MOTI betrays consumers with delayed legislation-CSOs

In a scathing indictment of the nation’s legislative process, consumer advocates yesterday accused the government of leaving 34.5 million Ghanaians vulnerable to unfair business practices due to a 19-year delay in passing crucial consumer protection legislation.

Speaking at a press conference in Accra, Mr. Koffi Kapito, CEO of the Consumer Protection Agency (CPA), lambasted the Ministry of Trade and Industry (MOTI) for allowing the draft Consumer Protection Bill to “gather dust” since 2005.

“For nearly two decades, every Ghanaian consumer has been left at the mercy of unscrupulous businesses,” Mr. Kapito declared.

“This is not just a failure of governance; it is a betrayal of the fundamental rights of our citizens,” he added.

The prolonged delay has raised eyebrows among policy analysts and economists, who warn that the absence of comprehensive consumer protection laws could have far-reaching implications for the economy.

Appiah Kusi Adomako, West African Regional Director of CUTS International (Consumer Unity & Trust Society told the B&FT: “Without robust consumer protection, we risk undermining consumer confidence, a key driver of economic growth.

This regulatory vacuum could also deter foreign investment, as Ghana may be perceived as having an unpredictable or unfair marketplace.”

The Consumer Protection Bill, initially drafted in 2005 during President Kufour’s administration, has languished in bureaucratic limbo despite repeated promises from successive governments to prioritize its passage.

In a stark illustration of the bill’s stagnation, Kapito pointed out that the National Petroleum Authority (NPA) Bill, which began the legislative process simultaneously in 2005, was passed into law that same year. The NPA has since operated under this framework and is now seeking to update its legislation.

“How can we explain to the Ghanaian people that while one sector has had nearly two decades of regulatory clarity, the basic rights of every consumer remain unprotected? “he questioned.

The press conference highlighted several real-world consequences of the legislative vacuum. Cases of contaminated food products, faulty goods with no recourse for buyers, and damages from utility company negligence were cited as everyday realities for Ghanaian consumers.

Political promises to address the issue have come and gone. The New Patriotic Party (NPP), in its 2016 election manifesto, pledged to “facilitate the passage of a Consumer Protection Law.” Yet, nearly eight years into their administration, the bill remains stalled.

Whilst the National Democratic Congress (NDC) has now included the passage of the Consumer Protection Act in its 2024 manifesto, Mr. Kapito, on account of previous instances, was unsure if it would come to fruition.

“We have seen it captured before. How are we sure it is not a political gimmick?” he quizzed.

The CPA’s frustration with the lack of progress was palpable. Mr. Kapito announced plans to escalate their advocacy efforts, including a petition to the President and Parliament leadership, and the organization of protests at the Ministry of Trade and Industry.

“We will mobilize one thousand Ghanaian consumers to picket at the premises of the Ministry until we see concrete action,” Mr. Kapito declared.

The prolonged delay has also fueled speculation about the influence of business interests on the legislative process. Ghana has seen a proliferation of industry chambers and associations in recent years, leading some to question whether these groups are lobbying against consumer protection measures.

“People of the same trade seldom meet together, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices,” Mr. Kapito said, hinting at the potential for business interests to prioritize profits over consumer welfare.

The government’s apparent inaction on consumer protection stands in stark contrast to its swift response to international pressures. Kapito noted that bills tied to IMF conditionalities, such as the recently passed Affirmative Action Act, move through Parliament with remarkable speed.

“Do we need an IMF or a foreign country to tell our government that the Consumer Protection Bill is good to protect Ghanaians from unlawful and unfair business conduct?” the CPA’s executive asked rhetorically.

As tension mounts, the CPA has called on the Minister of Trade, K.T. Hammond, to introduce the bill to Parliament when it reconvenes in October, hoping to avert the need for mass demonstration.

Addressing concerns that with elections on the horizon, the attention of stakeholders, particularly legislators, would be elsewhere, Mr. Kapito argued that their actions on the matter would indicate if they had genuine regard for their constituents.

“This would show us if they truly care about those who they beg and sometimes have to bribe to vote for them,” he noted.