in its operations, the society would benefit immensely from the sanity that will be instituted in the marketplace

• Nigeria will also become an attraction for investment as there will be a level playing field for businesses

• There will also be increased confidence in Made-in-Nigeria products/services, thus encouraging investors to produce in the country

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TRUCKLOADS OF SUBSTANDARD ELECTRICAL PRODUCTS SEIZED BY OUR INSPECTORS

THANK YOU FOR YOUR KIND ATTENTION APPRECIATIO

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