AS the landscape of consumer protection continues to evolve, the need for an urgent update to Jamaica’s consumer legislation has become more apparent. However, delays in the long-discussed merger between Consumer Affairs Commission (CAC) and Fair Trading Commission (FTC) are stalling critical amendments to the Consumer Protection Act, which experts say is failing to keep pace with the digital marketplace and growing cross-border commerce.

Cheryl Martin-Tracey, director of field operations at CAC, emphasised that the outdated legislation is leaving Jamaican consumers vulnerable, particularly in evolving areas like e-commerce.

“There’s so much changes happening out there that the legislation cannot really keep up with. Our ability to help consumers seek redress, particularly with online transactions, is limited, especially when it involves international businesses,” Martin-Tracey said. She was speaking at the Jamaica Observer’s Business Forum last week.

The merger between the CAC and FTC, initially set in motion in 2018, is aimed at creating a unified regulatory body to oversee both consumer protection and fair competition. But progress has been slow. Two years ago, Minister of Industry, Investment, and Commerce Aubyn Hill had set a summer deadline to finalise the process, but in the meantime crucial amendments to consumer protection laws have been put on hold.

The rapid rise of e-commerce and online shopping has introduced new risks that the current legislation is ill-equipped to handle. The Electronic Transactions Act, while a step in the right direction, does not adequately address the complex issues arising from cross-border purchases through which businesses outside of Jamaica’s jurisdiction can evade accountability. Martin-Tracey pointed out that while consumers might believe they are purchasing from a familiar company, the business may actually be located in another country, making it nearly impossible for the CAC to intervene.

The risks also extend to new and evolving areas of business such as cosmetic procedures.

Tara Francis, legal officer at CAC, echoed this concern, stating that the legislative delay is hampering the commission’s ability to act swiftly in emerging areas like digital commerce. “Because of the merger, there have been some delays in some of the things that we normally would do. For example, the amendments to our Consumer Protection Act is one area that we were asked to put on hold,” Francis explained.

Once the merger is complete the Government plans to repeal certain sections of the existing legislation and consolidate them under a new regulatory framework that will address the challenges of the digital and global economy. However, with the process now in its fifth year, the urgency of the situation is mounting as more consumers engage in cross-border transactions and digital commerce.

The Act was passed in 2005 and last updated in 2013.

In the absence of immediate legislative changes, CAC is focusing on educating consumers about the risks associated with online shopping.

“We are encouraging consumers to be cautious, especially when dealing with international companies. Stick to businesses that are registered with reputable bodies like the Better Business Bureau,” CEO of CAC, Dolsie Allen said.

The CAC also recommends that consumers carefully vet companies before making online purchases, and look for redress options through reputable platforms. While businesses like Amazon are known for their customer service, Martin-Tracey warned that many smaller or lesser-known platforms do not offer the same protection.

Despite the current delays, CAC is working on a consumer protection policy that will bring together multiple regulatory bodies — including the Bureau of Standards and the Fair Trading Commission — to create a more cohesive and comprehensive consumer protection framework. Allen explained that this new policy would address the fragmentation in Jamaica’s consumer protection landscape and ensure that emerging markets, like e-commerce and digital services, are properly regulated.

“The world of commerce is changing, and so are consumer expectations. Our goal is to make sure that Jamaica’s consumer protection policies keep pace with these changes. We need to streamline our processes and be ready to act in a more unified and efficient way,” Allen said.