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Concept of Consumer Protection in Tanzania:

Rights and Duties of Consumers:
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By, Laurent Francis Bugoti (LL.B Saut), Advocate Candidate 18th Cohort,
2015, at the Law School of Tanzania-Lst.
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1.0 Introduction.
The history of consumer protection in Tanzania goes together with three
domestic economic policies which can be categorized as: early years of postcolonial period i.e.1961, during and after the Arusha Declaration1 1967 and
market economy in 1980s. All these phrases objected at improving and
consolidating an economic development of Tanzania.
The first two phrases took place during the Mwalimu Julius Kambarage
Nyereres2 regime before 1980s while the third one, during Ally Hassan
Mwinyis3 regime in 1980s.
In the first and second phrases, there was command economy characterized
by too much protectionism on the economy as the government intervened
and controlled all major pillars of economy. Protectionism was highly
improved as there was too much state monopoly which prevented local and
foreign investors.

The influence of ujamaa led to establishment of it in February, 1967 in Arusha City, which strongly
advocated self- reliance, public ownership, rural development and equity.
2
The first President of the United Republic of Tanzania, who held office from 1961 to 1985. He has been
given the respect of honour as the father of the Nation.
3
The second President of the United Republic of Tanzania, who held office from 1985 to 1995.

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1.1 Concept of a consumer and consumer protection.

A consumer is a person who buys products in the market. Is a person who
acquires goods or services for direct use or ownership rather than for resale
or use in production and manufacturing. A person who uses articles
produced in the market. Consumers by definition, include us all, the US
President John F. Kennedy said in his Congressional Statement, They are
the largest economic group, affecting and affected by almost every public
and private economic decision. Yet they are the only important
groupwhose views are often not heard4.

Consumer protection is a set of rules designed to ensure the rights of

consumers as well as fair trade competition and the flow of information in
the marketplace. The laws are designed to prevent businesses that engage in
fraud or unfair trade practices from gaining an advantage over competitors;
also provide an additional protection for the weak and unable persons to take
care of them.
It is a form of government regulations, which essentially aim at protecting
the rights of consumers and enforce the duties of service providers. The
government may require businesses to disclose detailed information about
products or services, particularly in areas where safety or public health is an
issue. Consumer protection is linked to the idea of consumer rights and
consumer duties (that consumers have rights and duties as consumers) and
to the formation of consumer organizations, that help consumers make their
better choices in the marketplace and get help with consumer complaints.
4

On 15th March, 1962 when addressed the US Congress. The world commemorates this day as a world
consumer rights day in every year.

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Consumer Rights5.
The development of consumer rights started in 1960s in the United States of
America. The then US President John F. Kennedy, is a remarkable man to
advocate for consumer interests in the market. He came up with four (4)
consumer rights which are: right to safety, right to be informed, right to
choice, and the right to be heard. These four consumer rights are known as
Kennedy rights. In 1970 Gerald Ford, the President of US added one
consumer right that is right to consumer education.

On the 32rd March, 1978, Consumer International in its General Meeting

which was held in Tokyo Japan added another three consumer rights that
are: right to basic needs, right to redress and right to safe environment.
It is on the 9th April, 1985 when the United Nations (UN) officially
inaugurated and passed these rights as eight (8) International Consumer
Rights as explained hereunder.

(i)

The right to satisfaction of basic needs,

This right entitles consumers in the marketplace to have access to basic,

essential goods and services: adequate food, clothing, shelter, health care,
education, public utilities, water and sanitation.

Consumer rights are typically Human Rights; they should not be isolated in recognition by the
Constitution of the United Republic of Tanzania, 1977 as amended from time to time and other legislations.
Many NGOs in Tanzania are established with the focus to promote, respect and protect human rights on
other groups, but not a consumer group. Hence, a consumer group has been forgotten.

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(ii)

The right to safety,

Under this right, consumers are to be protected against products, production

processes and services that are hazardous to human health or life.

(iii)

The right to be informed,

Here consumers are to be given the facts needed to make informed choices,
and to be protected against dishonest or misleading advertising and labeling.

(iv)

The right to be heard,

Views and suggestions of consumers in the market should be heard and

worked upon. Alternatively, consumers interests have to be represented in
the making and execution of government policy and laws, and in the
development of products and services.

(v)

The right to consumer education,

To acquire knowledge and skills needed to make informed, confident

choices about goods and services, while being aware of basic consumer
rights and duties and how to act on them. Under this right in my view, clubs,
seminars, public speeches and workshops should be conducted in the entire
community to help consumers understand their rights and duties.

(vi)

The right to choice,

Consumer should be able to select free from a range of products and services
offered at competitive prices with assurance of satisfactory quality.

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This right is only successful once consumer organizations will be strong,

egalitarian and eager, having strong and steel teeth to safeguard the interest
of consumers in the market.

(vii)

The right to an healthy environment,

Consumers are entitled to live and work in an environment that is nonthreatening and non-risky to the wellbeing of present and future generations.
Neatness of consumer environment should be emphasized in industries
where products are made, packaging, and transportation of products.

(viii)

The right to redress6,

Consumers are entitled to receive a fair settlement of just claims, including

compensation for misrepresentation, shoddy goods or unsatisfactory
services. A transaction between consumers and service providers entails, in
essence, a contract. Thus, contracting parties to such contract are bound with
terms and conditions of that contract, to the extent that a party is obliged to
perform its duties. Where one party defaults, the remainder party is entitled
to compensation.

In general, all those eight consumer rights require both competition laws and
competition policies to address the problem of concentration of economic
power that can arise from market imperfection, monopolistic behavior in
economic activities and consequent restrictive business practices. Restrictive
business practices essentially affect consumer through higher prices,

As consumers, we are part of every transaction on the planet. But while our money speaks, our voice is
often not heard.

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substandard quality and limitations on the availability of products and

services.
Competition laws and policies should aim at perpetuating freedom of trade,
freedom of choice and access to market. The ultimate object of competition
laws and policies is to protect consumers7 in the market through controlling
of monopoly behavior on the part of producers.

1.3 Consumer

duties8

(What is duty9)?
In 1980s, the then President of Consumer International, Anwar Fazal,
introduced a set of consumer responsibilities to complement consumer
rights. These remain crucial for many nations and consumer organizations
today. These consumer responsibilities are:-

(i)

Critical awareness,

Consumers must be awakened to be more questioning about the provision of

the quality of goods and services.

(ii)

Involvement or action,

Consumers must assert themselves and act to ensure that they get a fair deal.

Duties of consumers are not constant; they are dynamic depending on environment and specific services
and goods of a specific Regulatory Authority (i.e. for the case of Tanzania, SUMATRA, EWURA, TCRA,
TFDA etc.). It is a common practice that where there is a right there is a duty.
9
The Blacks Law Dictionary 8th Edition, defines duty to mean: a legal obligation that is owed or due to
another and that needs to be satisfied; an obligation for which somebody else has a correspondence right.

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(iii)

Social responsibility,

Consumer must act with social responsibility, with concern and sensitivity to
impact of their actions on other citizens, particularly, in relation to
disadvantaged groups in the community and in relation to the economic and
social realities prevailing.

(iv)

Ecological responsibility,

There must be a heightened sensitivity to the impact of consumer decisions

on the physical environment, which must be developed to a harmonious
way, promoting conservation as the most critical factor in improving the real
quality of life for the present and the future.

(v)

Solidarity,

The best and most effective action is through cooperative efforts through the
formation of consumer groups who together can have the strength and
influence to ensure that adequate attention is given to the consumer interest.

1.4 Consumer

protection during market economy 1980s

to date.
As it has been explained in the introductory part, the history of consumer
protection in Tanzania is classified into three economic phrases such as early
years of post-colonial era, post Arusha Declaration and market economy,
now attention is made on consumer protection during liberalisation and
market economy, in 1980s to date.

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It is in 1980s during Mwinyi regime when Tanzania adopted an open door

policy and structural adjustment in which local and foreign investors were
allowed to invest in the market. There was privatisation of public
investments to private sectors; private sectors became an engine for market
growth, as the government withdrew itself from being a direct economic
manufacturer and distributor, price controller, and the like. Investors
competed to win the market, protection on the economy was less; this led to
the influx of substandard, shoddy, and counterfeit goods and services.

It is however, suffice to say that, the shift to liberalization and market

economy was not prepared or fanciful as it caught Tanzanians unaware with
less knowledge on how to exist in the newly policy and threats associated
therein. However, there were legislation and regulatory authorities to control
the market, but they had no teeth to surmount the situation.

It is until 1994 whereby Tanzania enacted the first Trade Practices Act that
had hybrid concepts and borrowed provisions from Competition Laws of
Australia, Jamaica, Kenya and Canada. The enactment of this legislation
which was named as the Fair Competition Act of 1994 provided the basic
foundation for establishment of competition policy and law. Under this Act,
anticompetitive activities and behaviour had to be justified if significantly
were observed to affect competition in the market. Its applicability was
limited to an extra territorial application. This is to say, it was not applicable
outside geographical territories of the United Republic of Tanzania.

Changes to the Fair Trade Practices Act of 1994 were tabled in

October/November, 2001Parliamentary session. The objective of the

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changes was to update the Act with international best practices. Thus, the
new Act was enacted in 2003. This Act is what referred to as the Fair
Competition Act No.8 of 2003. The Act is now in operation.
Its object among others is to enhance the welfare of Tanzania as a whole by
promoting and protecting effective competition in markets and preventing
unfair and misleading market conduct through Tanzania by, promoting
innovation, to increase efficiency in production, distribution and supply of
goods and services, maximizing the efficient allocation of resources and to
protect consumers in the market.

Legislations and regulatory authorities were made with the focus to control
the market. Recently there is the Fair Competition Act No.8 of 2003 which
is the fundamental law in competition matters. The Act establishes the Fair
Competition Commission (FCC) and the Fair Competition Tribunal (FCT)
with the object to enhance the welfare of the Tanzania community by
promoting and protecting effective competition in markets and preventing
unfair and misleading market conducts in order to increase efficiency in the
production, distribution and supply of goods and services, maximize
efficient allocation of resources and protect consumers.

Many laws and regulatory authorities thereto have been enacted including;
Surface and Marine Transport Regulatory Authority (SUMATRA), which is
the custodian of SUMATRA Act No.9 of 2001. Energy and Water Utilities
Regulatory Authority (EWURA), which is the custodian of EWURA Act
No.11 of 2001. Tanzania Communication Regulatory Authority (TCRA),
which is the custodian of TCRA Act No.12 of 2003 and the Tanzania

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Bureau of Standards (TBS), which is the custodian of the Standards Act

No.2 of 2009.

In order to ensure sufficient promotion, respect and protection of consumers

and/or promote competition in the market place, these laws have established
Consultative Councils such as SUMATRA Consumer Consultative Council
(SUMATRA CCC), EWURA Consumer Consultative Council (EWURA
CCC) and TCRA Consumer Consultative Council (TCRA CCC).

The Act No.8 of 2003 under section 92 of it establishes the National

Consumer Advocacy Council (NCAC) which among other functions is to
receive and disseminate information of consumer interest to relevant
regulatory authorities.

1.5 Challenges

of Consumer Protection in Tanzania.

It is obvious for this area of consumerism to have been encountered or to

encounter challenges in future, especially due to free and liberal economy.
Challenges are many, but for this purposes only few of them will be
analyzed as it is impossible to analyze them in every category of
goods/services. These include:-

(i)

Lack of consumer awareness.

A large group of consumers do not understand their rights and
duties prior transaction. Thus, a fundamental and potential
consumer right is violated simply because a consumer does not
understand what ought to be done or ought not to be done. In my

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view, I have a settled mind to say that the institutions and other
organizations have not at large, performed their duties especially in
giving consumer education or they have done, but consumers are
reluctant to enforce their rights, they do not like to react. They try
to forget their rights and duties in transactions when face difficult
in the process.

(ii)

Large area of coverage.

This is a fundamental challenge especially in rural areas.
Many established institutions and organizations whether public or
private are located in towns. But it is obvious that substandard,
shoddy and counterfeit products and services are available all over
Tanzania, rural areas, inclusive. Thus, it suffices to conclude that
rural areas have been forgotten or are less considered in consumer
protection.

(iii) Misconduct.
Few of officials of regulatory authorities and organization that
involve safeguarding consumers interests are not trustful in
performing their duties. Some of them involve in corruption and
bribery.
Thus, they abate the efforts of the government in protecting
consumers and controlling the market. The effect of misconducts
in the market is hazardous since they facilitate ills and death of
consumers due to substandard counterfeit and fake goods and
services. Alternatively, few of services providers are unscrupulous

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and aberrant; they use insults and/or defamatory words to

consumers! The situation has become heinous as it is likely to
default the system of consumer protection in the market.

(iv)

Lack of consumer organizations.

Consumers have no unification and organization to accumulate
their voices and raise them as one and same voice in respect of
their views and suggestions towards situation in the market.
Few organizations have been incorporated to advocating for
consumer interests in the market. These include Tanzania Voice of
Consumer (TAVOCO) and Tanzania Consumer Advocate Society
(TCAS).
In my humble view, what is highly needed here, is the respect,
protection and promotion of voice of consumers in the market i.e.
their views, suggestions, involvement and so on, should highly be
considered by the whole community of manufacturers, service
providers, non-governmental organizations and the government.

(v)

Unethical traders.
Some traders abuse the market by producing goods and services
that their outlook appearances do not match their contents.
Consumers become attracted by the outlook appearance of goods
i.e. labeling, packages etc. while the contents are almost different.
This is misuse of market powers. Consumers and traders have to be
led with the principle utmost good faith, i.e. full disclosure.

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(vi) Lack of security checks points.

Many security check points should be established especially in
airports, harbours, roads, and boarders. It is true that substandard
goods and services reach the market through either of the ways
mentioned above. So if these possibly ways are controlled for same
purpose, automatically the influx of substandard and fake goods
and services will be to higher extent reduced or prevented in total.

Recommendation:
(i)

To consumers.
Its my humble opinion that consumers should not forget their
agreement with service providers. They have a duty amongst, to
react and seek for their rights. The government is materially and
financially available to assist them. They should not remain silence
because the government will not know what their demands are.
Consumers so far, are supposed to perform their duties such as
asking questions to service providers, reading directives and
usages of goods and services, reading expiry date etc. before
purchasing.

They have to use their ample time reasonably to

ascertain their rights and duties in any transaction.

(ii) To service providers.

This group is of crucial important in the market. It is the group that
provides consumers with goods and services. It is the one that
contribute to an increment of Tanzanias economy through tax
payment.

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However it is a group that humiliates consumers in terms of

bargaining power. Service providers should not term consumers as
enemies. Consumers are of potential importance to build up their
profit. Service providers should act in good faith in the market;
they should disclose all necessary information of the products and
services as regards to usage, package, expiry date, components,
warning and precautions. Service providers are reminded to grant
receipts to consumers as of right and not privilege.

(iii) To institutions.
All institutions and organizations involving in consumer protection
whether public or private, should avoid misconducts.
They should respect and value their positions and status in the
society. They have to inaugurate many consumer groups/ clubs in
public and private institutions, for instances at primary schools,
secondary schools, colleges, universities and other institutions. The
Ministry of Education and Vocational Training should alter its
curriculum to enable introduction of consumer protection studies
at primary and secondary school levels, to enable a large group of
Tanzanians to have a basic knowledge of consumer protection.
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Laurent Francis Bugoti,
Advocate Candidate,
Permanent Member- TAVOCO,
bugotilaurent@rocketmail.com,
P.o.Box 14147, Arusha, Tanzania.

LL.B Saut - 2012,

18th Cohort, 2015, LST,
+255 753262601, +255676400936,
laurentbugoti@gmail.com