The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

FIFTEEN of the 17 merchants charged with violating price control laws and regulations over the past year have pleaded guilty, it was revealed yesterday, as officials prepare to launch the second phase of a price comparison app aiming to giving consumers better value for money.

Rex Adderley, the Department of Consumer Affairs head, said 15 of the 17 cases taken to the Magistrate’s Court over Price Control Act breaches have been completed, with all store owners involved pleading guilty, while two cases remain pending.

“Out of 17 stores that we took to Magistrate’s Court, 15 of those store owners pleaded guilty,” Mr Adderley said. “And we have two cases still pending.”

He added that the Department has also been receiving complaints involving retailers displaying one price on an item or shelf yet charging another at the cash register.

These merchants are then allegedly refusing to honour the lower price, and selling goods at prices deemed excessive. Mr Adderley said the Department has seen the greatest number of complaints involving smaller “mom and pop” stores, while noting a growing presence of foreign nationals operating grocery businesses.

“We find that the ‘mom and pops’, we find that they generate most of the complaints,” Mr Adderley said. “And what we have also noticed is that we have a lot of foreigners now who are getting into the grocery selling business.”

Mr Adderley stressed, however, that nationality does not affect enforcement. “The law is the law,” he said. “And we approach it the same way whether you’re a foreigner or Bahamian.”

Mr Adderley added that many of the newer operators are selling food, snacks and other grocery items, while some traditional Bahamian-owned stores have been sold or their owners have stepped away from the sector.

The Department estimates it has received roughly 20 to 25 consumer complaints over the past month, although Mr Adderley said he did not have the exact year-to-date figure available.

Jerome Fitzgerald, minister of economic affairs, said the Government intends to expand its force of price control inspectors as it intensifies its response to cost-of-living pressures.

“The issue is always mark-up on goods,” Mr Fitzgerald said. “A lot of the goods are under price control, and we continue to see issues there.” He also pointed to concerns about the quality of imported goods, and said additional inspectors would be needed to strengthen enforcement.

Speaking as the Consumer Affairs Unit opened its fourth annual inspector training exercise, Mr Fitzgerald said the event is intended to ensure inspectors understand both the law and their responsibilities to consumers. He warned businesses that enforcement will not be determined by their size, connections or length of operation.

“Protecting the Bahamian customer is a non-negotiable standard, and it is not up for discussion,” Mr Fitzgerald said. “When a family is counting every dollar, every dollar taken from them unfairly is an injustice. The Government will not look the other way. There will be zero tolerance for any business that takes advantage of the Bahamian consumer.”

Mr Fitzgerald said the Government’s removal of VAT from unprepared food was intended to provide relief to consumers, rather than create an opportunity for retailers to widen their margins. He acknowledged that businesses face higher freight, energy and other operating costs, but drew a distinction between legitimate cost increases and what he described as taking advantage of consumers.

“There’s a difference between passing on a cost and taking advantage of a customer,” he said.

The Government is also moving towards modernised competition legislation that Mr Fitzgerald said will address price fixing and abuse of market dominance, while introducing clearer requirements for price displays, including tax-inclusive pricing. “The price you see should be the price you pay,” he added.

The enforcement push is being accompanied by a digital overhaul of the inspectorate and the Price Control Unit. Mr Fitzgerald said the Price Pal app will allow consumers to compare prices and eventually update pricing information through the platform, giving shoppers another tool to identify price differences.

Valdez Williams, chief managing partner of Novio Group, which developed the Price Pal app, said the system is being moved into a more fully integrated phase after the initial launch.

He added that the objective is not simply to digitise the consumer-facing application, but to create the technological infrastructure needed to move the Government’s price-control operations away from manual processes.

“We will commit to digital transformation of this unit, and to help to make that the template for how governments should transform and change in the correct manner,” Mr Williams said. He added that retailer engagement has also improved, with the roll-out strategy moving from smaller businesses towards larger merchants.

“We shift our strategy from top to bottom,” he said. “Now we’re going from small to big.”

Mr Adderley said the price control inspectorate itself is undergoing a similar transition, with inspectors moving from manual processes to digital record-keeping. Mr Fitzgerald said this is particularly important when violations result in enforcement action.

“When we act against a business, the evidence must be sound, and the record must stand up to scrutiny,” he said. The minister also urged inspectors to maintain their independence, particularly in smaller communities where officers may know the business owners they are required to inspect.

“You will inspect people who you know,” Mr Fitzgerald said. “You will inspect people who know your family. Do not allow familiarity to affect your judgment. Do not allow pressure to influence how you apply the law.”

The minister said the same level of consumer protection must apply throughout The Bahamas, including islands where consumers may have only one or two stores from which to choose. He said inspectors must therefore be “thorough”, “consistent” and “confident” in exercising their legal authority.

Mr Fitzgerald said the Government’s efforts to lower the cost of living will ultimately be judged not by policy announcements but by what consumers encounter at the check-out. “Those commitments will not be measured by speeches; they will be measured by what Bahamians experience when they reach the cash register,” he said.