Consumer protection is an issue of serious concern in St. Lucia. For some time now, consumers have been calling for protection from businesses that sell faulty substandard product, do not honor warranty claims, or do not provide refunds when it is clear the problem is their fault. Complaints are levied at all quadrants of the sector, manufacturing, retail, and entertainment. However, most of the complaints appear to be levied at retailers.It has been rumored that the Ministry of Trade is considering the setup of a consumer protection body. Such a body may be useful depending on its mandate and whether it is given the authority and the resources to carry out its functions properly. One may question the potential effectiveness of such a body, given that such a body, an initiative of the government, will have to challenge some of the very same businesses that make campaign contributions to its coffers. More likely than not, consumers will not trust a government initiated consumer protection agency (CPA). To be effective, a CPA will have to be an arms-length body with no government appointees. We all know that to achieve such in our fair country is a tall order. It is my opinion that there may be some other potentially effective (but not mutually exclusive) ways to improve the relationship between consumers and the business sector - ways which are less antagonistic and are initiated by business itself.
We can start from the premise that business care very much about its collective image, and that no one business would want another to tarnish an image that it has worked very hard to build. A company such as Courts (St. Lucia) Ltd., for example, which many consumers feel is largely responsible for facilitating an improvement in the standard of living of the average St. Lucian through higher purchase, would be quite concerned if a major competitor were to be conducting unethical practices with respect to credit offer. Courts would stand to loose from a potential loss of public confidence in higher purchase transactions. Hence Courts has a vested interested in the fairness practice of its competitors and others. If we accept that such a principle is adhered to by some of our business organizations, then those that are ethical and professional would want to distance themselves from and put pressure on those businesses that exhibit unethical and fraudulent behavior, treat customers with disrespect, disregard principles of fairness, and sell substandard product. This move would have among others, two important benefits : 1) improved public trust in those businesses upholding good ethical standards, and 2) forcing out of the market unworthy competition, or forcing businesses with poor standards to improve their operations.
All over North America, there is an organization which facilitates the practice of self-regulation for the business sector. This body, known as the Better Business Bureau (BBB), embodies the basic principle(s) alluded to in the last paragraph. In Canada, some 16 cities have Better Business Bureaus, and there are hundreds of them all over the United States of America. A Better Business Bureau is not a consumer advocate, nor is it a champion for business. A BBB is a communication link between business and the consumer when normal communications may have failed. Consequently, a BBB serves both business and the consumer.
A BBB is a self-governing organization established by the local business community. Each has a Board of Directors made up of local business leaders which directs policy, establishes program priorities, determines qualifications for membership, and sets the formula and rate for membership fees. A BBB is supported almost exclusively by membership dues of the local businesses and subsidiaries of national businesses.
BBBs are committed to the principle that fair dealing is good both for the consumer and the business, and that by far, most businesses and consumers are honest and responsible. Hence the work of a BBB concentrates on: 1) self-regulatory procedures through which the business sector can discipline unfair trade practices, and 2) the collection and dispersal of information to consumers to help them make sound buying decisions.
A typical BBB undertakes the following programs and activities: 1) to promote and assist in maintaining truth, honesty, and accuracy in advertising and selling practices, and to help increase justified public confidence in the printed and spoken word of business; 2) to improve and maintain the over-all ethical standards on which business is transacted in the community; 3) to expose trade practices that are regarded as unethical or that are not in the interest of the consumer and legitimate business; 4) to inform and educate the public as to honest and legitimate advertising and selling, and as to that which is misleading, dishonest, and improper; 5) to act as a medium for exchange of information for consumers or business organizations in respect of the acts of any person that are of a questionable or unethical nature; 6) to assist in the development of a code of ethics for any group of business or organization in order to ensure that the interest of the public are protected against misrepresentation in any form; 7) to provide information to the members and to the public on all types of solicitations.
A BBB typically responds to hundreds of inquiries of all sorts. Does the ABC Ltd. exist? Is it legitimate? Have there been significant complaints against ABC Ltd.? How has ABC Ltd. dealt with these complaints? The BBB will provide information about the company based on its current files. Consumers therefore, are encouraged to contact their local BBBs to obtain information about a company before transacting significant business. It is the belief that with such a practice of consumers seeking a positive reference on companies before making purchases, companies will be motivated to address the complaints levied against them.
A BBB can be approached by a consumer to act as a neutral and objective mediator when customer dissatisfaction with a business relationship appear difficult to resolve through direct business-customer contact. There is a formal arbitration process used by most BBBs.
While a BBB does not have the authority to convict a business for unethical practice, make collections, provide credit information, recommend or endorse, or pass judgment on the prices and quality of products, there are some things that it can do to deter unethical behavior. A BBB produces reports based on consumer experience to its members. Companies with a "bad rap" will be known to all members (I call this the "shame factor"). But some businesses are not easily intimidated. The BBB can publicize the activities of a firm through bulletins issued to both members and the media. Another effective weapon comes from a cooperative relationship with the media. In those cases where unanswered complaints about a firm build up in the bureau’s files, the BBB may open the file to the media and suggest that further advertising of the firm is no longer in the public interest. Usually, the advertising media will inform the company that their advertising privileges are suspended pending satisfactory resolution of the complaints levied against them.
BBBs represent one facet of a need for a multi-dimensional strategy for improving the relationship between the consumer and business. BBBs provide an opportunity for businesses themselves to take initiative in contributing to the desirable relationship.
Does the idea of a BBB make sense for St. Lucia? Can we trust our business community to self-regulate in good faith? Do we have a sophisticated enough business community to allow such an idea to work? It is my opinion that SLISSBA and the St. Lucia Chamber of Commerce should come together to explore the possibility of such a concept. They are ideal bodies to initiate a BBB. For as it stands, public confidence in the market place is quite low, and that antagonistic measures such as a consumer protection agency (while needed) will not guarantee an improvement in public confidence in the sector. Public confidence will only be inspired when the business community take ownership of the problem.
It must be borne in mind that businesses do not have to join a BBB. Membership is voluntary. Interestingly enough though, because of a what a BBB stands for, many businesses will sign up so they can display a plaque saying "A Member of the Better Business Bureau of St. Lucia". It would be necessary that high ethical standards are set as part of the qualifications for membership.
It is my belief that a BBB carrying out its mandate to the fullest would be a valuable addition to the economic infrastructure of St. Lucia. But are we ready?
