Question
Mr. Peter Pond is the Manager of Burndem Investments Limited (BIL). On February 12, 2020 Mr. Pond saw an advertisement on television from Clarendon Chemicals
Mr. Peter Pond is the Manager of Burndem Investments Limited (BIL). On February 12, 2020 Mr. Pond saw an advertisement on television from Clarendon Chemicals Limited (CCL) for a new brand of hand sanitizer called "Covid Killa". The advertisement featured testimonials from "satisfied customers" who spoke of the "soft and moisturizing" effect of the sanitizer. BIL bought 100 cases of Covid Killa from CCL, to sell to the public and to give to members of staff in anticipation of the spread of the COVID-19 virus. However, in order to buy 100 cases of Covid Killa from CCL, BIL had to purchase at least 40 cases of masks which they did. Mr. Pond dutifully shared out 10 cases of the sanitizer and masks to staff members at the office at BIL and distributed the rest to pharmacies, supermarkets and stores islandwide. However a few weeks later, BIL customers who had bought the Covid Killa sanitizer began to receive complaints from the public that they were experiencing stripping and discolouration of their hands as a result of using the sanitizer. As a result, BIL took the sanitizer to a lab for testing and found out that the "sanitizer" in fact is not sanitizer but is a home-made concoction made of rubbing alcohol, hydrogen peroxide and water which is likely to have caused the stripping and discolouration of customers' hands. BIL is also aggrieved that, in these difficult times of COVID-19, CCL charged approximately 50% higher prices for its sanitizer products than other Jamaican wholesalers. BIL complains to CCL who responds that they have to sell the products at that price because their contract with the supplier requires a minimum resale price in Jamaica which is 20% higher than the average price on the local market. CCL also states that their local business association had advised its members to set prices to meet profit margins of 30% for sanitizer sales since the pandemic. BIL reported CCL to the Consumer Affairs Commission (CAC) and the CAC summoned CCL to appear before the CAC to answer to the complaints and to produce relevant documentation to the CAC. However CCL refused to appear or to supply any documentation to the CAC. BIL also reported CCL to the Fair Trading Commission (FTC) which has summoned CCL to answer to the complaints and to produce relevant documentation. CCL has refused to comply.
(a) Advise CCL whether it may have any civil or criminal liability under the Consumer Protection Act and the Consumer Protection (Amendment) Act.
(b) Advise CCL whether it may have any civil or criminal liability under the Fair Competition Act, including the functions, powers and procedures of the FTC.
(c) Advise BIL of the possibility of pursuing the complaint against CCL through the Consumer Affairs Commission (CAC), including the functions, powers and procedures of the CAC.
(d) Advise BIL of the possibility of pursuing the complaint against CCL through the Consumer Protection Tribunal (CPT), including the functions, powers and procedures of the CPT.
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