Misleading advertising promises big things

First printed in The Namibian 11 April 2013

Writing this weekly column has become the highlight in my week. In any given week I can expect at least three different issues to stick out their head that want to be brought to the attention of the esteemed readers.

The past week was one in which more than eight different issues have been raised and I found myself overwhelmed in making the decision of what to write about. Then on Tuesday while I was in a pharmacy seeking to purchase a vitamin supplement containing ginseng and St John’s Wort, it struck me that most of the issues the past week have been about misleading advertising. But first, let me tell you about my experience at the pharmacy.

For the past ten to twelve years I have been a big supporter of homeopathic medicines as an alternative to man-made medicine and worse, their expensive brand names that are pushed by our medical profession. In 2003, while spending a year studying the possibility of creating a central database for citizens in Germany, I was introduced to a natural product known as “Johanneskraut” (or St John’s Wort in English) for the treatment of depression. The doctor suggested I use the herb in a tablet form or in a liquid mixed with ginseng which would give me energy and combat fatigue. I have used the product over the past ten years and have felt it produced the desired result in regards cleansing my body and reducing the stress in my mind and increasing my energy levels.

This week, as I am returning to Windhoek, I felt I should once again get topped up in my vitamins and prepare for the stress lifestyle in the city. Purchasing the St John’s Wort was no problem, but I did not find the ginseng. At the next pharmacy I was in for a bit of a surprise. The pharmacy assistant guided away from the herbal medicines section to an area where the contraceptives and sexual stimulants were being displayed. The display cabinet had various packets advertising ginseng as an aphrodisiac to assist men in getting bigger or better in sexual performance. The packets all contained only an individual pill to be used for the specific purpose and were priced in the region of N$ 30 to N$ 40 each. After quite some discussion (some quite embarrassing I must add), I was able to make the assistant understand I was looking for the product as a herbal remedy and not because of any problem I might be having in the bedroom department. The assistant and I went through to the herbal department and we were able to find a packet of 20 tablets that was priced at a reasonable N$100. Thus the price would make it N$5 per tablet. Being the curious consumer activist that I am, I went back to check the contents of the expensive packets and compare with the one I purchased. When comparing the contents, it turns out both the single packet and the bulk packet contained exactly the same amount of ginseng per tablet.

My question now is: Why the big difference in pricing? The simple answer is that the products were aimed at different segments namely the natural herbal supplement market and the male sexual dysfunction market.
The biggest problem I have with the ginseng supplement is that it is being advertised as a product that will assist with a medical problem without any proof that this is the case. Worst of all, by making sure the product is being sold in a pharmacy the manufacturer is getting a silent endorsement as to the perceived effectiveness of the product.

If we had a consumer protection act, or at least some consumer protection agency, we as consumers would be able to register our complaints as get products that are using misleading advertising off our shelves.

Right now we have no protection.

Let us talk about debt, baby

First printed in The Namibian 04 April 2013

This week I wish to share with you my experience with debt and the threat by the lawyers that “the Sheriff of the Court” will come take my possessions and sell them to repay debts that have been registered with the court. I have two registered debts that I am aware of. Both are debts incurred while running my company and applied by the creditors to my personal responsibility. The one debt is stated by the creditor to be over N$ 25 000 and thus is a matter for the High Court.

Now, you must keep in mind that though you might not wish to discuss your debt, the creditor is doing everything possible to make sure as many people as possible know about it. The use of the threat to inform the widest possible audience is the greatest tool of the creditor to force you to pay what the court has agreed you owe them. (This is important: The amount you are supposed to owe is the amount they have convinced the court you must pay – and I will come back to that later.)

Allow me to share with you the information about my court registered with the High Court (all is public information supplied by the creditor and their lawyers).

The Deputy Sheriff of the High Court was ordered to serve on me a subpoena (an order to appear before the High Court) for 11 April 2013 at 10h00. On this day, the judgement creditor, namely Institute for Public Policy Research (IPPR) wishes the court to give an order  to pay the outstanding default judgement amount of N$ 28 630 When I appear in court, the creditor expects me to provide a proof of my monthly salary or income, my monthly income and expenses, proof or all debts and payments thereof, a list of my assets and liabilities, proof of expenses in respect of housing and all other documents that may assist the court to investigate my financial position and determine the instalments to be paid by me for this debt. (I am unfortunately an unemployed writer living on a friend’s farm ;-)

By now, most of us have learned that my explanation of “the behaviour of the organisation has led to me to withhold my labour” or the belief by the IPPR that “you have been duplicitous and give Black Economic Empowerment a bad name” is of no interest to the court. In the eyes of the law, I have been found guilty after due process has been followed by the creditor.

And now we come to the root of my problem. I accept the judgement, but would like some further information or assistance. For example:

• What was the original debt and what other costs have been added to get to the amount in front of the court?
• Why did the lawyers make use of a sister company to do the tracing and change my erf numbers as if I had a new address during the process of getting the default judgement (and neatly changed it back to get the summons served at the correct address)?
• Which amounts are actually allowed to have interest added? The main debt is stated in my papers, but can the lawyers charge interest on their charges? Or charge interest on the services provided by the Sheriff of the Court? I could really use a clear indication of which costs attract interest and which do not.
• When does my debt reach “in duplum”?

In Namibia, the Consumer Law can do a lot to prevent the endless circle of debt and poverty consumers get trapped in. Take for example the principle of in duplum. “In duplum” is a Latin phrase derived from the word in duplo which means “in double”. The rule has its origin in the Roman Dutch law. It basically provides that interest stops running when unpaid interest equals the outstanding capital amount.

It has always been considered illegal (and immoral) to charge interest which is more than the original amount owed, except in special circumstances but people such as banks, lawyers, debt collectors, etc. get away with it because it is a common law rule. This means there is uncertainty when applying the rule, especially by the courts. Thus, a creditor should not charge more than twice the original amount due - but lawyers charges, tracing fees, administrative costs, etc can inflate the debt to almost any amount?

This common law “in duplum” rule has been codified by statute in South Africa, which now protects consumers against predatory interest rates on loans and further provides better clarity about when the rule applies and when not.

Namibia needs legal protection for its consumers – the consumer law is a necessity not a nicety!