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UVM CDAE 127 - Consumer Protection Baseline Study

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Belize Consumer Protection Baseline StudyI. IntroductionConsumer satisfaction, health, and safety are necessary components of a healthy and vibrant domestic economy. The government of Belize recognizes the importance of protecting consumers and is committed to improving the status of consumers in Belize. However, the current laws relating to consumer protection in Belize need to be updated inorder to provide more comprehensive coverage for consumers. The system, which includes governmental and private sector services, needs to be strengthened in order to address consumer problems and complaints. The information gap about the range and frequency of consumer problems is a challenge to consumer protection efforts should address. This study, undertaken by personnel from the Bureau of Standards (Ministry of Industry) and students and faculty from the University of Vermont, is a step towards establishing a comprehensive system, which will ensure that citizens in Belize are protected by law and have the ability and freedom to exercise their legal rights.II. MethodologyThis study was implemented from March 28, 2000 to April 28, 2000. It utilizes three sources of information: (a) documented consumer complaints; (b) system point interviews; and (c) survey results.A. Documented Consumer Complaints207 consumer complaints were reported and investigated by the Consumer Affairs Unit (CAU) of the Belize Bureau of Standards (BBS) for the years 1997-99. Analysis of these complaints yields the following information for each year: product type, value of claim, origin of complaint, consumer location, vendor location, resolution status, and time of complaint. Although limited in number, documented complaints provide some insight into the kind of product quality issues that consumers in Belize face.B. System Point InterviewsInterviews of public officials and others familiar with consumer issues and whom consumers were likely to contact with complaints were conducted. They were asked about the nature of the complaints they receive, how they deal with those complaints, andwhat improvements in the consumer protection framework were necessary. Interviewees included representatives of: the Women’s Department; the Public Health Department; the Police Department; the Chamber of Commerce; the Belize Business Bureau; the University College of Belize (Pharmacy). Local community leaders were interviewed as well.C. Consumer SurveysIntercept surveys were conducted in the following locations: Belize City, Belmopan, Dangriga, Orange Walk and San Ignacio. The target number of responses for each location was 25. However, the number of respondents varied depending on the time of day or day of the week the survey was conducted. Fewer consumers than anticipated were in commercial centers early in the week. Also, commercial centers tended to empty for several hours around noontime. Fewer persons were surveyed in locations that had a high percentage of Spanish speaking persons.III. AnalysisUpon analysis these three sources of information highlight needs that are numerous, widespread, and diverse. This report will focus on four key areas—chosen for their relation to health and safety and frequency of occurrence—which must be addressed in order to move toward the goal of establishing a comprehensive consumer protection system. These priority areas of action are:- A. consumer education and access to consumer affairs services- B. consumer health- C. utility service- D product quality standardsA. Consumer Education and Access to Consumer Affairs ServicesAssertive and informed consumers are the foundation of a functional consumer protectionsystem. Thus, consumer education in Belize is a priority area for action. Consumer education may be defined as the effort to raise consumer awareness of legal rights, expectations of quality goods, services, and treatment, and awareness of and access to government and private consumer protection services. The CAU conducts consumer education programs each year. The absence of a legal mandate or budgetary provision for such programs limits the frequency of programs. The Chief Consumer Liaison Officer of the CAU implemented past consumer education programs. Past efforts have included school programs, radio and newspaper advertisements, and telephone directory listings inorder to increase consumer awareness. These programs should be initiated more often andin all districts of Belize. In addition, consumer education efforts could be strengthened byconsumer protection legislation clearly establishing consumer rights. It is difficult to encourage consumers to be assertive and pro-active if they do not have legally recognizedrights to support their actions. It is difficult to evaluate CAU success in advertising its services, because there has been no previous effort to do so. There is no section on the documented complaint form which asks consumers how they heard about CAU services. Therefore, the success of pas programs must be inferred from the three information sources. All three sources indicatethe need for increased consumer education efforts and institutional changes in order to increase consumer access to CAU services.1. Documented ComplaintsThe documented consumer complaints illustrate the need for increased consumer education efforts. Complaints for 1997-99 indicated that consumer awareness of and/or access to the CAU is limited to those who live near Belize City:- 1999--75.3% of complaints from Belize City- 1998—70.4% of complaints from Belize City- 1997—69.8% of complaints from Belize CityDocumented complaints also indicate the need to increase consumer access to CAU services: 54% of complainants in 1999 were made in person. This high percentage of in-person complaints suggests limited consumer access to CAU services. Most consumers outside the Belize City area are unable to visit the CAU in person because of the time spent, distance, and cost associated with such a visit. Consumers who wish to complain may ear missing time at work or may not be able to afford bus fare. The second greatest source of documented complaints was complaints made over the telephone. Many communities in Belize do not have access to telephone service and residents may not be able to contact the CAU either by phone or in person. Our findings thus suggest that many Belizeans may be limited in their ability to access CAU’s services.Finally, the low volume of complaints suggests a general


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