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Government plans tough new consumer protection

Legislation to protect consumers from below standard practices in Bermuda's marketplace has been presented to Parliament.

And if passed, the Consumer Protection Act would create offences for those conducting "unfair business practices'', carrying fines of up to $10,000 or six months in prison.

The bill would allow a five-person board to protect the rights of consumers, allowing them to investigate allegations of "false, misleading or unconscionable consumer representation'' in the transaction of business.

Development and Opportunities Minister Terry Lister explained: "The idea of this bill is to provide basic protection for the individual consumer.'' "For example,'' he said, "right now, if a product is deemed unsafe in the US or somewhere else, the stores have a choice over whether they want to take it off the shelves.

"This bill would make it so that businesses have a legal obligation to take unsafe or unsuitable products off their shelves.'' He continued: "Also, if a food product on a shelf has gone past its sell by date, they (supermarkets) are only invited to take them off. This bill would legally oblige them to do so.'' Mr. Lister also indicated that this legislation would affect companies' abilities to make use of misleading or deceptive ads.

For example, shops will not be able to say a product is made in Bermuda if it is not.

While the bill follows the basic guidelines of legislation passed in the UK in 1987, it represents the first major consumer protection to be introduced here.

Its beginnings stretch back into the years of UBP Government when the then Community and Cultural Affairs Minister Yvette Swan proposed that there should be some Government safeguards over what is advertised and sold here.

But, as Mr. Lister stated: "This actual bill is a product of the PLP Government.'' "A consumer affairs bureau was set up in 1978 but they had no legislative powers,'' he said. "The furthest the previous Government chose in doing anything was when they set up a Consumer Protection Task Force which submitted a report in 1998.'' The task force, which was set up in October 1996 and chaired by Sir John Plowman, recommended that the Consumer Affairs Board be given statutory powers to give guidance to businesses, investigate complaints and take legal action.

He added: "Of course, there is also an educational process to this development. Government will have to spend some time on informing companies just what they can do and what they are legally not able to do.'' Mr. Lister also insisted his Ministry was still taking recommendations on a "piecemeal'' basis, and the bill is one phase one of the entire process.

"Phase two will consist of us cooperating with other Ministries to have certain amendments put to Parliament to put consumer affairs, which have previously been in their jurisdiction, under our control.''