Price monitoring is good for competition

I refer to the editorial of October 8, Market Imperfections And Price Abuse, and a letter from the Chamber of Commerce, Competition Is Best Form Of Effective "Price Monitoring". Għaqda tal-Konsumaturi objects to two of the points made in the letter.

The Chamber objects to the concept of "name and shame". Għaqda tal-Konsumaturi totally disagrees. The concept of name and shame has in the past proved to be one of the most effective tools in curbing unfair commercial practices. Indeed The Sunday Times newspaper for many years carried a column which named abusive practices and traders.

The column was not short of attempts to snuff it out through libel cases and cut-off of advertisements. Why should we not, after an investigation and verification of the facts have been made, where the trader is given every opportunity to state his case, draw attention to a justified complaint, a dangerous product or unfair practice and expose it and the trader in the media? Both BEUC, the European Union Consumer Organisation and Consumers International, a worldwide Consumer Association Organisation, of both of which the Għaqda tal-Konsumaturi is a paid member, sanction the concept of name and shame. For reasons known only by the Chamber of Commerce, it seems Malta must always be the exception to the rule.

The second point which Għaqda disagrees with is the concluding comment stating that "any proposal" on price monitoring agencies is "unacceptable". Għaqda opposes such an unconditional viewpoint and asks what is wrong in having a price monitoring agency (as distinct from price control).

Għaqda also insists on the essential requirement that prices of products should be available to consumers.

Why should consumers not be empowered and assisted to compare prices both locally and in other countries when, under the policy of a liberalised market, consumers are continually advised to shop around for the best products at the cheapest prices? The very concept of competition is based on the empowerment of consumers to effectively compare prices and make the best buy. Effective monitoring would contribute towards such empowerment. We believe the mere fact that there is someone who is monitoring prices in the market would be a deterrent to those traders who may be tempted to raise prices indiscriminately, thus bringing other serious traders into disrepute.

Both the government and opposition have stated that they have proposals to set up a consumer agency. Għaqda has written to both, inviting them to discuss their proposals in more detail.

Għaqda firmly believes that the way forward is to have a national dialogue focused on concrete proposals, involving all stakeholders, and urges the competent authorities, in the interests of all consumers, to proceed with such an initiative.