Giving business a fair chance

It is refreshing to learn that legislation will soon be enacted to safeguard the interests of both consumers and market operators. This, as reported in The Times on Monday, is intended to be attained by the setting up of the Malta Competition & Consumer Affairs Authority (MCCAA).

The Malta Chamber of Commerce, Enterprise & Industry believes in equality between the rights of business and the consumer. Enhancing consumer confidence is complementary and at the core of business interests. Any business worth its salt seeks long-term relationships with satisfied customers.

We are, however, unfortunately aware of the existence of so-called "traders" whose activity is based on the exploitation of both consumers and legitimate business. This short-sighted attitude is deplorable because, among other things, it gives people in business a bad name when one knows that the majority of businesses operate responsibly.

We, therefore, need to ensure that the markets are as fair as they are efficient. For this reason, the Malta Chamber welcomes the consolidation and strengthening process of the MCCAA. This new authority must ensure that markets perform smoother and more efficiently and that no one at either end of the transaction is allowed to break the law. It is, after all, within the authorities' responsibility to guarantee the interest of both the consumer and the honest entrepreneur. Protection is indeed required from the illicit actions of those who abuse from the absence of border controls and what is until today an ineffective system of market surveillance.

In spite of this most unfortunate failure on the authorities' part, most businesses and consumers have certainly benefitted from liberalisation and access to the European Single Market. These developments have streamlined our use of resources and made us more competitive. These new realities are keeping businesses vigilant and resilient to ensure they give the desired value to the satisfaction of consumers. This is good for consumer confidence, business prosperity and the economy at large. But, on the other hand, it is not in the common good that certain operators exploit an unfair competitive edge over legitimate business by evading their fiscal and regulatory obligations.

The Malta Chamber stands by its previous related statements that the role of the new authority must not focus solely on price awareness and monitoring. There are other issues of cardinal importance to the welfare of the consumer. Consumers must be made aware of the risks involved in buying goods that are not covered by proper fiscal documentation. They must also be wary when purchasing from operators who may very well be unlicensed, and therefore, most likely not under the scrutiny of the relevant authorities. Such operators are most likely not capable of ensuring proper and valid procedures related to aspects such as product chill-chain audits, product traceability and recalls, after-sales service, guarantees and product/consumer liability insurance, among others. Consumers must also realise that it is in their interest, and as is demanded by law, that they are able to read and understand basic labelling information for such products as food, beverages and detergents.

The Malta Chamber looks forward to closely evaluating the announced Bill to ensure that the parameters are in line with such expectations. At the same time, we look forward to further concrete developments that are ancillary to curtailing abuse such as via the consolidation of the VAT, Customs and inland revenue departments. Since the announcement was made in the 2010 Budget speech, little or no developments have been made public. Provided this consolidation is done sensibly, it can lead to the desired structure of effective market surveillance and proper enforcement without creating over-regulation or added bureaucracy. The Malta Chamber simply wants to ensure that nobody takes unfair advantage by evading their fiscal or regulatory obligations.

The authorities' announced intention to promote, maintain and encourage competition is commendable. But, above all, the new authority must encourage and ensure that goods and services placed on the market are in full conformity with the necessary health, safety, statistical, environmental, regulatory and fiscal requirements. More effective market surveillance is truly a means towards equally ensuring consumer protection, regulatory adherence and fiscal justice along with a fair and competitive business environment.

The author is chairman of the competition policy committee within the Malta Chamber of Commerce, Enterprise & Industry