In 2008, a residential house in Kigamboni, Dar es Salaam, Tanzania “went up in flames.” The cause of the fire was an imitated circuit breaker, which failed to control an upsurge in electricity (Mwita 2016). This occurrence relating to fake goods is not uncommon to consumers in Tanzania (Confederation of Tanzania Industries 2017). It is reported that the market is flooded with equally bad main electrical switches, electrical cables, power extension cords, power stabilisers, sockets, plugs, and junction boxes. Indeed, there are many other counterfeit products in the country (Mwita 2016).

It is reported further that counterfeit and substandard industrial products continue to flood Tanzania’s domestic market and continue to causing a “revenue collection sink” with the government losing “between US dollars 240 million and US dollars 400 million per year due to tax evasions that are related to counterfeit and substandard goods” (Mwita 2016). This figure is quite significant to a country such as Tanzania whose national gross income per capita stood at USD 2740 in 2016 (World Bank 2016).

The government made commendable response by taking requisite steps. It made new rules, namely, Merchandise Marks Regulations in 2008, amended available lawsFootnote 1, and established a special task force for seizing and destroying counterfeits (Mwamunyange 2017). Relevant government institutions conduct impromptu raids and inspections in places, such as major market centres, airports, and sea ports. Between January and December of 2016, the Government, through the Fair Competition Commission (FCC), destroyed counterfeit goods worth over USD 356,352,000 (Mwamunyange 2017).

Efforts of the Government are appreciated; yet, the violated rights of the burnt down “Kigamboni home owner” and many other consumers like him who suffer actual harm from using harmful products must be seriously considered. This leads to consumer protection in relation to product safety and product liability in Tanzania. Similar questions can be asked in terms of the quality of goods and services and telecommunication consumer protection.

Consumer protection laws in Tanzania have addressed vast issues of consumer welfare. Despite such efforts, consumers in Tanzania are still faced with major challenges. This is due to several key factors, the major one being ineffective implementation strategies of the available laws. There is a lack of efficient mechanisms to ensure that consumers can easily demand for their rights. The main legislation for consumer protection in Tanzania is the Fair Competition Act, 2003, which largely focuses on regulating competition, misuse of market power, mergers and acquisitions, and collective consumer concerns. The Act is not aimed at addressing individual consumer concerns. This paper discusses the current consumer protection laws status in Tanzania with focus on product safety and product liability, quality of goods and services, and telecommunication consumer protection. The paper also highlights the extent to which laws from other jurisdictions and international organisations have influenced the Tanzania consumer protection laws and regime. A case study on status of consumer protection in Tanzania has been conducted, and its analysis presented.

Development of Consumer Protection Regime in Tanzania

The Country

In order to understand consumer protection in Tanzania, one has to understand the country. Tanzania, officially known as the United Republic of Tanzania, lies in East Africa and borders Uganda and Kenya on its northern part; Rwanda, Burundi, and the Democratic Republic of the Congo in the West; and Zambia, Malawi, and Mozambique inthe South of the country. The eastern part of Tanzania is surrounded by the Indian Ocean (Tanzania 2018).

Tanzania possesses several geographical features, such as Mount Kilimanjaro, Africa’s highest mountain located in the north-eastern part of the country and three of Africa’s Great Lakes. These are Lake Victoria, Africa’s largest lake, which is spread out to the northern part the country, Lake Tanganyika, Africa’s deepest lake, situated to the western part of Tanzania and Lake Nyasa, which is situated in the south of the country. Other known features are the Kalambo waterfalls, the second highest uninterrupted water falls in Africa, in the south-western part of the country (Tanzania 2018). Tanzania has around 55.57 million inhabitants in her 26 geographical regions (Fig. 1) and there are more than 125 vernacular languages spoken in Tanzania with the main and official languages being Kiswahili and English (Tanzania 2018).

Fig. 1
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Map of Tanzania (Maps of World 2012). Political map of Tanzania. Retrieved from http://www.mapsofworld.com/tanzania/tanzania-political-map.html)

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The Legal System

Tanzania’s legal system is mainly based on the English Common Law. It derived this system from its British colonial masters. Likewise, the system of government, to a large degree, is based on the Westminster parliamentary model.

Tanzanian laws have their legal basis and source in the Constitution of the United Republic of Tanzania (The Constitution of the United Republic of Tanzania 1977), which provides for a bill of rights and other fundamental rights, duties, and obligations to Tanzania citizens. Another source of law in Tanzania is case law where cases from the High Court and the Court of Appeal are considered as binding authority. There are also received laws whose legal basis is the Judicature and Application of Laws Act (JALA, Rev. ed. 2002). By virtue of subsection 3 of section 2 of JALA, the Common Law, the Doctrines of Equity, and Statutes of General Application of England applicable on 22 of July 1920Footnote 2 are recognized in the country. Other sources of law include customary law, where customs of the parties are taken into consideration as long as they do not conflict with the statutory law, Islamic law applicable among Muslim parties in family matters, such as succession and inheritance, and international law, where treaties, conventions, and other international agreements are adopted.

The judiciary in Tanzania is made up of the Court of Appeal of the United Republic of Tanzania, the High Court of mainland Tanzania, the Magistrates Courts, and the Primary Courts. There are also other courts, such as the Court Martial and Court Martial Appeal Court, which apply only to the military. For juveniles, courts for children and young persons have been established.

There are also boards and tribunals including the Tax Revenue Appeals Board, the Labour Reconciliation Board, the District Land and Housing Tribunal, the Tax Revenue Appeals Tribunal, the Tanzania Industrial Court, and the Fair Competition Tribunal (FCT).

Being a developing country, Tanzania is faced with multifaceted challenges, where on the one hand the country is faced with poverty and wide range of economic challenges, while on the other hand the liberalized economy has exposed the country to overflowing of goods, including counterfeits. These challenges are addressed in one way or the other either by the Government or consumers themselves. With the diverse culture and economic background of about 55.57 million people in the country, tackling these consumer concerns is highly influenced by the socio-economic, cultural, and political practices and development efforts.

It is argued that depending on a given epoch and the level of development of a given society, the economic aspect in consumer protection may be blurred or deliberately obscured (Nditi 1987, p. 11) This reflects the influence of economic status of a society in consumer protection. This situation is also reflected in the development of Tanzania consumer protection regime. As the discussion will reveal each economic phase and political phase that Tanzania passed through had major impact in consumer protection status.

The Development of Consumer Protection Regime

Tanzania has passed through various political phases, which have largely influenced its economic phases. As a result, each of these political and economic phases has shaped the development and establishment of the consumer protection system. The political influence on the consumer regime is seen through three different stages, namely, colonialism, post-colonial and centrally planned economy, and free market economy. All of these stages are relevant as they have shaped the consumer protection system in the country as will be shown in the discussion.

It is viewed that during the colonial era (Germany 1896–1919 and British 1920–1961), there were several consumer laws. These laws, however, were catered for a particular class. Hence, the consumer protection system at the time can be discussed with a different perspective from the present consumer system in the country.

One notable feature during this era is the enactment of several laws safeguarding consumers, such as the Control of Prices Ordinance (Colonial Price Control Ordinance, Chapter 309), marking the common law influence in the country’s legal regime (Nditi 1987, pp. 95–98). Moreover, consumer laws developed in Britain were imported into Tanzania (Nditi 1987, p. 96).

After the end of the colonial era and attaining independence of the country, there was little consumer protection initiatives, despite the fact that all consumer protection laws adopted during colonialism remained (Nditi 1987, pp. 115–117). Tanzania adopted socialism principles, and a lot of efforts were geared into building the nation and value of “men” (Nditi 1987, pp. 116). Consumers had no protection and were left at “the mercy of capital” (Nditi 1987, pp. 117).

Later on, in 1986, Tanzania moved to a liberalized economy. The country adopted reforms and decided that market forces should guide the economy. As a result of this approach, some of existing laws regulating the economy were repealed (Musonda 2006, p. 288). Repeal of the laws meant the market remained unregulated. This was the case for eight years until 1994 when the Fair Trade Practices Act was passed. According to its preamble this was “an Act to encourage competition in the economy by prohibiting restrictive trade practices, regulating monopolies, concentrations of economic power, and prices, to protect the consumer and to provide for other related matters.”

Although this was competition legislation, it also addressed consumer concerns in the country. In 2003, this Act was repealed and replaced by the Fair Competition Act, 2003. Even though the Act was enacted in 2003, it was not until 2007 when it became fully operational (Mkocha 2009, p. 4).

It is apparent that consumer protection in Tanzania is relatively new and has yet to reach maturity. Even though the area evolves every day, there is a need to identify the present gaps so that they can be addressed.

Consumer Protection Laws and Institutions Available

In Tanzania, there are several statutes and bodies dealing with consumer issues. Although there are several pieces of legislation, the main statute overseeing general consumer protection is the Fair Competition Act, (2003). This can be seen from the preamble to the Act which expressly states that this is “An Act to promote and protect effective competition in trade and commerce, to protect consumers from unfair and misleading market conduct and to provide for other related matters”. The major aim of the Act is to promote and regulate competition and protect consumers in the country (Preamble to the Fair Competition Act 2003, p. 9).

The Fair Competition Act provides for the establishment of the FCC, the FCT, and National Consumers Advocacy Council (NCAC) as bodies, which deal with competition and consumer issues.

Among duties of these bodies are to determine competition cases, resolve referral complaints of consumers from regulatory authorities, and adjudicate appeal cases that arise from decisions and orders from relevant commissions and authorities.

The Act has several provisions intended to protect consumers in Tanzania. Moreover, through enabling provisions of the Act, several sectorial regulatory laws and bodies have been established. Among these regulatory laws is the Tanzania Communications Regulatory Authority Act, 2003, which regulates consumer affairs in telecommunication matters. The Act establishes the Tanzania Communications Regulatory Authority (TCRA) for the purpose of regulation and overseeing telecommunications matters. TCRA has also been vested with a task of regulating broadcasting, postal services, and other telecommunication services with a view to, among others, protecting consumers of such services.

Other sectorial laws are the Energy and Water Utilities Regulatory Authority Act, 2001, which establishes the Energy and Water Utilities Regulatory Authority (EWURA); the Tanzania Civil Aviation Regulatory Authority Act, 2003, which establishes the Tanzania Civil Aviation Regulatory Authority (TCAA); and the Surface and Maritime Transport Regulatory Authority Act, 2001, which establishes the Surface and Maritime Transport Regulatory Authority (SUMATRA), which however, is not a product of Fair Competition Act.

Apart from the above, there are other laws that address consumer protection. These include the Tanzania Bureau of Standards Act, 1975, the Weights and Measures Act, 1982, the Food, Drug and Cosmetics Act, 2003, the Industrial and Consumer Chemicals (Management and Control) Act, 2003, and Occupational Health and Safety Act, 2003.

It is necessary to mention the laws regulation consumers and competition as done above so as to understand the Tanzania consumer protection regime and how it operates. However, this paper discusses only one aspect, namely, the TCRA.

At the moment, the Tanzania consumer protection regime is more operative at the regulatory level, where protection is rendered through regulation of competition and market. This is done through close relations among the available regulatory sectors and the government. For instance, TCRA would work closely with TBS in safeguarding the welfare of the Tanzania consumers through regulating businesses in communication sectors. Hence, in order to make sense of a discussion, one has to be related to the other.

TCRA set standards, regulates performance, ensures availability of services, and so forth. Moreover, through its internal mechanism, it provides forums for consumers who have complaints against businesses. It can be rightly seen that TCRA has functional consumer protection mechanisms; this is also the case with the rest of regulatory bodies available. However, current status of consumer protection in the country reveals that the system is not sufficiently reaching out for consumers and/or caters for their needs.Footnote 3

There is a major and active interaction among the main key players, namely, the Government, Regulators, and Businesses. Consumers’ interaction as far as protection is concerned is minimal (Fig. 2).Whereas the current state of operation is still desired, there is a need to have another independent consumer protection body, which is entirely dedicated to foreseeing the welfare of consumers in the country. This will widen the channels upon which consumers can safeguard their interests (Fig. 3).

Fig. 2
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Current interactions between key players in Tanzania consumer protection regime

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Fig. 3
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Desired interactions between key players in the consumer protection regime

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The provisions of the Act and other relevant laws will be discussed below where highlights on the available law addressing product safety, product liability, quality of goods and services, and consumer protection in telecommunication will be offered. The discussion will further highlight the influence of other national and international laws in the development of consumer protection laws in Tanzania.

Statutory and Government Initiatives

Product Safety and Product Liability

The major statute dealing with consumer protection in the country, the Fair Competition Act, has provisions regulating Product Safety and Product Information under Part VIII of the Act.

Section 48 of the Act gives power to the Commission to regulate and enforce product safety standards and unsafe goods. In carrying out its functions, the Commission can investigate and determine whether particular goods will or may cause injury. In addition, it may issue warning and public notice in case of such situation. Moreover, the Commission may offer a public notice of such investigation and a public warning of possible risks involved in the use of goods of a kind specified in the notice. Through the provision, the Commission is also given power to announce their findings of any investigated goods and determine actions to be followed of the goods in question.

Section 49 of the Act prohibits supply of goods which do not comply with a prescribed consumer product safety standard, or goods which have been declared to be unsafe, and goods which have been banned.

The Fair Competition Act further provides for enabling provisions where regulations may be enacted. Such regulations may provide for requirements on safety and product standards, so as to prevent or reduce risk of injury to any person. The requirements may cover such aspects as performance, composition, contents, methods of manufacture or processing, design, construction, finish or packaging of the goods; testing of the goods during, or after the completion of, manufacture or processing; and the form and content of markings, warnings, or instructions to accompany the goods (Section 50).

The Act further provides for measures to be taken in cases of export or supply of goods which are prohibited, procedures, and conditions for temporary and permanent bans of goods and vests power in a Minister responsible to declare product safety information standards (Section 51).

It is pertinent to note here that the Act mainly contains regulatory provisions aimed at regulating competition in the country. These are implemented by several regulatory authorities.

A good example of this is in Part IX of the Fair Competition Act, which carries provisions regulating product recall, compulsory product recall, compliance with product recall order, loss or damage caused by contravention of product recall order, and notification of voluntary recall and Part X of the Fair Competition Act, which provides for specific offences, penalties, and remedies with respect to product safety and standards. When it comes to practice, this role is not only carried out by the FCC but also by the Tanzania Bureau of Standards (TBS) whose functions include to provide for the inspection, sampling, and testing of locally manufactured and imported commodities with a view to determining whether the commodities comply with the provisions of the Standards Act or any other law dealing with standards relevant to those commodities. Through the power mandated by the Standards Act, 2009, TBS has been recalling, seizing, and destroying substandard products (TBS 2014).

This interrelation in regulation of consumer concerns is reflected further under the Standards Act and the TBS where several consumer protection measures in particular those controlling standard and safety of the products are regulated. The Government has established a National Standardization System through TBS out of which national standards are created. Through the scheme standards including product standards, test methods, codes of practice, and codes of hygiene are established (TBS 2005).

TBS addresses standards for different disciplines, such as food and agriculture, chemicals, textiles and leather, engineering, and environment. The government has outlined products, which require to be certified under TBS (TBS 2005).

The Government is also implementing a conformity assessment programme for the control of certain categories of imported consumer goods in the country (TBS 2005). This is known as Pre-shipment Verification of Conformity (PVoC) to standards. PVoC is a conformity assessment process used to verify that imported products are in conformity with the requirements of applicable standards before exporting to a destination country (TBS 2005). TBS also operates Quality Management System Registration schemes and Environmental Management System.

All of the above functions are intended at addressing safety standard, among other things, and safeguard consumer welfare in the country which are modelled in a way that brings team work and efforts between regulatory sectors where their functions are interconnected.

Although these are commendable efforts, both the measures under Fair Competition Commission Act and the Standards Act do not sufficiently protect consumers, especially where product liability is concerned. There is a lack of provisions addressing the fate of consumers suffering loss or damage. This gap is also reflected in practice.

The Government’s efforts in addressing and safeguarding consumers as far as product safety is concerned is also reflected through the Merchandise Marks Act, 1963 with it amendments under the Written Laws (Miscellaneous Amendments) (No. 2) Act, No. 19 of 2007. The amendments were made necessary so as to strengthen the law due to the massive influx of counterfeit goods into Tanzania. Therefore, the Act’s major task is to combat counterfeits, which are a massive problem in the country. Consequently, counterfeit has become an inseparable subject when one talks about product safety in Tanzania. With counterfeits, other consumer violations are committed such as misrepresentation and misleading conducts.

Apart from Merchandise Act, Merchandise Marks Regulations, 2008 is another major instrument in addressing matters of counterfeits in the country, with the FCC playing a major role in policing and curbing counterfeit goods in the market.

The initiatives in dealing with counterfeits have been ongoing and active. Among the measures available through the Act and Regulations is the establishment of the offices of chief inspector and other inspectors who have been vested with the powers to investigate, to conduct searches and seize suspected counterfeit items, to destroy counterfeit products, and to initiate court proceedings against the suspects (The Merchandise Marks Act, 1963, Section 4; Miscellaneous Amendments Act, 2007, Section 2C).

Also, local offices have been established at the zonal level to address counterfeits issues, hence adding efficiency when dealing with the problem in the country (The Merchandise Marks Regulations, 2008 Regulations 7).

More implementation efforts are reflected in the Merchandise Marks Regulations, 2008 where there is an establishment of special task force to combat counterfeits, control of export and import of such goods, and establishment of preventive and punitive provisions (The Merchandise Marks Regulations, 2008 Regulations 7, 8, 50, 52, 85).

Just as noted in the discussion above, consumer protection is implemented through enforcement of regulations. Even though there are Consumer Consultative Councils, tasked to deal with consumer concerns, there are gaps when addressing consumer protection in Tanzania. These range from lack of sufficient provisions to insufficient implementation of the available laws in rendering consumer redress. For instance, one notable thing when examining the provisions of the above-mentioned laws is the lack of explicit address on product liability. Where one can infer such liability through the provisions, such as those establishing product safety and standard, there is no specific provision addressing the matter. The only means through which a consumer can see redress in case he or she is aggrieved in product liability matters is through court of law such as through tort action. This deters consumer to seek redress due to cumbersome process, expensive procedure, and never ending litigation.

Telecommunication Services

Among the complex areas of consumer protection in Tanzania is the telecommunication sector. The usage of telecommunication services, especially mobile phone services, has spread throughout the country including rural areas.

Currently, there are eight mobile network operators in the country, namely, Tigo, Vodacom, Airtel, Smart, Smile, Halotel, TTCL, and Zantel. Tanzania’s Mobile Internet Network services include 4G, 3G, and 2G services. With the use of mobile phones, come other services, the popular one being mobile money service accessible to mobile phone customers.

Through the mobile phone money services, full financial services, such as money depositing, withdrawers, transfers to other customers, and even online (mobile) payments, are delivered by mobile phone service providers to their customers. These services have prospered in the country due to the fact that majority of the citizens lacked banking services for several reasons among them being the inaccessibility and unavailable infrastructure.

Mobile phones have brought in the country a whole new aspect of financial inclusion through mobile banking model where the “unbanked,” who apparently were the majority of the population, are provided with an opportunity of banking through their mobile phones. The mobile money services have been the major financial accessed sector for Tanzanian consumers (Fig. 4).

Fig. 4
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Overall distribution of financial access in Tanzania. Financial Sector Deepening Trust (2015). Financial access maps – Tanzania. Retrieved from <http://cenfri.org/documents/GIS%20Workshop/1.6.%20FSDT%20GIS%20-%20Financial%20Access%20Points%20Tanzania%20-%20Use%20Cases.pdf>)

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Furthermore, according to a survey conducted in 2012 by Intermedia (Intermedia 2013), which aimed to track the uptake, use, and market potential of mobile money in Tanzania, 21% of Vodacom M-Pesa users and 12% of users of both Airtel Money and TigoPesa use their accounts for business transactions, primarily to buy inventory and receive payments for goods and services.Footnote 4

The use of mobile phone in Tanzania is described in a study undertaken by Vodafone, where it states “Mobile phone usage in East Africa is characterised by innovations such as unconventional ownership models (shared handsets), decentralised payment plans (prepaid subscribers), and improvised use of the shared village phone” Hellström (2009, http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.364.949type=pdf). This statement reflects the situation of the major population of mobile phone users, especially in rural areas. However, other features, such as postpaid services and individual ownership of the services, are also present.

Such popular usage and demand come with many consumer challenges. These range from problem with service providers to third parties and consumer protection concerns in general. These are poor customer care, poor network services, high and unfair charges, spam, unregulated services, information disclosure, and security.

Security is among the major problems as the telecommunication services serve more like a financial institution than just phone service providers. Hence, consumers of mobile money services are highly targeted by fraudsters.

Again, there is insufficient regulation to safeguard security and several other concerns mentioned here of mobile money consumers. It is only recently that the Bank of Tanzania (BOT), a central bank vested with responsibilities for overseeing regulations of financial matters including mobile money transfer, through the Banking and Financial Institutions Act, 2006, has issued guidelines for electronic payment schemes.

There are several instruments regulating telecommunication services in the country including the Tanzania Communications Regulatory Authority Act, 2003, which establishes the TCRA for the purpose of regulating and overseeing telecommunications matters. TCRA is an important body when it comes to overseeing communication issues in the country. It is also among the regulators that deals with a lot more consumer concerns at the individual levels especially in the matters of mobile financial services (such as Mpesa). By virtue of Part VIII of the TCRA Act, 2003, TCRA can deal with complaints and dispute resolutions.

Consumers can file a form to TCRA Consumer Consultative Council when aggrieved by their service providers. The authority has the powers to adjudicate consumer cases by obtaining documents and evidence, conducting inquiries and investigating into complaints or other issues (TCRA Act, 2003, Sections 15–17). TCRA has set internal dispute resolution mechanisms to deal with these concerns. Appeals against TCRA decisions lie to the FCT.Footnote 5

However, according to the Act, complaints against a supplier of regulated goods or services has to be in relation to any matter connected with the supply, possible supply, or purported supply of the goods or services and will only be acted upon where the complainant has an interest in the matter to which the complaint relates, and if the complaint is not frivolous or vexatious (TCRA Act, 2003, Section 40). Despite its good efforts to curb frivolous claims and random complaints from consumers, the limitations that the provisions impose do not augur well with comprehensive consumer protection. Several malpractices may not be towards one individual consumer and may not necessarily be in the supply of goods or services.

The Act further requires that complaints submitted to TCRA be considered adequately by the supplier. If this is not the case, then TCRA may refer the complaint to the supplier with a request that the supplier should consider or re-consider the complaint (TCRA Act, 2003, Section 40(3)). Again, this provision is a drawback to comprehensive address of consumer concerns and is likely to deter consumers from seeking remedies. Consumer protection measures need to be proactive and consumers need to be provided with easy way to resolve their concerns.

Furthermore, TCRA addresses matters of competition harming consumersFootnote 6. Section 6 of the TCRA Act, 2003 vests power in the Authority to deal with issues, such as renewing and cancelling of licences; to establish standards for regulated goods and services; standards for the terms and conditions of supply of the regulated goods and services; to regulate rates and charges; to monitor the performance of the regulated sectors; and to facilitate the resolution of complaints and disputes. It is clear from the provision that TCRA is the watchdog for telecommunication service consumers. TCRA can also regulate charges, issue, and cancel communication licences and regulating supply of the telecommunication goods, such as telephone airtime and internet bandwidths.

For the purposes of dealing with consumer complaints, the Act requires the Authority to establish a dedicated unit, which will receive and follow up on complaints from consumers. These units are vested with a task of investigating all complaints and attempting to resolve the complaints amicably; and in the event they cannot be resolved within 30 to 60 days, the Committee concerned has to present its findings and recommendations to the Authority for action.

The Act further provides that where the parties are not satisfied with an award given they can appeal to the FCT. However, this appeal will be admitted only if the grounds for appeal are either that the award was not reasonably open to the Authority based on the evidence or there was an error in law or the procedures or other statutory requirements applicable to the Authority were not complied with or that non-compliance materially affected the award or the Authority did not have power to make the award.

There is also in place the Tanzania Communications (Consumer Protection) Regulations, 2005, known as Consumer Protection Regulations. These were enacted under the provisions of the Tanzania Communications Regulatory Authority Act. The regulations set out consumer protection provisions, which need to be followed by service providers and other stakeholders while dealing with consumers of telecommunication services.

The regulations require a licensee to provide a clear and understandable description of available services and the terms, conditions, rates, and charges for those services (Regulation 8(1)). The regulations further require a basic postal and electronic communications operator to regularly publish or arrange to be published, directories and guides for the services they offer (Regulation 4(1)).

The regulations further address different matters concerning postal and telecommunication customers. The provisions require each licensee to establish a customer care system within which customers may make inquiries and lodge complaints. Furthermore, the regulations require all postal and electronic communication operators to notify customers about the availability of consumer complaint procedures and have in place forms to be used for registering complaints. The provisions also require each licensee to provide a response to the customer’s complaint within 21 business days of receipt of the inquiry or complaint from the customer.

The regulations further provide that where a customer is dissatisfied with the licensee’s response, they may refer the complaint to the Authority (TCRA). The regulations also provide that where a person is aggrieved by the decision of the Authority, they may appeal to the FCT established by the Fair Competition Act, 2003.

Another instrument regulating telecommunication service is the Electronic and Postal Communications Act, 2010. This Act was enacted so as to regulate the telecommunication and postal industry with a view to keeping abreast of developments in the electronic communications industry and to also provide for a comprehensive regulatory regime for electronic communications service providers and postal communications service providers.

A bigger part of this Act has regulatory provisions where the Act addresses issues, such as issuing licences and regulating electronic communication systems (Part II) such as network facilities licences, network services licences, and postal and courier services licences (Section 5).

The Act offers provisions which safeguard consumers’ interest. For instance, the Act introduces emergency number services, which were not offered before. Through this provision, a licensee of network services is required to offer free of charge calls to emergency services, such as customer assistance, fire, and ambulance (Section 18).

The Act also addresses consumer concerns in postal communications, such as confidentiality of correspondences and delivery (Part III). Similarly, the Act addresses the issue of competitive practices and conducts where it prohibits a dominant licensee to engage in acts which may affect other licensees in the market (Part IV). Issues, such as collusive agreements, tying or linking arrangements, and spectrum management, are addressed. In addressing these concerns, the welfare of consumers is protected.

The Act has also addressed issues of mobile phone numbers and sim card registrations (Sections 85–96), which assist in reducing fraudulent activates committed to telecommunication consumers. The Act also addresses content regulations (Sections 103–114) for content service providers and provides for several offences (Part VI).

Interaction with Other International and National Laws

As it has been reflected in the above discussion, consumer protection laws in Tanzania have influence from other jurisdictions’ legal frameworks. This influence can be traced way back during colonialism when Tanzania adopted laws from Britain between 1920 and 1961. Consumer laws enacted in Britain were adopted for Colonial Tanzania. Majority of these laws were repealed, while some remained.Footnote 7 However, the need to regulate the economy and to oversee the welfare of consumers later on arose. This was after adopting liberalized economy in the country with unsatisfactory regulations.

As a need to address consumer concerns in the country arose, the Government appointed a Task Force, to learn from the best practice models which Tanzania could adopt for its consumer protection regime (Musonda 2006, p. 289). Consumer protection regimes from different countries were examined. Notable countries included Australia, Jamaica, Kenya, and Canada. There is also a major influence from international agencies, such as the United Nations Conference on Trade and Development (UNCTAD), International Telecommunications Union (ITU), and International Standards Organisation.

This influence is reflected in the enacted laws in Tanzania, in particular the Fair Competition Act, 2003 whose provisions largely reflect the United Nations Conference on Trade and Development (UNCTAD) Model Law on Competition and the United Nations Guidelines for Consumer Protection (UNGCP) as adopted by the General Assembly in resolution 39/248 of 16 April 1985 (Mkocha 2009). Similarities can be seen in the title of the model law which corresponds to section one of the Fair Competition Act, 2003. Similarly, objectives of the model law are similar to Section 3 of the Fair Competition Act, 2003. Moreover, definitions and scope of applications of the model law can be found under section 2 of the Fair Competition Act, 2003.

The extent to which adopted provisions of the UNCTAD Model Law on Competition can be seen in Table 1, where adopted provisions are shown. It is clear from the figure that UNCTAD Model Law on Competition has been adopted as it is, with very little modifications.

Table 1 UNCTAD model law on competition provisions in the Fair Competition Act
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The Act also reflects influences from other jurisdictions, notably from Australia. Whereas no specific provisions can be pinned down to specific Australian statute, the country has been a major role model to Tanzania as far as competition regulation and consumer protection is concerned. Indeed, from the start, Australian consultants were members of the Task Force. Moreover, a special Tanzania task force team spent a month in Australia prior to the enactment of the Fair Competition Act, travelling through its various states in effort to study how the Australian Consumer System works and drawing lessons for Tanzania (on file with author).

As far as African regional organisations are concerned, not much can be reflected from these organisations. There are more prospects of working with East African Community as member states continue to strengthen their union.

Since consumer protection is a growing area in the country, it is expected that Tanzania will continue to learn from best practices in the world and continue to be guided by both Regional and International organisations working on the area.

It is noted here that there are other laws which consumers can pursue to seek their rights such as through principles of Contract, Sales of Goods, and Tort Law. These, however, are considered as private laws and are rarely pursued by consumers due to several reasons such as cumbersome procedure, high costs, and prolonged litigations. Hence, they are undesired options of consumer protection and are rarely invoked by consumers. It is noted that these private laws do not form part of this discussion. However, as noted above, the origin of these laws in Tanzania have their roots back to colonialism where the country received laws from Britain. Hence, Tanzania follows common law, with a number of its statutes being adopted before its independence.

Case Study

In establishing the status and effectiveness of consumer protection measures in Tanzania, a study was conducted. Questionnaires with both close and open ended questions were administered to 60 respondents in Dar es salaam, where respondents had to answer questions regarding product safety and product liability, misleading conducts, and telecommunication services. It was adequate to conduct this study in Dar es Salaam due to the reality that major enforcement efforts of the available consumer protection legal regime are concentrated in Dar es Salaam. The FCC, the overseer of consumer protection, is situated in Dar es Salaam and lacks permanent Regional offices and Representations. Hence, a large percentage of implementation of consumer protection regime is reflected in Dar es Salaam. Thus, as the questions were geared towards finding out both the availability of the laws and their implementation and the satisfaction from the consumers, the population targeted was sufficient and efficient for such role. However, it is noted that considering the population of Dar es Salaam, the study sample is minimal hence indicative.

Half of the respondents were randomly selected from a major shopping mall in Dar es salaam, where appliances and electrical shops, retailing supermarkets, and services shops, such as Apple shop and Vodacom Shop, are available. The other half were selected in a local market centre called Kariakoo, Dar es Salaam’s busiest and biggest market with hundreds of various businesses which serve many other parts of the city.

Regarding product safety and product liability, half of the respondents acknowledge awareness on the governing laws, while others were unsure or did not know the available laws.

When asked whether they think consumers in the country are protected against product safety and product liability, half of the respondents answered in affirmative, while the other half were of the opinion that no protection is rendered at all. In explaining why they hold such view, those who answered in the affirmative pointed out the ongoing efforts to curb counterfeits in the country.Footnote 8

When asked whether they are aware of consumer protection laws offering protection to individual consumers, 70% of the respondents confirmed that either there were no laws or they were not aware of such laws. 20% of the respondents confirmed that there are laws; however, they are not effective in offering protection. 10% of the respondents answered in the affirmative.

When asked whether they can easily seek redress when aggrieved, 80% of the respondents answered in the negative, while 20% were uncertain.

When asked whether there are means of ensuring products standards in the country majority of the respondents expressed that there are laws, however, little is done in implementation. The respondents went further to give several examples of products and services, which should be regulated but they are not. Among products mentioned were home furniture, both locally made and imported.

When asked whether they can lodge a complaint or get compensated in case of house or property damage due to defective goods, 90% of the respondents answered in the negative, while the other 10% were not certain.

When asked if they know a channel or venue to lodge various consumer protection complaints, 70% answered in the negative, while the remaining 30% mentioned various regulatory authorities available and/or the court of law.

During the study, several other stakeholders were also interviewed. These included regulatory authorities and bodies in the country. Much consumer protection insight was drawn from these interviews. The study established that the available authorities are exerting commendable efforts in safeguarding consumers’ welfare in the country. However, these satisfactory efforts are defeated due to unbalanced system in consumer protection regime.Footnote 9 The current system is leaning towards regulating competition and as a consequence addresses consumer concerns in their generality. There is a need to have independent consumer protection body to oversee consumer affairs; a body whose interest will be to represent and safeguard consumers, while at the same time providing consumers with adjudication venues in an easy and timely manner.

Observation

It is evident from the study that despite the presence of the several statutes addressing product safety, protection of consumers in relation to product safety in the country needs further address. There are gaps in both the law and implementation and application of the law. As pointed out from the discussion, specific provisions addressing product liability are lacking, hence contributing much in the consumer protection dent.

The study has revealed that majority of products available in the country are counterfeits, with either forged standard marks or no marks at all. Consequently, one has to refer to laws addressing counterfeits when discussing product safety and quality of goods in the country. It has also been revealed that several organs in the consumer protection regime interrelate in their functions as they regulate the market.

The study has further shown that even though there are provisions safeguarding consumer welfare, sufficient implementation of these laws is still needed, especially at the level of individual consumer protection. There is a gap in effective implementation measures, which offer “easily accessible consumer friendly” bodies to watchdog and adjudicate consumers’ grievances. A good example is what has been revealed in the study, where for instance, in case of house fire caused by a dangerous product, such as counterfeit electrical circuit, flammable mattress foam, or defective television, the consumers are not in a position to get a remedy from manufacturers or suppliers of goods. As revealed above, consumers in the country lack an effective forum to address such circumstances.

It is also evident that consumers are not able to recover from personal injury, damaged property, or any other consumer rights entitled to them in such circumstances. In case aggrieved, consumers have to seek remedy through other available disciplines of law such as tort or contract remedies or under the Sales of Goods Act (It is argued here that this Act still does not render sufficient protection to parties involved; however, this discussion will not be fully carried here as the topic calls for its own lengthy dialogue). This impedes consumer rights and protection as remedy through these disciplines requires long and expensive litigation through court of laws. Majority of consumers are unable to entertain such cause.

The study has shown that there is still a need to improve regulations of standards and values in several products in the country. For instance, there are no specific rules of general safety requirement for furniture. Majority of furniture made in the country have little or no regulation at all. Even though the provisions of the responsible law provide opportunity for such regulations to be made, this has not been done.

It has also been noted, however, that the overseers of such matters are doing commendable efforts in addressing raised concerns, including proposing amendments of the main Act so as to further consumer protection.

The study has also revealed that there are areas which fare better in regulation than others, as far as product safety is concerned. For instance, matters regulated under Weight and Measures and some disciplines falling under the auspices of Bureau of Standards, such as food and drugs, are addressed. However, this is offered as a mass right and in regulatory manner rather than through the protection of each individual. The focus is to limit such products in the country more than to offer remedies to individual consumers aggrieved. Therefore, even though the laws prohibit substandard products, consumers have little redress when they are faced with such products.

It is clear from the study that the dissemination of available consumer legal protection to individual consumers who need such protection is still lagging. There are no specific requirements, for instance, in marking dangerous products, such as flammability risks, consumer mandatory information, and other appropriate warning in products.

It suffices to note here that, with economic reality of Tanzania, where there is very little presence of large-scale manufacturers or producers and majority of products are imported, the implementation of manufacturer’s liability has not been effectively realized. Even with a presence of locally manufactured products, the implementation of manufacturer’s obligations has been minimal.

The unsatisfactory consumer protection measures are also reflected in other areas of consumer protection, such as in telecommunication services. The general state of customer care in the communication sector is not satisfactory (Makamba 2012; Hellström 2009, p. 4).

There are no effective mechanisms to ensure that the telecommunication service operators are adhering to consumer protection measures set in the country. However, there is evidence of great efforts from the  current system by TCRA, a watchdog for telecommunication consumers, to further address and ensuring proactive, sufficient, and friendly protection to the consumers.

In order for consumers to be afforded effective protection, they need knowledge, skills, information, and accessible dispute mechanisms. In Tanzania, consumers are still vulnerable despite governemnt’s efforts in safeguarding their welfare. They are not well informed, the “active consumer education is unsatisfactory,” and the dispute settlement framework available to consumers involves serious challenges. The situation of consumer protection laws and consumer protection in the country in general is summed up by the government when it stated:

Due to science and technology advancement and globalization in general it is very easy for the consumer to be affected health wise, economically and socially. This is because the existing legal framework does not carter for these developments. These laws were enacted before the socio economic changes that have occurred. In the same line the existing laws are scattered and regulated by various authorities. Therefore, the Commission has embarked on studying and identifying the shortcomings in the Legal framework and proposes actionable recommendations for reform.” (Law Reform Commission, ‘Review of Legal framework governing Consumer Protection in Tanzania 2017).

It is evident from this paper that laws alone are not enough. Its implementation and ensuring that every consumer has access and can apply the available provisions safeguarding their welfare are what may bring satisfactory and effective consumer protection in the country. It is noted here that there is much hope for the Tanzanian consumers as the Government and the sectorial overseers of consumers are working hard towards achieving a desired state of consumer protection. The hope is further reflected through what has been achieved so far in the protection regime. The above discussion on consumer protection system reflects that the regime is fairly new in the country; therefore, when measured with its achievement so far, one can note commendable efforts. Notable contributions from key stakeholders and scholars will assist such efforts even further in reflection and suggestions as to the way forward.