a tripartite report - Unctad

a tripartite report - Unctad a tripartite report - Unctad

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TANZANIA (iv) In January 2005, fake Gentrisone Cream (a product of Shin Poong, South Korea) was reported. In this case, the active ingredient was replaced with hand and body lotion. (h) The Guardian of 8 November 2007 had the title; Consumer awareness is no laughing matter. (i) The Business Times of 6 January 2008 had the title; Stakeholders urge for more awareness education. ( j) Nipashe of 14 March 2008 had the title; Importation of counterfeit goods is a threat to consumers. More than 80 per cent of consumers in the United Republic of Tanzania are not aware of their rights. (k) Uhuru, a Swahili newspaper of 4 April 2008 had front page story with the title, “Expired toothpaste chemicals were found for Tanga Sabuni Detergent” – The chemicals were meant for making a famous toothpaste in the country – Aha. (l) Guardian of 27 March 2008 had the title; Vision 2025: Shall we achieve `Green Revolution`? The prices of fertilizers and farming implements remain higher due to cheating by the distributors of fertilizers. There are no provisions in MMA that provide for an FCC initiated investigation on whether a claim as above is actually meant to blame and defame a competing product and whether such claims are made by a competitor of the producer of the blamed product. The process of ascertaining facts about products is a public inquiry for the FCC. As has been noted above, under Regulation 12 of the MMR, the FCC has to satisfy itself of the locus of the complainant (who has to be the IP owner or agent) and a case is not ordinarily investigated until a security deposit has been made. There are also safeguards within the MMA and MMR against frivolous complaints as earlier indicated. However, civil society organizations such as TCAS, as well as the media have a leeway to pronounce allegations and hope that enforcement institutions such as the FCC would act on their allegations. While it is acknowledged that the FCC has been working so hard to reduce the problem of counterfeit products in the market by destroying them and giving severe punishment in accordance with the law, the problem is still on the rise. Despite the rise in numbers of acts of unethical business conduct and violation of consumer’s rights the TCAS considered that partnerships with independent civil society to curb the situation have not been extensively explored. 4.0 THE INSTITUTIONAL FRAMEWORK 4.1 The Fair Competition Commission The FCC is established under Section 62 of the Act - 67 minations after its secretariat has investigated, reviewed or assessed matters under the FCA. While there is a thin line between the secretariat and the FCC, the functional separation of duties is clear in practice. The FCC does appear to be a fairly independent agency, considering its functions, appointment and tenure of members, investigatory powers, funding, etc as explained in detail below. 4.1.1 Functions of the Commission Section 65 outlines a rather long list of the functions of the FCC ranging from Section 65(2)(a) – (m) i.e. 13 functions to perform. The roles can be summarized into two categories i.e. enforcement and advocacy. Enforcement functions include investigations into anticompetitive trade practices and advocacy includes championing competition and consumer protection by sitting in on any public inquiry or contribute to policy and legal reform. With such a responsibility load, the Chairman of the FCC is expected, in consultation with the other members of the FCC, to determine from time to time the priority to be given to any of the functions and activities set out above for the effective and 79 . There is an important function that the FCC has been granted under Section 65(4) of the FCA. Proactively, the FCC is entitled to participate in the proceedings of courts, tribunals, regulatory authorities, Government inquiries, commissions, committees and working groups for the purpose of observing the proceedings and making representations on matters relevant to the FCC’s functions. This is a peculiar function that is not available to sister authorities in Zambia or Zimbabwe. TANZANIA

68 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE However, while this power is admirable, the role of the FCC is merely to advise or raise an issue under the FCA. The court, tribunal, regulator or other inquirer has no legal obligation to take into account the FCC’s position. This has happened with one regulator where the FCC’s input was not actually 4.1.2 Members of the FCC Section 62 establishes the FCC as a body that “shall be independent and shall perform its functions and exercise its powers independently and impartially without fear or favour”. Section 62(6) states which is: a chairman, who shall be a non-executive appointed by the President; three non-executive members appointed by the Minister; and the Director-General who is appointed by the Minister. tions of the Director-General in its Second Schedule to the Act, which include that such person shall be graduate of a recognized university; and possess at least ten years experience in one or more terms: Chairman – four years; Director-General – four years; One member – Three years; and two appointment for one further consecutive term but shall not be eligible for reappointment thereafter80 . Their appointment is based on “knowledge of, or experience in, industry, commerce, economics, law, 81 . In order to maintain impartiality of the FCC and for the of the FCC if, he/she, owing to the nature of the of- be considered in future amendments to the law. Under Section 66(3) of the FCA, the Chairman of the FCC is expected, in consultation with the other members of the Commission, to determine from time to time the priority to be given to any of the functions and activities set out in Section 66(2) for 4.1.3 Investigatory powers of the FCC Through the powers conferred upon it under the FCA, the FCC deals with all issues of anticompetitive conduct, abuse of dominance and has provisions for curtailing mergers and acquisitions if outcome is likely to create dominance in the market or lead to anticompetitive behaviour. The adjudication of consumer related cases is done in the normal courts. 82 The FCC is given powers to gather information and to conduct investigations under sections 68– 71 of the FCA and to impose sanctions for violations of the FCA under section 57–60. In addition to implementing the Act, the Commission is also charged with the responsibility of enforcing the counterfeits. The FCC has a staff complement of 58 against a requirement of 72 for it to carry out the various functions/responsibilities under the Act. The Direc- and is responsible for the day to day administration of the affairs of the FCC. The staff is spread out as follows: FUNCTIONAL AREA TOTAL STAFF per cent 6 10 per cent Corporate Affairs 26 45 per cent Competition, Research & Advocacy 8 14 per cent Compliance & Consumer 10 17 per cent Anti-Counterfeit 8 14 per cent TOTAL 58 100 per cent Source: FCC The FCC cannot unfortunately recruit any more staff unless it secures their remuneration. Accord- 58 staff, the Government pays the salaries of 45 of them, while the FCC pays for the other 11. In the event that the FCC desires to have more than 45 staff funded by the Government, then it would have to seek the express authorization of the Ministry of Finance or raise independent funds. The salaries for the FCC are much higher than the average civil service salaries.

68 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />

However, while this power is admirable, the role of<br />

the FCC is merely to advise or raise an issue under<br />

the FCA. The court, tribunal, regulator or other inquirer<br />

has no legal obligation to take into account<br />

the FCC’s position. This has happened with one<br />

regulator where the FCC’s input was not actually<br />

<br />

4.1.2 Members of the FCC<br />

Section 62 establishes the FCC as a body that “shall<br />

be independent and shall perform its functions<br />

and exercise its powers independently and impartially<br />

without fear or favour”. Section 62(6) states<br />

<br />

which is: a chairman, who shall be a non-executive<br />

appointed by the President; three non-executive<br />

members appointed by the Minister; and the Director-General<br />

who is appointed by the Minister.<br />

tions<br />

of the Director-General in its Second Schedule<br />

to the Act, which include that such person shall<br />

be graduate of a recognized university; and possess<br />

at least ten years experience in one or more<br />

<br />

<br />

<br />

<br />

<br />

terms: Chairman – four years; Director-General –<br />

four years; One member – Three years; and two<br />

appointment<br />

for one further consecutive term but<br />

shall not be eligible for reappointment thereafter80 .<br />

Their appointment is based on “knowledge of, or<br />

experience in, industry, commerce, economics, law,<br />

81 . In order<br />

to maintain impartiality of the FCC and for the<br />

<br />

<br />

of the FCC if, he/she, owing to the nature of the of-<br />

<br />

<br />

<br />

be considered in future amendments to the law.<br />

Under Section 66(3) of the FCA, the Chairman of<br />

the FCC is expected, in consultation with the other<br />

members of the Commission, to determine from<br />

time to time the priority to be given to any of the<br />

functions and activities set out in Section 66(2) for<br />

<br />

4.1.3 Investigatory powers of the FCC<br />

Through the powers conferred upon it under the<br />

FCA, the FCC deals with all issues of anticompetitive<br />

conduct, abuse of dominance and has provisions<br />

for curtailing mergers and acquisitions if outcome<br />

is likely to create dominance in the market<br />

or lead to anticompetitive behaviour. The adjudication<br />

of consumer related cases is done in the<br />

normal courts. 82<br />

The FCC is given powers to gather information<br />

and to conduct investigations under sections 68–<br />

71 of the FCA and to impose sanctions for violations<br />

of the FCA under section 57–60. In addition<br />

to implementing the Act, the Commission is also<br />

charged with the responsibility of enforcing the<br />

<br />

counterfeits.<br />

<br />

The FCC has a staff complement of 58 against a<br />

requirement of 72 for it to carry out the various<br />

functions/responsibilities under the Act. The Direc-<br />

<br />

and is responsible for the day to day administration<br />

of the affairs of the FCC. The staff is spread<br />

out as follows:<br />

FUNCTIONAL AREA TOTAL STAFF per cent<br />

6 10 per cent<br />

Corporate Affairs 26 45 per cent<br />

Competition, Research & Advocacy 8 14 per cent<br />

Compliance & Consumer 10 17 per cent<br />

Anti-Counterfeit 8 14 per cent<br />

TOTAL 58 100 per cent<br />

Source: FCC<br />

The FCC cannot unfortunately recruit any more<br />

staff unless it secures their remuneration. Accord-<br />

<br />

58 staff, the Government pays the salaries of 45<br />

of them, while the FCC pays for the other 11. In<br />

the event that the FCC desires to have more than<br />

45 staff funded by the Government, then it would<br />

have to seek the express authorization of the Ministry<br />

of Finance or raise independent funds. The<br />

salaries for the FCC are much higher than the average<br />

civil service salaries.

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