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Training Workshop on Competition Policy Training Workshop on Competition Policy and Law Administration for staff and and Law Administration for staff and
members of the Trade Practices members of the Trade Practices Investigation CommissionInvestigation Commission
Dealing with Unfair Trade Dealing with Unfair Trade PracticesPractices
Day 1Day 1
Carl BuikCarl BuikAddis Ababa, May 2008Addis Ababa, May 2008
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
‘‘Consumers not only benefit from Consumers not only benefit from competition, they activate it, and one of competition, they activate it, and one of the purposes of consumer protection the purposes of consumer protection law is to ensure they are in position to law is to ensure they are in position to do so.’do so.’
Mr Ron BannermanMr Ron BannermanChairmanChairman
Australian Trade Practices CommissionAustralian Trade Practices Commission
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
What are Unfair Trade Practices?What are Unfair Trade Practices?
Generally the term is used to describe Generally the term is used to describe businesses misrepresenting the products or businesses misrepresenting the products or services they are selling. services they are selling.
Misrepresentations can be about almost any Misrepresentations can be about almost any characteristics of a good or service, real or characteristics of a good or service, real or imagined. imagined.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Laws prohibiting unfair trade practices often Laws prohibiting unfair trade practices often include a general provision and more include a general provision and more specific provisions addressing some of the specific provisions addressing some of the more common types of misrepresentations.more common types of misrepresentations.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer ProtectionDivision 1 Unfair practicesDivision 1 Unfair practices
S 52S 52 Misleading or deceptive conduct Misleading or deceptive conduct (similar (similar to TP Proclamation Article 10 (2)to TP Proclamation Article 10 (2)(c)(c)
S 53S 53 False or misleading representationsFalse or misleading representations
S53AS53A False representations and other False representations and other misleading conduct in relation to misleading conduct in relation to
land. land.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer ProtectionDivision 1 Unfair practicesDivision 1 Unfair practices
S 53BS 53B Misleading conduct in relation to Misleading conduct in relation to employment employment
S 53CS 53C Cash price to be stated in certain Cash price to be stated in certain circumstances circumstances
S53AS53A Offering gifts and prizes that don’t Offering gifts and prizes that don’t really exist or which are really exist or which are
impossible impossible to win to win
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer ProtectionDivision 1 Unfair practicesDivision 1 Unfair practices
S 55S 55 Misleading conduct to which Misleading conduct to which Industrial Property Industrial Property
Convention Convention applies applies
S 56S 56 Bait advertising Bait advertising
S57S57 Referral selling Referral selling
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer ProtectionDivision 1 Unfair practicesDivision 1 Unfair practices
S 58S 58 Accepting payment without Accepting payment without intending or being able to intending or being able to
supply as supply as ordered ordered
S 60S 60 Harassment and coercion Harassment and coercion
S63AS63A Unsolicited credit and debit cards Unsolicited credit and debit cards
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer ProtectionDivision 1 Unfair practicesDivision 1 Unfair practices
S 64S 64 Assertion of right to payment for Assertion of right to payment for unsolicited goods or services unsolicited goods or services
or for or for making entry in making entry in directory directory
S 65S 65 Liability of recipient of unsolicited Liability of recipient of unsolicited goods goods
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Part V Consumer ProtectionPart V Consumer Protection
Division 1AAADivision 1AAA
Pyramid selling Pyramid selling
Division 1AADivision 1AA
Country of origin representations
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Competition law provisions and consumer protection law provisions in a single law
The Australian Trade Practices Act includes both competition and consumer protection enforced by the same authority: the Australian Competition and Consumer Commission (ACCC)
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
The similarity of UTP tends to suggest that the principle conducts addressed are reasonably universal even if the specific products and their dollar values differ.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
UTPs and the TP Proclamation
Could all workshop participants now please refer to the Articles of the Ethiopian Proclamation No. 329/2003 Trade Practices Proclamation ? ?
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Means, motive and opportunity …
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Where do UTPs fit in to consumer regulation?
Prohibitions on UTPs are just one form of regulatory response to consumer problems in the market place.
Regulatory responses include (but not limited to):
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
mandatory performance standards including product safety, technical performance
mandatory information provision requirements
mandatory minimum qualifications for the provision of certain goods or services
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
prohibition on very specific conduct, for example not selling food past it ‘used by date’.
Competition law
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
The great advantage of UTP regulation as described here is that it built on the basic principle of ‘don’t lie’, a universal value.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Competition law asconsumer protection regulation
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Should prohibitions on UTPs be included in competition laws?
Competition authorities benefit from having a dual responsibility (competition and consumer protection).
Consumer protection generates good public relations.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
In my experience the dual role is complementary in terms of staff management.
Consumers benefit from having a competition authority that also has consumer protection responsibilities.
Exposure to the administration of competition law can open the eyes of consumer groups to new options for achieving consumer outcomes.
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Some other issues
Are unfair trade practices only relevant to consumers?
The internationalisation of unfair trade practices
Pro active non enforcement activities to combat UTPs
Carl Buik, Addis Ababa 12 May 2008Carl Buik, Addis Ababa 12 May 2008
Some other issues
Future events
Representations of a technical nature
Securing evidence