Consumer Affairs Complaint Statistics

Mr. Speaker and Members of this Honourable House, I am pleased to rise today to present the Department of Consumer Affairs 2011 Complaint Statistics.

Under the Consumer Protection Act 1999, Consumer Affairs is the designated body with responsibility for protecting the rights of consumers from unfair business practices, unconscionable acts and unsafe consumer goods. This is a criminal Act and therefore criminal investigations are carried out by the Consumer Affairs Enforcement Officers.

They also conduct research on consumer matters, and educate the public by the production and distribution of information on the rights of consumers and better business practices.

Mr. Speaker, this small but busy department – with a staff of only five, consistently uses its good offices to conciliate and settle consumer complaints and grievances.

Additionally, the Department of Consumer Affairs provides guidance and advice pursuant to the Sales of Goods Act 1978 and the Supply of Services (Implied Terms) 2003. This department also has certain enforcement powers under the Copyright and Designs Act 2004.

In 2011 the Department of Consumer Affairs staff undertook two days of intense training sessions on the Sale of Goods Act, the Supply of Services Act and the Consumer Protection Act. The training was application based as it applies to complex cases that have multi stakeholders and legislative implications.

Mr. Speaker, I will first highlight the accomplishments of the Department of Consumer Affairs during the past year.

From January 1, 2011 to December 31, 2011, the Department of Consumer Affairs recorded 657 complaints, a 27% increase over 2010. Of these cases, 123 were complex cases involving many different stakeholders and can take up to 6 months or more to resolve. 322 of these cases were simple, which were resolved through mediation in roughly 7 days or less.

Mr. Speaker, in 2011 the Department of Consumer Affairs successfully resolved 526 complaints, 58 cases had cross-Ministry involvement and there were 311 product recalls of which 13 were found to be on the island.

Mr. Speakers, the industries that showed a marked increase in complaints in 2011 were:

• Advertising – there were 12 complaints in 2011 compared to 2 in 2010
• Marine – 16 complaints in 2011 compared to 2 in 2010
• Cosmetology – 15 complaints in 2011 compared to 4 in 2010

There were also increased complaints with Landlord/Tenant issues, primarily dealing with leases, medical billing issues and the purchase of second hand cars. In 2011 there was a total 211 calls of inquiries where advice was given but no formal complaint was made.

Mr. Speaker, it is fair to say that the Department of Consumer Affairs cases indicate that there are some areas where consumers continue to make the same mistakes.

For example, signing quotes without understanding them, taking too long to deal with a situation when there is a problem and ‘helping a brother out’ by hiring friends, family or friends of friends without applying proper business acumen.

Additionally, it is evident that businesses would benefit greatly by having a complaint management system in place in an attempt to resolve consumer issues. Consumer Affairs has been pro-active in this area with local businesses, but there are many businesses that continue to avoid confrontations with customers in hopes that the problem will go away on its own.

Mr. Speaker, during the course of their investigations, the Department of Consumer Affairs found that most companies that were found to be in contravention of the Consumer Protection Act 1999, complied with enforcement instructions and amicable resolutions were achieved.

However, a few companies neglected to abide by enforcement requirements and subsequently faced compliance orders, desist orders, voluntary compliance orders and prosecution.

Mr. Speaker, 2011 was also significant for the Department of Consumer Affairs as the much anticipated amendments to the Consumer Protection Act were passed.

This honourable house will recall that in June 2011 The Consumer Protection Amendment Act 2011 was passed.

These amendments were the result of numerous criminal investigations carried out by the Department of Consumer Affairs over the past ten years.

An analysis of the investigative data highlighted three (3) main areas of unfair business practices:

• A lack of clarity surrounding the terms Estimate, Quote and Price;
• Aggressive and abusive business practices that negatively affect consumers; and the
• Requirement for payment in full of goods and services in advance.

Mr. Speaker, these amendments were designed to correct behaviours that serve to adversely disadvantage consumers. Simultaneously the amendments will assist vendors to improve the quality of service and to become more effective in managing the related administrative processes.

Mr. Speaker, education is a very important component of consumer protection and empowerment and as a result of the Department of Consumer Affairs education initiatives, more consumers and businesses understand their rights and responsibilities and are contacting Consumer Affairs for assistance and/or mediation.

In 2011 the Department of Consumer Affairs continued with its comprehensive consumer education and public awareness campaigns using online and offline marketing channels.

They ran a yearlong radio campaign as well as appeared monthly on two local radio programmes, they placed ads in the Bermuda Sun, continued with its weekly column in the Bermuda Sun, had links to their website on popular local web-sites, and they have a prominent direct link on the Government homepage for people to obtain access to recall information.

Mr. Speaker, continuing with consumer education, during the week of October 24 – 28 Consumer Affairs held Consumer Awareness Week. The theme was Your Money – Our Economy; how your support or lack of support of local businesses affects our economy.

During this week the Consumer Affairs team participated in four radio programmes, produced and aired a half hour prerecorded television programme, and held two presentations for local businesses – the first on laws that govern consumer transactions and the second on the importance of good Customer Service.

Mr. Speaker, I am pleased to report that both of these presentations were well received and there was a packed house on both occasions.

Consumer Awareness Week also marked the introduction of a new media campaign focused on the importance of supporting local businesses. Radio and televisions ads ran and banners carrying this message were erected on light poles throughout the city of Hamilton.

Mr. Speaker, in conclusion I must remind this honourable house that the Department of Consumer Affairs duel role as educator in consumer matters to enforcement requires a delicate balance during these rough economic times.

Both consumers and businesses alike are facing challenges in this changing economic environment. Unemployment, poor retail sales, and business closures are presenting the Department of Consumer Affairs with a new trend of cases that we expect will increase in the coming year.

Mr. Speaker, the Department of Consumer Affairs will continue its education campaigns targeting both consumers and traders. This office will step up enforcement procedures as deemed necessary and businesses that demonstrate a pattern of unfair business practices can expect a visit from the Consumer Affairs enforcement officers and if necessary they will be prosecuted.
Thank you, Mr. Speaker.

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