Opposition on the attack over new law
Opposition Senators blasted a clause in the proposed Consumer Protection Act which will delay stores slashing prices on recently imported goods.
Government said the measures were needed to halt predatory pricing where stores inflated the original price only to slash it days later and claim it was a sale.
The measure will require stores give 28 days' notice of any price reduction on recently imported goods.
Opposition Sen. Maxwell Burgess said businesses should be free to drop prices when they wanted to and he noted the irony of Government delaying price drops in a bill designed to help the consumer.
But Government Senate leader Milton Scott said many Front Street firms were importing goods at grossly inflated mark-ups and even when the goods were then put on sale, they were still over-priced.
He said: "It's false advertising.'' United Bermuda Party Sen. Kim Swan, who is in the retail business, said the move would harm stores who were already facing a tough time.
He said: "This makes it look like Bermuda consumers aren't smart. The day is going to come when I am going to have to flash what my cost price is.'' Independent Sen. Jeanette Cannonier said: "Are we being fair on the retailer? If a retailer brings in a shipment and finds within a week that the goods aren't moving ... to make the goods move you have to reduce the prices.
"I say there is nothing wrong with this. If I was a retailer, I would have some concerns with this, that the prices must remain for 28 days.'' Opposition hit out at new consumer law Government Sen. Michael Scott said: "The Government is sympathetic to concerns about the absence of flexibility caused by Clause 11 and is listening to the business community very closely.'' And Sen. Milton Scott said the Minister had consulted the business community about their concerns and was looking at reducing the 28 days.
He said: "It is not one of these things that is often practised, but retailers are being monitored to make sure there is no unfair advertising.
"By and large most of our retailers are honourable people who engage in sound business practices. This section addresses those type of retailers who engage in behaviour in my opinion, that's unethical, and by and large it's only a few.'' Independent Sen. Walwyn Hughes said overseas, if a customer buys an item and the price drops afterwards in a sale, the store offers a refund. He suggested this might help people caught up in a quick sale.
