CCZ slams abuse of local currency by retailers

The Consumer Council of Zimbabwe has vowed to bring to book retail
shops who are using parallel market
rates which are much higher than
the Reserve Bank rate to peg prices of
their goods and services.
This has resulted in huge price differentials of what consumers are being
charged and what they should actually
be charged.
The Corporate Affairs Director,
Philemon Chereni told New Ziana
recently that retail shops who are
charging customers using parallel
market rates are breaking the law
and that the consumer watchdog will
bring the culprits to book urging the
government’s law enforcement agencies to apply the law.
The CCZ has conducted routine
price surveys and noted that some
large retailers and service providers
are charging more in local currency
(e.g. swipe cards) than the foreign exchange rates prescribed by RBZ.
“As CCZ we note from our routine
price surveys some big retail shops,
service providers are charging more
when consumers transact using local
currency, be it swipe cards. Zimbabwe
dollar prices are inflated not using the
foreign exchange rates prescribed by
RBZ, which is regrettable as consumers are fleeced to pay more than they
are supposed to be paying.
“We have previously engaged Financial Intelligence Unit (FIU) on this
matter and raids have been done and
some errant shops prosecuted and
fined with some having their operating licences revoked,” said Chereni.
He was disappointed that despite
these raids, some businesses continue to profiteer at the expense of consumers who are endearing a high cost
of living that is not commensurating
with the rise with their salaries.
“As shown by a family basket of
six, the cost of living has been on an
upward trajectory due to unforeseen circumstances and inflationary
pressures, impacting heavily on consumers’ disposal incomes. The CCZ
produces the basket to help and assist policy makers on consumption
pattern requirements and this document is well sought and largely used
for salary bargaining purposes,” said
Chereni.
The most hit currently are commuters who are enduring price distortions
in their daily travels due to the ongoing blitz by the police. As a result of
this blitz, unlicensed operators have
parked their vehicles resulting in a
shortage of transport.
Those operating have taken advantage of the shortage by hiking their
fares further fleecing commuters despite to get to work and home.
On this, the CCZ said it had collaborated with several commuter associations on various topics such as
customer service, public transit relations, complaint resolutions, and the
enforcement of the Consumer Protection Act.
“CCZ represents consumers from all
sectors we have had engagements with
different commuter associations on a
wide range of issues from general customer care, relations with travelling
public, complaints redress, following
the enactment of Consumer Protection Act Chapter 14:4. CCZ is rolling
a programm of training operators on
provisions of the Act, encompassing a
wide range of issues in a bid to bring
normalcy,” he said.
Of late the country has been flooded
with many intoxicating beer brands,
some of which have very high percentages of alcohol some as high as 50
percent which are being abused by the
youths and imbibers