Latest update February 8th, 2025 6:23 PM
Jan 17, 2013 News
Consumers and dealers in the auto industry have been exposed to their legal rights given that the Consumer Affairs Act is now in place and is in full effect.
Yesterday the Competition and Consumer Affairs Commission (CCAC) held a seminar which was aimed at raising awareness of the new Act which was assented to by former President Bharrat Jagdeo, in September 2011.
The Seminar was held under the name “How the Consumer Affairs Act will impact the Auto Industry in Guyana”, The venue was the Regency Hotel, Hadfield Street.
Director of the Competition and Consumer Affairs Commission Ms. Seema Rambaran said that since the Act was not around for very long both the consumers and suppliers are not aware of their rights and responsibilities.
“We started an awareness campaign dealing with warranty, the return of goods, unfair contract terms and unfair trade practices.”
Rambaran said that many of the suppliers they have reached out to have been receptive and open to discussion. Rambaran said that in cases where they received complaints from consumers they were able to sit down with both parties and come up with mutual agreements.
“Suppliers are willing to comply when they find that most of the issues coming up can be dealt within the confines of the law, we also find that more businesses are complying with the regulations.”
In the meantime Rambaran said that the CCAC will continue to work with other organizations including the GNBS to fulfill their mandate.
Meanwhile at the seminar which was attended by most auto dealers from around the country and other stakeholders, CCAC Economist Haroon Khan highlighted some basic rights of a consumer when purchasing a vehicle.
“All dealers of reconditioned, refurbished and used vehicles must provide the consumer with a warranty of six months on parts and labour,” Khan stated.
Khan said that the Act also provides for dealers or franchise holders selling new vehicles to provide manufacturers’ warranty which would be more than six months.
Dealers were also informed that they are to be held liable if a consumer is “unintentionally injured” or incurs a financial cost as a result of some incident after paying for the vehicle. Compensation in the event of such an incident should be paid to the consumer within a seven-day period. Failing to do so could result in legal action against the dealer, Khan added.
The economist added that the consumer is allowed to return a vehicle no later than seven days if the purpose for which the vehicle was bought has changed. In such a case, the dealer has a right to charge a 10 percent restocking fee and the vehicle can be put up for resale at its original value.
Dealers were also urged to be honest in their dealings as the CCAC has been in receipt of numerous complaints. Some of these, Khan said, include a consumer not being in possession of not even a copy of their registration for the vehicle which they purchased and consumers being made to pay for insurance through the dealer.
Some issues raised by dealers include the CCAC lobbying with the relevant authorities for a reduction in taxes for importers of new vehicles, the clamping down on counterfeit spare parts and a review of the section of the Act which deals with warranty on used vehicles.
As it relates to the warranty on used vehicles, dealers argued that consumers will want to take advantage of this since when dealers purchase used vehicles no warranty is offered them as is done in the case of new vehicles.
Feb 08, 2025
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