OFFICIAL PUBLICATION CONSUMER PROTEC TION COMMISSION, MINISTRY OF LABOUR & NATIONAL INSURANCE
VOL. 4 ISSUE 4
2017: THE YEAR IN
REVIEW PRODUCED BY THE TRIBUNE
DECEMBER/JANUARY/FEBRUARY 2018
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CONSUMER VOICE
THE TRIBUNE
THE TRIBUNE
CONSUMER VOICE
Tuesday, December 12, 2017 ● PAGE 3
Digital Financial Services and consumer protection T
HE International Telecommunication Union (ITU) is the United Nations specialised agency in the field of telecommunications, information and communication technologies (ICTs). The ITU Telecommunication Standardisation Sector (ITU-T) is a permanent organ of ITU. ITU-T is responsible for studying technical, operating and tariff questions and issuing Recommendations on them with a view to standardising telecommunications on a worldwide basis. Digital Financial Services (DFS) refers to the use of an electronic device or system to access financial services such as storing funds, making and receiving payments, applying for credit or for insurance. Due to the inaccessibility and high costs of formal banking for low income and rural communities (See June 2017 Consumer Voice – The Unbanked Bahamian) and the increase in access to mobile phones, DFS has become a viable way for the unbanked to access formal financial services (Potnis, 2014). Increasing access to formal financial services and thus reducing financial exclusion is seen as an important development goal as it has been argued to stimulate economic growth, thereby increasing welfare and reducing poverty (Kundu, 2015). The legal and regulatory frameworks which govern DFS play a critical role in creating an enabling environment for low income and unbanked populations to become financially included. One important aspect within regulation is how the rights and interests of consumers are protected and promoted. Consumer trust is the foundation for achieving sustainable uptake and active usage of DFS. This includes protecting consumers from fraud, safeguarding personal data and consumer funds, ensuring transparency and ensuring recourse mechanisms are available. Financial consumer protection has gained increased attention since the global financial crisis, which increased pressure for providers to be transparent in their business conduct, disclose key information about their products and services, and treat consumers fairly and ethically (Tiwok, 2013). An effective consumer protection framework within DFS can increase consumer confidence thereby increasing adoption and active use of the services.
This is even more important for unbanked users who may not have prior experience with formal banking services (World Bank, 2014). While the interests of consumers (and especially low income consumers to increase financial inclusion) are important, it is also imperative that the legal and regulatory framework remains fair and balanced for all stakeholders (World Bank, 2015). We took a different approach to our article selection this year; as whereas in past years we spoke to the World Consumer Rights Day (WCRD) theme exclusively in our March edition, we used “Building a Digital World Consumers Can Trust” as a sub-theme throughout the year. And so Consumer Voice readers were treated to a series as it were, of articles that approached this general theme
from different angles and perspectives; The Unbanked Bahamian, Towards a Cashless Bahamas, The Mobile Money Industry were all researched and featured. As we conclude the year, we find ourselves in the unusual position, in that it has never happened before, of being able to say in December what the 2018 World Consumer Rights Day (15th March) theme is. Consumers International, the international confederation of consumer organisations, announced on 23rd November 2017, that next year’s theme is “Making Digital Marketplaces Fairer”. E-commerce, or buying products and services online, has transformed the way we consume. Consumers with a connected device and a payment method can
buy anything from music to take-away; book transport and accommodation; or buy tickets to events. This new way to trade has opened up a vast array of choice for consumers and enhanced convenience on a scale never seen before. However, along with benefits, e-commerce raises key issues for consumers such as: access to fair and secure markets, being sure there is redress when things go wrong, and being exposed to scams and fraud. We will speak more to “Making Digital Marketplaces Fairer” in 2018. As we close, we say a special thank you to our readers, writers, advertisers and all those entities that have supported The Consumer Voice over these past four years; from our family to yours, Merry Christmas and a fabulous New Year!
Christmas greetings
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CONSUMER VOICE
THE TRIBUNE
from the Consumer Protection Commission
A
S we look back over the year that was, 2017, it was indeed a very eventful one for us here at the Consumer Protection Commission (CPC). It is appropriate then, that we reflect on our past challenges and successes, as we look with anticipation to more advances in the field of consumer protection in the New Year. The Government of The Bahamas appointed a new CPC Board that came into effect in July of this year. The Commission is a Unit of the Ministry of Labour, tasked with the responsibility to inform and protect the consumer interest in The Bahamas; our enabling legislation is the Consumer Protection Act of 2006. One of the initiatives of our Minister, Senator the Hon Dion Foulkes, was the fostering of greater harmony and cooperation between entities within his ministerial portfolio. As a consequence, regular tri-partite meetings between the Consumer Protection Commission, Bahamas Bureau of Standards and Quality (BBSQ) and the Price Commission have been instituted. These meetings will be expanded in the New Year to include other stakeholders, all in a concerted effort to harmonise and co-ordinate efforts on behalf of Bahamian consumers. Another highlight this year as we review 2017 would be the publication of CPC’s consumer banking survey in March. The purpose of the survey was to gauge public opinion and perceptions on local bank fees and services. The response to the survey has been phenomenal, and Minister Foulkes met with the Clearing Banks in October to discuss banking fees and other related matters. The banking fees remain a crucial consideration for consumers. We look forward to some relief in 2018 as some consideration is being given to halt any further increases in respect to banking and related fees. Consumer Education is an integral part of the mission at the CPC. We will be seeking to launch a series of Public Service Announcements (PSAs) in collaboration with Bahamas Information Services (BIS) in 2018, which will further educate consumers on the work of the Commission and the process for launching a complaint via the Internet platform. CPC will also be spearheading local activities to commemorate World Consumer Rights Day (WCRD) celebrated around the world annually on 15th March. We look forward to continuing the work to advance the work of the Commission in 2018, not only in New Providence but on our Family Islands as well. So from all of us here at CPC, we wish you and yours a very Merry Christmas, and a bright and prosperous New Year!
Philip Beneby Chairman Consumer Protection Commission
PHILIP BENEBY
CONSUMER VOICE
THE TRIBUNE
Tuesday, December 12, 2017 ● PAGE 5
FINANCIAL LITERACY AND INVESTOR EDUCATION ‘Thank you Commissioner Morris’ PILOT STUDY LAUNCHED IN PUBLIC SCHOOLS THE Securities Commission of The Bahamas (“the Commission”) has partnered with the Ministry of Education (MOE) to develop and launch a financial literacy/investor education pilot study in The Bahamas. The pilot study, designed to test the delivery of financial concepts and provide students with real world skills to develop sound financial practices and manage their money, was launched during the first week of October. Minister of Education Jeffrey Lloyd expressed the importance of financial literacy/ investor education being introduced in the schools. “The fundamental financial concepts taught in the programme will pave the way for our children to develop good attitudes and behaviours to achieve financial success as they mature,” he said. “We hope this pilot study will inform the
development of a national curriculum that teaches these financial skills to all Bahamians, from kindergarten to graduation.” Christina Rolle, the commission’s executive director, thanked the MOE for its support, and for partnering with the Commission to help students in The Bahamas learn these important financial skills. Curricula for financial literacy and investor education were developed for students at both the primary and junior high school levels. The pilot course is being introduced in three schools in Nassau, namely: AF Adderley Junior High, HO Nash Junior High and CW Sawyer Primary. The Commission and the MOE are also working to develop a programme to start inculcating key concepts at even earlier stages. The high school curriculum focuses on nine core areas including understanding money; basic numeracy for financial
literacy; planning for financial success; saving; introduction to investing; the capital markets; risk and diversification; getting advice and avoiding frauds and scams. The primary school module is designed to cover more fundamental areas and focus on basics such as understanding money and saving. The timeframe for the pilot study will be approximately one schoolyear and will include pre-and post- evaluations administered to students in the study and control groups to assess the success of the programme in delivering key concepts. Upon completion of the pilot study year, it is intended that a full financial literacy programme will be rolled out to all grade levels in the primary and secondary schools. More information about the investor education programme can be found on the Commission’s website: www.scb.gov.bs.
My name is Roslyn WilI never expected to receive liams, and I want to say a response but I did! Just a personal thank you to a few days after submitting Commissioner Morris and my application, Commisthe wonderful team at sioner Morris contacted me Consumer Protection Com- WILLIAMS to acknowledge receipt of mission for a job well done. my complaint against the During August, I went into an company and informed me that establishment to purchase uni- as soon as the investigation was form shirts for my son. He tried done he would get back to me. In on the sample shirt and I pur- less than 10 days, Commissioner chased accordingly. However, Morris called me and asked what when he opened one it was much I preferred, the shirts exchanged bigger so I decided to go back to or cash back. Of course, I no the store to make an exchange longer wanted to do business with for a smaller size. I did not think the company, so I was directed to it would be a problem but it was! go into the store the next day and I was told I had to pay a 15 per I received a full refund. cent re-stocking fee if I wanted Thanks to Commissioner them exchanged. This did not Morris, I got a positive outcome make sense to me, but the man- and was educated about my rights ager refused to budge saying that as a consumer. Again, I would like it was the store’s policy. I was very to extend my sincerest gratitude frustrated that day for the way I to Commissioner Morris and the was treated. entire staff at Consumer ProtecUpon recommendation, I tion Commission. Continue to do decided to contact Consumer well for the public. We are indeed Protection Commission. I was heading in the right direction. I asked to complete a formal know good things will happen in report. This I did quite honestly, the future.
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Getting healthy with Dr Brennen THE health of the nation is the wealth of the nation. This old adage still holds true today. While there are many things for Bahamians to celebrate – our vibrant culture, world-class tourism experiences and pristine beaches – the health of our population is not one of them. About five years ago, I was involved with the STEPS survey, a population-based survey of adults aged 25-64 with the purpose of examining the prevalence of chronic disease risk factors in The Bahamas. Here were a few of the notable findings: 50 per cent of Bahamian adults have low activity levels; 80 per cent are overweight and 49 per cent are obese;
24 per cent have diabetes; 16 per cent have high cholesterol; 60 per cent of adults have three or more risk factors, heart disease and other chronic conditions; 34 per cent have high blood pressure; 21 per cent of men engage in heavy episodic drinking; and 11 per cent smoke tobacco daily. Moreover, the latest national data shows that six out of 10 Bahamians have three or more risk factors that can lead to a non-communicable disease, such as diabetes, heart disease, stroke or cancer. While these findings are worrisome, the good news is there are things we can do to improve these conditions. By simply making healthier food choices and
DR DELON BRENNEN, MD MPH Managing Director (Ag), National Health Insurance Authority Deputy Chief Medical Officer, Ministry of Health exercising regularly, we can reduce the prevalence of many of these chronic disease risk factors. • Here are a few tips to keep in mind: Read food labels when grocery shopping. Choose
foods that are low in saturated fats, trans fats, cholesterol, salt (sodium) and sugar. Eat only in designated areas of your home, such as the kitchen or dining room. Discourage eating meals and snacks while watching TV or in the car. It makes it difficult to pay attention to feelings of fullness and could lead to overeating. Make the right food choices when eating out. Go for the fresh conch salad and grilled snapper next time and avoid the fried foods. Introduce activity into your TV-watching schedule. From sit-ups to skipping or a quick run up and down steps, there are plenty of ways to squeeze a mini-workout into each
commercial break. Just keep moving. Regularly check your blood pressure. By eating healthy and limiting the amount of alcohol you drink, you can reduce your blood pressure and avoid dangerous problems such as heart attack and stroke that can result from high blood pressure. While many of these tips can help improve your health, remember that early detection of chronic diseases is the best way to prevent them from getting worse. As you may know, NHI Bahamas covers annual checkups with your doctor at no cost at point of service. Blood pressure monitoring, diabetes screening, and counselling for smoking and alcoholism are also provided at
no cost at point of care for NHI Bahamas beneficiaries. To learn more about the Primary Care services that are currently being offered by NHI Bahamas, visit our website at nhibahamas.gov.bs If you haven’t enrolled in NHI Bahamas yet, it’s easy. All you need is your NIB Smart Card and to have been living in The Bahamas for at least the last six months. You can enrol online on the NHI website or in-person at the NHI Bahamas Office on East Street and Purpose Way in Nassau. In 2018, let’s make a commitment to get healthy again. All it takes is a few simple lifestyle changes and taking advantage of available progammes.
ENROL IN NHI BAHAMAS Legal residents of The Bahamas can access Primary Care services at no cost at point of care.
NOT SURE IF YOU’RE ELIGIBLE? All you need is your NIB Smart Card and to have been residing in The Bahamas for the last six months.
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Tuesday, December 12, 2017 ● PAGE 7
CONSUMER PROTECTION COMMISSION IN ACTION
I’m pleased to report that (name of company withheld) did deposit $450 into my account on Friday. Thank you very much for your efforts. I am very impressed with your effectiveness and if at all helpful, I would be glad to provide a formal reference or recommendation. Also note, I will be making a donation to the Bahamas Humane Society (or another charity of choice) on account of your recovery of this money. Andrew Hamilton
THINGS had not been going well for me for some time but my world was recently turned upside down when I got some terrible treatment from a local bank. With no money and nowhere to turn, I thought I might as well tell my story to the folks at the Consumer Protection Commission, and see if there was anything that they might be able to do. The instant I entered the office I was warmly greeted by the receptionist, met Commissioner Mike Thompson and told him my story. They took copies of my supporting documentation and gave me their e-mail address so that I could elaborate on my circumstances. I honestly did not have high expectations but my spirit was buoyed by the compassion and professionalism shown to me by the Commission. The follow up was quick and within days the bank agreed to change their position! A small victory that was not possible without their help. This eventually led to a more significant position change by the bank and I was able to return to a somewhat stable existence. I highly recommend that people who find themselves backed into a corner with nowhere to turn should enlist the excellent assistance that the Consumer Protection Commission will offer. I am truly grateful for what they did for me when I was at one of the lowest points in my life. They are only a call or a visit or an e-mail away from being able to help you if you find yourself downtrodden and being treated unfairly. Brian M. Evans
● Protecting Investors ● Ensuring the integrity of the capital markets ● Regulating the investment funds, securities and capital markets Securities Commission of The Bahamas ● Charlotte House, Shirley and Charlotte Streets, Nassau, The Bahamas ● Telephone: 242-397-4100 ● www.scb.gov.bs
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TOP CONSUMER HOLIDAY SHOPPING TIPS CALLING all shoppers: The holiday season is the busiest time of year for most shoppers and retail stores, and it is an important time to be a smart shopper. The holidays are just around the corner. And whether you like to meander through the mall or search for deals online, whether you’re shopping by phone, mail or online, here are a few tips to help you shop wisely, save a few bucks AND AVOID SCAMMERS. It’s also the time of year when many persons contribute to charities in the spirit of holiday giving. The Consumer Protection Commission Bahamas has a gift for you- shopping tips to help you watch your wallet, shop wisely and protect your personal information: 1. Make a list/budget AND STICK WITH IT. 2. Shop around: A “sale” price isn’t always the “best” price. Just because it’s “on sale” does not mean it’s a good deal. Retailers sometimes inflate the “original price” of an item and then reduce the price to make it look like a bargain. 3. Read Sales Ads carefully: Some may say “quantities limited, no rain checks”, or “not available at all stores”. Before you step out the door, check or call ahead to make sure the merchant has the items in stock. 4. Take time and travel cost into consideration: If an item is on sale, but its way across town, how much are you really saving once you factor in your time, wait, transportation, and parking? Is it worth it? 5. Shopping Apps: Be aware that shopping apps can collect a lot of information, like your name, address, phone number,
THE HOLIDAY season is the busiest time of year for most shoppers and retail stores, and it is an important time to be a smart shopper. email, and number. Look for apps that tell you what they do with your data and how they keep it secure. 6. Warranties: Check out product warranties. Although not required by law, warranties come with most major purchases. 7. Personal Information: Don’t give out personal information for a chance to win the newest tech toy or a free gift card. Your information can be sold or used to commit identity theft. 8. Rebates/ Coupons: Look for rebates COUPONS and bargains. Some can be redeemed at checkout, but most require you to send documentation to the manufacturer to get your rebate. 9. Layaways: If money’s tight, consider layaway. You typically make a deposit and pay over time; the retailer holds the merchandise until you’ve paid for the item in full PAY
ATTENTION TO PAYMENT plan entered into, for example, how long is payment plan, what penalties would have item/s returned to inventory? 10: Overseas Shipping: Shipping to love ones overseas? Check the Postal Services/Carriers for calendar of shipping deadlines and follow up and track items. 11. Scan Items: Make sure the scanned price is right. Overcharges cost you money and time, especially if you don’t notice them right away. 12. Jewellery: Giving jewellery? Take some time to learn the terms used in the industry so you can get the best quality and value. 13. Mobile Devices: If you use a mobile device or computer to shop for deals, be aware that some unexpected emails, texts or posts may lead to fraudulent sites claiming bargains on brand name products.
14. Merchandise: LOOK for items billed that wasn’t received and contact store / shipper and notify your bank immediately. 15. Gift Certificates: Check the fine print before buying a store or mall’s gift certificate. Look to see if there are any fees associated with using the card and if the card has an expiration date. 16. Charitable Donations: Tis the season to be wary, especially of charities that don’t or won’t -provide key information in writing or welcome your visits. Know where and how the money you donate will be used. Remember that charities often use paid fundraisers to raise money, so it is important to know where and how the money you donate will be used. 17. Buying Online: Be sure to shop with reputable companies and use only secure web sites. Be
aware of all details on shipping and handling fees and return/ exchange policies. When shopping online, keep copies of your order number, the refund and return policies, shipping costs and warranties. Shop around to see what other stores are selling the product for, or do a search to see what online retailers are charging (and don’t forget to factor in shipping costs). Shopping on line isn’t always the best option, but it can help you compare prices. 18. Mail Order Purchases: If you order gifts by mail or telephone or over the Internet, you have certain protections. Law requires the seller to ship your purchase within 30 days, unless a later date is specified in the advertisement. If there is a delay, the seller must notify you, give you a chance to cancel your order, and send a full
refund if you decide to cancel. The safest way to pay for mail order purchases is by credit card. 19. Refund/ Return Policy: Check Stores’ refund policies carefully, ask questions especially on clearance merchandise. 20. Receipts: It’s Important to keep your receipts during this busy holiday time, especially for gift items. 21. Credit Card: Make sure your credit card is returned to you after each transaction. 22: Safety: If you suspect you may have an unsafe product, you can also inspect it before, during, and after use. Look for any wear and tear, loose parts, or operation that is inconsistent with the description provided by the manufacturer. You can also listen for unexpected rattling, buzzing, clicking, or other audible signals that the product may be working incorrectly. Always be sure to keep operating manuals or information sheets, which will contain manufacturer’s warnings about the product, for future reference. REPORT ANY SCAMS to Consumer Protection Commission Bahamas. These and other helpful tips, were prepared by the CPC Marketing and Public Relations Unit, and can be found at: Website: www.cpcbahamas.org Facebook Page: Consumer Protection Commission Bahamas Or call us for assistance at Tel: (242) 393-7795-7 Fax: (242) 393-7798 Toll Free: (866) 251-5404 Email: info@cpcbahamas.org P O Box SS – 6364 Visit us at our office located in the Teachers & Salaried Workers Credit Union Annex Building, East Street South.
CONSUMER VOICE
THE TRIBUNE
LOCAL BANK FEES AND CHARGES Commonwealth Bank Royal Bank Scotiabank Effective Date Effective Date Effective Date August 18th, 2017 Jun-17 April 1st, 2017
Tuesday, December 12, 2017 â—? PAGE 9
CIBC Bank of The FirstCaribbean Bahamas Fidelity Bank Effective Date Effective Date February 1st, 2017 Jan-15
Teacher's and Salaried Workers Credit Union Effective Date
National Workers Cooperative Credit Union Effective Date 1-Jan-15
Monthly Service Charge $ 12.90
$ 2.69
$ 5.38
$ 8.60
$ 8.60
$ 3.23
N/A
N/A
Savings Account
$ 5.38
$ 1.08
$ 5.38
$ 5.38
$ 8.60
$ 3.23
N/A
N/A
Checking Account
$ 16.13
$ 7.53
$ 13.44
$ 8.60
$ 8.60
$ 8.60
N/A
N/A
ATM Withdrawal
$ 1.08
$ 1.34
$ 1.08
$ 1.34
$ 1.08
$ 1.21
N/A
$ 1.16
Credit Cards (Annual Fees)$ 48.38
$ 43.00
$ 31.18
$ 32.35
$ 37.63
N/A
N/A
N/A
Credit Cards (Late Fee)
$ 43.00
$ 32.25
$ 41.93
$ 43.00
$ 21.50
N/A
N/A
N/A
Overdraft Fee Cards
$ 37.63
$ 32.25
$ 41.93
$ 43.00
$ 16.13
$ 5.38
N/A
N/A
Returned Cheque
$ 37.63
$ 10.75
$ 26.88
$ 37.63
$ 26.88
$ 26.88
N/A
$ 57.58
Paper Statement
$ 0.81
$ 1.13
$ 0.54
$ 1.08
$ 1.08
N/A
N/A
N/A
Reference Letter
$ 26.88
$ 21.50
$ 21.50
$ 16.13
$ 21.50
$ 26.88
$ 16.13
$ 11.56
Bank Statements
$ 16.13
$ 5.38
$ 5.38
$ 16.13
$ 5.38
$ 5.38
$ 4.30
$ 2.31
Dormant Status
$ 26.88
$ 2.24
N/A
$ 37.63
$8.6 monthly
$8.6 monthly
N/A
N/A
NSF/Dishonored Cheque $ 37.63
$ 32.25
$ 26.88
$ 37.63
$ 26.88
$ 26.88
N/A
$ 57.78
Cash Cheque non client $ 16.13
N/A
$ 3.23
$ 5.38
N/A
$ 3.63
N/A
$ 6.93
Stop Payments Local
$ 26.88
$ 16.13
$ 16.13
$ 26.88
$ 21.50
$ 21.50
N/A
$ 23.11
Stop Payments Foreign
$ 43.00
N/A
$ 15.00
$ 67.19
$ 32.25
$ 43.00
N/A
N/A
Prepared by: Lavade Darling
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THE TRIBUNE
PRICE COMPARISON BASKET OF BASIC CONSUMER GOODS SELECT FOOD COMMODITIES 4th Quarter
E D I TO R’ S NOT E The minimum and maximum prices displayed are not controlled prices, but rather reflect the price variations found by our inspectors in the field. The controlled price reflected under ‘Actual Controlled Price’.
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Tuesday, December 12, 2017 â—? PAGE 11
The Consumer Right To Redress
Who To Call
$
PRICE CONTROL Consumer Welfare Unit Tel: (242) 698-0725 Hotline: (242) 327-2309 Fax: (242) 327-8831
ATTORNEY COMPLAINTS Bahamas Bar Association Tel: (242) 393-3220 Email: administrator@bahamasbarassociation.com
GOODS AND SERVICES
UTILITIES
Consumer Protection Commission Tel: (242) 393-7795-7 Toll Free: 1 (866) 251-5404 Fax: (242) 393-7798 Email: www.cpcbahamas.org
Utilities Regulation & Competition Authority (URCA) Toll Free: (242) 300 URCA (8722) Tel: (242) 396-5200 Email: info@urcabahamas.bs Website: www.urcabahamas.bs
INSURANCE The Insurance Commission of The Bahamas Tel: (242) 397-4100 Fax: (242) 328-1070 Website: www.icb.gov.bs
SECURITIES INVESTMENTS Securities Commission of The Bahamas Tel: (242) 397-4100 Fax: 396-7530 Email: info@scb.gov.bs Website: www.scb.gov.bs
DATA BREACHES Office of the Data Protection Commissioner Tel: (242) 702-1552/7021534/702-1571 Email: dataprotection@bahamas.gov.bs Website: www.bahamas.gov. bs/dataprotection
LABOUR MATTERS Department of Labour Hotline: (242) 302-2599
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