Mosadeq Sahebdin: “We cannot say that most consumers benefit from sales”

Mosadeq Sahebdin is the president of the Consumer Advocacy Platform (CAP). He is a staunch fighter for consumers’ rights and follows with a keen eye any move from merchants and importers and manufacturers to adopt cartel or monopolistic practices by raising the prices of commodities. News on Sunday asks Mr Sahebdin a review of the current situation, given the shopping frenzy that goes along with Christmas and end-of-year festivities.

Can we say that consumers have had a fair deal this year?

In spite of low inflation rate, consumers have not fully benefited from the downward trend in the price of petroleum products. For example, this decrease has neither impacted the electricity tariffs nor bus fares. The delay in the setting up the Utility Regulatory Authority enables the CEB to reap large amounts of profits from consumers’ pockets. Other operators, such as bakers, have also not revised their prices accordingly. On a different line of thought, consumers continue to endure hardships due to prevailing monopolies, such as that of the National Transport Corporation on the one hand, and that of the private bus operators on the other hand, on specific lines. The new monopoly situations in the cement sector and on the fertiliser market might impact prices, hence, consumers’ pockets. Furthermore, government’s decision to impose indiscriminately high registration and other fees on medicine will, in the long run, push parallel importers out of the market. Big players will consolidate their dominant position and as a result, prices of medicine are expected to flare up on future consignments. The Consumer Advocacy Platform (CAP) has requested the Competition Commission to find out if these measures are not anti-competitive.

The end-of-the-year shopping craze remains the same as in past years: sales and supposedly discount prices on products. Your views?

We cannot say that most consumers benefit from sales. Only those who have the means to buy from large retailers and hypermarkets can do so. However, it should be noted that discount prices are offered to the disadvantage of distributors who offer large discounts to big players. Such practices can be anti-competitive because below cost-price selling enables large players to push their competitors out of the market in the long run and acquire a larger share of the market. It should be noted that the CAP has filed a complaint on this issue with the CCM.

You might have observed that in brochures freely distributed to customers, some products are discounted on specific days only. How far is this legal?

The Consumer Protection Act does not have any provision for such practice. This enables some retailers go further than this. They can advertise a specific product at a very low price while the product is not available. In France this is called “le prix d’appel” and is considered illegal, as it aims at attracting buyers to a shop hoping to seduce them to buy other products.

What is your advice to consumers while shopping during this festive season?

The key-word is planning. Before going for shopping, whether during this period or any other time, consumers should make a shopping list where they decide on priorities.

What do you have to tell Mauritians in general when they get their end-of-the-year bonus?

Establishing a family budget to identify priorities requires top-most attention. Having additional funds does not mean one should go on a shopping spree. Consumers should above all consider ridding themselves of liabilities such as debts and plan for priority purchases such as school materials.

You have a comment on shop owners paying rates to trade while hawkers working on their doorsteps do not pay any rates or fees and yet, at times compete with those same shops by selling the same products?

In many countries, it is acknowledged that the informal sector has a significant contribution to the economy, in terms of equity and in terms of employment. However, our informal sector needs to be defined, because it is not impossible for shop owners to hold stalls in some fairs. Not all hawkers are genuine street vendors. In the absence of an in-depth study on the contribution of the so-called ‘street hawkers’ to the economy, I believe that the latter should be able to carry out their business, within the provisions of the law. From the consumer point of view, purchasing from hawkers may be risky, consumers should decide whether they wish to buy low quality products and run the risk of being deprived of any warranty in case of defective products.

What is the comment of CAP on the decision of the Ministry of Agro-Industry to impose a levy of 15% on imported sugar?

Depending on which side of the barrier one finds himself, this measure may be seen as some form of protectionism or as a barrier to entry. It seems government’s decision is dictated by protectionism, while it has not banned the import of sugar from other countries. It is for consumers to make the most of the competition that will ensue. Consumers should also contribute to protect local employment.

Do you think that someday Mauritian consumers will be able to buy and get value for money?

This is an ideal situation that will occur only when competition will play its role effectively, when consumers will exert their right to choice, to information and to goods that conform to quality standards. The most important disappointment for consumers is the long delay in the introduction and implementation of the long awaited Consumer Protection and Fair Trading Act. With Parliament now on holidays, it is most probable that consumers will have to wait another six months before the bill is passed in Parliament and another six months before the relevant agencies it provides for are set up.