StephensonTHE Fair Trading Commission (FTC) has decided to go on the offensive this Christmas, reminding the business community that the Fair Competition Act (FCA) prohibits comparative price advertising which is false or misleading and undermines fair competition.
The Commission is issuing a strong warning to the sector that during the festive season, it will be closely monitoring all comparative price advertisements which, by their nature, are designed to urge consumers to make purchases based on expected savings. Examples of this practice include businesses which offer specials of 50 per cent off an inflated price.
The FTC's executive director, Stewart Stephenson addressing a press briefing at its headquarters at Grenada Crescent, New Kingston said: "If the Commission finds that there is no sound basis for the comparison and that the bargain claims are fictitious, it will institute legal proceedings against the offending businesses, pursuant to its broad statutory powers.
"The Commission also wishes to remind businesses, that they should ensure that their catalogues and advertising brochures do not contain any errors. Failure to do so will result in a breach of the Fair Competition Act."
Mr. Stephenson drew attention to a recent case where a major furniture and appliance retailer issued a catalogue displaying a 27-inch television set. A customer purchased one of these televisions only for a 25-inch television set to be delivered to the customer. The company in question argued that the catalogue contained an error. After the intervention of the Commission, the company issued a retraction of the catalogue and refunded the customer.
The director expressed concerns about advertisements which depict photographs that are not representative of the items being sold by the business. This is widely known as "switch and bait" where the consumer is lured into a business with a false promise and eventually purchases another item, which he was not initially interested in. This may also be considered a disingenuous advertising ploy and therefore a breach of Section 37 of the Fair Competition Act.
He called for the advertising agencies operating in Jamaica to ensure that they are more cognisant of their responsibilities and be vigilant in ensuring that they do not breach the Fair Competition Act.
"Last Christmas the Commission received a number of complaints in relation to the delivery time for furniture and appliances. Customers entered many establishments and were told that the desired items were in stock. The customer then pays for the item, and is told that it will be delivered within a specific period. In many cases, delivery does not take place until months later, long after the Christmas season is over. In one case we investigated, a customer made full payment to a large furniture and appliance dealer for a bookcase and was promised immediate delivery. The item was delivered four months later and only after the Commission's intervention," said Mr. Stephenson.
He further added that the Commission was not a punitive body set up to call attention to the misdemeanours of companies but rather it sought fairness and equitable solutions in cases where the consumer was duped or unjustly exploited.
Section 46 of the Fair Trading Act allows the Commission to apply to the Supreme Court for the imposition of penalties of up to $5 million against businesses who fail to comply with fair practices.
Mr. Stephenson who is an attorney-at-law has been appointed Consul General to Toronto, Canada and is expected to begin his posting next month. He will succeed Herman LaMont who has been re-assigned to the Ministry of Foreign Affairs and Foreign Trade.
