Independent MP Christopher Saunders has updated a six-year-old draft bill which sets out rules for protection of consumers in the Cayman Islands.
The former deputy premier told the Compass he was frustrated waiting for the 2017 version of the bill to progress after public consultation ended on it over five years ago.
So, he refreshed it, he said, with help from lawyers in the United Kingdom, and on Monday, 2 Oct., sent his new bill to Parliament for publication in the Cayman Islands Gazette.
It is an unusual step for a member of Parliament to table legislation from the opposition benches but Saunders said he was tired of waiting.
“At this point I just decided, you know what, sometimes if you want something done, you just have to do it yourself,” Saunders said.
The draft Consumer Protection and Guarantees Bill, 2023 provides rules for the protection of consumer interests concerning the supply of goods and the provision of services.
It also details the identification of consumer guarantees; the protection of life, health, and safety of consumers; and the establishment of a Consumer Affairs Commission.
A long time coming
Saunders said people have been campaigning for consumer protection laws for years, and there have been many motions on the topic in Parliament – but progress has been slow.
The Law Reform Commission crafted Cayman’s first draft Consumer Protection and Guarantees Bill, 2017 which was sent out for public consultation over four months.
It met some opposition, with several businesses saying it would increase customer costs, add legal risks for operating and even create a ‘nanny state’ in the Cayman Islands.
Once comments were received, the bill was due to be amended before going to the then Legislative Assembly for debate and approval. However, it never reached that stage.
Saunders said when he re-examined the bill this year, the original version was about 95% complete in his view and just needed a few minor additions.
“It’s not as though somebody didn’t do it. It was already done. It was paid for. Public money paid for it,” he said.
“The people who worked on it were paid by the public purse. So why should they pay for it and the work just be sitting down there and nothing be done?
“So, I decided, you know what, [let’s] just finish it.”
The Compass has reached out to the government for details on the delayed former draft bill and is awaiting a response.
‘A disservice’
Saunders said after it is gazetted, the public will have the opportunity to read the private member’s bill and amendments may be made, before it reaches Parliament for debate.
“At the end of the day, it may not be perfect, but we have to start somewhere, we have to start the process somewhere,” he said.
“Not having a legislation on the books is really a disservice to the people and the consumers in this country.”
He said it is in the “same spirit” as the 2017 draft bill, and it is balanced, protecting both the business owner and the consumer.
“Business people have a right to make their money… but we also need to recognise that there are some business practices out there that need to be dealt with,” he said.
Saunders added that some of the most important regulations within the bill are protections for people making large purchases such as cars.
He said being sold faulty goods is “keeping people awake at night” and added, “this is why it is important to get these kinds of avenues of redress available to people”.
Consumer Protection and Guarantees Bill, 2023
Cayman currently operates a ‘caveat emptor’ consumer system, where the buyer is solely responsible for reviewing the quality and suitability of goods or services prior to purchase.
The only current protections for consumers are in the Sale of Goods Law (1997 Revision) and The Price Gouging (Emergency Circumstances) Law.
The Consumer Protection and Guarantees Bill, 2023 creates new legal protections and guarantees for the consumer, and applies to “all persons engaged in a trade or business”.
The draft bill sets out consumer rights, including the right to refuse unsolicited goods, the right to authorise services, and the right to avoid unreasonable cancellation charges.
It seeks to allow consumers to halt “continuing service agreements” three weeks after giving notice.
The bill defines unfair trade practices in a number of ways, including:
- Falsely representing that goods are of a particular standard or quality.
- Falsely representing that they are new.
- Making false or misleading representations concerning the price of goods or services.
- Making false or misleading statements about the existence of a warranty on a product.
- Engaging in conduct liable to mislead the public about the nature, characteristics, suitability or quantity of a product or a service.
It also outlaws the practice of ‘dual pricing’ – listing separate prices for an item and charging the higher of the two – or promising to supply goods that cannot be sourced.
Recalling products
Another area of the Consumer Protection Bill, 2023, which has not previously existed in Cayman, is the compulsory recall of goods.
The draft bill allows for mandatory recalls of products if the commission becomes aware that certain goods “may cause injury, loss or damage to any person”.
And it sets out guarantees in relation to the supply and quality of goods or services provided.
The legislation also seeks to create a Cabinet-appointed Consumer Affairs Commission.
Five members will be given the powers of a court to request information in consumer-business disputes and to investigate consumer complaints.
The commission will also be able to impose certain penalties on those who violate the law and will be tasked with providing general information on consumer rights.
Among other things, the commission can act as a mediator to resolve disagreements between consumers and suppliers, and refer complaints to other relevant bodies.
Business owners who do not comply with the commission’s orders can be sent to prison for up to a year or receive a $5,000 fine.
A person who is aggrieved by a commission order may appeal within 30 days.
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I wonder how “Making false or misleading representations concerning the price of goods or services” would apply to hospitality services, where an item listed as $10 would actually cost $12, after compulsory tip is added.