Zimbabwe’s Consumer Protection Commission (CPC) is cracking down on businesses refusing to offer card payment options, declaring it a violation of consumer rights and national law. The commission is launching an enforcement blitz, targeting fuel retailers first, to ensure businesses provide Point-of-Sale (POS) machines that accept cards in both Zimbabwean dollars (ZiG) and US dollars.
This action follows inspections revealing that 80% of 27 service stations surveyed lacked POS machines, restricting consumer choice and potentially enabling unfair business practices. By denying card payments, businesses can force customers to use a specific currency, possibly at an unfavorable exchange rate, or push them towards less secure cash transactions.
The CPC asserts that businesses without POS machines are violating the Consumer Protection Act and the Finance Act, which mandate offering electronic payment options. They aim to protect consumers from manipulation and ensure transparency in transactions.
The announcement also triggered debates. While many support protecting consumer rights, some question the feasibility of enforcing POS usage across all businesses, especially smaller ones with limited resources or unreliable internet access. Others highlight that larger companies have long ignored these regulations without consequences. There are also calls to address the root issue of the dual currency system, advocating for a single, stable currency.
Despite the varying opinions, the CPC is determined to enforce compliance. Businesses found violating the law will face penalties, including Compliance Notices and potential legal action. The CPC urges consumers to report non-compliant businesses, emphasizing the importance of upholding consumer rights.
Focusing on the fuel retail industry first, the CPC aims to set a precedent and encourage wider adoption of POS machines across Zimbabwean businesses. This enforcement drive is a significant step towards protecting consumers and promoting fair trading practices.
The CPC acknowledges concerns about the practicality of enforcing POS usage across all businesses, particularly smaller enterprises and those in areas with limited internet connectivity. They are committed to working with stakeholders to find solutions that balance consumer protection with the operational realities of businesses.
In a country facing economic challenges, protecting consumer rights and ensuring fair trading practices are crucial for stability and growth. The CPC’s enforcement action sends a clear message: businesses must prioritise consumer welfare and contribute to a transparent and inclusive marketplace.
