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CONSUMER PROTECTION MODEL AND THE

TANZANIA LEGAL COMPLIANCE FRAMEWORK – With
Some Reference to the Communications Sector.

- By Dr. Ringo W. Tenga

(Chairman, National Consumer Advocacy Council -
NCAC, June, 2009)1

I. Background to Consumer Protection in Tanzania

A. The Conceptual Snapshot

1. Consumer protection is a phenomenon that is associated with the growth of markets

as the medium for economic growth. Economic theory posits markets as the forum
where sellers meet buyers, or rather, where suppliers generally meet consumers of
goods and services. While the suppliers of goods and services vie for the attention of
buyers a competitive scenario is generated and left to their own devices suppliers
employ every trick possible, positive and negative, to win the buyers' attention.
2. In a perfect market, the theory goes, sellers are engaged in a positive kind of 'beauty
contest' and struggle to improve the quality of what they offer under most affordable
prices as they naturally undercut each other. Out of the lot buyers get the best deal
and generally this promotes consumer welfare and positive economic development,
progress in the sciences, and efficient allocation of resources.
3. But the reality is almost the opposite, markets are highly imperfect in terms of
information given to players in the market and misrepresentations abound whereby
'beauty contests' are largely negative and often won by fraudsters. Even where
information as to quality and cost of goods and services is available to all players
sellers often employ other tactics to keep prices high such as conspiracy amongst all
sellers of a given product to maintain a given price (known as ‘cartels’), or
elimination of other competitors to maintain monopolistic market power and
practically hold buyers at ransom. Adam Smith , the father of modern economics,
1
Abridged version of Consumer Protection Paper presented by the author at the FCC’s CC Induction Workshop in
Morogoro, April 2008
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had it that this drive for conspiracy is almost a natural motive amongst suppliers.
" People of the same trade seldom meet together, even for merriment and
diversion, but the conversation ends in a conspiracy against the public, or in
some contrivance to raise prices." - Adam Smith, Wealth of Nations (1776 "

The self-serving profit motive is in most cases the force behind this disruptive
behavior by sellers. Instead of being a rational and efficient engine for economic
growth supplier-driven markets, left to the own, are imperfect and chaotic, affecting
product quality by offering shoddy goods and services; undermining consumer
welfare and economic growth. The suppliers of services in the communications
sector are no exception and complaints abound with regard to various ‘clever’
methods used to enhance a suppliers’ market power.
4. Given these market imperfections, or rather what is termed as 'market failure',
authoritative intervention is required to provide the necessary oversight, or
superintendence, that would keep markets as far as possible within the confines of
'fair' competition. Most market economies have in place some kind institutional
setup to oversee competition.
"There is no reason to assume that this is true only of large, developed
economies. Price-fixing between competitors will always be attractive to firms
that wish to maximize their own profits at the expense of their customers, and
there is little reason to assume that they will voluntarily refrain from doing so,
unless they are constrained by competition law. Similarly, local monopolies will
have no incentive to improve their performance and will have every incentive to
deter the entry of new rivals into the market. Competition law may be able to
expose such monopolies to competitive forces."
The recent economic liberalization world trend has generated a worldwide movement
led by multilateral institutions ( UN, UNCTAD, OECD, etc) to introduce systemic
competition oversight worldwide. Emerging markets, those of the third world and
former soviet block, have been a fertile ground for growth and experimentation. In
Tanzania some kind of competition oversight was made through the Price Regulation
mechanisms inherited from the colonial state2. When the statute was repealed a task
force was set up whose recommendations resulted into the introduction of a statutory
organs to oversee competition in 1994. The background to that process is detailed
elsewhere and the challenges arising thereby enumerated (See Mkocha, UNCTAD,
2003). Competition authorities were set up for the first time to oversee the market
roles of the three players; Government, Suppliers and Consumers; more robust
legislative schemes coming in from 2001. Legislation on ‘fair competition’ has, on
the one hand, established a Fair Competition Commission (FCC), a Fair Competition
Tribunal (FCT) and a National Consumer Advocacy Council (NCAC).3 On the other
hand, regulation of the ‘natural monopolies’ has been established in transport

2
See Nditi, Nicholas N.N, Consumer Protection Law and Practice: Its Relevance and Reality in a Developing Economy with
Special Reference to Tanzania. [PhD Thesis, 1987, University of Dar Es Salaam].
3
The Fair Competition Act, 2003
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(SUMATRA)4, energy and utilities (EWURA)5, communications (TCRA)6, and air

transportation (TCAA)7, have all been enacted to provide a robust oversight of the
market.
5. Competition oversight alone does not create fair markets, and economic justice in
terms of giving a fair deal to consumers is not possible without institutionalizing
what one may call, for want of a better word, consumer oversight. The statutory
form of this kind of oversight is termed Consumer Protection. It is an acknowledged
fact that out of all the market players - government, business and consumers - it is the
consumer group that is largest, but at the same time it is the weakest in terms of its
actual market power. Consumers are often uninformed about market conditions and
rely on the sellers, and possibly government, to get correct information about the
quality of products offered in the markets. Advertisement and marketing strategies of
the sellers routinely victimize and abuse unsuspecting consumers by using a wide
range of misinformation techniques from highly sophisticated methods to outright
lies. Consumer protection provides a safety net against this kind of market-power
abuse. Competition authorities are mandated to provide channels for consumer
education and advocacy enabling consumers to unleash their vast potential power of
choice in the market, while the State’s enforcement power provides the background
for compliance.

B. Regulatory Intervention, and Consumer Protection;

Given existence of market imperfections regulatory superintendence and intervention

becomes necessary in order to achieve “fair” competition and Consumer Protection.

In America regulatory intervention started from the end of the 18 th century with the
emergency of Anti-Trust Laws that regulated cartels and monopolies. But active
consumer protection started in the early 1960s from the so-called Kennedy
Principles, which outlined the rights of consumer that required protection. Later on a
World wide movement of Consumer Associations took root and today the Consumer
International is the key player in Consumer advocacy.

Today consumer organisations have flourished as a necessary aspect of Markets. Key

players in the Markets today are threefold:

• Producers (Suppliers of Goods and Services).

• Government (Licensing functions and Regulators of Markets).

4
The Surface and Marine Transport Authority Act, 2001 [Cap. 413]
5
The Energy & Water Utilities Regulatory Authority, 2001 [Act No. 11 of 2001]
6
The Tanzania Communications Regulatory Authority Act, 2003 [Act No. 12 of 2003]
7
The Tanzania Civil Aviation Authority Act, 2003 [Act No. 10 of 2003]
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• Consumers (End users of Goods and Services).

Accordingly the Consumer is not any buyer of goods and services as popularly
known. In terms of consumer protection the Consumer is the ‘end user’ of goods and
services. The Fair Competition Act, 2003, differentiates a ‘Consumer’ from a
‘Customer’ and defines the Consumer as:
"consumer'' includes any person who purchases or offers to purchase goods or
services otherwise than for the purpose of resale but does not include a person who
purchases any goods or services for the purpose of using them in the production or
manufacture of any goods or articles for sale’

3. Consumer Protection Models:

Consumer Protection is manifested through two interconnected processes or

frameworks: Compliance Frameworks and Consumer Education Framework.8

3.1 Compliance Framework:

The competition authority, such as the FCC, and the regulatory authorities, e.g. The
Tanzania Communications Regulatory Authority (TCRA) and, quality control and
licensing legislation, give effect to consumer protection through enforcement of
consumer rights. The expected outcome is to equate and balance consumer power in
the market to that of producers. Consumer power is expected to be a “countervailing
force” to what is perceived as increasing producer power and influence in the
Markets. Three types of compliance frameworks have been in use: The Command
and Control; Self Regulation; and, Co-Regulation.

‘Command and Control’ Compliance Framework

The initial compliance framework was through compliance legislation - the

“Command and Control” model. Enforcement would be through use of criminal law
and enforcement units that would search the Markets for deviant producers of goods
and providers of services. In Tanzania colonial legislation was of this nature. There
were Penal Code provisions, based on criminal law, that penalised market fraudsters.
Against the rule of “Caveat emptor” (Buyer beware!) there were statutory
provisions under the Sales of Goods Ordinance9, requiring sellers of goods to comply
to the quality presented to buyers. Furthermore, there were Price-Control
Legislations, e.g. the Price Control Ordinance,10 which after independence saw the
setting up of a National Price Commission, under Section 3 of the Regulation of
Prices Act, 1973.11
8
S. Sothi Rachagan, "Policies and activities for Consumer Education and Consumer Information in Malaysia," Third East Asia
Symposium on Consumer Policy, www.ciroap.org (Tokyo: Consumer International - Asia Pacific Office, 2002). See generally his
analytical framework which is adopted here
9
The Sale of Goods Ordinance, 1931 (No.18 of 1931); presently it is the Sale of Goods Act, Cap.214 [R.E. 2002]; compliance here is
based on the Law of Contract and provisions rely on misrepresentation, warranties on fitness to purpose and quality, etc.
10
Colonial Price Control Ordinance, Cap.309
11
Independence the Regulation of Prices Act, 1973 (Act No. 19 of 1973)
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Professor Nditi in his PhD thesis12 has reviewed these developments and it is obvious
that the framework was not as successful. The cost of enforcement is particularly
high, and changing business conditions, at every moment outpace any “conduct-
specific legislation”. The enforcement units were often passive and generally
affected by graft from money-oiled suppliers. The contractual based Sale of Goods
provisions assumed the consumer would help himself by voluntarily accessing the
courts. Not many consumers had the knowledge or financial wherewithal for
undertaking legal proceedings.

Self-Regulation Compliance Framework

The inadequacy of “Command and Control” framework led in some countries to give
free reign to what has been termed as Self-Regulation. In this framework Suppliers
design codes of practice and charters on the basis of which they make a pledge to the
buyers that they would adhere to what is stated in their Charters. This also has not
been successful. Producers through their Chambers of Commerce and Associations
have been most self-serving and rarely lack the muscle to enforce the Charters
against their deviant members. At law it is unclear what status the charters have in
relation to Consumer rights and enforcement. In Tanzania this phenomenon has
taken root only recently and the Civil Service and some Parastatals, eg. NSSF, have
been at the forefront in producing Consumer Charters. The Media has been widely
used with TV programmes showing how an “empowered consumer” demands
prompt service on the basis of a Charter. Commercial organisations, especially
Banks, have consumer charters that are not well publicised. If you visit the Website
of the Tanzania Bankers Association (TBA), there is a promise there that the banking
industry is working towards a Tanzania Bankers Code of Practice. This has been a
promise that has seen no active action. A study launched in 2007 by FinScope 13 on
the Financial Services Sector in Tanzania tells it all – consumers of Banking services
have still a long way to go despite the existence of rights they have under the
financial institutions legislation with regards to information, services and privacy.
TCRA has its own code of conduct and in its Website a Consumer Charter. The
enforcement of the Codes of the basis of self-regulation clearly begs the question of
whether it is realistic.

It is obvious that self-regulation is also a non-starter. Worse still it punishes the

supplier who complies with the Charter, as he restricts himself from breaching the
code, and the deviant one benefits as he goes unpunished for his misdeeds.

Co-Regulation Compliance Framework:

This compliance framework involves the creation of a statutory framework on the

12
Nditi, supra, 1987.
13
FinScope Survey, “Consumer Perceptions of Financial Services and Barriers to Access”. 2006. Launched in May,
2007.
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basis of which all market players “Self-regulate” themselves. Regulators provide the
medium for setting producer standards and codes with the participation of Producers
and Consumer representatives. Once the standards and codes are agreed upon
producers and their organisations are expected to enforce them. The Regulators have
the power to intervene, but only in cases where producer enforcement is ineffective.
The participatory approach to this kind of compliance framework has the advantage
of allowing all parties to be involved in the design of standards and codes. It allows
self-regulation but has a safety net of regulator intervention 14. Critical to this
framework is consumer participation. And effective Consumer participation is
ineffective where Consumers are not aware of their rights and responsibilities. This
brings to the fore the central issue of consumer education. The case of the Daladala
transporters in Dar Es Salaam who failed to adhere to fare benchmarks settled by
themselves with SUMATRA - the regulator - is instructive. Had consumer
participation been effective the transporters would not have dared to breach the
agreement. The co-regulation model is the basis for the TCRA consumer protection
and compliance framework.

3.2. Consumer Education Framework

Consumer Education is the sum of processes whereby individuals are equipped with
skills and knowledge which they need to negotiate and function effectively and
responsibly in an increasing complex marketplace.15 This knowledge includes how
the market operates and much more critical, the measures taken for consumers
protection and the consumers’ role in it.

In many countries where consumer movement has been well established, consumer
education is the basis of school curricula and civic education from primary,
secondary schools to Universities.

The public education programmes are developed through media participation and
other mass communication alternatives. It is now accepted that an informed
consumer is critical to well being of an economic system.

The focus of consumer education has undergone several stages:

(a) The “value for money” Paradigm

 Focus on household economics
 Consumer Education emphasizes the hierarchy of needs and wants,
economic
utility and understanding the mechanisms of Market Economy.

14
DTI ‘Comparative Report on Consumer Policy Regimes’ (UK, 2003)
15
Australian Consumers' Association, "Educating Australian Consumers," IOUC Consumer Education Workshop (Oslo, IOUC,
1984)
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(b) The “Right and Power to the Consumer” Paradigm (1970’s)

 focus on the market structures
 Consumer Education emphasizes:
• Empowerment of Consumers Organizations
• Development of Consumers Policy and legislations

(c) The “Quality of Life”

Paradigm based on the analyses of social and Green Consumerism (1980)

 focus on social and Environmental responsibility versus wasteful
consumption
• Sustainable Consumption
• Product-line assessment
• Understanding local and global markets

 Consumer Education emphasizes on:

• Integration of Home Economics courses, social
studies and value
education.
Acting responsibly in relation to society.
Consumer conduct that takes cognizance of
finite resources.
Need of consumption that is sustainable over
time.

The movement has been able to articulate what are the essential Consumer Rights and
Obligations through a rights- based analysis.

Consumer Rights.
 Right to satisfy basic needs
 Right to safety
 Right to be Informed
 Right to choice
 Right to be heard
 Right to redress
 Right to a healthy environment
 Right to Consumer Education

Incipient Rights
 Right to boycott
 Right to Opportunity
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Consumer Responsibilities.
 Critical Awareness
 Action
 Social Concern
 Environmental Concern/Sustainable Consumption
 Working Together/Collective Action

Distinction between Consumer Education and Consumer Information

Consumer Education is a process of gaining knowledge and skills for managing consumer
resources and prepares the consumer to initiate action to influence market decisions. It trains us
on how to cope with existing market relations and structures and how to influence changes for the
future.

Consumer Information on the other hand is the process of providing data relating to a particular
product or range of products to enable one to make a decision for purchasing the product. It
covers as well data on an existing industries and its regulation.

Consumer Information thus focuses on a particular product and services whilst Consumer
Education relates to effective use of such information in the market place. Such consumer rights
as the right to be informed and right to choice, cover aspects of Consumer Information.

C. Consumer Rights/Protections.

Consumer education and advocacy cannot be the mandate of competition authorities themselves.
This mandate is only justified on limited grounds which include the fact that government plays
an important role in the provision of a level playing field, providing correct information to the
Players, setting standards, providing avenues for dispute processing and redress, etc. The larger
advocacy role is that played by the Consumers themselves. Consumer power cannot be fully
unleashed and felt in the market without an organized consumer base. This organized base is
woefully lacking in Tanzania and reports and market reviews have constantly noted this
weakness. Government on its part to remedy this lacunae has set up a mechanism to provide
advisory functions on the basis on which such a consumer base could be cultivated. This is the
rationale for the NCAC and the Consumer Consultative Councils (Triple Cs) of TCRA,
SUMATRA, EWURA and TCAA. Both Competition Superintendence and Consumer Oversight
must reflect, as a starting point, the basis on which consumer education, organization and
oversight may be achieved. The International Consumer movement has come a long way in
developing best practices for consumer advocacy. The starting point is the understanding of
consumer rights and responsibilities.

1. The Right to Satisfy Basic Needs

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i. Consumers have the right to basic goods and services which guarantee survival,
including adequate food, clean water supplies, clothing, shelter, health care,
education and sanitation. Access to basic goods and services is critical to people
in developing countries. This consumer right is often overlooked by people in
industrialized nations but it is important for developing countries. [Nathan, 2003]
ii. There is also constitutional support for this Right. Article 14 of the Constitution
of URT 1977 guarantees the Right to Life. Article 11 directs the State to make
provision for the Right to Work, Self Education and Welfare of the Individual
citizen to be realized. Various Statutes in this regard are in place for Education,
Health, provision of utilities, welfare and Economic Empowerment of the
citizenry.

2. The Right to Safety

i. This guarantees consumers the Right to be protected against products, processes
and services that are hazardous to health or life. In order for 'Consumers to
exercise the right to life and to safety , it depends wholly on full prior disclosure
being made by chemical, pesticides and such industries, manufacturers of goods,
products and service providers concerning the degree of safety of their industrial
activities or reliability of goods, products or services, precautions that should be
taken to avoid accidents, or to mitigate damages or injuries in the case of
accidents, and who is to be held liable where consumers have grievances
concerning such activities, goods, products or services'. [CISA Report, 1999]
ii. The Right to Life in the Constitution complements this Consumer Right. 'A
basic responsibility of any Government is to protect the health and safety of its
people. Consumer laws and regulations that establish standards of safety for
food, and other basic products, are essential to ensure a safe marketplace.
Agencies that inspect food and other products at traders and manufacturers
premises, and maintain the quality of services sold, are important for consumer
safety'. ['Coca or Coconut ',CI 1996].

In Tanzania statutes geared towards this right include, inter alia:

 The Occupational Health and Safety Act, 2003 (5 of 2003). An Act that
repealed the Factories Ordinance, Cap.297; makes provisions for the safety,
health and welfare of persons at work in factories and other places of work;
provides for the protection of persons other than persons at work (eg.
Consumers) against hazards to health and safety arising out of or in
connection with activities of persons at work; and provides for other
connected matters.
 The Tanzania Food, Drugs and Cosmetics Act, 2003. An Act that
provides for the efficient and comprehensive regulation and control of food,
drugs, medical devices, cosmetics, herbal drugs and poisons and repeals the
Food (Control of Quality) Act, 1978, the Pharmaceuticals and Poisons Act,
and provides for other matters related thereto..
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 The Industrial and Consumer Chemicals (Management and Control)

Act, 2003. An Act that provides for the management and control of the
production, importation, transportation, exportation, storage, dealing, and
disposal of chemicals and for matters connected therewith.
 The MERCHANDISE MARKS ACT Cap. 85, R.E. 2002 [Act No. 20 of
1963. R.L. Cap. 519]. An Act enacted in 1963 to control the use of Marks
and Trade Descriptions in relation to Merchandise and consequentially
amended the relevant parts of the Penal Code Cap. 16 of the Laws of
Tanzania. The Act enables the Minister to appoint an Inspector of
Merchandise (presently the Director General of FCC) who has the mandate
to investigate all Forgeries and Deceptive Applications in relation to
Merchandise (i.e. Counterfeits) and the Inspector has powers of seizure of
such goods and on conviction in Court the condemned goods may be
destroyed and the offender may be fined not more than Tshs. 10,000/= or
imprisoned for not more than a year.. The Act applies to the widest range of
deceptive goods and applies to all types of false trade descriptions. The
statutory language for counterfeits under the Act is as follows:

" 'false trade description' means a trade description which is false or

misleading in a material respect as regards the goods to which it is
applied, and includes any alteration of a trade description, whether by
way of addition, effacement or otherwise, where that alteration makes
the description false or misleading in a material respect, and the fact
that a trade description is a trade mark, or part of a trade mark, shall
not prevent such trade description from being a false trade description
within the meaning of this Act".

3. The Right to be Informed

i. The right to be protected against dishonest or misleading advertising or labeling,
and the right to be given the facts and information needed to make an informed
choice is important to establish a fair and safe marketplace. Consumer
information includes: labeling of products, packaging, advertising and publicity.
Information should be available in plain language that ordinary people can read
and understand. Translation of consumer information into popular languages is
an important step in achieving this right. Proper information allows a consumer
to make informed choice which is central to fair competition and consumer
welfare.
ii. Article 18 of the Constitution of URT enshrines Freedom of Expression and
under it guarantees the Right to disseminate and receive information vital to one's
life. In terms of protection against misleading and fraudulent information in the
market place laws related to honest trading and contracting, related to standards,
weights and measures are in place. These include:
 The Fair Competition Act, provisions relating to dishonest or misleading
advertisements, labelling, etc.
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 The Weights and Measures Act, Cap. 340 [R.E. 2002]. An Act that revises
and consolidates the law relating to weights and measures and provides for
the introduction of the International System of Units (SI) and related matters.
Repealed and saved the Weights and Measures Ordinance [R.L. Cap. 426];,
the Sale of Goods (Weights and Measures) Ordinance [R.L. Cap.427], the
Weights and Measures (Metric System) Act, No. 46 of 1968; and the Metric
System (Amendment of Written Laws) Act, No. 52 of 1969.]
 The Standards Act Cap. 130 - R.E. 2002 [Act. No. 3 of 1975]. An Act that
provides for the promotion of the standardization of specifications of
commodities, establishes the Tanzania Bureau of Standards and provides for
the functions, management and control of the Bureau. The Bureau is
enjoined to establish standards and specify standards that are compulsory
(SS.16 and 17 of the Act].

4. The Right to Choice

i. This is the right to choose products and services at competitive prices with an
assurance of satisfactory quality, and access to a variety of products and services.
Where there is only one trader, as is the case in many rural and urban
communities in developing countries like Tanzania, there may be little choice for
consumers and a monopoly may develop. In these situations choice is reduced
and consumers need to be well informed and alert to unfair trading practices
which include:
v Price Fixing. Where two or more traders agree to a set price for goods or
services. A fixed price is higher because there is no competition between
traders.
v Monopolies. Where there is one trader controlling a particular product or
service and there is no competition for price. If people need the product
or service, they have to pay for what the trader asks, as there is no
alternative supplier.
v Cartels. An informal association of manufacturers or suppliers to
maintain high prices and control production and marketing arrangements.
v Artificial Shortages. Importers can influence market supply to inflate
prices by creating an artificial shortage, manipulating the law of supply
and demand keeps prices high.
ii. Consumer power is an effective means of helping to ensure prices are fair, but
government needs to establish laws and regulations to control restrictive market
practices, punish dishonest traders and create a fair and just marketplace. Fair
Trading laws are designed to control unfair trading practices and Anti-Trust laws
or designed to control cartels and monopolies and the Fair Competition Act is a
classic example of this kind of legislative effort. Regulatory Authorities
(SUMATRA, EWURA, TCRA, TCAA, etc.) have specific functions in their
spheres to monitor anti-competitive behavior within the given industry or sector.
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5. The Right to be Heard

i. This is the right to have consumer interests represented and expressed In the
making and execution of government policy. This means that a process of
consultation with the community, with consumers, needs to be established for
marketplace policy and law making. To be heard, consumers need to be
organized, seek representation and make a positive contribution to discussions on
consumer issues.
ii. Assurance of Governments mandate to promote and protect consumer interest is
essential. The Government has put in place mechanisms for realization of its
commitment to Consumer interests:
 FCC's Directorate Consumer Affairs.
 FCC's oversight in relation to COUNTERFEIT Goods - Merchandise Marks
Act Cap. 85 R.E. 2002.
 National Consumer Advocacy Council (NCAC).
 TCRA & other Regulatory Authorities' Consumer Councils.
iii. Consumer Organizations
 Tanzania Consumers Association
 Other Organizations

6. The Right to Redress

i. The right to fair settlement of just claims, to be compensated for
misrepresentation of defective goods or poor services. Consumers need to return
bad goods and refuse unsatisfactory services, and to get a cash refund or a
replacement provided by the trader or manufacturer.
ii. Remedies under the Law of Contracts, Torts, Sale of Goods and other quality
control legislation.
iii. Remedies through FCC's Mechanisms
iv. TCRA has a Disputes Resolution procedure under the Act: Complaints and
Disputes Resolution provisions (Part VIII of the Act) give certain enforcement
powers to the Authority:
41.- The Authority may make an order
(a) requiring a party to supply goods or services for
specified periods;
(b) requiring a party to supply goods or services or
specified terms and conditions;
(c) requiring a party to pay the costs of another party or of
a person appearing at the hearing or producing
documents;
(d) dismissing a complaint;
(e) imposing fines;
(f) for specific performance;
(g) for refunds;
(h) appointing trustees;
(i) setting up of escrow accounts; and for such other relief
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as may be deemed necessary or reasonable.

Appeals from the Authority go the Fair Competition Tribunal (Section 42 TCRA
Act).

7. The Right to a Healthy Environment

i. The right to live and work in an environment which is neither threatening nor
dangerous and which permits a life of dignity and well being for present and
future generations. The production, use and disposal of consumer goods and
services need to be considered by consumers. Particularly the impact of
consumer products on the fragile ecosystems. A sustainable environment can be
passed onto future generations without any damage and harm to the people.
ii. There is in place a statutory scheme for addressing these matters:
 The Environmental Management Act, 2004 - (Act No. 20/04). The Act
provides for legal and institutional framework for sustainable management of
environment; it outlines principles for management, impact and risk
assessments, prevention and control of pollution, waste management,
environmental quality standards, public participation, compliance and
enforcement; it further provides the basis for implementation of international
instruments on environment; provides for implementation of the National
Environment Policy; repeals the National Environment Management Act,
1983 and provides for continued existence of the National Environment
Management Council; provides for establishment of the National
Environmental Trust Fund and provides for other related matters

8. The Right to Consumer Education

i. The right to gain the knowledge and skills necessary to make informed, confident
choices about purchasing goods and services while being aware of basic
consumer rights and responsibilities. Consumer education may be provided by
governments or NGOs, or by traders, in schools and the community or in the
marketplace.
ii. Active Consumer Education is absent.

9. Incipient Rights
i. The Right to Boycott
 The right to resist and boycott any person, goods or services in the event of
conflict with consumer's interest
 CUTS of India elaborates that "Boycott can be defined as the social and
commercial intercourse: to refuse to take part in, deal with, handle by way of
trade, etc. It can be defined as the refusal to social and commercial relation
with (a person, group, country, etc.) or refusal to handle or use the goods".
 Precedents to this right have happened against products produced by Racist
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Regimes, Corporations violative of Human, Social and Cultural Rights.

Independence movements have used Boycott against colonial masters:
American, India and African Independence movements.

ii. The Right to Opportunity

 The right to opportunities to acquire basic needs which will enable one to
work and to earn a living, without exploitation.
 According to CUTS "opportunity can be defined as the means through which
human beings find the wherewithal to function in the society as consumers.
The existence of opportunity gives a person the freedom of enlargement of
his activities (both economic as well as social) in the dynamics of
participatory governance".

D. Consumer Responsibilities.

1. Critical Awareness
i. The responsibility to be alert and questioning about the price and quality of the
goods and services we buy and use. To look, listen and ask questions. We need to
shop around, checking the facts of products and services: Are they value for
money, value for people and value for the environment?
2. Action
i. The responsibility to assert ourselves and act to ensure that consumers get a fair
deal. As long as they remain passive consumers they will continue to be
exploited. When something is wrong; one must act to put it right.
3. Social Concern
i. The responsibility to be aware of the impact of the use of consumer goods and
services on other citizens, especially disadvantaged and powerless groups
whether in the local, national, regional or international community. Consumers
need to make sure that the products and services that they use are not produced in
a situation that harms others.
4. Environmental Concern/Sustainable Consumption
i. The responsibility to understand the environmental and other consequences of
our consumption. We should recognize our individual and collective
responsibility to conserve natural resources and protect the earth for future
generations. We need to make sure that the production, use and disposal of goods
and services do not harm the environment.
ii. Sustainable consumption is “the use of goods and services that
responds to basic needs and brings a better quality of life, while
minimising the use of natural resources, toxic materials and
emissions of waste and pollutants over the life cycle, so as not
to jeopardize the needs of future generations.” Consumptions
patterns that are responsive and sensitive to the earth’s
carrying capacity for present and future generations.
 Page 15 of 21

5. Working Together/Collective Action

i. The responsibility to organise together as consumers to develop the strength and
influence to promote and protect the interests of consumers. To stand with others
who are working for a fair and just marketplace and world. To do this we need to
establish consumer organizations in our communities and countries, and work
with other organizations that aim to.

E. CONSUMERS’ RIGHTS & DUTIES AS CUSTOMIZED BY TCRA-CCC FOR

THE COMMUNICATIONS SECTOR16:

1. RIGHTS

a) Access
 A consumer has a right to have access to basic communications services at
reasonable prices.

b) Information
 A consumer has a right to full pre-contractual information that is clear
(understandable), helpful, adequate and accurate on the services and choices
offered by a service provider/operator to facilitate the making of an informed
choice.
 Consumers have a right to receive information assistance to assist them in use of
services.
 Consumers have a right to have access to sector governing information.
 Consumers have a right to have comparative information.

c) Quality of Service
 Consumers have a right to receive a service with a quality that reflects the cost of
the service (Value for money).
 Consumers have a right to receive the level of quality of service that is quoted or
stated by the service provider/operator in the service agreement.

d) Fairness
 A consumer has a right to fair treatment without undue discrimination from
another consumer.
 Consumers have a right to fair terms of service.

e) Complaint
 A consumer has a right to complain about quality, delay, quantity and tariff with
regard to the nature of the communication service provided.
16
Adopted from TCRA’s Document entitled ‘Know Your Rights: Rights and Obligations of Consumers in the Communications
Sector’ Available on TCRA’s Website.
 Page 16 of 21

f) Redress
 A consumer has a fright to an effective system for handling of complaints.

g) Safety and security

 Consumers have a right to be provided services that are safe and secure.

h) Privacy
 Every Consumer has a Right to Privacy.

i) Consumer Education
 Consumers have a right to be educated on services being offered to them.

j) Notification of termination of service

 Consumers have the right to a notification of termination of service particularly
that of a basic service or Internet access.
 Consumers have a right to make representations to those delivering, regulating or
governing the communications services on matters pertaining to the services
offered to them and other consumer preference

k) Representation
 Consumers have a right to make representations to those delivering, regulating or
governing the communications services on matters pertaining to the services
offered to them and other consumer preference.

l) Billing Information
 Consumers have a right to access billing information.

2. CONSUMER DUTIES:

a) Prompt payment of bills

 Consumers have obligations to pay all their bills and clear these when they fall
due.

b) Environmental Protection
 Each consumer has a responsibility of ensuring that his/her utilization or
consumption of communication services is not in a manner hazardous to the
environment.

c) Awareness
 It is the responsibility of the consumer to be alert and to question issues such as
terms and conditions of service.
 Page 17 of 21

d) Action
 A consumer has an obligation to be assertive so as to ensure that he/she and other
users of the service(s) receive a fair deal.

e) Protection of communication facilities

 A consumer has a responsibility to protect all communication equipment and
facilities within his/her vicinity.

II. ESTABLISHMENT OF THE TCRA CONSUMER CONSULTATIVE COUNCIL.

A. The 2003 TCRA Act

1. Defining the Consumer: The communications consumer is the consumer of regulated
services under the TCRA Act not directly defined but in principle similar to the
definition given under the Fair Competition Act 2003 – see above).
2. Protecting the Consumer: By regulating service providers and suppliers of goods in
the regulated sector. Compliance machinery is established and the Regulator has
both quasi-legislative and quasi-judicial powers for enforcement of compliance.
3. Redress: Covered under the TCRA Act by giving quasi investigative and judicial
powers to the Regulator’s decisions are appealable to the Fair Competition Tribunal
as established by the Fair Competition Act, 2003.
B. Establishing the TCRA Consumer Consultative Council
1. Establishment of the Council.[Section 37]
i. The TCRA-CCC is established under Section 37(1) of the TCRA Act. It is
styled as a Consumer Consultative Council, but an analysis of the Functions of
the Council show that it is expected not to be merely advisory but also does some
advocacy work.
ii. The Minister is empowered under Section 37(2) to appoint between 7 and 10
persons who shall be Members of the Council with a tenure of three years.
iii. The appointment of Council members is a process that takes cognizance of the
complicated pro-consumer functions Council members have to undertake,
especially carrying out consultative and advisory function to market players who
occupy opposite, but complimentary, positions in the market - buyer, seller,
government. The Minister canvasses eligible names from the public by a Public
Notice in the media and publishes the names received for public comments,
objections and representation – Section 37(4). Once that is done a short list is
prepared for interview by professional consultants who, after the interviews,
place their Report before the Minister.
iv. In making appointments to the Council the Minister is enjoined by the Act
[section 37(5)] to have regard to the desirability of the Council, as a group, to
have:
 knowledge and understanding of the interests of consumers and knowledge
of the regulated services, as a primary focus. The regulated services
 Page 18 of 21

meaning those covered by the regulated sector in “telecommunications,

broadcasting, postal services, allocation and management of radio
spectrum and converging electronic technologies including the internet
and other Information Communication and Technologies (ICT)
applications” (Section 2)
 as a secondary focus, consideration of the interests of:
v low income, rural and disadvantaged persons;
v industrial and business users;
v government and community organizations.
v. The Council in consultation with the Minister is empowered to make its own
Rules regulating its procedures and other matters related to its functions [Section
37(6)].

2. Functions and powers of the Council. [Section 38]

 to represent the interest of consumers by making submissions to,
providing views and information to and consulting with the Authority,
Minister and sector Ministers;
 to receive and disseminate information and views on matters of interest
to consumers of regulated goods and services;
 to establish local, regional and sector consumer committees and consult
with them;
 to consult with industry, government and other consumer groups on
matters of interest to consumers of regulated goods and services.

The Authority is mandated by statute to provide for Secretarial Functions to the

Consultative Council in its first three years of existence and after that the Council
is required to maintain its own Secretariat, which is the case presently.

III. Challenges and Prospects for Consumer Advocacy

A. Rights-Based Challenges
1. The TCRA-CCC and other Consumer Councils must make an Audit of all Consumer
Issues that arise from each basic right of the Consumer. The Consultative Council
has already made significant strides in formulating a Consumer Rights Code for the
Communications Sector Consumers. It is imperative that informed choices can only
be made by an Informed Consumer who requires information, knowledge and skill
that may only arise if there is effort to organize and learn about such rights. A quick
look at the table attached herewith from Consumer International styled "The Eye of
the Consumer" lists issues an ordinary consumer must consider before purchasing a
product or retaining a service. The range of issues that must cross his mind before
making the purchase clearly shows what it takes to be an informed consumer. With
the onslaught of Consumer goods and imports, plus sophisticated gadgetry typical in
the communications sector, the Tanzania consumer is highly vulnerable and
unprepared. The Consumer Councils have to put on an emergency plan to put action
 Page 19 of 21

into words. A joint consumer council forum presently Chaired by Professor Katima
of EWURA is being prepared to be the basis for joint action for all Consumer
Councils including TCRA-CCC.
B. Institutional Set-Up Challenges
1. The TCRA-CCC must put up its Strategic Plans and build a National Network
whereby it can effectively reach Tanzanians. So far the TCRA-CCC is still a Dar Es
Salaam and major urban-areas phenomenon.
2. The funding options are still questionable as TCRA, like the other Triple Cs, does not
have an independent funding base. Presently great reliance is upon funding from the
Authority. This is seen by all the Councils as a conflicting set-up and may result in
making the Councils the pawns or hostages of the Regulators who hold the cash
strings. In a co-regulation model the regulator has to be institutionally independent
from the market stakeholders i.e. Government, Suppliers and Consumers.
3. There are serious challenges in the Consumer’s Dispute Settlement framework. The
Regulator appears to be a quasi – legislator in the sense of being given rule-making
powers; the Regulator has also quasi judicial powers in that within the complaints
and dispute resolution area he may settle disputes; and finally the Regulator has
Executive powers of issuing licenses and enforcement of compliance. Consumers are
somehow concerned about these extensive powers of the Regulator rife with conflict
of interest situations. Yet they do not have recourse to easily accessible dispute
settlement forums. The small claims courts, popular in UK and other countries,
appear to be an attractive solution. A mobile phone user in Ngara District who has
been abused by a service provider how is she going to get a remedy from a Regulator
centered in Dar Es Salaam? These are challenges that must be resolved within the
whole Consumer Protection framework. The government and all stakeholders must
come out with a comprehensive consumer protection policy that would cover all
these issues.
 Page 20 of 21

Resources & Literature:

1. Rachagan, S. Sothi. "Competition Policy and Law in the Consumer and Development
Interest". [UNCTAD & CI-Asia Pacific, July, 2003]
2. Singh, Ajit. "Competition and Competition Policy in Emerging Markets:
International and Developmental Dimensions" [UNCTAD, March 2002]
3. Nathan, S.S. Consumer Responsibilities & Rights; Workbook for Students
[CONCERT, Chennai, India. 2003]
4. Emmert, et al. "Analysis of Statements for and Against Competition Policies for
Emerging Market Economies.' [University of Halle, Germany. 2005]
5. ESRF Competition Law & Policy - A Tool for Development in Tanzania [CUTS
India, 2002]
6. CAG. Reaching Out to Young Consumers: A Manual for Trainers [CAG Chennai
India, 2003]
7. CI-South Pacific "Cola or Coconut? - Consumer Education for Pacific Students"
[1996]
8. Asian Development Bank (ADB) "Competition Tool-Kit"
http://www.adb.org/Documents/Others/OGC-Toolkits/Competition-Law/default.asp
9. Mkocha, Godfrey E. " Submission Made to UNCTAD on Interface between
Competition and Regulatory Bodies in Tanzania." [UNCTAD - 2002]
10. Mkocha, Godfrey E. " Explanatory Notes to the Fair Competition Act 2003"
[UNCTAD - 2003]
11. Mkocha, Godfrey E. "Greater Economic Development through the Promotion of
Competition" [OECD, 2004]
12. Mkocha, Godfrey E. " Competition Issues and Policies in Tanzania." A paper
presented at the Fair Competition Tribunal's Workshop on Competition Issues and
Available Remedies at Protea Courtyard Hotel, March 23-24, 2007.
13. NCAC - "Consumer Protection: What Should Tanzania Consumers Know." [FCC -
Consumer Affairs Directorate - March, 2007].
14. Cseres, Kati, "The Impact of Consumer Protection on Competition and
Competition Law: The Case of Deregulated Markets “. Amsterdam Center for
Law & Economics Working Paper No. 2006-05. Available at SSRN:
http://ssrn.com/abstract=903284
15. Nditi, Nicholas N.N, Consumer Protection Law and Practice: Its
Relevance and Reality in a Developing Economy with Special Reference
to Tanzania. [PhD Thesis, 1987, University of Dar Es Salaam].
 Page 21 of 21

THE EYE OF THE CONSUMER

Health Legal
*Is it labelled?
*Is it dangerous to health ?
*Is there an expiry date ?
How?
*Is it shortweight?
*Does it make me healthier ?
*If it is spoilt, can I return it?
*Is it nutritious?
*Is production according to
*Is it hygienically prepared ?
safety regulations ?
*Has its production caused
*Is it being dumped in other
ill health to workers?
countries ?
*Does it undermine the
*Does the company respect
health system ?
workers ?

Legal
*Is it labelled?
Environment *Is there an expiry date?
*Does it cause pollution? *Is it shortweight ?

PRODUCT
*Does it cause a little
problem?
*If it is spoilt , can I return it?
*How do I dispose of it? *Is production according to
*Bio-degradeable wrappers? safety regulations?
*De-forestation? *Is it being dumped in other
*Wasteful packaging? countries?
*Toxic waste generated? *Does the company respect
*Promotes wastage or workers?
conservation?

Social
Safety
* Is advertising true and
real?
* Has advertising influenced
me?
* Are there chemical
* Does it undermine my
additives ?
cultural values?
* Does it create social
*Are the ingredients safe ?
problems?
* What are the social costs
*Are production workers
of production and
safe ?
marketing ?