Draft Price and Charge Indicators (Jersey) Law 200-
European Convention on Human Rights
In accordance with the provisions of Article 16 of the
Human Rights (Jersey) Law 2000 the Minister for Economic Development has made
the following statement –
In the view of the Minister for Economic Development
the provisions of the Draft Price and Charge Indicators (Jersey) Law 200- are
compatible with the Convention Rights.
(Signed) Senator P.F.C. Ozouf
REPORT
The Minister for Economic Development has responsibility for consumer protection legislative policy in the Island. The proposed introduction of a Goods and Services Tax (GST) in 2008 will result in a tax element to the retail prices charged to consumers for those goods and services. The question of how GST will be charged and indicated to consumers was considered by the States on 18th April 2007 during the debate on the GST Law.
There was some concern that what is actually a consumer protection issue, was in danger of clouding the general principles behind the need to introduce the GST Law.
At that sitting the Minister promised to attempt to bring to the States before the summer recess a Law which focuses only on the price marking issue. The Draft Prices and Charges (Jersey) Law 200- achieves that objective.
The main provision is that price indications should be inclusive of any goods and services tax which would be charged on a retail supply. However, the Draft Law provides for the States to make Regulations that would deal with many aspects of price displays to consumers. If this enabling Law is passed by the States then there will be a presumption in favour of inclusive pricing. The Minister will then propose Regulations with the detail and any possible exceptions. In the longer term it is envisaged that additional Regulations would be proposed for the introduction of the further consumer protection measures of inclusive unit pricing.
This would ensure that Jersey follows consumer protection provisions in existence throughout Europe and many other places in the world.
There are no financial or manpower implications for the States arising from the adoption of this Draft Law. (The additional work will be undertaken within Economic Development’s existing resources.)
European Convention on Human Rights
Article 16 of the Human Rights (Jersey) Law 2000
requires the Minister in charge of a Projet de Loi to make a statement about
the compatibility of the provisions of the Projet with the Convention rights
(as defined by Article 1 of the Law). On 4th June 2007 the Minister for Economic
Development made the following statement before Second Reading of this Projet
in the States Assembly –
In the view of the Minister for Economic Development
the provisions of the Draft Price and Charge Indicators (Jersey) Law 200- are
compatible with the Convention Rights.
Explanatory Note
This Law would enable the States, by Regulations, to require prices to be indicated for goods, and charges indicated for services, when they are offered for sale by retail. As a general rule, the price or charge would include any goods and services tax chargeable on the supply of the goods or services, although the States would have the power to make exceptions to the rule.
Article 1 is the interpretation provision.
Article 2 is the power for the States to make Regulations requiring the price of goods, or the charge for services, to be indicated when they are offered for sale by retail.
Paragraph (1) creates the power.
Paragraph (2) elaborates upon what may be included in the Regulations.
The Regulations can specify the way in which a price or charge is to be indicated. For example, they might require that the indication is clearly legible. If the indication relates to goods and is not affixed to them, they might require that it is displayed close to the goods, for example, on the shelf on which the goods are themselves displayed.
The Regulations can require that the price for goods or the charge for services is displayed by reference to a unit of measurement. An example of this might be to display the price of bottles of shampoo per 100ml of product, as well as the price per bottle. This would enable a purchaser to compare the respective cost of bottles of shampoo of different sizes.
The Regulations can require that prices and charges are not displayed in an inappropriate manner and can require amounts to be rounded up or down. For example, a price per 100ml for a product might be 10.085 pence. The Regulations may require this to be rounded to 10.1 pence.
The Regulations can make any failure to comply with the requirements in them an offence liable to a fine of up to level 3 on the standard scale (£2,000).
Paragraph (3) creates a general rule that a requirement to indicate a price or charge is to indicate the price or charge inclusive of any goods and services tax (“GST”) which would be charged on their supply. However, there may be circumstances where inclusive marking is inappropriate, in which event paragraph (4) enables the States to make exceptions and, if wished, impose alternative requirements. For example, if a seller supplies both the retail and the wholesale trade, it might be most helpful to customers if the price of goods is indicated both inclusive of GST and exclusive of GST.
Paragraph (5) stipulates provisions that must be included in the Regulations in the event that non-compliance with them is made an offence.
Firstly, it provides that the person whose action or inaction causes the commission of the offence may be prosecuted for it, even though the requirement is imposed on another person, such as the retailer.
Secondly, it creates a defence. A person will not be guilty of an offence if its commission was due to a mistake, reliance on incorrect information, the act or inaction of another person, an accident, or another cause beyond the person’s control, as long as the person took reasonable precautions and exercised due diligence to avoid the commission of the offence. If an accused intends to raise the defence on the ground that he or she was supplied with incorrect information or that the offence was due to another person’s act or inaction, the accused must supply the person prosecuting with information about the identification of the person who supplied the information or whose action or inaction caused the defence. This information must be supplied at least 7 days before the proceedings for the offence commence. If it is not, the accused can only rely on the defence if the court so allows.
Article 3 provides inspectors (being the trading standards officers) with the necessary powers to enforce the Regulations. An inspector can make test purchases. An inspector can enter premises (other than a dwelling) at a reasonable hour. An inspector has no power to force an entry and, if asked, must produce evidence of his or her authority as an inspector. An inspector can inspect and take samples of goods, ask for documents to be produced and make copies of them, and seize and detain goods and documents for the purposes of their examination or for the purposes of a prosecution.
A person who wilfully obstructs an inspector exercising these powers or who, without reasonable cause, does not give an inspector assistance or information that he or she may reasonably require, commits an offence for which the penalty is imprisonment for up to 6 months and/or a fine of up to level 4 on the standard scale (£5,000).
A person who, intending to deceive, produces misleading or false information commits an offence for which the penalty is imprisonment for up to 12 months and/or an unlimited fine.
Article 4 imposes restrictions on the use of information obtained by inspectors under Article 3. The information can only be disclosed in 3 circumstances: with the consent of the person giving it; if the disclosure is to a Minister or States’ employee for the purposes of the Law; for the purposes of proceedings for an offence under the Law or for the purposes of civil proceedings connected with the Law.
Article 5 makes it an offence to aid, abet, counsel or procure the commission of, or to conspire, attempt or incite another person to commit, an offence under this Law or the Regulations.
Article 6 makes provision as to the liability of an officer or member where an offence is committed by a body corporate or limited liability partnership.
Article 7 creates rights for a person whose goods or documents are seized under Article 3. The person may apply to the Royal Court for their release. The Court may order release if the goods or documents are no longer required for a criminal investigation or proceedings under the Law.
Article 8 creates rights for a person who suffers loss as a consequence of an inspector detaining goods under Article 3. The Minister for Economic Development is under an obligation to compensate the person if no offence has been committed under the Law in respect of the goods and if the detention of the goods was not attributable to any neglect or default by the person seeking compensation.
Article 9 cites the short title of the Law and provides for it to come into force 7 days after it is registered.
