THE CONSUMER PROTECTION ACT, 2004

FOREWORD
Consumers have eight fundamental, internationally recognised rights. It is the
responsibility of Government, the business community and civic society to ensure these
rights through the development of an appropriate legislative framework, the
implementation of social policies as well as the encouragement of good corporate
citizenship.

The Government of Jamaica has laid the necessary framework through 27 pieces of
legislation, administered by government ministries, agencies and departments through
which consumers can be protected. The most recent of these is the Consumer Protection
Act of 2004.

The Consumer Protection Act of 2004 (CPA) seeks to do the following:

1. Formalize the establishment of the Consumer Affairs Commission (CAC) as a legal
body with the requisite powers for effective exercise of its core functions, namely
consumer protection and education;

2. Codify various pieces of consumer protection laws (statute and common) already in
existence under one umbrella legislation;

3. Define the obligations and privileges of users and providers of goods and services
and outline the penalties ascribed to specific breaches;

4. Establish effective grievance and other redress procedures, which are fair,
inexpensive and readily accessible.

ESTABLISHMENT OF THE ROLE OF THE CONSUMER AFFAIRS COMMISSION

Background
In the early 1990’s, Jamaica experienced a paradigm shift from a system of price and
exchange controls and subsidies to economic liberalization, privatisation and
deregulation. The shift also facilitated increased competition, freer trade, a wider range of

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products, growth in services and new technologies. The CAC’s precursor, the Prices
Commission, under the previous economic regime, was responsible for the monitoring of
the trade sector to ensure compliance with the price controls. The Prices Commission
had been established nineteen (19) years earlier, in January 1971 and took its authority
from amendments to the Trade Act of 1955 in 1970.

In 1992, by Cabinet decision, there was an official name change from Prices Commission
to Consumer Affairs Commission. This was done through Ministry Paper # 12, which was
presented to the Cabinet on February 13, 1990. This Ministry Paper provided the change
in mandate, in keeping with the new commercial and economic framework within which
the Commission would operate.

Cabinet gave approval in 1991 for the drafting of a Consumer Protection Bill to boost
Jamaica’s consumer protection efforts and to facilitate the change in approach from one
of market regulation as well as to grant important powers to the Commission to function
effectively in the new environment.

The Chief Parliamentary Council (CPC) completed the first draft of the bill in 1996, after
which public discussions ensued pursuant to the Bill being passed into law. A re-draft
was completed by the CPC in February 2001 and a series of amendments made to
address as many of the nuances within the new dynamic global marketplace. The bill was
finally passed into law on November 19, 2004.

The CPA establishes the function of the Commission and expands its role to allow for
increased responsiveness to the needs of the Consumer. The CAC is now regularized as
both reactive (resolution of complaints received) and proactive (with established powers
of investigation to prevent marketplace disputes and abuses).

OTHER CONSUMER PROTECTION LEGISLATION

There are many laws that by their application protect consumers. See Attached Table for
a list of 27 laws and their administering bodies.

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THE CPA - OBLIGATIONS AND PRIVILEGES OF CONSUMERS AND SUPPLIERS OF

GOODS AND SERVICES
[Sections 17 – 44: Duties and rights of Providers and Consumers]

Protection for Consumers

The new Consumer Protection ACT, 2004 provides for the protection of consumers in
circumstances, whereby loss or damage is suffered, arising from defective goods or
negligence on the part of manufacturers or distributors, during normal consumer use of
an item or service.

Other areas of protection which are provided for under the Consumer Protection Act
include:
 The Recall of unsafe goods – under the new Act, the Minister responsible for
commerce can issue orders for the recall of unsafe goods and instruct that consumers
be compensated way of a refund. The need for any such recall would have been
informed by proof of potential danger to consumers’ safety or concerns regarding the
reliability of a good or service, as determined by the Consumer Affairs Commission.
[Section 17]

 The Provision of Information to Consumers – this recognises one of the

fundamental rights of the consumer, the Right to Information. The Act requires that
consumers be provided with information such as the price in Jamaican Currency,
instructions for care, hazards and proper use associated with the good or service as
well as assembly and installation instructions where applicable, before making a
purchase. It also requires that information be given in relation to the application of
Professional fees, in transactions such as the filling of prescriptions, where in the
past, pharmacies have been known to apply such charges in addition to the cost of

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the prescription items, without first advising their customers or without separating the
cost on the receipt. Additionally, vendors will now be required to provide all such
information in English. [Sections 18, 19]

 Opportunity to verify measurements - Consumers should be given a reasonable

opportunity to verify the quantity of an item being purchased in cases where the
measurement affects or determines the price. [Section 19]

 The Provision of a Receipt – Upon making payment for any good or service,
consumers should be issued with a proper receipt. A proper receipt has information
such as the name of the vendor or business and other unique information, such as
the company’s GCT Registration Number and address; the correct description of the
item(s) purchased; the Date on which the Purchase was made; and any Professional
fees, where applicable. This is necessary in order to assist the consumer in cases
where attempts are made to secure redress for unsatisfactory purchases or simply to
prove ownership; as well as in tracking expenses and monitoring the passage of time
where warranties and guarantees are involved. [Section 20]

 Penalties to be Paid by vendors in relation to Warranties – The law outlines

measures, which can be taken by consumers in the event that they are sold damaged
or defective goods or goods which cause bodily injury or financial loss during normal
and proper use. It also makes specific provision where consumers are sold an
electrical item, believing it to be fully functional and when an attempt is made to use it,
discovers that it is faulty or does not function. Under these circumstances, when the
consumer returns such a product, the vendor is required to exchange free of cost, the
faulty good for a new and functional item or give the customer a refund, unless the
provider can establish that damage to the good was as a direct result of the
consumer’s action. [Sections 21-25]

 The Signing of open-ended agreements – the law provides that consumers are not
required to sign open-ended commitments to pay for repair services that are in

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addition to what was contracted, even though the vendor might consider it necessary.
[Section 26]

 Misleading or Deceptive Conduct – Persons are prohibited under the law in the
course of conducting business, from making claims, which serve to deceive or
mislead the public. This provision has clear implications for individuals or businesses,
which sell goods and profess benefits that cannot be satisfactorily proven. In
instances such as these, the law makes provision for penalties in the form of fines or
imprisonment of up to one year. It is important to note that misleading representation
involves claims in relation to issues such as:
1. the need for any good or service
2. the price of any good or service
3. the existence of a warranty, or guarantee
4. the place of origin of goods
5. the condition (quality) of the good or service offered. [Section 28-30]

 The Responsibility of Vendors to Honour Delivery Deadlines – Under

circumstances where vendors are unable to honour delivery dates and are further
unable to provide proof that such delays were as a result of a reasonable cause and
that steps were taken to prevent those delays or to seek the customer’s agreement to
a later delivery date, then the law requires that the customer be adequately
compensated. Refusal to comply may result in a penalty of up to two million dollars or
face imprisonment of up to six months. [Section 31]

Protection for Providers of Goods and Services

It is important to note however, that although this new Consumer Protection Act will
provide for the protection of consumers’ rights, which are so often trammelled by
businesses that engage in unscrupulous practices, there will also be added protection for
businesses that are approached by consumers with unreasonable and unjustified claims.
For example, vendors will not be required to give consumers a refund if goods are

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delivered in keeping with an agreement but whereby the consumer simply changes his or
her mind and no longer wants the good. It is recognised that many North American
establishments may choose this as a marketing policy in order to attract customers and
to make this allowance for competition reasons. Nonetheless, although this is a
welcomed gesture on the part of vendors, and consumers can vote with their spending
power for stores which might have such a policy, an allowance of this nature is not
required by Jamaican law.

The commercial landscape in Jamaica as in any other market space is an intricate

network of suppliers, purchasers, retailers and end users (or customers). The Consumer
Protection Act provides assurances at all stages of the relay that assists in building
confidence so that the benefits of the free market can filter through to consumers.

It is in recognition of the importance of this intricate network to the economic

development of individuals, businesses and professionals as well as the state, that the
Consumer Affairs Commission stands ready through its market intelligence service,
consumer education and complaints handling services, to assist the Jamaican consumer
(at all levels) to benefit from Jamaica’s dynamic market place.

REDRESS PROCEDURES AND MECHANISMS

The Right to Redress means that Consumers must receive a fair settlement of just
claims, including compensation for misrepresentation of substandard and unsafe goods;
grievances about unduly expensive goods and unsatisfactory services, and other unfair
consumer practices. The Right to Redress necessitates the availability of acceptable
forms of legal aid or compensation for small claims, where necessary. This means that
Government, businesses and civil society need to:

 Set up fair, inexpensive and accessible avenues for redress.

 Resolve disputes in a fair, efficient and informal, yet transparent
manner.

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 Set up voluntary mechanisms such as advisory services and informal
complaints handling procedures for consumers.

The CPA regularizes the functions and procedures of the Consumer Affairs Commission
with respects to its Complaints Handling Services. The current procedures of the
Commission are therefore strengthened under the Act. In many cases, the Act provides
in clear, unambiguous terms, the acceptable behaviour of businesspersons and vendors.
Diversions from these expectations therefore provide the grounds on which redress can
be brokered.

The following outlines the provisions (sections) under the CPA in regularizing the CAC’s
dispute resolution services:

[Sections 6 - 12: Functioning and Administration the CAC]

Notable Points:
 Gives the CAC the power to carry out investigations on its own or at the request of
a consumer. Section 6

 Gives the CAC the authority to represent consumers in the event that litigation is
contemplated. Section 7 (4)

 Provides clear guidelines for the evaluation of complaints. Section 8

 Gives the Commission the power to provide a quasi-judicial venue for interim
discussion
 of complaints. Sections10 - 12

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