FTC looks to UN protocols for pandemic policing
Published:Friday | May 15, 2020 | 12:09 AM
THE FAIR Trading Commission, FTC, has adopted four key actions devised by the United Nations Conference on Trade and Development, to protect competition in the Jamaican market during the COVID-19 pandemic.
These include ensuring equitable conditions between companies for a level playing field, temporarily allowing cooperation arrangements necessary for the supply and distribution of products to prevent shortage of essential products, adapting competition procedures and deadlines to the extraordinary circumstances created by the pandemic, and enforcing competition law against companies that take advantage of the crisis by abusing market power or creating cartels.
Executive Director of the FTC, David Miller, said so far the agency has not detected any anti-competitive behaviour, but wants to be in a position to take action if needs be.
“Our observation of the market so far has not yielded anything anti-competitive or anything of concern to us. We remain with our eyes open because of issues that we hear arising in other jurisdictions that could possibly arise here, and so we remain with our eyes and ears open,” he said.
In its April 2020 Newsline, the FTC said that while it will allow coordination between competitors during the pandemic, the measures taken should be necessary to ensure the security of supply in the public interest, contribute to the benefit of consumers, deal with critical issues that arise from COVID-19, and last no longer than is necessary.
It said price-fixing is not included in the coordination arrangements, and it remains vigilant in discouraging such practice.
Coronavirus ‘cures’
According to the report, the FTC has responded to the COVID-19 pandemic with adjustments in its focus as well as in operations. Complaints that are likely to emerge include issues relating to online purchases and payments, claims about the efficacy of products, such as those that may claim to cure the coronavirus, and connectivity and Internet speed, the agency said.
“With the level of work-from-home increasing significantly, users are likely to experience unstable connections and/or reduced speed,” FTC noted.
The FTC also referred to other competition authorities’ response to COVID-19, noting that in the United Kingdom, the Competition Markets Authority, CMA, has established a COVID-19 task force that has warned merchants suspected of exploiting the health crisis through unjustifiable prices or misleading claims; taken enforcement action if there is evidence that merchants may have breached competition or consumer protection law and they fail to heed warnings.
Similar to the CMA, the Australian Competition and Consumer Commission, ACCC, has established a task force to respond to COVID-19-related matters, including educating businesses about their obligations concerning cancellations, suspension of services and refunds as a result of COVID-19, and raising awareness of scams as scammers typically prey on the vulnerabilities of consumers during a crisis.
The ACCC has granted interim authorisations to several enterprises. For example, banks were granted authorisation to work together to implement a small business relief package to allow for the deferral of loan repayment for small businesses impacted by COVID-19 for six months.
The FTC reported that in Australia, there were complaints of scams, including people receiving misinformation about cures for COVID-19, investment scams claiming the pandemic created opportunities to make money, and online stores purportedly selling products such as face masks and not providing the goods.
Warning letters
It said that one competition authority in the United States also reported complaints with online shopping, mobile texting scams and government/business imposter scams.
Similar to the UK, the USA had complaints regarding unsupported claims that products could treat or prevent COVID-19. Warning letters regarding unapproved and misbranded products, with deceptive claims about their ability to treat or cure COVID-19, were issued to the companies involved.
The Dominican Republic competition authority warned businesses that it would be monitoring suppliers of essential goods and services for exploitative or collusive practices.
In Korea, the competition authority took action against 45 businesses for misleadingly advertising that their products could prevent coronavirus.
“These and similar practices in Jamaica could threaten competition and expose consumers to substantial harm. As such, the FTC remains vigilant in its approach to detect and prosecute, if not discourage, anti-competitive practices,” the report said.