(First appeared in New Era 18 March 2015)
Two weeks ago I was contacted by a consumer complaining about a freezer that they purchased a freezer and it is already broken after a few weeks. The customer was very upset as the store wished to come and fix the broken freezer and not replace it. Unfortunately for the client there is no consumer act in place and the store has the right to fix the freezer rather than replace it. The problem for this consumers was the misunderstanding between the term “warranty” and “guarantee”. Most of us would expect that when we purchase a product, the warranty – or the written guarantee - issued by the manufacturer of a product will include a provision to replace the product within a specified period of time. The problem comes when we do not read the fine print when doing the purchase. In this consumers case the warranty issued by the manufacturer promised to repair or replace it if necessary within a specified period of time. The store was thus correct in first offering to have the freezer repaired and only if that did not fix the problem, will they replace the freezer. Unfortunately the Consumer Court cannot do anything to assist the consumer and she will have to accept that the “new freezer” is now a “fixed freezer”.
The good news is that consumers in Namibia will soon have recourse through a Consumer Protection Bureau that will be established under the Ministry of Trade and Industry. In addition, a Consumer Advisory Board will be established with “at least half of the members to be individuals with recognised experience or expertise in advocating for consumers, studying issues related to consumer protection, or with demonstrated commitment to regulation of marketplace activity in the interests of consumers”. The draft law has been shared with consumer advocates, business associations and other regulatory organisations for their inputs at a two day workshop.
The law also goes hand in hand with a National Consumer Policy which has six objectives, namely 1) to create market transactions that strive to obtain a fair balance of power between sellers and consumers; 2) protect vulnerable consumers from marketplace conduct that takes advantage of unsophisticated, less educated or infirm consumers; 3) provide an incentive for honesty and fair dealing by all sellers; 4) promote efficiency and transparency in the Namibian economy and marketplace, thus increasing economic development; 5) ensure accessible, transparent and efficient redress for consumers; and 6) promote consumer participation in decision-making processes concerning the regulation of the marketplace in the interests of consumers. The law is based on “UDAAP”, meaning prohibition against unfair, deceptive and abusive acts and practices.
By “unfairness”, it refers to when an unfair balance occurs between the rights of the consumer and the rights of the seller. It also will allow for more control of the transaction by the consumer. The “deceptive” refers to sellers who are misleading consumers about the actual price of goods or the actual discount amount, advertising products not intending to be sold as advertised, representing that goods are of a certain origin or brand when they are not, and similar conduct are all considered deceptive sales practices. “Abusive acts or practices” are based on the seller taking unreasonable advantage of a consumers’ ignorance, vulnerability or dependence on the seller.
All these ideas laid out in the policy and draft law are to be welcomed in assisting Namibian consumers to be protected in the marketplace. I just hope that the Ministry and then the Parliament will act in good speed in getting the law into practice.
Tuesday 24 March 2015
A bird in hand is worth two in the bush
(First appeared in New Era 4 March 2015)
This week I must start my column with feedback from last week when I wrote about the chickens supplied by Namibian Poultry Industries. The company contacted me through their marketing company and invited me to visit their business and get more information regarding the processes used in bringing chicken to the market. Unfortunately, I have to travel out of the country for work and will only be able to take up their offer after the 10th of March. But be assured, dear loyal reader, I will write about it once I have visited the facility and bring you a more informed column in this regard.
The past few months I have seen a greater awareness of consumer protection from not only companies but also the government regulators in various sectors. I must congratulate the Communications Regulatory Authority of Namibia (CRAN) for their speedy reaction to the MTC N$2 data saga as well as their prompt intervention with the NBC and DSTV regarding the digital television switch over. I am not sure what the eventual result will be regarding the digital decoders and the NBC channel on the DSTV decoders, but I certainly hope both companies come to an agreement to ensure that all Namibians have access to the national broadcaster and our own localised news items. On a personal note I must add that I am not an avid television viewer, but since getting married and having a new-born in the house, I too have become a little addicted to watching the little black box.
One of the consumer issues I have been watching the past few weeks is the drop in oil prices and what the impact will be for our pockets. In early January, the forecast was that consumers could expect a breather as the lower oil prices have led to a decrease in petrol prices which should lead to price drops in other sectors of the economy. This was borne out with our local maize supplier announcing that the price of maize meal would drop by a few percentage points in February. This hope was however soon dashed as they announced late last week that the maize price would be going up by 17% due to the present drought conditions in the country. (The price increase will happen in March 2015.)
Looking into the crystal ball I foresee that more and more prices will increase in the short to medium term as the rain forecasts still indicate another year of drought.
I wish to encourage all consumers to get ready for a tough year ahead and you should look at ways that you can reduce your monthly budget items. In our household, we are already investigating more ways to use our waste water for example in our home garden. The wife and I are looking at a small home (box) garden with some of our favourite spices as well as planting onions in recycled plastic bottle containers. These measures will not make a huge impact, but will allow us to still indulge in some of “niceties” we like to buy.
The budget speech in South Africa also indicate we can expect increases in “sin” taxes for alcohol and cigarettes and I am looking forward to hear how our own budget speech will further impact on the pocket of the consumer. Seeing as the drought is almost certain, I predict the government having to subsidise meat and other agricultural products which will see their prices increase steadily over the next twelve months.
I would thus advise all consumer to avoid big debt purchases such as vehicles, furniture, etc. which cause an increase in debt levels - the Bank of Namibia also agrees and has increased the interest rate accordingly.
Savings is the big word in consumer advice for the next few months if we want to still have a big, traditional Christmas holiday we can afford.
This week I must start my column with feedback from last week when I wrote about the chickens supplied by Namibian Poultry Industries. The company contacted me through their marketing company and invited me to visit their business and get more information regarding the processes used in bringing chicken to the market. Unfortunately, I have to travel out of the country for work and will only be able to take up their offer after the 10th of March. But be assured, dear loyal reader, I will write about it once I have visited the facility and bring you a more informed column in this regard.
The past few months I have seen a greater awareness of consumer protection from not only companies but also the government regulators in various sectors. I must congratulate the Communications Regulatory Authority of Namibia (CRAN) for their speedy reaction to the MTC N$2 data saga as well as their prompt intervention with the NBC and DSTV regarding the digital television switch over. I am not sure what the eventual result will be regarding the digital decoders and the NBC channel on the DSTV decoders, but I certainly hope both companies come to an agreement to ensure that all Namibians have access to the national broadcaster and our own localised news items. On a personal note I must add that I am not an avid television viewer, but since getting married and having a new-born in the house, I too have become a little addicted to watching the little black box.
One of the consumer issues I have been watching the past few weeks is the drop in oil prices and what the impact will be for our pockets. In early January, the forecast was that consumers could expect a breather as the lower oil prices have led to a decrease in petrol prices which should lead to price drops in other sectors of the economy. This was borne out with our local maize supplier announcing that the price of maize meal would drop by a few percentage points in February. This hope was however soon dashed as they announced late last week that the maize price would be going up by 17% due to the present drought conditions in the country. (The price increase will happen in March 2015.)
Looking into the crystal ball I foresee that more and more prices will increase in the short to medium term as the rain forecasts still indicate another year of drought.
I wish to encourage all consumers to get ready for a tough year ahead and you should look at ways that you can reduce your monthly budget items. In our household, we are already investigating more ways to use our waste water for example in our home garden. The wife and I are looking at a small home (box) garden with some of our favourite spices as well as planting onions in recycled plastic bottle containers. These measures will not make a huge impact, but will allow us to still indulge in some of “niceties” we like to buy.
The budget speech in South Africa also indicate we can expect increases in “sin” taxes for alcohol and cigarettes and I am looking forward to hear how our own budget speech will further impact on the pocket of the consumer. Seeing as the drought is almost certain, I predict the government having to subsidise meat and other agricultural products which will see their prices increase steadily over the next twelve months.
I would thus advise all consumer to avoid big debt purchases such as vehicles, furniture, etc. which cause an increase in debt levels - the Bank of Namibia also agrees and has increased the interest rate accordingly.
Savings is the big word in consumer advice for the next few months if we want to still have a big, traditional Christmas holiday we can afford.
A prophet is not honoured in his own country
(First appeared in New Era 11 March 2015)
Today’s column heading comes from the Bible and is referenced in Mathew 13:57 – Then Jesus told them, "A prophet is honoured everywhere except in his own hometown and among his relatives and his own family."
The past week I was fortunate to visit Botswana for work-related activities. During my visit I was fortunate to visit various tourism establishments as well as the major shopping malls around the capital of Gaborone. This was also an opportunity to discuss with colleagues the differences between our two countries, as well as the “areas of quality” which we wish we had from our neighbour. The first topic was of course the cleanliness of our country and especially of Windhoek as the capital. The second, and surprising topic to me, was the respect our neighbours have for the service industry in Namibia. As this is one of the main reasons for this type of Consumer Court column, it was very intriguing to find out how they experience our service industry. The common variable among the compliments was the time it took to receive food at restaurants. In Namibia we tend to get a little bit irrational if our meals are not at our tables within 20 minutes of an order while in certain establishments in Gaborone it sometimes took as much as one hour.
All of us there agreed that we wished there was more Consumer Protection in our countries and we discussed our colleagues in South Africa with quite a bit of envy. It was therefore very gladdening to my heart to receive an envelope with an invitation for the Ministry of Trade and Industry to attend a “Workshop on the Development of a Legal Framework for Consumer Protection in Namibia”
The workshop, which will be attended by key stakeholders, will be setting the “parameters of the legal and policy content for Namibia’s current efforts. The participants will also consider the structure and substance of the Draft Policy and Legislation to ensure coherence between the draft framework and the consumer environment in Namibia.”
Looking through the agenda for the two day workshop, I am glad to see that the Ministry is looking at all aspects proposed by consumer activists of the past nine years. However, when reading the invitation letter I noticed that invitation letter had a BIG mistake in its layout. It seems some administrative error had crept in between the signing of the letter and the photocopies that were prepared for individual participants. The first page was correctly addressed to each participant, but the second page repeated the last two sentences of the previous page. This “copy and paste” exercise will hopefully not be the manner in which we are approaching the consumer protection act.
After all, to quote myself from a column written on 28 February 2013: “…Three years ago, on March 15 2010 (World Consumer Day), the then Minister of Trade and Industry Dr Hage Geingob, promised in a speech read on his behalf that a Consumer Protection Act will be submitted to Parliament within one year. Since then Dr Geingob has moved on to become Prime Minister and is poised to become our next President in 2015. With Consumer Day again being celebrated on March 15 this year, there is however still no sign of the promised Consumer Protection Act (CPA).”
Hopefully this proposed workshop will see us bringing the legislation to light within the foreseeable future.
For your information, consumer organisations have decided to make helping consumers choose healthy diets the theme of World Consumer Rights Day (WCRD) on March 15.
SMILE of the WEEK
I would like to take this opportunity to congratulate our President, H.E. Pohamba, on being honoured with the Ibrahim Prize for Achievement in African Leadership. Not only has he been honoured as a leader abroad, but our own people have to recognised and thank him for his leadership at the helm of our beloved land.
ONION of the WEEK
“I am writing this just to ask if, as I am a consumer, is it correct to pay N$1.00 for a trolley as practiced by Checkers if you are shopping in Checkers?” This is not good customer service and the consumer should show their displeasure by shopping elsewhere.
Today’s column heading comes from the Bible and is referenced in Mathew 13:57 – Then Jesus told them, "A prophet is honoured everywhere except in his own hometown and among his relatives and his own family."
The past week I was fortunate to visit Botswana for work-related activities. During my visit I was fortunate to visit various tourism establishments as well as the major shopping malls around the capital of Gaborone. This was also an opportunity to discuss with colleagues the differences between our two countries, as well as the “areas of quality” which we wish we had from our neighbour. The first topic was of course the cleanliness of our country and especially of Windhoek as the capital. The second, and surprising topic to me, was the respect our neighbours have for the service industry in Namibia. As this is one of the main reasons for this type of Consumer Court column, it was very intriguing to find out how they experience our service industry. The common variable among the compliments was the time it took to receive food at restaurants. In Namibia we tend to get a little bit irrational if our meals are not at our tables within 20 minutes of an order while in certain establishments in Gaborone it sometimes took as much as one hour.
All of us there agreed that we wished there was more Consumer Protection in our countries and we discussed our colleagues in South Africa with quite a bit of envy. It was therefore very gladdening to my heart to receive an envelope with an invitation for the Ministry of Trade and Industry to attend a “Workshop on the Development of a Legal Framework for Consumer Protection in Namibia”
The workshop, which will be attended by key stakeholders, will be setting the “parameters of the legal and policy content for Namibia’s current efforts. The participants will also consider the structure and substance of the Draft Policy and Legislation to ensure coherence between the draft framework and the consumer environment in Namibia.”
Looking through the agenda for the two day workshop, I am glad to see that the Ministry is looking at all aspects proposed by consumer activists of the past nine years. However, when reading the invitation letter I noticed that invitation letter had a BIG mistake in its layout. It seems some administrative error had crept in between the signing of the letter and the photocopies that were prepared for individual participants. The first page was correctly addressed to each participant, but the second page repeated the last two sentences of the previous page. This “copy and paste” exercise will hopefully not be the manner in which we are approaching the consumer protection act.
After all, to quote myself from a column written on 28 February 2013: “…Three years ago, on March 15 2010 (World Consumer Day), the then Minister of Trade and Industry Dr Hage Geingob, promised in a speech read on his behalf that a Consumer Protection Act will be submitted to Parliament within one year. Since then Dr Geingob has moved on to become Prime Minister and is poised to become our next President in 2015. With Consumer Day again being celebrated on March 15 this year, there is however still no sign of the promised Consumer Protection Act (CPA).”
Hopefully this proposed workshop will see us bringing the legislation to light within the foreseeable future.
For your information, consumer organisations have decided to make helping consumers choose healthy diets the theme of World Consumer Rights Day (WCRD) on March 15.
SMILE of the WEEK
I would like to take this opportunity to congratulate our President, H.E. Pohamba, on being honoured with the Ibrahim Prize for Achievement in African Leadership. Not only has he been honoured as a leader abroad, but our own people have to recognised and thank him for his leadership at the helm of our beloved land.
ONION of the WEEK
“I am writing this just to ask if, as I am a consumer, is it correct to pay N$1.00 for a trolley as practiced by Checkers if you are shopping in Checkers?” This is not good customer service and the consumer should show their displeasure by shopping elsewhere.
Fee-fi-fo-fum – I smell the brine of an Englishman
(First appeared in New Era 25 February 2015)
THE column heading is taken from the classic fairy tale, Jack and the Beanstalk. The correct saying is: Fee-fi-fo-fum, I smell the blood of an Englishman, Be he live, or be he dead, I’ll grind his bones to make my bread.
In our house, it has become common for us to check the ingredients of the packaged foods we purchase. This is especially important as our baby is breastfeeding and certain foods could cause him an irritation or worse. Believe me, when I say that my wife and I are looking forward to the three-month period when she can once again eat sushi and other “forbidden” foods. The most common forbidden products have been rare or undercooked meats including fish, meat and chicken. The past week, I received a video of slaughtered and de-feathered whole chickens being injected with a solution before freezing and felt I had to investigate further.
I posted the link onto the Namibia Consumer Protection Group on Facebook to get some comments from other consumers. This is the information I received from two contributors:
“It is called brine injection, and it is used mainly on frozen products like fish and chicken and not only to add mass and volume but to extend/improve shelf life as well but this is too extreme as there are certain limitations on how much brine is allowed in a certain product. That chicken is ballooning. The same is done here with our own chickens at NPI but not sure how much percentage is brine!”
“The brining process is done by injecting via multiple needles a brine solution (mild salt solution) of anything between 20 and 25 percent of the actual weight of the chicken before freezing it extremely quickly to prevent this water or brine from escaping the meat. For this, you pay the same price as for the chicken and they then get rich of the weight of the brine solution only because it is of absolute minimal cost… All frozen chicken suppliers do this, even here in Namibia.. It is a rip off for which the consumer must pay!”
I called the telephone number of Namibian Poultry Industries (NPI) and was put through to the Quality Assurance Department. The woman who answered, spoke in Afrikaans and then became very rude when I asked more information about the “brine or water” and the percentage injected in their chickens. She informed me that I was misinformed as it was not brine water, and I should look on their packaging for this information. I explained that my Afrikaans was not that good, but that I was inquiring on whether brine and / or water were injected and what these percentages were. She then put the telephone down and I could hear conversations in the background. After about five minutes the telephone was put down in my ear. Talk about customer service?
My question, in relation to what we as a family are eating, and indirectly what my child is ingesting through breast milk, did not seem to be that much to ask. Obviously, more investigation was needed.
So what is brine? Brine is water strongly impregnated with salt and it can also refer to soaking or preserving in salty water. Soaking your meats (such as lean meat, chicken and turkey) makes the meat juicier and more flavourful.
No customer can complain that ensuring the chicken is juicier and more flavourful is in the benefit of the customer, but is that what the customer is expecting when they purchase the chicken. Surely, with the high prices we pay for chicken we should expect that we are buying chicken and not something that adds flavour – and more importantly decreases the amount of chicken we are buying for our hard-earned dollars?
The end result of this investigation is that my family will be decreasing our intake of “protected Namibian chicken” for the traditional Wambo chicken. Not only is it cheaper on our pocket, but also will decrease the “hidden salt” that we put into our bodies without our knowledge.
And let us be honest, I have now learnt how to brine, and can make a juicier, tastier traditional Wambo chicken than before.
Thank You Namibian Poultries.
Thank You Namibian Poultries.
A rose by any other name - electronic signatures
(First appeared in New Era 18 February 2015)
“A rose by any other name would smell as sweet” is a reference from William Shakespeare’s play Romeo and Juliet. Juliet is trying to convince Romeo Montague that it does not matter what his surname is even though her family and his are enemies.
The past weekend it was once again Valentine’s. The day is named after Saint Valentine and little is known other than his name and that he was martyred and buried at a cemetery in the north of Rome on that day. In modern times, it has become a business bonus and extremely commercialised. I even noted a large banking concern had teddy bears and hearts in their expansive foyer as if it was Xmas.
On Valentine’s Day it is tradition to give the one you love a present and also possibly a card with a special message and your signature. Some of us are so unsure about whether our love will be returned that we give a card signed ‘Secret Admirer’.
Your signature is a hand-written (possible stylised) version of your name and is often used to confirm your identity. This unique signature is a very powerful thing. Think about it: It has the power to transfer money from your bank account, to show your undying love on a Valentine card and to vote new laws into place. A signature can turn any piece of paper into a legally binding promise that can be upheld – in other words the bridge connecting a promise made and that the promise is kept.
Presently in Namibia there is no substitute for the original signature on a document. You could fax or email a copy of the document you signed but this will not hold up in a court of law. In plain terms it means that as long as your signature is genuine and the document original, the document is legally binding.
As technology has advanced, it has brought us easier ways for businesses and consumers to communicate and has resulted in most of our documents to shift from snail’s mail (posted letters) to electronic mail (email). In many countries the digital signature is now taking the place of hand-written ones.
In Namibia, we are expecting the government to pass an Electronic Transactions Bill that will catch up to the rest of the world. The Deputy Prime Minister, Libertina Amathila, reported in November 2004 that “… the working committee responsible for putting together the country’s first bill to govern and regulate use of electronic communications and transactions in Namibia says it will soon complete a draft to be presented to Cabinet by year-end.”
Amathila said the legal certainty to be established by such a law is to ensure that one’s rights are protected and that a person can have legal recourse in instances of misuse or criminal intent. The Bill aims to recognise electronic writing, signatures and records which will carry evidential weight, subject to certain conditions, in any legal proceedings.
The law might be ten years in the preparation, but like so many things in the world, Namibia takes long to implement but by the time we do we can learn from the mistakes of others. This leap-frogging means that by the time the Electronic Transactions Bill becomes a law it will include not only the long-awaited electronic signatures but should also clearly spell out what is considered criminal and civilly liable on all forms of social media. (For example cyber bullying, libel or slander as well as extortion and fraud.)
But let us look at what an electronic signature is and what it means for you as a consumer. An electronic signature, or e-signature, is an electronic means that indicates that you accept the contents of an electronic message and more broadly could be used to indicate that you who claim to have written the message is who you claim to be. The most common way to do this is to include your verified electronic signature in all emails and other form of electronic communication.
This will enable all of us, whether consumer, business or government, to easier and faster conclude transactions with one another in a trustworthy manner.
The only danger is that as we make our transactions more dependent on technology, we will have to be even more wary that it is not abused and our identities are not stolen. After all, I want be sure that the gift or card I received on Valentine’s Day is really from my wife. I would really not like to explain the present that I received and thanked my wife for, when it comes from someone else.
Equality does not mean justice
(First appeared in New Era 4 February 2015)
THE birth of our son has brought us a lot of pleasure, but also added to our responsibilities, and worries for what the future will bring. At the same time my father is reaching pensionable age and I have been assisting him in ensuring his financial security. This has meant looking at both the financial services that we must put in place for our children, as well as examining the services that my father had planned. These include how we manage banking, pension funds, savings accounts, medical and hospital cover as well as purchasing larger items like a motor vehicle and a house on credit. All these products and services are meant to ensure that we can sleep more peacefully at night because we have the knowledge and ability to access them.
The question remains though at the back of my head, “What if these services were not available to me?” And the even larger question looms, “What about my fellow consumers who struggle to get the same access to allow them to sleep peacefully at night?”
The issue of access to financial services and products is referred to as “financial inclusion”. This term is often used by the Bank of Namibia, Namfisa, Ministry of Finance and the Financial Literacy Initiative (FLI) to encourage the providers of these services to widen the net to allow more “inclusion”. When looking at financial inclusion, I prefer to define what services consumers are being excluded from so that we can identify what should be addressed. Very often the exclusion of consumers to financial services include: a) insufficient income; b) high risk of non-payment; c) discrimination (on the basis of race, marital status, etc.); d) lack of information – both by the clients and by the service providers; e) weak contract enforcement by the courts; f) product features – use of technical terms for example that are not fully understood; and g) price barriers due to market imperfections.
Thus financial inclusion means minimising or removing financial exclusion arising from market or government failures. Some supporters of financial inclusion want to see a situation where banks do not even charge a fee when a client deposits money for safe-keeping.
However, one of our regular readers who is a financial advisor warns of the expectations that these services should be provided at no cost. “Although technology has advanced so much that we can reduce costs significantly, there is no such thing as a free lunch. Costs will just be claimed somewhere else.”
Financial service providers use the issues mentioned to design their products and services and this (unfortunately) leads to the best services and products being offered to the more well-off clients. The people who need these services are thus being penalised twice – on the availability of the service and the extra high cost they must pay to make use of the service. The financial providers however insist that all clients have equal access to their services.
When all is said and done, peace of mind is essential to all Namibians. We as the consumers, and government and service providers need to take ownership and have justness in solutions for all consumers. After all is said and done, we cannot continue with the belief that “all animals are equal, but some animals are more equal than others.”
THE birth of our son has brought us a lot of pleasure, but also added to our responsibilities, and worries for what the future will bring. At the same time my father is reaching pensionable age and I have been assisting him in ensuring his financial security. This has meant looking at both the financial services that we must put in place for our children, as well as examining the services that my father had planned. These include how we manage banking, pension funds, savings accounts, medical and hospital cover as well as purchasing larger items like a motor vehicle and a house on credit. All these products and services are meant to ensure that we can sleep more peacefully at night because we have the knowledge and ability to access them.
The question remains though at the back of my head, “What if these services were not available to me?” And the even larger question looms, “What about my fellow consumers who struggle to get the same access to allow them to sleep peacefully at night?”
The issue of access to financial services and products is referred to as “financial inclusion”. This term is often used by the Bank of Namibia, Namfisa, Ministry of Finance and the Financial Literacy Initiative (FLI) to encourage the providers of these services to widen the net to allow more “inclusion”. When looking at financial inclusion, I prefer to define what services consumers are being excluded from so that we can identify what should be addressed. Very often the exclusion of consumers to financial services include: a) insufficient income; b) high risk of non-payment; c) discrimination (on the basis of race, marital status, etc.); d) lack of information – both by the clients and by the service providers; e) weak contract enforcement by the courts; f) product features – use of technical terms for example that are not fully understood; and g) price barriers due to market imperfections.
Thus financial inclusion means minimising or removing financial exclusion arising from market or government failures. Some supporters of financial inclusion want to see a situation where banks do not even charge a fee when a client deposits money for safe-keeping.
However, one of our regular readers who is a financial advisor warns of the expectations that these services should be provided at no cost. “Although technology has advanced so much that we can reduce costs significantly, there is no such thing as a free lunch. Costs will just be claimed somewhere else.”
Financial service providers use the issues mentioned to design their products and services and this (unfortunately) leads to the best services and products being offered to the more well-off clients. The people who need these services are thus being penalised twice – on the availability of the service and the extra high cost they must pay to make use of the service. The financial providers however insist that all clients have equal access to their services.
When all is said and done, peace of mind is essential to all Namibians. We as the consumers, and government and service providers need to take ownership and have justness in solutions for all consumers. After all is said and done, we cannot continue with the belief that “all animals are equal, but some animals are more equal than others.”
Honour thou Elders that thou days may be long
(First appeared in New Era 28 January 2015)
The past week my father called me from South Africa to come
and assist him with his pension pay-outs he has to receive now that he has
turned 65. My father was born during the apartheid era (in Walvis Bay) and had
completed his schooling in the Cape Province of South Africa. After school and
a few years I the private sector, he had chosen the army as a career and was
enlisted in the South Africa Coloured Corps. This was his job and not just the
normal two years stint (conscription) that was expected of every citizen. He
spent several years serving in the army, including doing duty in the northern
parts of the then South West Africa.
When I grew of age (being 18), there were many arguments in
our house as I was an active member of the student organisations protesting
against the South African occupation of Namibia. Having been born in Windhoek,
I feel I am a citizen of Namibia even though my father felt he was on the side
of the South Africans.
After Independence, it took a few years for the arguments
about politics to eventually also accept reconciliation as a reality. For me
the turning point was in 2004 when my father was declared disabled and unfit to
continue employment. It was at that time that the Bible’s commandment of
“Honour thou Mother and thou Father that thou days may be long” really struck
me.
At that time in 2004, my father was fighting the banking
system that refused to accept his disability and were threatening to auction
his house as he was not able pay his mortgage. This despite the fact that he
had an insurance policy (taken out by the bank) that was supposed to cover him
in the eventuality of death or disability. The bank in question insisted that
his disability was a “previous condition” and thus not covered by the policy.
After a year-long battle with me at his side, we were able force the bank (yes,
we had to force them to meet their obligation) to accept the medical reports of
experts and have the insurance policy pay off his mortgage.
This lesson of what businesses do to avoid giving
satisfaction to their customers (and thus making more profits) is what led me
to becoming the consumer activist I am today.
As consumers we have started to have culture of “consumer
social responsibility” towards our elderly as we willingly allow pensioners,
pregnant women and people with disabilities to be served first when there are
queues.
I would like to see our businesses in Namibia also take this
attitude and provide their corporate social responsibility through discounted
prices for the elderly, and not only on groceries, but also public transport,
electricity, water and telecommunications. Would it not be wonderful if our
elderly could receive up to 50% discount on their water and electricity and
perhaps even completed amnesty from paying rates and taxes to the local
authorities? It would be gladdening to my heart (and, according to the Bible,
add years to my life) if the government owned enterprises would also provide a
minimum number f credits or products and services to the elderly as a way of
honouring for their many years of service to our beautiful, peaceful country?
These state-owned enterprises and agencies include MTC, Telecom, Namwater,
Nampower and even the local supplier of Coca-Cola, Namibia Beverages to name
but a few.
On this topic, would it also not be a sign of a mature
country to provide sufficiently for our elderly with a state pension of at
least N$ 1,200 per month? If we give this a little thought, perhaps we too can
honour our mothers and fathers that our days on earth might be long.
#MTC pay back the money
(This first appeared in the New Era of 14 January 2015)
THERE is a quote I like to use when giving consumers advice, “He who buys what he does not need steals from himself.” This advice is normally given before the festive season to remind others (and my own family) that no matter how tempting the advertisement is of a product, always ask yourself whether the product has any use in your life.
I can show you more than a cupboard full of things that I have bought over the years that I have never used. This advice is of course only usable if you are the one doing the buying – sometimes you receive a gift and you smile and say thank you without knowing whether you will ever use the gift in question. I still have a Bart Simpson tie that I will never wear.
When I became a consumer activist I noticed how consumers are misled through advertising (or the savvier word “promotion”) to purchase something they do not need and then have no recourse to getting their money refunded. This has led to many countries introducing a “cooling-off period” – a period of time during which the consumer may cancel a purchase. In this way the purchase of (especially) expensive items like houses and vehicles can be cancelled if the buyer becomes aware that they may have bitten off more than they can chew. This is also often the case when in the shop and the salesperson convinces you of the product they are selling rather than of the product you need.
Last month I did not buy SuperAweh airtime from MTC as I usually do when at work. My week of special phone call prices had expired but then I received a message from MTC that I was being charged N$2.00 for “future data usage”. I do not need data for my cellular as I have a laptop and unlimited 4G access and I thought this is rather presumptuous. I was rather angry, as “I had just bought what I do not need” and was stealing from myself.
Rather than steal from myself, I activated the SuperAweh package and thought nothing more about it. A week later, MTC sent another SMS informing me that my SuperAweh would expire and I should renew it. However, this expiry happened at midnight of the day indicated and, lo and behold, I found myself stealing another N$2.00 from myself at exactly 2 seconds past midnight.
Upon enquiry on social media I became aware that I was not the only consumer stealing from themselves. The worst case was a company that owned a fleet of cars that were using tracking devices over the cellular network. These devices were installed securely within the vehicles and this was done purposefully to prevent thieves from being able to remove the devices.
This company with a fleet of over 50 trackers now find themselves stealing over a N$100.00 a day for data usage – because MTC has made it the responsibility of the user to opt out of the promotion.
The regulator, the Communications Regulatory Authority of Namibia (CRAN), received numerous consumer complaints during this period and reacted very quickly. In the press release CRAN clearly states that “the mandatory imposition of this promotional tariff and placing an obligation on the consumer to cancel the participation in a promotion, which the consumer has not initially subscribed to, is not in line with the provisions of Section 79 of the Communications Act and can therefore not be supported by CRAN”.
Aha! I was not buying something I did not need, but rather MTC was charging me for a service I did not need.
THERE is a quote I like to use when giving consumers advice, “He who buys what he does not need steals from himself.” This advice is normally given before the festive season to remind others (and my own family) that no matter how tempting the advertisement is of a product, always ask yourself whether the product has any use in your life.
I can show you more than a cupboard full of things that I have bought over the years that I have never used. This advice is of course only usable if you are the one doing the buying – sometimes you receive a gift and you smile and say thank you without knowing whether you will ever use the gift in question. I still have a Bart Simpson tie that I will never wear.
When I became a consumer activist I noticed how consumers are misled through advertising (or the savvier word “promotion”) to purchase something they do not need and then have no recourse to getting their money refunded. This has led to many countries introducing a “cooling-off period” – a period of time during which the consumer may cancel a purchase. In this way the purchase of (especially) expensive items like houses and vehicles can be cancelled if the buyer becomes aware that they may have bitten off more than they can chew. This is also often the case when in the shop and the salesperson convinces you of the product they are selling rather than of the product you need.
Last month I did not buy SuperAweh airtime from MTC as I usually do when at work. My week of special phone call prices had expired but then I received a message from MTC that I was being charged N$2.00 for “future data usage”. I do not need data for my cellular as I have a laptop and unlimited 4G access and I thought this is rather presumptuous. I was rather angry, as “I had just bought what I do not need” and was stealing from myself.
Rather than steal from myself, I activated the SuperAweh package and thought nothing more about it. A week later, MTC sent another SMS informing me that my SuperAweh would expire and I should renew it. However, this expiry happened at midnight of the day indicated and, lo and behold, I found myself stealing another N$2.00 from myself at exactly 2 seconds past midnight.
Upon enquiry on social media I became aware that I was not the only consumer stealing from themselves. The worst case was a company that owned a fleet of cars that were using tracking devices over the cellular network. These devices were installed securely within the vehicles and this was done purposefully to prevent thieves from being able to remove the devices.
This company with a fleet of over 50 trackers now find themselves stealing over a N$100.00 a day for data usage – because MTC has made it the responsibility of the user to opt out of the promotion.
The regulator, the Communications Regulatory Authority of Namibia (CRAN), received numerous consumer complaints during this period and reacted very quickly. In the press release CRAN clearly states that “the mandatory imposition of this promotional tariff and placing an obligation on the consumer to cancel the participation in a promotion, which the consumer has not initially subscribed to, is not in line with the provisions of Section 79 of the Communications Act and can therefore not be supported by CRAN”.
Aha! I was not buying something I did not need, but rather MTC was charging me for a service I did not need.
Neither a borrower nor a lender be
(This first appeared in the New Era of 14 January 2015)
The headline for this week’s column is borrowed from a soliloquy by Polonius in William Shakespeare’s Hamlet where Polonius is giving advice to his son Laertes before Laertes heads back to school.
“Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry.”
The past month I took my annual leave and I was fortunate to have it coincide with the birth of my son. I would strongly urge fathers (and lawmakers take note) to be there for your child's first few weeks or even months. It makes you appreciate the mother more, and sharing the sleepless nights and stomach cramps does wonders for your relationship. The best part must be the smiles you get for no apparent reason while you child falls asleep in your arms. This is the best investment any father can give and I trust the “return on your investment” will be worthwhile in the long run.
While on leave I noticed a public notice in the newspaper placed by the Namibia Financial Institutions Supervisory Authority (NAMFISA). In the advert, NAMFISA notified all Hire Purchase Outlets and Credit Grantors that the maximum finance charges as per the Usury Act of 1968 is 15.60 percent per annum. NAMFISA has as one of its objectives the protection of consumers of financial services and in this regard administers the Usury Act.
Few consumers fully understand what usury is, how the Authority regulates maximum finance charges and how the consumer can make use of NAMFISA to ensure they are not being overcharged (abused).
First, what is usury? Usury is the practice of making unethical or immoral monetary loans intended to unfairly enrich the lender. In plain English it means the lender is being made to pay too high interest on a loan. Thus the Usury Act is a law to prevent abuse of lenders and puts a maximum rate at which interest can be charged.
Some of the main objectives of the Usury Act, (Act No. 73 of 1968), are to regulate the maximum finance charges (or interest in short) and to ensure that terms and conditions of credit agreements, including Hire Purchase Agreements, are explained to customers and that fairness prevails in all contracts relating to all credit agreements.
In the public notice, Hire Purchase Outlets and Credit Grantors are reminded that the maximum finance charges or interest is calculated at the average prime rate times 1.6 which is currently at 9.75%. Thus the maximum interest that can be charged is 9.75 times 1.6 which equal 15.60 percent per annum.
Thus you as a consumer are protected under the Usury Act from any credit grantor (such as a money lender) from charging more than N$ 15.60 per year on every amount of N$ 100. If you are taking a loan for a shorter period such as a month, the interest rate must be divided by the percentage of the year the loan is granted. In other words, if you are taking a loan for one month, the interest may not be more than 15.60 divided by 12 thus 1.30 percent. If you have taken a loan from a money lender (and we all know how our January finances are), and are repaying at the end of a month, make sure they are not charging you more N$ 1.30 for every N$ 100 you are loaning. Please note that certain lenders also charge administrative fees which are separate from the interest charged on the loan.
If you as a consumer have any queries, kindly contact the Microlending and Credit Agreements Department of NAMFISA at telephone number (061) 290 5000 (main), Ms. Lucrecia Lombardt at 061 290 5130 or e-mail: llombardt@namfisa.com.na.
The headline for this week’s column is borrowed from a soliloquy by Polonius in William Shakespeare’s Hamlet where Polonius is giving advice to his son Laertes before Laertes heads back to school.
“Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry.”
The past month I took my annual leave and I was fortunate to have it coincide with the birth of my son. I would strongly urge fathers (and lawmakers take note) to be there for your child's first few weeks or even months. It makes you appreciate the mother more, and sharing the sleepless nights and stomach cramps does wonders for your relationship. The best part must be the smiles you get for no apparent reason while you child falls asleep in your arms. This is the best investment any father can give and I trust the “return on your investment” will be worthwhile in the long run.
While on leave I noticed a public notice in the newspaper placed by the Namibia Financial Institutions Supervisory Authority (NAMFISA). In the advert, NAMFISA notified all Hire Purchase Outlets and Credit Grantors that the maximum finance charges as per the Usury Act of 1968 is 15.60 percent per annum. NAMFISA has as one of its objectives the protection of consumers of financial services and in this regard administers the Usury Act.
Few consumers fully understand what usury is, how the Authority regulates maximum finance charges and how the consumer can make use of NAMFISA to ensure they are not being overcharged (abused).
First, what is usury? Usury is the practice of making unethical or immoral monetary loans intended to unfairly enrich the lender. In plain English it means the lender is being made to pay too high interest on a loan. Thus the Usury Act is a law to prevent abuse of lenders and puts a maximum rate at which interest can be charged.
Some of the main objectives of the Usury Act, (Act No. 73 of 1968), are to regulate the maximum finance charges (or interest in short) and to ensure that terms and conditions of credit agreements, including Hire Purchase Agreements, are explained to customers and that fairness prevails in all contracts relating to all credit agreements.
In the public notice, Hire Purchase Outlets and Credit Grantors are reminded that the maximum finance charges or interest is calculated at the average prime rate times 1.6 which is currently at 9.75%. Thus the maximum interest that can be charged is 9.75 times 1.6 which equal 15.60 percent per annum.
Thus you as a consumer are protected under the Usury Act from any credit grantor (such as a money lender) from charging more than N$ 15.60 per year on every amount of N$ 100. If you are taking a loan for a shorter period such as a month, the interest rate must be divided by the percentage of the year the loan is granted. In other words, if you are taking a loan for one month, the interest may not be more than 15.60 divided by 12 thus 1.30 percent. If you have taken a loan from a money lender (and we all know how our January finances are), and are repaying at the end of a month, make sure they are not charging you more N$ 1.30 for every N$ 100 you are loaning. Please note that certain lenders also charge administrative fees which are separate from the interest charged on the loan.
If you as a consumer have any queries, kindly contact the Microlending and Credit Agreements Department of NAMFISA at telephone number (061) 290 5000 (main), Ms. Lucrecia Lombardt at 061 290 5130 or e-mail: llombardt@namfisa.com.na.
Each One, Teach One
As the year comes to an end, I look back at take stock of what our consumer activism has achieved in 2014. Looking across the media spectrum, I am pleased to note that it is not only the New Era newspaper that has a consumer column. In addition, I appreciate the work being done by new media (mostly from within the traditional media houses) in bringing issues to the attention of consumers, activists and lawmakers. Facebook groups such as the Namibia Consumer Protection Group (NCPG) page have seen a drastic increase in postings, as well as feedback from business.
Now that there is more attention on consumer issues, the question must be asked: Has there been an increase in consumer protection during 2014?
The answer is (unfortunately) NO.
Allow me a few examples:
Just this past week, I ran out of credit on my cell phone. I was sent a reminder by my provider that my credit would run out – the warning though came one day before it ran out, not at the same time it runs out as in the past. At first, I was not too perturbed as I would notice after my first call on the next day that I was off the super package. However, the next morning I sent through my SMS request to purchase the package and went about my business as usual. That evening, I received a message that N$ 2.00 was deducted from my account for data usage. I immediately checked my phone as I had never received such a message before. On checking I found that the service provider had sent me a SMS that I could not participate in this offer as I was already on that specific package. Yet, somehow, later in the same day, my package expired. Now I was deducted N$2.00 and did not have enough funds for the super package anymore.
The service provider had changed my agreement with them regarding informing me of when my package rant out, and had started deducting an “automatic” data charge because my phone used data.
Definitely now a New Year’s wish of mine to get the Communications Regulatory Authority of Namibia (CRAN) to clamp down on these “profit” making practices.
In another example, I received the following from a customer:
“Shelve prices at a certain hyper store (name known to Consumer Court) is a joke once you get to the pay-point (till). I had to request the cashier 4 times for 4 different products to charge me the price displayed on the shelf. I have had this experience several times at the same store and at others of the same chain. People are just paying without checking the price. I wonder how many people are robbed in this way on a daily basis. Every N$1 counts and makes up thousands of N$ on a daily basis. Even when you speak to the cashiers they are also acknowledging and complaining, because they are the ones to hear all the complaints and insults from customers.”
This same wholesaler had a complaint through Consumer Court earlier this year and they rectified it within a week. Now however, this same business is back and not doing what is best for the consumer.
The question is thus, as consumer activists we have made the problem known in the media, however Namibian businesses believe (or know) that consumers have no legal recourse and this continue with this type of unethical business practices.
We as consumers must become more active and in the language of the liberation, Each One must Teach One. That is the only way to measure our success and get consumers to know their own rights.
Subscribe to:
Posts (Atom)