Fiji Consumer Council - Consumer Watch - December 2011 Edition

8/3/2019 Fiji Consumer Council - Consumer Watch - December 2011 Edition

1/16December 2011 Consumer WATCH | 1

In this

ISSUE

02

03

0608

12

13

Off the Streets

Taxi Fare IncreasePeoples Voice

MortgagesReal Estate Law Change

Auction - the solution

Research

Halal Claims must besubstantiated

Misleading Advertisements

Complaints

Thumbs Up

Thumbs Down

Consumer Advice

Christmas Shopping Tips

Buy Fiji made

From the Desk

BUDGET - From Consumer

CEOs Viewpoint

DECEMBER 2011VOLUME 25 | ISSUE 2

P r o t e c t i n g t h e r i g h t s a n d t h e I n t e r e s t s o f C o n s u m e r s

The peoples budget

CEO Premila Kumar

Editor CCoF Team

Sales CCoF

Design Leonard Ganilau

Print Dreamwise Ltd

Distribution CCoF

BUDGET 2012

The announcement of any national budget affects

a consumer in many ways.

The 2012 Budget announcement has certainly

made our consumers happier. For instance, the

reduction in income tax (PAYE) and pay rise for civil

servants are welcoming news.

For consumers in general, life has been made a

little easier with benefits in a number of areas. This

can be seen as a relief, especially in these hard,

trying times with the rising cost of living.

The 2012 budget also allows a lot of room forconsumers to save that will ultimately put them in a

better financial position. For this, you need to make

the right choices and know what areas to spend

on. It is important for consumers to be fully

informed about the available benefits and to realize

the impact of their spending.

Consumers can expect to pay less for the following

items:

Imported fruits such as apples, grapes and

oranges.

Imported vegetables such as broccoli and

celery.

Musical instruments such as piano.

Sports equipment such as table tennis sets.

Knitted fabrics.

Every coin has two sides, hence the benefits come

with critical and cautious side. This is where

consumers need to be smart, responsible and

more careful with their spending.

Consumers can expect to pay more for the

following items/services:

Imported canned fish.

Cigarettes and

alcohol.

Importedexercise

books.

Blank DVDs

and CDs.

Palm Oil.

Chinese salt.

Nails.

Nylon Ropes.

Departure Tax.

A 1% levy is imposed on all voice call charges

such as landline calls, mobile phone post pay,

mobile phone top up cards or prepay.

Luxury cars exceeding 2500cc but notexceeding 3000cc.

Luxury cars such as four wheel drives with

cylinder capacity exceeding 3000cc.

A 2% levy is imposed on credit card balance.

As a consumer, one needs to analyze, understand

and grasp the information in order to fully utilize

the benefits made available through the 2012

Budget. Significantly, the budget should also

remind consumers to control their spending in

other areas where prices have gone up.

The purchasing power always lies in consumers

hands and the decisions they make are therefore

important. Proper planning, budgeting and

savings will put consumers in a stable position

looking forward to a more secure future.


2/162 | Consumer WATCH December 2011

Taxi drivers

Idris Khan Suva

Taxi fare increase is affecting our business. Theincrease should be 5cents/100metres.

William Crocker Davuilevu

We are hardly making any money becausepeople are going by buses. Its very bad becausewere hardly taking any money home. At the endof the day we just meet the contract and a little

bit extra. I think the government should move it down a bit,otherwise we will suffer.

Livai Baleiwai Naitasiri

Yes, one can say that taxi fare is high but peoplehave got to learn to accept changes, howeverdrastic they may be. The only thing that this

government should do to meet the high cost of living is toincrease the salaries & wages of working people.

Taxi operator/owner

Mosese Katonivere - Samabula

The taxi fare increase is good for us because fuelprice is high and if we had to go back to the oldfare, itll greatly affect our business, especiallywith the poor road conditions that we have. I

believe the government should get back the COLA system in

order to ease the burden for consumers.

Consumers/passengers

Pasepa Baleitamavua Suva

I feel sorry for those who live far because they willsuffer. And for these people the 100% increasemeans that whatever they earn in a week prettymuch covers their fare.

Sushila Devi Caubati

Before we paid $5.50 but now we pay $9.80and thats very high. I sell my produce in themarket and its affecting my business. First time

I catch the taxi, I never want to catch it again because the fareis very high. Now I have to catch the bus and I will not bring asmuch produce as I normally did in a taxi. The 100% increase

is not good they should just increase the flagfall to $2.00.

CEOs ViewPointOnce again we have come to theend of the year when everyone isin festive mood.

Its a time when consumers gettempted to spend more and

many take a break to relax withfamily and friends.

However, this is the time whenconsumers need to be mostcautious and practical abouttheir needs and wants. Many inthe excitement of getting bonus

or back pay may spend unwisely and without thinking. Thisshould be avoided at all times as impulse buying will definitelyaffect your financial status in the weeks to come.

There will be massive sales advertised in every shopping outletluring consumers to spend but as a smart and responsible

consumer, you need to ask yourself what you really need andif you are getting the real bargain for your hard earned money.

Look around for the best available prices rather than beingcomfortable with one place. Examine the quality of goods youare buying and keep all receipts should you require a redresslater.

Make a budget for yourself and specify what you really need. This should give you a clearer picture and stop you from

roftievasnahtsulprusasierehtfI.gnidnepsyrassecennubetter use in future.

Consumers need to be vigilant and better organized withtheir spending. This has been a tough year for many withthe increasing price of goods and services. Not to mentionthe latest increase in taxi fares - a service that majority ofconsumers rely heavily upon, especially during busy shoppingperiods. Consumers are urged to look for alternative andcheaper modes of transport. You need to be prepared for thechallenges in the New Year.

On behalf of the Council, I wish all consumers a MerryChristmas and a very happy New Year.

Premila Kumar

Chief Executive Officer

Word on the streets

seasons greetings

TAXI FAREINCREASE



OFF THE STREET

TAXI - HAS SUBSTITUTES

EMPTY taxis parked at their bases during peak hours or taxislined up in front of supermarkets has become a common sightnow.

Bus stands full of passengers in buses and taxi stands full withdrivers in empty taxis definitely send out a clear message. Morepeople are opting to travel in buses now with almost 100%increase in taxi fare implemented from November 7. This wasexpected as our transport market is not ready to meet high faredemands, especially with the rising cost of living taking its toll onstruggling consumers.

Council findings and observation revealed that there has been asignificant increase in the number of people travelling in busesnow compared to before with at least one bus company notinga 5% increase in passengers in the first week of the new taxi fareimplementation. Several other bus companies noted increasein passenger numbers and expect the numbers to swell in thecoming days.

Majority of the travelling population simply cannot afford thecurrent market price of hitching a taxi ride which every thirdperson was dependent on.

Taxis had become an essential need for the travelling public but

Sufferingwould best describe the

situation of the majority.

this of course is expected to become a thing of the past. 98%of the passengers, drivers and taxi operators interviewed by theCouncil are against the new taxi fare increase.

This is also evident from the daily newspaper articles and lettersto the editors column. People have also been expressing theirconcerns through radio talkback shows and media at large.The Consumer Council had a significant number of complaintsincluding taxi owners who were unhappy with the exorbitant fareincrease.

How to calculate your new fare:

Old fare multiply by 2 then subtract $1.50

For example, if your old fare was $3 than thenew fare would be:

$3x2= $6-$1.50= $4.50

Advice to Consumers

Weigh your travelling options- consumers should make wise decisions to choose the cheapest mode of transportation. Oneshould analyze whether they really need taxi for travel and if it can be replaced by bus or mini vans.

Walking home- this would be another healthy option. Walking, if home is close by, for those without the burden of carryinggroceries or other luggage would be a wise option.

Daylight savings-consumers to make the right use of daylight savings by walking home. Use your alarm to get up in the morningto avoid using taxis should you miss your regular transport.

Car pooling- consumers are encouraged to practise car pooling, ie, catching a ride to and from work in a friends or neighbours

vehicle if travelling from the same area (sharing a ride with friends or neighbours).

Taxi pooling-consumers can team up and share a taxi when the need arises. This will not only save consumers some cash butis environmentally friendly as well.

Mistri Trisameta Solomon Islands

As a private student at USP, it affects me because we dont work.If the taxi fare can go back to its normal rate, then it would really begood for us private regional students.

Eroni Kotoiwasawasa Cunningham

The way I see it the taxi fare increase is not a good initiative becauseour wages remains stagnant while everything else is increasing, likefood etc. And these days its very hard to take our shopping home,even under rainy conditions because we fear what we have to pay

and the longer the distance, the higher the fare. I think the taxi fare should go backto its normal rate.



Financial literacy can be defined as the ability to make the rightdecisions when it comes to managing your personal finances.Financial literacy is all about how the decisions you make affectyour future financial stability.

An assessment of the complaints received by the Council showsthat majority of the financial and credit problems which arefaced by consumers is due to the lack of basic understandingof rights and responsibilities when it comes to borrowing moneyor purchasing goods and services on credit. As a result, manyconsumers tend to over commit to credit, are not able to makepayments on time and are not aware of protection mechanismsunder the Consumer Credit Act.

In these hard economic times when prices of goods and servicesare rising is a harsh reminder of how important understandingfinancial matters are. Everyday transactions and financialdecisions pave the way for the consumer to make biggerdecisions like being able to buy a house or to invest in a car.Through information and objective advice, consumers are ableto develop the skills and confidence to become well informedof the financial risks and opportunities. They need to makeinformed choices to improve the status of their finances.

For Consumers to have access to just, fair and competitive

FINANCIAL LITERACY:Why the Need?

Case Study

Mr. Daniel was facing financial difficulties in making repaymentfor his loan taken from a credit provider. He requested changesin time period but the Institution failed to consider his request.They even threatened him with phone calls every day to eitherfully clear the account or the Institution will repossess his itemwhich he took on Hire Purchase. Frustrated and nowhere else togo, Mr. Daniel lodged the complaint with the Council.

Councils Action

Upon Councils intervention, the respondent was willing to have

a meeting with Mr. Daniel and made arrangement to extend thepayment period. Daniel was very happy with the outcome of his

case.

TIP OF THE DAY

You have the right to apply for changes in repayments

period on the grounds of hardship provided that you

discuss your hardship issues with your credit provider.

It should however be noted that interest will continue to

accumulate until you have paid off the arrears.

Case Study 2

Mr. and Mrs. Benaab took a loan to purchase a vehicle. With allthe excitement and exhilaration, the couple signed the agreementand paid a deposit. After making their first monthly installment,

the couple then decided to go through the agreement whichthey had signed. They were shocked and stunned to find outthat the interest rate for their loan was 24% and that a purchase Agreement was made instead of a Bill of Sale. On the sameweekend, the Council had made comments on hire purchasesale in one of the newspapers which the couple came across.

Without further delay, they lodged their complaint with theCouncil on the high interest rate charged by the institution.

Councils Action

Upon Councils intervention, the institution disclosed some of the

vital information which should have been done before signing the

contract. It was revealed that the interest rate was 13.5% and24% was the default rate. The institution stated that if the

interest rate was 24%, they would then be making much higher

repayments than what they were currently paying. It was also

explained that the institution does notprepare a Bill of Sale to

save additional costs for the consumer. In addition, Mr. and Mrs.

Benaab were advised that the Institution can also restructure

their loan repayment upon request.

TIP OF THE DAY

financial services,it is essentialthat information isavailable througheducation. This willallow consumers to makeinformed choices in themarket place. Once consumersare empowered with the right skills a n dknowledge, credit providers and financial institutions will beforced to re-look at their contracts and market practices. Thisempowerment will manifest itself when consumers are able toread and question the fine print clauses that deny them theremedy and right to redress.

Consumer financial literacy is an economic and socialempowerment tool. It provides consumers with a betterunderstanding of the mechanics of financial institutions.Consumers become more aware and vigilant when they enterinto credit agreements to ensure that their r ights areprotected and put an end to consumer exploitation. Therefore,all consumers need to be financially literate in order to protecttheir rights and also make informed decisions when it comes totheir finances.

MONEY TALKS

Before entering into a credit contract, consumers are to

demand for pre-disclosure and to check the interest rate.


5/16



MORTGAGEE

SALEReal estate law change

The Consumer Council of Fiji welcomes Governments latestinitiative to strengthen laws and regulations governing the realestate sector.

The amendments to the Real Estate Agents Act bring aboutand ensure the much needed transparency in the system. Theamended law governing the real estate business has beeneffective since November 15th this year. This will now prohibit the

otsnoitutitsnilaicnaniffoflahebnognitcasreywalfotnemevlovnidispose of properties by mortgagee sale.

The Council hopes, with the elimination of lawyers from engagingdirectly into the actual process of mortgagee sales, home ownerswill be allowed to be part of the tender opening and tenderawarding process. This will allow the property to be sold at actualmarket value and do justice to the home owner in getting thebest deal.

The Real Estate Licensing Board has a very critical role to playnow as they are empowered to take action to enforce the RealEstate Agents Act 2006 given reasonable cause that provisionsof the decree are being contravened.

The feedback from the Real Estate Licensing Board has beenpositive and encouraging as a number of fraud practices are

under investigation and the Board welcomes consumers tolodge complaints on unfair practices existing in the market place.

The Council believes the changes will not only protect homeowners but empower the board to effectively carry out itsmandate. The Council hopes that strengthening of the regulationswill bring about fairness and more transparency, particularly inmortgagee sales.

The Council also hopes to see the rights and interests of homeowners protected with the amendment made to Real EstateAgents Act.

Problems with Mortgagee

Sale

The Council has been receivinga number of complaints fromconsumers when it comes tomortgage sale. Some casesare unbelievable where thebehavior of the financialinstitutions and their lawyersare shocking. Below aresome of the main problemsassociated with mortgagesale.

Some unscrupulouslawyers representall three parties i.e.financial institution,seller and the buyerand this informationis not disclosed to theparties.

The pre-disclosure(full information priorto any confirmeddeal) is not given tothe buyer.

The buyer is never informed that there are two types ofinsurance and one is not compulsory. The buyer, not knowingthis, ends up paying for both.

The lack of transparency, whereby a home owner is left in thedark without having a say in disposing his or her property.

The consumer pays for thelegal fees and yet is not allowed tochoose his/her own lawyer.

Home owners are notinformed by the financial institutionor lawyers on how much fees he/she is expected to pay.

The information on theamount owed by the homeowneris leaked by solicitors and bankofficers to other bank staff or theiracquaintances.

Neither the financial institutions northe lawyers provides a final statementto the home owner giving details suchas what was owed to the financialinstitution, how much the propertywas sold for, any reimbursement ofinsurance, other fees and charges, whatis the accrued interest etc.

The surplus from the sale of thehouse is not given to the homeownerand yet the shortfall is expected to beaccommodated by the home owner.

Most borrowers receive very littleinformation on financial hardship from

lenders.

Many of the standard letters sent to defaulting borrowers arenot clear.

Home owners are excluded from the tender opening andawarding process.

AUCTION - THE SOLUTION

Auction-TheSolutionPublicauctionswouldbeafairerandmoretransparentwayofsellingmortgagedproperties.Thiswouldgivethebuyeragoodbargainandbe

debtfreeaswell.Auctions can be guided by the regulations to controlthebiddingprocesssothateveryoneknowstheirrightsandobligations.Thiswouldavoiddiscrepancies in thesystem.

Unlike mortgagee sales, auctions can reveal the truemarket value of a property and are conducted in anopenforumwhereallbidsareknownan

dparticipants

aregivenimmediatefeedbackonthepropertysvalue.Auctions eliminate long negotiation periods where

interests keep on accumulating. Buyers would knowtheyarecompetingfairlyandonthesametermsasallotherbuyersandreceivecomprehensiveinformationonpropertyviaduediligencepacket.Any consumer taking part in an auction can easily

andquicklymakemarketcomparisonswhen theyseebiddingsatthesameplaceandatthesametime.



CASE STUDY

(Below is a real case study that the Council is handling at the

moment)

A worried and depressed Mrs Singh came to the Council with ahuge debt she had no idea how to control, let alone clear. Shewas in great need of advice on how to manage her debts.

Mrs Singh had a personal loan with the bank, a mortgage to pay

off, unpaid utility bills and debts she owed to money lenders. TheCouncil has advised Mrs Singh that while her loan with the bankis directly deducted at source, she needs to find additionalwork to supplement her income. The Council strongly advised

her not to take loans anymore from either money lenders, friendsor family.

Mrs Singh and her husband are now looking at buying a brushcutter to start their own grass cutting business to supplementtheir existing income and help them start paying off their debts.

The Council will continue to assist and guide consumers toeffectively manage their debts and grow out of it. We welcomemembers of the public to take advantage of this free service.

Remember out-of-control debt can have a long term effect onyour future. You could lose your home, your family, and yourentire life savings.

How often do we find ourselves caught up in debt?Borrowing as low as $2 from a friend or workmatefor bus fare puts you in debt unless the money isreturned.

Debt simply means when you owe somebodymoney. It gets bigger every week if you are chargedinterest. Interest is an extra charge on the originaldebt.

The Consumer Council of Fiji, under the AusAIDproject titled Consumer Financial Protectionand Building Credit Competency for Vulnerable

Groups launched its first ever pilot program onDebt Management and Consumer Credit AdvisoryServices in September 2011 in Suva. Theoverall objective of the service is to provideassistance to consumers who are in debt by giving them adviceon their current financial problems and help them reorganizetheir finances so that they are in a better position to pay it offwithout sinking deeper into the vicious cycle. The Council aims topromote and encourage holistic changes in the way consumersuse and manage their money (income) with smart spendinghabits combined with debt management skills.

This new service offered by the Council anticipates empoweringconsumers to borrow and manage debt wisely. We all need

Proudly supported by Ausaid

The Debt Management and Consumer CreditAdvisory Services is proudly supported andfunded by the AusAid. AusAid First Secretaryfor Development and Cooperation Mr TimothyGill, at the launch of the project, urgedConsumers towards becoming financiallyliterate so as to become better informed oftheir rights and obligations when entering into

Credit Contracts.

Australia is a major supporter of financial inclusion in Fiji andis committed to improving access to financial services to breakdown the barriers to economic participation by the poor, saidMr Gill.

FRESH INITIATIVE

DEBT MANAGEMENT AND CONSUMER ADVISORY SERVICES

noqu DINAUmoney to survive but how to use the money is thereal issue.

The Council has produced brochures and posterson Debt Management and Consumer Credit Advisory Services mainly to educate theconsumers on the free Debt Management andConsumer Credit Advisory Services in Suva. Youcan find this informative brochure on our websitewww.consumersfiji.org

Through this service, the Council intends to assistthe repayment of the consumers debt by helping

them to create a payment plan to get their debtsunder control, better understand their rights andresponsibilities in relation to their payments andestablish a budget. Whilst the initiative has beentaken by the Council to assist the consumers in

managing their debts, it will not: lend money to consumers topay off their debts, or be a guarantor for any loans or mortgageswhich consumers undertake, or take responsibility to ensureconsumers debts are paid on time.

Since it is a pilot project, this service will only be available to theconsumers residing in the central division.

Mr Gill stated that the new Consumer Credit Advisory Servicesthat will be offered by the Council will allow people in theSuva Nausori corridor to get the assistance they need tobetter manage their debt and the Financial Literacy workshopwill provide a platform where consumers will be able to betterunderstand their rights as borrowers.

According to Mr Gill, this situation illustrates the level ofindebtedness of many Fijian households, especially the pooras they often do not qualify for cheaper sources of finance. Itfurther strengthens the need for a debt management and creditadvisory service to help poor consumers find their way out of

this debt trap, he said.



RESEARCH

HALALclaims must be substantiatedTHE Consumer Council found a number of food establishmentsand manufacturers failing to substantiate their halal claims.

Halal is a system of food preparation according to Islamic lawand many consumers prefer it because it confirms to health andsafety standards. Halal certification is now recognised by manyfood authorities as an acceptable food standard. However, theuse of halal in food labelling is restricted to only those companieswho have been able to acquire it from an appropriate religiousauthority.

In Fiji under the Food Safety Regulations 2009, Part V (LabelingRules and Packaging), Section 24 sets out Prohibited claims.

Under Section 24(d), prohibited claims include claims whichcannot be substantiated. Under S24(i) claims of religious or ritual

preparation, including but not limited to Halal and Kosher, whenthe food does not conform to the requirements of the appropriatereligious or ritual authorities.

Therefore food companies are required by law to substantiateor provide proof of certification from the appropriate religiousauthority if they are using halal or halal certified in their labelling,advertisement or in other information regarding their products.

Companies that use halal labels or the term halal to sell or markettheir products without certification are misleading consumersand can be taken to task.

Food company fails tosubstantiate Halal claims

IN August this year, Foods Pacific Limited (FPL), producersof Golden Country canned meat was forced to remove theterm halal on one of their corned mutton products after theyfailed to substantiate this claim.

This followed concerns raised by the Fiji Muslim League (FML)

FPL had provided halal certification, but these were for their NewZealand supplier on the raw lamb products that they imported.The FML clarified that halal approval and certification for a foodproduct is done for the entire processing of the product and notin parts. That is, the whole process from the slaughtering of theanimal right up to the final product, in this case corned mutton,had to be fully halal compliant.

After nearly 5 months of correspondence between the Counciland FPL, the company finally removed the word halal from itsproduct. In mid-August FPL began removing the product from itswholesalers and retailers. It also stopped using halal on its label

and would only do so through proper certification.

Consumers who come across the term halal on food labels, inrestaurants, and other food establishments are urged to checkwith the Fiji Muslim League or the Consumer Council.

Nandos removes Halal tag

The Council found that the certificate was actually issued by theAustralian Federation of Islamic Councils (AFIC) to Edlyn Foods,one of Nandos main suppliers in Australia.

AFIC informed the Council that the certificate was applicableonly to the organisation they issued it to, that is Edlyn Foods,and not Nandos. AFIC added that Nandos should obtaina certificate from the Fiji Muslim League. Furthermore, theAustralian organisation highlighted that having ingredientscertified halal does not make the final product halal.

Nandos ended up removing the certificate from its restaurants.In fact they had violated the Food Safety Regulations 2009requirements for substantiation. Fortunately for them they were

not penalised as they took quick action in removing the halacertificate being displayed in their restaurants.

CASE

STUDY

The Councils surveillance work on

unsubstantiated halal labelling found in

upmarket restaurant, Nandos, displaying a halal

certificate at its restaurants.


9/16

WHEN THEY MISLEAD...Misleading Advertisements

A total of 42 advertisements appearing in various media this year came under scrutiny with issues ranging from non-disclosure ofimportant information to misleading prices.

In most cases, the retailers and businesses concerned immediately made the necessary amendments after the Council intervened.

This year, the Council began monitoring advertisements following specific and general consumer complaints on misleading promotionsand sales information. The Council is concerned that with the development of more commerce and trade, there has been a markedincrease in product information and promotions that are geared to enticing ignorant and innocent consumers.

The Council is constantly advising consumers to be careful before committing themselves to attractive deals and promotions. M ostoften there is a catch hidden somewhere in the fine print or not disclosed to the unsuspecting consumer.

A couple of businesses approached the Council to look at their promotional material in a bid to ensure that consumers are not unfairlytreated.

42 advertisements under the microscope

A total of 42 advertisements, in-store and product information,came under the Councils surveillance for being misleadingor not disclosing information to consumers (selected cases intable).

The most number of advertisements that came under theCouncils scrutiny was for Morris Hedstrom. 25 out of the 42advertisements were by the MH supermarket chain, mostlytheir supermarket ads were misleading or infomation was notdisclosed.

Leading fast-food chain, McDonalds, had to amend a radiocommercial for its 50 cents Coca Cola glass after they did not

December 2011 Consumer WATCH | 9

specify that only particular meals were applicable. The ad saidcustomers can purchase the 50c glass if they purchased anymeal. However, after a complaint was lodged with the Council,McDonalds clarified that the promotion was applicable only forpurchases of its McValue meals. The complainant was providedcompensation by McDonalds.

The Council is concerned that some businesses allow promotionalposters to remain on shop windows and in public places after thepromotion has ended. While the concerned businesses tended toblame the retailers, the Council reminded them that they were thepromoters and thus also had the responsibility to remove theseposters.

Misleading advertisements Selected cases (3rd Quarter)

Business/trader Problems Encountered

Vodafone Fiji Vodafones 7c overseas calls promotion ended on 27/06/11 but still on the website on 28/06/11.

Inkk Mobile Posters of Its FREE with Inkk! posters still prominently displayed in shops on 29/06/11 even though the promotions have endedon 8th June, 2011.

Non-disclosure of information on $166 deal

Morris Hedstrom Advertised 13kg Fiji Gas when there is only 12kg Fiji Gas available

Mc Donalds Radio advertisement-for every purchase of a meal from Mc Donalds, consumers can purchase the Coke Cola glass for $0.50,

however this was applicable for purchasing of Mc Value meals only

MHCC Price tag/shelf price display of lettuce is $18.99kg but were charging $24.99

MHCC Complainant bought a 3piece set of boys suit, however it had only 2piece

MH Namaka (01/08/11) MH Fiji Times Ad: bed sheet shown at specials price marked at higher price in-store

Digicel Fiji Ltd There is no indication of the promotion date; when it starts and when it ends. Consumers were misled into thinking that thepromotion is on every day

Paddys Market Main StreetLabasa

All items displayed on special tags ,however, the price was normal

Roop Milan Main StreetLabasa

Posters were still displayed after the sale ended

Deos Ezy BuyMain Street

Labasa

Display of sale posters were still on the shop walls after the sale and items with sale tag were sold at normal price

Morris Hedstrom For every purchase of goods worth $20 or more you can buy perfect choice Iodized salt 500g for only 10c pkt. Advertisement didnot specify how many packets consumers are entitled to purchase.



The Consumer Council of Fiji received a total

of 1911 complaints for the first 10 months of

this year (January to October). These are

registered complaints

Case Study 1: Small Claims Tribunal (SCT)

Mr Singh had entered into a deal with his brother-in-law over thesale of a vehicle which was not transferred to him as both partieshad agreed to have it done after he had made his final.

There was a dispute later over the transfer so Mr. Singh soughthelp from the Small Claims Tribunal. But the Tribunal dismissedMr. Singhs claim, saying there was no documentary evidence.

Mr. Singh was aggrieved. He contacted the Consumer Councilfor assistance. He believed his case was not properly heard andupon our advice, the Small Claims Tribunal re-opened his case.

Our Advice: It is your duty as consumers to ensure your rightsare upheld. If you believe you have not received justice over acredit deal that you have entered into, you have the right to re-open the case. Also, consumers are expected to demand for andkeep all the documents safely so they can produce them

in any hearing when required.

Your Right: When your case is referred to the SCT, you havea right to be heard fairly. The primary function of a Tribunal is toattempt to bring the disputed parties to an agreed settlement. TheTribunal shall determine the dispute according to the substantial

merit and justice of the case and in doing so shall have regardto the law but shall not be bound to give effect to strict legalrights or obligations or to actual forms or technicalities. If you are

aggrieved with the outcome of the Tribunal in that you feel that itmaybe unfair, you should seek for the hearing of your case.

Case Study 2: Accepting Payment without being able to

Supply as Ordered

The complainant had placed a special order with a car companyfor the purchase of a vehicle to be manufactured with the specialfeatures. The initial quote was for $115,000.00 inclusive of all thespecial features that the complainant wanted and the respondentagreed that they would provide.

The complainant had made a deposit of $38,400.00 before theorder was made to the manufacturer and had further arranged fora loan from the bank to pay the balance of $76,000.00. Before the

arrival of the vehicle into the country, the car company had thenadvised the complainant that he was to pay an extra $5000.00,bumping up the initial cost of the vehicle from $115,000.00 to$120,000.00. The complainant was not too happy with whatthe car company demanded and lodged a complaint with theCouncil.

DISPUTES & RESOLUTIONS

From January to October, the Council received 1,911complaints. These complaints had a monetary value of close to$3.3m. The Council assisted 1202 consumers saving them closeto $2m. This was resolved through mediation with the parties

concerned.Complaints on Landlord/Tenancy, Electronic Goods and FEA arethe top three respectively.

The most popular complaint in the second half of the year was onthe much talked about FEA security deposit. Consumers failed tounderstand why they had to meet with a sudden demand on thesecurity deposit when their bills were up to date. For some, thissudden increase had a huge impact on their budget.

The latest statistics from our Alternative Dispute Resolution(ADR) Division showed that the Council received a total of 141complaints on FEA Security Deposit let alone the numerousenquiries and advice sought on this issue.

The second highest complaint was on electronic goods with atotal of 144 complaints. Traders continue to dupe consumers byselling faulty and damaged electronic goods. We urgeconsumers to be vigilant in this area.

The Council is deeply concerned with the high number ofcomplaints in the landlord and tenancy area as it received the

highest number of complaints at 203 and continues to lead thecomplaints table for the past 3 years.

The next on the list of complaints is on mobile products as 136complaints on faulty and damaged mobile phones werelodged with the Council. Majority of the omplaints werelodged against Dickson International in Suva.

Other complaints that made the top 10 of the list are WAF water, banks & other financial institutions, hirepurchase/lay-by, spare parts and grocery.

The Council will continue to protect and fight for consumers toensure there is a level playing field in the marketplace.

The Councils ultimate aim is to have confident andempowered consumers in society who are able to choose thebest deals, demand better products or services and resolveproblems when things go wrong. This will bring aboutinnovation, competition and growth for the country as a whole.



Upon the Councils intervention, the car company was advisedthat they were in breach of Section 88 of the CommerceCommission Decree accepting payment without being able

to supply as ordered. It then agreed to supply the car to thecomplainant without the extra $5000.00.

Our advice: Consumers should be aware and only pay for whatwas agreed to at the beginning. Ensure this is given in writing.Suppliers must supply what they had accepted payment for.If there shall be any fluctuations in price due to unforeseencircumstances, it should be stated in their quotationsand or invoices.

Your right: You have a right to demand what you have rightfullypaid for. If there are any changes to the agreed price, it has to beagreed to between the parties and adequate reasons shouldalso be given.

Top 10 Reoccurring Complaints for Jan - Oct 2011

Types of Complaint Total Received

Landlord/Tenant 203

Electronic goods (computers etc) 144

FEA Electricity 141

Mobile products 136

WAF Water110

Banks & other Financial Institutions 62

Hire Purchase/Lay-By 55

Groceries 48

Spare parts 44

Monetary Value for Complaints received by Council for Jan-Oct Complaints Total Dollar Value

Registered $3,391,913.86

Resolved Cases $1,931,657.93

Cases referred to Small Claims Tribunal $109,760.70

Consumer Complaints Jan - Oct 2011 Types of Complaint Total

Registered 1911

Resolved 1202

Small Claims Tribunal SCT 139

Other 330

Percentage of Complaint

Types of Complaint %

Resolved 62.89%

Small Claims Tribunal SCT 7.27%

Other 17.26%

Case Study 3: Misleading Advertisement

Mr. Yiu saw an advertisement Early Bird Offer in the dailies,in which he had to spend more than $300 in order to qualify to

enjoy the offer. The next morning he went to the store at 8.30am,shopped for $663 and cashed in at 8.31am. As he asked topurchase the item under the early bird offer, he was advised thatitem was not available. Frustrated he lodged a complaint with theCouncil. The Council asked the store to explain how the itemsunder the Early Bird Offer could be sold in just one minute.

The store accepted the Councils justification, obtained the itemfrom another branch and provided it to Mr. Yiu.

Our Advice: Consumers should retain their receipts each timethey purchase anything. It is important in cases like this especiallywhen consumers want redress. Receipts and dockets arenecessary as they act as a proof of purchase.

Your Right: You have a right to raise concerns should you feelyou have been cheated and misled by any advertisement.

280

203

144141 136

110

6255 48 44

Series 1

Landlord/Tenant

ElectronicGoods

(Computersetc)

FEA=Electricity

Mobileproducts

WAF-Water

Banks&other

FinancialInstitutions

HirePurchase/Lay-By

Groceries

Spareparts

240

200

160

120

80

40

0

17.26% Resolved 62.89%

Resolved 17.26%

Small Claims Tribunal

(SCT) 7.27%

7.27%

62.89%

Total Received

Percentage of Complaint



1. Fiji Care Insurance (Unfair Terms & Conditions)

The complainant had an insurance policy, which stated a payoutof the damages sustained in the event of theft. The complainantsvehicle was stolen and involved in an accident but Fiji Carerefused to pay out stating that the vehicles wheel tax was notvalid at the time of the accident. The policy was silent on this. Thecase has been further referred to the Reserve Bank of Fiji.

2. Annan Motors (deferring payout of vehicle parts)

The complainant gave his vehicle which was involved in anaccident for repairs to the respondent. However, the complainantfound out that LTA would not pass that vehicle, therefore he

sought a refund. The respondent agreed to provide partial refundand the rest to be refunded later. Therefore respondent alsoagreed to buy the vehicle and sell it as spare parts; however hekept on extending the date for the payment. The case has furtherbeen referred to the Small Claims Tribunal, as the respondent didnot commit to his payment deadline.

3. Dickson International Ltd (faulty products being sold)

Numerous complaints have been lodged with the Councilconcerning the quality of electronic goods purchased from thisstore, mostly mobile phones. Products sold at this store aremostly China-made and develop problems within a week or twofrom the time of purchase. When consumers try to rectify the

problems with the store, they are usually given the run aroundor shown warranty conditions that werent disclosed to theconsumer at the time of purchase; or given replacement itemswhich are second hand again not to the knowledge of theconsumer.

4. Telecom Fiji Limited (Non availability of battery)

The complainant had purchased an Alcatel Dual Sim from TFL.When the battery was faulty; the complainant had approachedTFL and was advised that the battery was out of stock and anorder had been placed for but was yet to arrive. After a fewmonths the complainant still had not received the battery.

5. SKY Pacific (For Unsatisfactory Services in the Northern

Division)

Customers of Sky Pacific in the North have lodged complaintsand grievances against the company for providing unsatisfactoryservices. Complainants are paying a monthly fee and are thenrequired to call Sky Pacific Office in Suva to inform that themonthly bill has been paid since there is no office in Labasa. Mostof the time when consumers call Suva Sky Pacific office they areplaced on hold or are transferred from one line to another whichis time consuming and increases phone bill at the same time.

The Council has tried to contact Sky Pacific however no responsefrom Sky Pacific has been received regarding this.

6. MORRIS HEDSTROM (MISLEADING ADVERTISEMENTS)

Misleading price tags on the shelves. Price display for lettuce is$18.99/kg but they charged $24.99. Misleading advertisement;advertised 13kg Fiji Gas in the news papers but only 12kg FijiGas is available.

1. Vodafone Fiji Ltd Consolation Prize from Vodafone 888

Texting Promotion

The complainant had won a consolation prize through enteringthe above texting promotion during the Hibiscus festival. Shewent to a Vodafone shop to collect her gift voucher and wasalso advised that she needed to redeem her prize at the storethat sponsored her. Upon going to that store, she was advisedthat the time frame for which she was supposed to redeem herprize was over and that she could no longer claim it. She hadthen gone back to the Vodafone store and was also advisedthe same. Upon the Councils intervention, Vodafone deliveredthe consolation prize to her doorstep along with $25 cash to

compensate her for all the hassle and travelling around she did toredeem her prize. Vodafone will also be looking into the possibilityof going without all the consolation prizes in next years textingpromotion.

2. Courts Fiji Ltd (providing replacement)

Courts gave a new replacement bed for the return of a faultymobile phone that was purchased from them. The complainantsaccount was also credited with $199 from the mobile phoneaccount and the payment term was extended for another year.

3. Melbourne Building Works (Satisfactory Refund)

Complainant paid for a double bed to be tailor made as per the

catalogue. However, this was not provided to the complainant ontime. Upon the Councils intervention, Complainant was providedwith a bed while his order was still being made. Respondentcould not finish the order on time, therefore, provided full refundas promised upon the customers request.

4. DIGICEL (For practicing conditional selling)

The Council received complaints against Digicel selling mobilephones under the condition that unless $10 recharge cardwas purchased the mobile phone couldnt be purchased. Thedisplayed price of a $35 mobile phone was actually purchased at$45 due to the recharge card. Upon the Councils intervention,Digicel made amendments and cancelled all conditional selling.

5. WATER AUTHORITY OF FIJI (For rechecking the water

meter)

The complainant was disappointed with his water bill of $81.65when all his previous bills ranged from $6.00-$9.00. He wasinformed by the respondent that the bill was correct. The Councilintervened and had the complainants meter was recheckedby the respondent to find that the reading was incorrect. Thecomplainant was then issued a new and accurate bill of $10.95.

6. McDonalds RADIO ADVERTISEMENT

A radio Advertisement stated that for every purchase of ameal from Mc Donalds consumers could purchase the CocaCola glass for $0.50, however this was only applicable, whenpurchasing Mc Value meals. Through the Councils intervention,

McDonalds made amendments to the advertisement and offereda free Mc Value meal to the complainant on the same day.

THUMBS UP THUMBS DOWN



BUY FIJIAN MADE CAMPAIGN

The month of December has been officially dedicated to Fijian

Made and Buy Fijian Campaign. Thjis was officially launched in

July. It promotes Fijian made products and produce to empower

the locals and boost the economy at the same time. It banks onyour choice to buy local, produce local and invest locally which

in turn will result in the betterment of our nation as a whole. We

encourage consumers to think globally and act locally while

shopping this festive season.

Four great reasons to buy Fiji made:

You can help keep your money in our country!

1 Every time you buy Fijian made products you ensure thatyour money stays in our country. What this means is that weretain our money to be able to build better roads, hospitalsand provide better services to all Fijians. It means we keep ourmoney to better our lives.

Christmas is celebrated with much enthusiasm and joy. It isa time for giving and togetherness. Flush with the extra cashavailable in the form of bonus and back pay, consumersare eager to splurge on festive shopping. However during thisfestive season, consumers should consider the following:

The consumers must practice comparative shopping wherethey need to check different stores for the best availableprices in the market

Make a shopping list and buy only what you need. Avoidimpulse buying as this leads to regrets later

Consider buying Fiji made products to promote growth

locally Do not buy items from street hawkers as there is no

guarantee for the product and a redress is impossible sinceno receipt is issued

Do not get trapped into zero deposit or three monthsinterest free promotions by hire purchase companies. Dontpurchase for the sake of a hyped up advertised sale

Demand for a pre-disclosure and find out all details includingthe warranty conditions and the annual interest rate

Be careful of Buy One and Get One Free promotions.Sometimes such promotions are used to get rid of inferiorquality products or products that are not fast moving.

It is not necessary to buy expensive gifts. Home-made artand craft gifts are much more admirable than an expensive

one sitting in the store. A cheaper option isto stick to exchangeof Christmas goodiessuch as juice and cakeswith friends and familiesas a gift token to upholdChristmas spirit. Homebaked cakes and biscuitsare an option to considerrather than buying imported,expensive cakes.

Always check the expirydate of any product you arepurchasing and keep all thereceipts

Be alert and ensure you are payingthe advertised price. Do your owncalculation. Carry a calculator.

Dont fall for bait advertising wheretraders advertise few items thatare not in stock to lure you in yourstores.

Avoid doing last minute shopping

as this makes one spend more

You can help provide for our Fijian families!

2 Every time you buy Fijian made products you are helping toprovide for our Fijian families. A very substantial number ofFijians are employed by Fijian manufacturers. When you buyproducts made by these manufacturers you are helping everyworker provide stability for their family. It means our Fijian

families can continue to afford a decent life.

You can help secure our childrens future!

3 Every time you buy Fijian made products you ensure thatour children have a secure future. Our local manufacturingcompanies will grow and this will mean more jobs for us andour children. It means our jobs can be protected by us, withthe buying decisions we make.

The economy can grow because of your buying!

4 The more Fijian made products you buy the more our Fijiancompanies will grow. When these companies grow, they hiremore people, contribute more tax dollars and even exportmore products which in turn bring in more income into thecountry. It means we have a strong economy and a stablefinancial environment for all of us.



FIJI NATIONAL PROVIDENT FUND Proposed

changes to pension policy

In this submission the Council objected to the downwardreview of the FNPF pension rate as it is unfair and breachesthe contract between members and the fund. Pensionersmake their pension optional with the FNPF on the explicitunderstanding that there would be no changes to the pensionnor would it be revoked.

MINISTRY OF FINANCE 2012 National Budget

The Councils annual submission on the NationalBudget requested the Government to consider

measures to relieve consumer hardships for its upcoming 2012

Budget. The Council highlighted the rising cost of living basedon its regular supermarket price survey, changes in fuel prices,increase in electricity tariffs and so forth.

MINISTRY OF HEALTH Draft Restaurant

Grading Regulations 2011

Submission on Food Establishment (Grading)Regulations 2011 requested consideration by the Ministryof Health on issues raised by the Council to strengthen theregulations. The Council made its submission on the draft

regulation calling for the strengthening of the enforcement andpenalties provisions, in the regulations.

YOUR SAY | OUR SAY

Expired Products

We bought a bottle of mushroom sauce are found that it wasexpired when we got home so we went back to the shopand found all bottles of sauce on the shelf had expired. Uponcomplaining, they changed and gave us a small bottle, whichwas ok. The mushroom source expired in 2006. I am afraid thatthis long expired product would be harmful as there was a riskof food poisoning. Please take action asap.

Reginald, Nausori

Council Says: Thanks for raising this issue with us. The

Council takes these complaints very seriously as it contravenes

the Food Safety Regulation. This matter has been referred to

the Food Unit of the Ministry of Health for further action. TheCouncil also does market surveillances on such issues

and where required forwards it to the relevant authorities to

investigate and take action.

Conditional Selling

I went to this Chinese Shop located in Nadawa to buy butterbut was told that I could not buy the butter if I did not buy thebread.

Anonymous, Nadawa

Council says: Thank you for raising this issue with the Council.

This is conditional selling in which traders who do this to theircustomers are in breach of the Commerce Commission Decree.

This has been referred to the Fiji Commerce Commission for

further action.

Failing to Supply as demanded

On 2nd November 2011, I went to a fabric shop to purchasesome fabric. I had wanted to buy 3 meters but because only 4

meters of material was left in the bale I was told that I couldntpurchase the 3 meters. I complained to the Supervisor that Ionly wanted 3 meters and not 4 meters but she told me that Icould purchase the 4m at the price of 3.5m. She told me thatthey werent forcing me to buy the material and I told her that Iwanted only 3m of the material and that there is no law sayingthat one cannot purchase a material without buying the leftover. This is not the first time that it has happened to me.

Titilia Moceacagi, Nepani Nasinu

Council Says: The practice is unethical and unfair to the

customers and is a direct breach of the Commerce Commission

Decree. The Council has warned the trader to refrain from

engaging in such practice immediately and will be placing thestore under surveillance to ensure that consumers will no longer

be put through such practice.

Pre-disclosure of Warranty Terms and Conditions of Hire

Purchase.

I purchased a phone from a hire purchase company. I read theterms and condition under warranty. After a month, I startedhaving problems with my phone. I asked the hire purchasecompany to give me a replacement but they refused to give mea new phone, telling me that I have a liquid damage.

Mr Prasad , Suva

Council says: Hire purchase companies must ensure that they

fully pre disclose the terms and conditions of warranty in a clear

and readable manner. The customer must be told what part of

an item is warrantable and what is not. The customer must be

told what physical damage is and what liquid damage is. There

has to be a total pre disclosure of information on the part of the

hire purchase companies.

SUBMISSIONS

Your Letters & Emails



FAT TAX TALKA couple of months ago, we heard of fat tax concept and it certainly was news forconsumers. Fat tax is a surcharge on foods that are high in fat.

Denmark was the first to introduce this with the hope that the new tax will help limit thepopulations intake of fatty foods. Butter, milk, cheese, pizza, meat, oil and processedfoods are now subject to the tax in Denmark if they contain more than 2.3% fat.

The idea has been highlighted in Fiji as the health Ministry made official statements insupport of fat tax concept in an effort to fight non-communicable diseases.

The Consumer Council is in support of the fat tax concept provided it comes with user payprinciple. This is where those who wish to consume fatty food shall pay the tax attachedto the food item rather than putting the tax across the general population to pay regard-less of whether you buy fatty food or not.

The user pay principle is a fair and just way of collecting fat tax as some consumers wouldstill be adamant on purchasing fatty foods despite several reminders of its negativeeffects on health.

of disclosure on prices and terms and conditions, highstart-up costs, exorbitant price of software, and lack ofcustomer care. In July this year consumers and evenbusinesses became victims of irresponsible behavior byFINTEL and Telecom Fiji when there was Internet blackout.It is important to note that despite advances ininformation communication technologies (ICTss), Fijiconsumers continue to face these kinds of problems. Apart

from ensuring communication and the relaying of importantinformation, the Internet has become an essential tool forservices like printing of birth certificates, banking, billpayments, etc. So the importance of a robust Internet servicesector cannot be understated.

One aspect of the campaign involves an online consumersurvey. This is available on http://a2knetwork.org/surveysThe Council is urging Fiji consumers to take this opportunity toair their views by participating in this survey. We urgeconsumers, even those who do not directly subscribe toInternet services but use it via their workplace,school/university, internet cafes and other avenues, to dothe survey. The more consumers participate in the survey,the better it will be for the Consumer Council and theinternational consumer movement to lobby and advocate forbetter services, prices and competition.

Apart from the survey, other research activities will beundertaken, such as interviews or focus groups, deskresearch involving analysis of complaints data and otherbase evidence; and a survey of CI members in regards tolaws, regulations, level of compliance and consumer redressin their respective countries that bear on broadband issuesfor consumers.

HOLDING BROADBAND SERVICE PROVIDERS TO ACCOUNTINTERNATIONAL NEWS

THE Consumer Council of Fiji is participating in a newcampaign led by Consumers International (CI) onconsumer issues surrounding broadband Internet services.

CI has commenced the campaign of research-basedadvocacy titled Holding Broadband Service Providersto Account. The research and campaign will end in early2012. It involves research and advocacy to bring to the forepressing consumer issues around broadband Internet.Holding Broadband Services Providers to account is part ofthe global consumer movements bigger campaign titledAccess to Knowledge (A2K).

The campaign aims to empower consumerorganisations around the world to demand more equitableand accessible broadband service offerings, respectingconsumers rights and broader human rights, as anecessary condition of achieving a socially-inclusiveinformation society. Internet access has becomefundamental to the lives of todays consumers, and willonly continue to become more important in developed anddeveloping countries alike.

The Consumer Councils participation in the campaigncomes at a crucial time when consumers in Fiji are facing amultitude issues in the provision of Internet services.Apart from complaints on connectivity, consumers in Fiji alsoface problems in regards to misleading advertisements, lack

HOLDING BROADBAND SERVICEPROVIDERS TO ACCOUNT


16/16

The Consumer Council of Fiji (CCF) is anindependent statutory body establishedunder the Consumer Council of FijiAct -1976 (Cap 235). The Council, asa watchdog protects the rights andinterests of consumers by promotinga fair and just delivery of goods andservices. First and foremost theConsumer Council is an advocacy

organisation, conducting rigorousresearch and policy analysis on keyconsumer issues. CCFs insight into

consumer need is a powerful tool for influencing decision-makers to bring about change.The Council protects the vulnerable groups such as rural poor, physically and mentallychallenged, children and women, by identifying and articulating the policy issues that areof importance to the consumers.

Members of the Council are appointed by the Minister for Industry and Trade for a termor terms as the Minister may determine. The Chairperson of the Council reports to theMinister. The Board of Directors appoint the Chief Executive Officer/Executive Secretaryto lead and manage the Council affairs within the legal framework and by maintaining highethical standards. From corporategovernance perspective, a BoardCharter is in place that sets therules and procedures withinwhich the Board functions.

WHAT TO LOOKFORWARD TO IN 2012

Dollar and Sense TV Program-the Council in conjunction with Fiji TV will bebroadcasting a half an hour TV Show educating consumers of their rights,responsibilities and highlighting real life situations where they have been duped by traders.

The Council will also organize a similar regional meeting for Pacific Island Countries

The Council will marke World Consumer Rights Day in March next year, with an appropriate theme

The Council will launch a Read Before You Sign campaign in an effort to educate consumers to thoroughly read before they enterinto any contract

The Council will carry out a major campaign on vehicle spare parts and its usage

The Council is also preparing to investigate and explore the gold jewelry market for any unfair practices that need to be highlighted

CONTACTS OF CONSUMER COUNCIL OFFICES

Suva Office (HQ) Lautoka Office Labasa Office

Address:Mings Building

4 Carnavon StreetPrivate Mail BagSUVA

Telephone(679) 3300792(679) 3310183(679) 3305864

Address:Suite 4, Popular Building

Vidilo StreetPO Box 5396LAUTOKA

Telephone(679) 6664987

Mobile: 926 2807

Address:Level 1 Raza Properties,

Nasekula Road,P.O.Box 64LABASA

Telephone(679) 8812559

Therighttosafety

Therighttobeinformed

Therighttochoose

Therighttobeheard

Therighttoredress

Therighttoconsumereducation

Therighttoahealthyenvironment

Therighttoservice

Your8consumerrights

About the CouncilSeasons

Greeting to allconsumers

from all of us

here at theCouncil 2011 Consumer Council of Fiji Staff

The Ministry of Trade and Industry with the Councils assistance will organize and host theInternational Standards Organization Committee on Consumer Policy (COPOLCO) meetingin may next year.

Documents

Fiji Consumer Council - Consumer Watch - December 2011 Edition