With an increased number of local firms relying heavily on online commerce, the island’s consumer protection regulator has issued a new retail business guide to ensure businesses are kept up to speed with the provisions of the consumer protection legislation.
Noting that there has been a major shift in business operations with most industries relying heavily on their online selling platforms to do business, the Fair Trading Commission (FTC) said it wanted to ensure that consumers are fully protected.
“To ensure that consumers are fully protected, businesses must be made aware of their responsibilities. To easily facilitate this exercise, the Consumer Protection Division of the Fair Trading Commission formulated a Retail Business Guide to which businesses can refer to address issues related to the Consumer Protection Act, Cap326D and Consumer Guarantees Act, Cap326E,” the FTC said.
“The guide seeks to ensure that all businesses are aware of the provisions of the consumer protection legislation regardless of their business operations,” the FTC said. “It has therefore been drafted in a simplified manner to enable consumers and businesses, both large and small, to understand the provisions of the legislation.
“Additionally, it makes the law more accessible to those that may not be familiar with the FTC’s consumer protection mandate, and will assist them in being more au fait with the rights and responsibilities of both parties,” it added.
The 12-page business guide, which can be found on the FTC’s website, is created for entrepreneurs, business owners, managers and staff involved in the supply of goods and services to consumers.
Since the advent of the COVID-19 pandemic, a number of firms in Barbados have been forced to put a part or all of their operations online. There has also been an increase in firms advertising on social media platforms.
In the guide, which provides essential information relating to the legal obligations of businesses under the Consumer Protection Act (CPA), the FTC reminded businesses that the act equally applied to online platforms just as it did in-store shopping.
“In recent times, consumers have been spending more time online and utilising these platforms for shopping purposes. It is therefore important for businesses to be cognisant of the CPA as these laws equally apply to these platforms. As a result, materials that are contrary to the consumer laws should be removed. Further, persons who have been misled or deceived by social media/online advertisements, should be refunded,” the FTC warned.
“Reviews and testimonials are powerful and influential tools used by businesses to promote their goods and services, especially in the online arena. Regardless of the advertising medium, any review or testimonial should reflect the honest views of the person that made it. Businesses should not post false reviews to induce consumers to make a purchase. This may contravene the CPA,” it added.
The FTC said the guide will be updated “as required”.
The regulator noted that it can take legal action against businesses for contraventions of the CPA, adding that based on the nature of the offence, it can “either seek criminal or civil pecuniary penalties against the individuals or corporations in question”. (MM)
