INVESTMENT FOR DEVELOPMENT (IFD Project)

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International Investment Rule-Making: Overview, Relevance and Role of Civil Society, Particularly Non-Governmental Organizations: Khalil Hamdani

Benefits and Costs of FDI for Development: An ongoing OECD project:  Hans Christiansen

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International Investment and Environmental issues: the case of Kenya's Kwale mineral sands project : David O Ongo’lo

Can Developing Countries use Foreign Investment to move up the Development Ladder: Suman Bery

Consumer Public Perceptions of Competition Policy and Consumer Protection in South Africa: Diane R Terblanche

 

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Consumer Public Perceptions of Competition Policy and Consumer Protection in South Africa 

INTRODUCTION

ASSESSING CONSUMER PERCEPTIONS

CONSUMER PERCEPTION IN SOUTH AFRICA

FACTORS INFLUENCING CONSUMER PERCEPTIONS

INDICATORS OF PUBLIC PERCEPTIONS

CONCLUSIONS / FINDINGS THAT CAN BE DRAWN

CONSIDERATIONS

DIANE R TERBLANCHE, Consumer Institute of South Africa, South Africa

INTRODUCTION

The transformation in South Africa from the “old” Competition Board to the Competition Commission and the Competition Tribunal is quite a recent event. The agencies themselves are still in the process of finding their feet, interpreting their mandates in terms of the policy and the legislation and reflecting that to the public.

Perceptions of competition policy and consumer protection are largely affected and influenced by how consumers see these “new” agencies interpreting their mandates and executing them. In real terms the perceptions are driven by whether the various consumers – individual consumers, small business, large corporates, etc. - see a real advantage accruing to their respective interests in the implementation of competition policy and consumer protection.

ASSESSING CONSUMER PERCEPTIONS

Assessing consumer perceptions on consumer protection and competition policy is by no means an uncomplicated process. In our view this requires a sound and well thought out methodology that enables an objectively verifiable measure of consumer perceptions as positive, negative or neutral.

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CONSUMER PERCEPTION IN SOUTH AFRICA

I have to state at the outset that we are not aware of, nor have we conducted, any study to objectively assess consumer perceptions in this arena. Our view on how consumers perceive competition policy and consumer protection is based on our interpretation of the communications, complaints and queries we receive from consumers in our daily operation. Our view is also informed by an analysis of the complaints (profile of complainants) received by the Competition Commission and newspaper articles covered on various competition topics.

Consumers are largely unaware of competition policy and consumer protection and how it can potentially impact on them and improve the quality of their lives. The mechanisms of the competition institutions are largely, if not exclusively, utilised by corporate entities. In this type of environment it is not possible to assess or conduct a study of consumer perceptions that will give an accurate reflection.

At a competition conference hosted by the Competition Commission and the Competition Tribunal during 2000, most consumer representatives were at a loss as to what competition policy means within the context of consumer protection and how they can make it meaningful and concrete to their constituent members.

FACTORS INFLUENCING CONSUMER PERCEPTIONS

The major factors that impact on the indicators that can usefully be applied to objectively evaluate consumer perceptions are consumers’ awareness and knowledge of competition policy, law and regulation; access to resources and a platform to make perceptions known, levels of literacy, and availability of independent policy research.

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INDICATORS OF PUBLIC PERCEPTIONS

There are various indicators that can be used to guide a view on how competition policy and consumer protection is perceived by consumers. In the interests of time I will merely list them below.

  1. Legislation, regulation and implementation.

  2. The impact of competition policy and consumer protection on the economy.

  3. Positive and negative statements regarding competition policy.

  4. Location of implementing agencies.

  5. Confidence and trust in implementing agencies.

  6. Outreach / assistance provided by institutions.

  7. Usage of institutional structures.

  8. Competition policy and Intellectual property rights.

  9. Best known organisations categorised in institutional groups.

  10. Whom competition policy and consumer protection is aimed at protecting.

  11. Attitudes of the stakeholders.

  12. Stakeholder influence.

  13. Institutional affiliation of six most mentioned personalities.

  14. Cooperation network.

CONCLUSIONS / FINDINGS THAT CAN BE DRAWN

Once the above indicators have been recorded, conclusions or findings can be drawn of consumer perceptions on the legislation, policy and implementation; potential of competition policy and consumer protection to address its stated objectives and whether it is the most appropriate method of addressing the stated objectives

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CONSIDERATIONS

The major considerations, over and above sound research practice, are the size and representativity of survey samples in terms of rural/urban, the geographical reach of the study, etceteras; and the independence of the researcher(s).

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