Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697762562354.pdf (Fiji)
ANN UAL RE P OR T 20 16 “To promote competition in Fijian Markets” www.commcomm.gov.fj PARLIAMENT OF FIJI PARLIAMENTARY PAPER No.
83 OF 2019 2 CON TENTS Tabl e of content s 03 05 07 09 10 13 Ch airs Repo rt Commis sio n Over vi ew Commi ssion Bo ard Seni or Management Staff About The C ommiss ion Regul ator y Competitio n Department 25 29 38 42 44 45 M o nito ring Depart me nt C om pliance, Fair Trade & Rent Depart m ent De part ment o f Law C orpo rate and Hum an Reso urce De part m ent S ocia l and C orpo rate Respo ns ibility Au dited Financial S tatem e nts Cha ir’s Rep or t Gr eetings to all!

3 Greetings to you all!


It is with great pleasure, I submit the 2016 Annual Report of Fiji Commerce Commission (“Commission”) for the year ending 31st July 2016.

The report is made up of our financial statements and the activities undertaken in 2016.

It provides the accountability statement on the sources and uses of the funds of the Commission.
I would also like to take this time to acknowledge and thank Mr. Firoz Ghazali, who served as our Deputy Chairperson from 19 September 2015 until 19th February 2017.

Mr. Ghazali played a vital role in decision making matters and immensely contributed to the Commission over the years.
The Commission is an independent statutory body that promotes effective competition and informed markets, encourages fair trading practices, protects consumers and businesses from restrictive trade practices, controls the prices of regulated industries and other markets where competition is lessened or limited.

The work of the Commission is guided by these objectives and the legal framework within which it operates is the Commerce Commission Act 2010 (“CCA 2010”).
This year we continued to deliver the services within the ambit of the Act as expected, meeting challenges head on but also taking time out to see how we can do things better and efficiently in achieving our objectives.

I trust that the report will provide you with an in-depth understanding of the Commission’s strategies and actions which are based on the principles of compliance, risk assessment and good governance.
This year like previous years, the Commission faced many challenges to deliver the services within the jurisdiction of the CCA 2010.

The Commission continued to invest and focus on a way forward to engage with stakeholders.

In doing so the Commission ensured that both businesses and the consumers are fully aware of their rights and responsibilities under the CCA 2010.
As such, the Commission continued its active public awareness through media prints, talkback shows and reaching out to communities and schools.

In 2016 a total of sixty (60) awareness sessions were conducted with a total of 1975 participants.

Apart from the awareness sessions, the Commission engaged with stakeholders through programs such as Trader Awareness, Radio Talkback Shows, Education Programs in schools and newspaper articles.
All these activities are credited for increasing awareness amongst stakeholders resulting in increased compliance from stakeholders.

Section 72 of the CCA 2010 requires that clearance be sought from the Commission for proposed acquisitions.

In 2016, the Commission received a formal application from Vinod Patel Investments Limited (VPIL) notifying the Commission of its intention to acquire shares in British Oxygen Company (Fiji) Limited (BOC).
The Commission made its assessment and it was concluded that VPIL’s acquisition of shares in BOC (Fiji) Limited is unlikely to result in a substantial lessening of competition in the national market for the supply and sale of gas for industrial, medical, food and beverage sectors, consumables and related equipment.

On 10 March 2016, the Commission therefore approved the acquisition of shares in BOC (Fiji) Limited by VPIL.
In enforcing the law, the Commission has filed 155 cases for prosecution which are still pending before the court for breaching the provisions of the CCA 2010.

The two major cases that were investigated by the Commission were Online Traders and Travel Agents.

These traders were “Accepting Payment 4 Without Being Able to Supply as Ordered” which is a breach of Section 88 of the CCA 2010.
Amongst its routine activities, the Commission received 290 fair trading related complaints from members of the public of which 124 cases were successfully closed off during the year.

Trader Inspection continued during the year with a total of 2,055 inspections being carried out in Central Eastern division, 1,478 in Western division while 2,377 inspections were carried out in Northern division.
A Job Evaluation Exercise (“JEE”) was conducted for the staff of the Commission by Price Waterhouse Coopers, reflecting the Commission’s desire to create a workplace that is fair, equitable and a provider of equal opportunities.
I am pleased to advise that the Board adopted the recommendations of the JEE report which were implemented in phases from 2016. here are a few instrumental partners which I wish to extend my gratitude and acknowledgement to; the Honorable Minister and the Permanent Secretary for Trade, Industry and Tourism for their invaluable support to the Commission during the year, my fellow Commissioners who have spent considerable time by providing their knowledgeable contributions towards the organization.
I would like to thank them for their hard work and immense contributions.

Last but not least the Management Team and Staff of the Commission for their commitment and contribution in achieving the goals and objectives of the Commission.

The Board this year has embarked on developing a five (5) year strategic plan for the Commission with the assistance from ADB.

This would be the first strategic plan for the Commission which is expected to be completed in the next financial year.
In moving forward, the Commission will continue to contribute to achieving the Government’s social and economic goals while carrying out its functions.

On behalf of the Board and the Commission I take this opportunity to thank all those who have contributed towards the success of 2016!

Joann Young Board Chairperson Fiji Commerce Commission 5 Commiss ion Over vi ew Our Vision , Mi ssion and Val ues O UR VISION To cre ate a dynamic and fair trading market place for Fi ji.
O UR MISSION To e nhanc e the welfare of the peo pl e of Fiji by fostering a competitive, eff icient, fair and infor med mar ket place.

O UR VALUES • P ro fe ssio n alis m , • Respo nsib ility, • Co m mit ment , • H o nest y, • Integr it y, • Respe ct, • Tru st, • Tran sparenc y.
6 Commission Ove r v iew Our Objectives OUR OBJECTIV ES • The need to secu re effective compet it ion in industr y, trade or commerce; and • To ensure equitable return s fo r businesses wi th fair and reas onable prices charged to consumers .
The Commission has the following objectives The objec tives of t he Fij i C o mmerce in relation to regulated industries and Co mm ission are clearly outlined in Section access regimes: 2 o f the Com merc e Comm is sio n Decree • To promote effective competit ion in t he 201 0 and are as follows : interests of consumers; • To facilitate an approximate balance • Th e pro motio n of the interests of the between efficiency and environmental co ns umers; and social consideration s; and • Th e promo ti on of the effec ti ve and • To ensure non-discriminator y access efficient development of indust r y, trade to monopoly and near monopoly o r co m merce; infrastructure or ser vices .
Commission Bo ard 7 Ms .

J oann Young Mr. Firoz Ghazali Chai rp erson Deputy Chairperson Ms .

J oa nn Young is also the Direc to r fo r Bio Sec uri ty of Fiji.

Ms .

Young is cur rent l y wit h Mi ni st r y of Ag ric ulture as the A ss istant Organization A griculture Food Rep rese ntative ( AFAOR) for Fiji.
and She has almo st 10 years of exper ie nce in Agric ulture Trade & Polic y Fo rm ul ation, ma rket develop ment , and market a cc es s/ quarant ine issues and also co-au t ho re d the 200 7 Fo o d and Agr icultural Organizat ion Publ ication on “Fij i Comm odit y C hain Study ”.

The o utcome of t he p ublication wa s use d fo r the invest igation and was impl em ente d to assess import subst it ution po tent ial o f se lec ted hort ic ultura l pro ducts .
Ms , Young has als o s er ved fo r Pacific Isl ands Forum Secretar iat , Fij i in 2 0 0 6 as She has Trad e Policy Advis er, ACP/EU.

initiate d, developed and managed more tha n a doze n complex cons ulta ncie s and tec hnical as sistance ac tivities fo r Forum f ina n cial, Isl and tec hnical adm inistrative/cont rac tual and oversight covered (consultancies custom s admini st ration, fisherie s , t rade nego tiatio ns, labour m obility, a id-for- trade, trade polic y framewor ks to na me a few) .
Countries providing Ms .

Yo ung did her BA Econo m ics from Macqu arie U nivers it y, Australia and MSc Fo od Econo mics & Marketing fro m Re ading Uni versity United Kingdom.

She was appo inted the Com miss io ne r on 4 March 2015 and later confirmed a s a Chair of t he Fiji Com merce Com mis s io n in 17 Septe mber 2015.

Mr. Firoz Ahmed G hazali is the Operati ons Manager & Site Director of Douglas Pharmaceuticals Fiji Limited.
Mr. Gha zali has been attached to the pharmaceutical industr y from the beginning of his care er and is actively involved in manufact uring , quality assurance and control, laborator y management, new product development and operations management.

His work has been published in journals, abstracts and review articles in the area of ph ar macy.
institution Mr. Ghazali did his PhD from Universit y of Otago, Master of Pharmacy and cont inuing with the Business Management M BA part –time program at Uni versity of Otago.

Mr. Ghazali was awarded with MERT Scholarship from University of Otago in 1993, followed by Otago Scholarship from in 1994.
Over the the same years he has acquired vast knowledge and expertise in the area of research and quality control in the laborator y indust r y. Mr. Ghazali began his career as Che mist Analyst at P fizer Laboratories, Pakistan in 1979.

He joined Fernz Health & Science , NZ as Quality Assurance Super visor in 1997 and later as Laborator y Manager at Do uglas Pharmaceuticals Fiji Limited.
In 2002 he was the Technical M anager at Douglas Pharmaceuticals Fiji Limited and further to this, in 2004 he was responsible for managing New Product Deve lo pme nt functions.

H e Program and Laborator y was appointed the Commission er of t he Commerce Commission in Februar y, 201 3.

His term ended as a Deputy Chair on 19 Februar y 2017.

8 Commission Bo ard Ms .


Joann Youn g Mr. Firoz Ghazali Mr. Vimlesh Sagar Cha ir Deputy Chair Commissioner Mr. Romil Patel Mr. Isikeli Tikoduadua Ms. Lyanne Vaurasi Co mmis sion er Commissioner Commissioner Senior Managem e nt Team 9 Mr. Bo bby Maharaj Mr. Seymour Singh Ch ief E xecutive Deputy Chief Of fi cer Executive Of ficer Ms .
Sundhia Ben Mr. Nitin Nilesh Chand Ms. Sharo n Prashika Mana ger Regu lator y Manager Monitoring Manager HR & Training Co mpetition 10 Abo ut The Comm is s ion The Commission is an independent statutor y body established under Section 7 of th e Commerce C om - mission Decree 2010 to ensure the integrated f ramework for the regulation of monopoly mar ket st ructures; encourage competition, prevent restric - tive trade practices, ensure consumer protection, and undertake pricing of public utilities and othe r price controlled items.
Fiji Commerce Commission seeks to maintain and encourage the competitive proces s with a v iew to promoting economic efficiency and consumer wel - fare.

Its objective is to spur fir ms and individual players in the market to compete with each oth - er to secure the patronage of custome rs in terms of, inter alia, competitive prices, good quality and greater choice for them.

This objective of the Com - mission ensures a fair and equitable market and provides the stimulus for grow th.
The aim of the Commission is to ensure deliver y of benefits of competition regime in Fiji vis- á-vis economic development, greater efficiency in in - ternational trade and consumer we lfare .
The Com - mission’s objective is to ensure s ubstantial ben - efits from the strengthening of the applicat ion of competition policy principles in ter ms of “greater production, allocative and dynamic efficiency, wel - fare and grow th.” The Commission notes that com - petition rewards, good performance, encourages entrepreneurial activity, catalyses entr y of new f irms, promotes greater efficiency on the par t of enterprises, reduces cost of production, improves competitiveness of enterprises and sanctions poor performance by producers, ensures product qual - ity, cheaper prices and passing on of cost savings to consumers.
The Commiss ion is a multi-sector regu - lator.

It regulates Competition, pricing and is also a consumer protection agency.
Functions of th e Commission The functio n s of Fij i Commerce C o m mis sion are stipulated under Sec tion 1 5 of the Co mm erce Com miss ion D ecree 2 0 10 and are as follows : • Ad ministering the Commerce Co m mission Decree 2010; • Mai ntenance of a regi ster of access ag reements ; • P rov i sio n o f a dvice to t he Minister abo ut propos ed acc es s agree ments; • Fa ci litation of negot iati ons about acces s to infrastruct ure fa cili ti es or s er vices unde r access regim es ; • Ar bitrat io n of dis putes about access to infrastruct ure fa cili ti es or s er vices unde r access regim es ; • P ro mo ting the inte rest s of cons umers and persons negotiat ing or considering the acquisitio n of goods or s er vices as co nsum ers and to as s ist, t hem to a g reate r awarene ss in relati on to their ass e ssme nt and us e of goods or s er vices ; • Co lle c ting , exam ining a nd dis sem inating info r mation respect of matters affe ct ing or l ike ly to affect the i nterests o f co nsumers or pers ons nego tiating o r co nside ring t he ac quis it ion o f goods o r s er v ices as cons um ers ; in • Recei v ing a nd cons ider ing com plaints co nce r ning m atters affect ing or likely to affe ct th e interests of cons umers or pers o ns negotiat ing or cons idering the acquisitio n of goods or s er vices as consumers and, if the C omm is s ion is of the opinion that such action is warranted, to inve stigate the com pla int s a nd take suc h act ion in respec t t hereof as seems prope r to t he Comm is s ion; Inve stigating f raudule nt or deceptive pra ctices in relat ion to m atters that affe ct o r are li kely to affect t he interests o f co nsumers or persons negotiating or co nsi de ring the a cquis it ion of goods or se r v ices a s cons um ers and to ta ke s uch actio n in res pect of the pract i ces as se ems proper to the Com mi ss ion; • • Ad visi ng and a ssisting pers ons w ho seek from the Com m is sion inform at ion or g uidance on m atters affec ti ng o r likely to affe ct thei r interest s
 a s consumers or 11 as persons negotiating or cons idering the acquisition of goods or ser v ice s as consumers; • Encouraging t he dissemination of information concerning consumer producers, manufacturers and sup pliers of goods or ser vices; undertake affairs and to • Keeping under review commercial activities carried on and to collect information regarding such activities and the persons whom they are carried on, with a view to becoming aware of, circumstances and ascertaining relating to; the • Fix ing and declaring maximum price s and where need be, quantitie s, for goods and ser vices and rents; • Provision of policy advice to the M ini ster on matters relating to competition and matters of national interest; • Conducting independent compet it ion and pricing study for goods and s er vices offered in limited compet it ive markets.
• Discharging such other functions as the Minister may direct or are conferred on the Commission by or under t he Commerce Commission Decree, 2010 or any other written law.
• The Commission has relation in functions industries- the to following regulate d • The provision of advice to the Minister about proposed access agreements; • The maintenance of a register of access agreements; • The facilitation of negotiations a bout infrastructure facilit ies or access to ser vices under access reg imes; • • The arbitration of disputes about access to infrastructure facilities or ser vices under access regimes; If, under a law relating to a re gulated industr y, authority delegates to the Commission the power to impose, modif y or revoke conditions licences granted under in respect of that law – the imposition, modification and revocation of those condit ions in accordance with the relevant delegation; referring the 12 Good Governance Th e Com miss ion m ust ens ure that : • Resources are us ed effici entl y and appropriately; • Perfo r manc e is m eas ured; • Financial integrity is as sure d; • Eve r y stakeho lder is treate d wit h equality and utmost respect; • Ut mo st professi onalism and C ommission integrity is maintained at all times; • Te am wor k and national interest is of paramount importance; • P ubl ic t rust is maintained; a nd • Th ere is a proper and clear c hannel of communication between the O rgani - zati on, Board, Minister a nd t he Ministr y.
2016 De partme n tal Highl ig h t s Regul ato r y Co mpetition 13 Th e Re gulator y Com pet it ion Department is res ponsible for determining the pr ice s of the produc ts that is controlled by the Commission pursuant to a P rice Control Order and under taking independent analysis and research on any industr y engaged in the s upply of electricity, water, sewage, postal, broadcasting , tel eco mm unications , por ts , civil av iation or any other industries that is declared subs equently in Sec tion 5 , Regu lated Industries of the C ommerce Commission De c ree 20 10 .
Regu lat i on is a n i mpor tant tool with which to achieve government policy o bjectives and is essenti al for the good working of the market economies.
The o bjectives fo r regulated indust ries is illustrate d below: Objectives for Regulated Industries • To promote effective competition in the interests of consumers • To facilitate an approximate balance between efficiency and environmental and social considerations • To ensure non- discriminatory access to monopoly and near monopoly infrastructure or services including arbitration of disputes • Ensure that critical and essential monopoly institutions product price is pegged at a level that closely resembles the price which would prevail should there be a competitive market Th e C o mm iss ion’s Regulated Industries Depart ment has a total of 5 staff members co ns ist i ng of 1 Manager Regulated I ndustries, 1 Senior M arket Analyst, 1 Market Analyst and 2 As sistant Market Analysts.
The s ummar y of the major activities for the year 20 16 are as follows.

14 THE YEAR IN RE VIEW QUART ERLY P RICE REVIEWS PE T RO LEUM P RODUCTS For the first s even months of 2 0 16, the consistent returns on their invest ment Co mm ission had conducted two (2 ) quarterly regardless of changes in the world price s price restatem ents.

With the changes in the and protection from the world price change VAT rate f rom 1st J anuar y 2016, t he prices shocks.
For the third quarter of 201 6, t he we re amended to ref lect t he new VAT rates fuel prices rebounded to an increasing 15% to 9 % from 1 J anuar y 2016, re s ulting in trend due to unfavourable movement in the decrease in pr ic e for all product categories international prices and freight rate s for exce pt for Ke ro sene.

the months of April, May and June 2016.


Su bsequently, the s econd quarter of 2 016 The resulting effect of movements in the price rev iew saw that prices fo r all the Means of Platts Singapore (“MO PS”), which pet ro le um products fell ran ging from is the Refined Oil Price in the Singapore 12.

11 % to 25.93 % as a res ult of favourable market, freight rates and exchange rates m ovem e nt in t he internationa l crudes has seen the following price changes for price s and exchanges rates .
the year 2016 for the Fijian market.

Additio nally, as part of the second quarter 201 6 rev iew, the Commiss i o n based on subm iss ion from Fij i Fuel Retailers Asso ciation (FFRA) had als o c ha nged the fu el retail markup from percenta ge mark- up to fixe d cents per liter.

Con ce r ns were submitted on the dec reasing m argins due to decreasing retail pric es as the mark up on petroleum is a perc entage fac to r, where m arg ins will erode with price dro ps .
In v iew of the above, Unl eaded a nd Premix wil l now have a fixed retail mar kup of 10 cent s pe r li ter while Kerosene and Diesel wil l have 9.5 cent s markup per li ter.
This was to e nable the fuel retaile rs to earn 15 T abl e 1: Pe tro leum Product s Price C han ges Effective Date 01.01.2016 15.04.2016 15.07.2016 Motor spirit Premix Kerosene Diesoline Wholesale Retail Wholesale Retail Wholesale Retail Wholesale Retail (c) 167.06 143.58 152.75 ($) 1.90 1.67 1.77 (c) 152.99 129.14 138.13 ($) 1.78 1.52 1.61 (c) 115.83 82.48 96.76 ($) 1.35 1.00 1.16 (c) 131.34 104.48 117.71 ($) 1.50 1.24 1.39 *Pr ices will var y outside t he cit i e s i n Viti Lev u beyond 3km from any public road.
L I QU E FIED PET ROLEUM GAS to determine the wholes ale and retail price s of LPG was b ased on average, Saudi Ara mco Contract Price, the average exchange rate and international freight and handling charges.

The Commission noted for the 3rd quarter 2016 that the increase in the landed cost of butane and favourable movements in the international freig ht rates due to the impact of favourable exchange rates had se en increases in LPG prices.
Thus, the increase nationally for Fiji had b een contained to a minimum.

Summar y of the price changes Li ke Fuel prices , t he LPG price s are also revi ewed on a quar ter ly bas is .
Generally, the L PG pr ice for the period 2 0 16 was decrea sing for the second quarter while a slight increase in pric e was nota ble for the are tabulated below: third quarte r. The 2016 price ass essments Tab le 2: LPG Product Price Changes Product Type 4.5KG Cylinder 12KG Cylinder Bulk (KG) Auto gas (Litre) Q1 2016 Prices ($) 12.52 33.38 2.36 1.58 Q2 2016 Prices ($) 11.51 30.70 2.17 1.45 Q3 2016 Prices ($) 11.61 30.96 2.19 1.46 16 PHA RM ACEU TICAL PRODUCTS In 20 1 6, a total of t wo (2) rev iews were car ried out bas ed on a ‘tende r process’ invited to make of which traders were submis sio ns for the review of re gulated ph arm aceutical pricing m ethodo lo gy adopted by t he C o m mission is b ased o n the tender proc es s whereby the mo st effic ient supplier deter m ines the price s and is valid for a quarter.
product s. The Upo n the com putatio n of th e i n-store co sts , a nalysis is per formed to determine the efficiency o f shipment s and a do ption of a uniform price throug h comparisons wit h costs of products with identical pack size s in the same product categor y by diffe rent suppliers.
the finalized items having taken list of The Commission pharmaceutical into account qualitative and cost effe ct ive aspects and set the Maximum Retail Price s (“M RP ”) and Maximum Wholesale Prices (“M WP ”) for these Essential Pharmaceut ical Products.

Tab l e 3 : Pharmaceutical Products Price Changes Product Type Effective Date Total Products submitted for review Total No.

products trigger met Total No.

products trigger not met Total No.


products of New Inclusion Q1 2016 1 Jan 2016 164 164 - 6 Q2 2016 5 May 2016 65 11 54 5 Q3 2016 15 July 2016 46 7 39 - BAS I C F OOD AND HA RDWARE ITEMS PRICE REVIEW 17 incorporates all costs a template with ‘Cost-Plus Pricin g Method’ which in securing the products from t he source/ supplier right down to the end users and an allowance of ‘Mark up’ for importers, wholesales and retails.

incurred During the year, a total of 1175 submissions were received and processed.
Out of t his, a total of 686 submissions were rel ated to Basic Food Items while 489 s ubmissions were for Hardware Items .

The Commissio n had awarded 781 s ubmissions with a price change while 394 submission s did no t result in price compared to previously authorised price.

The details on the hardware and basic food is illustrated below.
in changes Th e C o mm ission revi ews and dete rmines the pric e s o f Bas ic Food Item s and H ardware Items base d on t he pr ice cont ro l order Com merce (P ric e C ont rol) (Control o f Prices of Foo d Items) Order 20 15 a nd t hro ugh the Com merce (Control of Pr ice s for H a rdware Items) O rder, 20 13 .

Rev isio n o f pri ce control item s a re carried ou t o n a daily bas is dependi ng on t he items ar rival in Fiji.
The Com mi ss ion has des ig ned 18 BR E A K FAST CRACKERS The pr i ce of Cabin and Breakfast C rackers is re g ulated under the ‘Comm erce (Price Co ntro l) (Breakfast and Cabin C rackers Pr ices) O rde r 20 15’.

On 8 Febr uar y 2016, Punj as made a submis sio n to the Com miss ion fo r t he price au tho r izatio n of the new Stoc k Keeping Unit ( SKU), Breakfast Crackers 4 Kg Pails.

This i s the addition to t heir c urre nt line of break fast crac kers.
The Commission computed and finalized its analysis resulting in a retail price o f $23.52VIP.

With the Board and Ministers endorsement, a revised Commerce (Price (Breakfast and Cabin Crackers Control) Prices) Order 2016 was issued effe ct ive from 26 Februar y 2016.

PR IC E CONTROL ORDER REVIEWS Dur ing t he year, t he Comm is sion undertook study o f the produc ts and s er vices fo r which the pr ic e contro l orders were near to expir y in 2 01 6 to make a decis ion on the f uture of the O rde rs .
The st udy inc luded a s se ssment on the c urrent level of compet it i on, the so ci al and econom ic environm ent and polic ie s and the views , comm e nts and sug gest io ns of the stakeholders a nd users of s uch pro d ucts /s er vic es in Fij i. Bas ed o n the findings , the C o m mission m ade recom m endations to t he M inister for Indu str y, Trade and Tourism purs uant to Sect ion 40(3) of the Com merc e C o m mis sion Decree 2010 on whether t he O rder should be ex tended, amended, varied or revoked.
The following price control orders were issued for the year 2016: • Commerce (Control of Prices for Supply of Electricity and Ancillar y Ser vices) Order 2016- Effective from 25 M ay 20 16 for one year; • Commerce of (Control for Aeronautical Ser vices) O rder 2016- Effective from 22 June 2016 for three years.
Prices 19 ME RG E RS & ACQUISITION In the recognition of Section 7 2 of Co mm erce Com m is sion D ec ree 2 0 1 0, it is obligato r y for any parties to seek c learance fro m the Com mis sion before executing any propos ed ac quis it ion.

In 2 0 1 6, the Co mm ission rec eived a formal appl ication fro m V inod Patel Investm ent s Lim i ted (VPIL) thro ug h the company s olic itors notif ying the Co mm iss ion of its intent ion to acquire share s in BO C (Fiji) Limited ( BFL) .
Bas ed on the Co mmiss ion’s as sessment, it was concluded that V PI L’s acquis i tion of share s in BO C (Fij i) Ltd is unlikely to result in a s ubstantial les senin g of com pet ition in the nati o nal m arket for the s upply and sale of indust rial gas es , m ed ical gas es , fo od and beve ra ge gas es , consum ables and related equipm ent ’s for t he following rea s o ns: 1.
V PI L and BFL do not compete in t he ma rket for the supply of indust ria l gases, me di cal gas es, food and beverage gases, consumables and related equipment ’s in the Fijian markets.

As such it does not raise competition concerns.

2.

The simple effect of the Acquisit ion would be to replace the existing owner of BFL with a new owner not cu rrent ly participating in that market.

That is, there is no change to the existi ng structure of the relevant market.

3.
3.

The scope for the exercise of coordinate d market power would not be enhance d by the acquisition.

4.

BOC (Fiji) Ltd’s removal as an independent industrial gas, medical gases, foo d and beverage gases, consumables and related equ ipment ’s supplier woul d be unlikely to raise substantial compet it ion concerns.

On 10 March 2016, therefore approved shares in BOC (Fiji) Limited by VPIL.
the Commission the acquisit io n of 20 INDUSTRY REVIEWS TELECO MMUNICATI ONS Review of Interconnection Rates, Price Control on Off-net retail rates and International inbound call minutes distribution and settlement process In 2015, the Commission registered concerns from stakeholders on the regulated rate for international incoming traffic claiming that the effective market rate is much lower.

This created a huge revenue opportunity for a transit operator.
order, the Order 2015 was extended and amended to include price control on off-net charges.

This recommendation was made to the Ministry after consultations with all the stakeholders including the telecommunications companies.
Given the observations, the Commission solicited submissions from the stakeholders on how the issues can be addressed with the aim to minimize the suspected undercutting of the rates and loss of revenue and on the proposed distribution method of interconnection rates and the level of competition in the international interconnection market.

The Commission also conducted face to face consultations with the stakeholders and the Telecommunications Authority of Fiji.
The rates effective as at 16 November 2015 were being followed as interim rates.

Based on the Commission’s review of the Interconnection services price control In light of this, on 4 January 2016 the Commission further called for final submissions from all telecommunication their input.
Upon receipt of the submissions, the draft Authorization was circulated and the submission deadline was on 21 March 2016. operators seeking On 11 April 2016, the Commission issued the Final Authorisation on Prices of Interconnection services and Off- Net Retail rates effective from 22 April 2016.
Description Local Interconnection Rates: Mobile to Mobile Network Termination Mobile to Fixed line Network Termination Fixed line to Mobile Network Termination SMS Messages (per SMS) International Inbound Calls-: International Inbound Minutes Rates (min) Distribution of the Minimum inbound minute rate (FJD) Termination Rate Operator Handling Fees ICT Levy Fees Transit Carrier Fees Mobile Off-Net Rates: On Net Rate + MTM rate Mobile to Fixed Line Off-Net Rates: On Net Rate + MTF Fixed-Line to Mobile Off-Net Rates: On Net Rate + FTM Rate per Minute (FJD) 0.08 0.05 0.08 0.06 US$0.22 0.08 0.26 0.07 Balance 21 Internatio nal In bo und Minutes Reconciliation As pa rt of the Com miss ion’s o n-going ecom industr y.
This is an ongoin g exercise m o nthly reconciliat ion of internat io nal in - whereby the Commission will constantly bound call m inutes , the Comm iss ion had monitor the market and will vigorously be co mpleted the reconc iliation fro m Novem - engaged in performing reconciliation on a ber 2 0 15 to J une 2016 for the e nt ire tel- monthly basis.
Tel ecommun icat ion s Related Complaint In 2 0 16, the Commiss ion reg istered a Given the impasse between the te leco co mpla int from teleco operato rs on an operators in relation to the comparative ad vertis e ment by t he operator X regarding advertisement being published v ia various ch arges fo r calling between net wo r ks.
The means, the Commission proceeded wit h an di spute related to the teleco o pe rator X investigation to establish if t he conduct ad vertis ing content part ic ularly o n cl osed was against the intention and s pirit of the us er g roup plan rates wit hin th e network, Commerce Commission Decree 20 10.
The stateme nts that were believed to be false Commission also directed the operator an d m isleading given that com paratively to immediately cease all comparat ive the rates had inc reas ed and the re duction advertisements in the manner advert ised co mputed was not ap plicable fo r billing in the original and amended advertisement an d w rong rates per minute an d per unit as it contained factual errors and was ad vertis e d in the advert is em ent s misleading to the consumers.
STEEL Pr i ce Au th orizat ion for Rebar Steel The C o mmis sion rec eived a subm is sion from steel bars from China.

The submis sion was Teng y Cem e nt (Fij i) Com pany Ltd ( TCFL) on reviewed and an interim authorized price 27 Januar y 2016 requesting for t he rev iew was released to the stakeholder.
an d autho rization of Grade H RB 4 00E Rebar pr ic es as TCFL imported deformed 22 PORTS Im po rt and E xport Fees and Char ge s I n Februar y 2016, the Commiss ion notified all t he s hippi ng com panies, shipping agents , customs agents, customs bro - kers, freight for warders and other relate d par ties on the requirements under the CCD2010 on: • I temized receipts/Tax invoices to be issued under Sec - tion 55 of CCD2010 and Counter- Inflation (Issue of Tax invoices by Traders) Order 1998 • Agents should not make representation to import- ers and exporters that “biosecu rity ” or “quarant ine” or “ports” fees and charges are imposed on behalf of Bio-security of Fiji/Fiji Ports Corporation Limited / F iji Ports Terminal Limited and the s ame will be remitte d respectively to these authorities.
• Fees and charges should not be bundled with regulat- ed charges and other charges.

A detailed breakdown s hould be provided for the imposit ion of such fees and ch arges.

• No mark-up should be i mposed on the reg ulated fees and charges and profiteering from the leg islated charg - es .

• No double dipping on the legislated charges.


This letter was based on the previous discussions, consul - tat ions, the Commission’s advisor y letter issued in March 201 5 related to B iosecurity Aut hority of Fiji (BAF) fees and c harges.

The Commission also organised a stakeholde r works hop on 3 Februar y 2016 aiming at “Know your Import and Export Charges to enable stakeholders to comply with the necessar y requirements.
Ports Compliance Framewo rk 23 In 2016, the Commission had considered 1.3 Ports will be placed in more for alternative regulatory mechanisms direct control of firm-specific hazard other than having direct price regulation reduction rather than government- of the Ports Sector, to make a decision on created one-size-fits-all solutions; the future of the price control order based individual firms better control of the on the 2015 study.

It was recommended to actual hazards they face.


develop a Compliance Regulatory framework for the Port Operators to achieve objectives 1.4 Independent regulation will of the CCD 2010 defined under Section 2 of allow the Commission to better the CCD 2010. monitor and investigate Ports conduct in relation to restrictive trade and fair The purpose of the Ports Compliance trade practice.
Framework was to provide a structured set of guidelines by which Port Operators will 1.5 It will assist the port operators set prices for the Regulated Services for to take a long term, forward looking maintaining accordance with established view of tariffs which will support regulations, specifications or legislation continuous maintenance and including the required public consultations.
investment decisions so that the This framework includes requirements for operators are able to increase its port tariff review, cost allocation methodology capacity and productivity to meet and principles, consultation processes, and future trade demands; and practices for maintaining compliance.

The objectives of the framework include the 1.6 Promote regional competition following among Ports.
1.1 Allow the port operators to make The Commission had completed the their own decisions about how to achieve the draft Ports Compliance Framework goal, and therefore encourages maximum and circulated to the port operators voluntary compliance compatible with for consultation, comments and competitiveness and innovation; feedback that was due in June 2016.

As we report, the Commission is in 1.2 Ports can harmonize more easily with progress of receiving submissions international standards.
from the stakeholders.

24 ELE CTRICITY Capital Infrastruct ure Consumer Depo s i t Rev i ew deposit requirements that will best advance the interests of consumers and FEA .
computations, Based on the Commiss ion’s inde pendent submissions analysis, from stakeholders, the Commission ha d reviewed the current practice of FEA charging its customers t he capital cost s by way of its General Ex tension Poli cy and Rural Ex tension Policy and proposed recommendations on the way for ward on the Capital Infrastructure Consumer Deposit Requirement for Fiji.

Th e Commission is yet to finalise the review pending submissions on the draft policy.
last authoris ation on FEA Capital The Consum er Dep o si t was Infrastr ucture m ade o n 20 June 2011 .

I n J une 2 0 16, the Co mm ission had undertaken the rev iew in respons e to t he s ubmiss ion s received fro m including FEA hig hlighting the s hortfalls and/or im pe di me nts in the existing policy affecting investment, grow th and viability.
stakeholders industr y Su bmiss io ns were requested from F EA and De par tm ent of Energy pertaini ng to the revi ew inc luding process es, po licy and gui deline fo r Rural Elec trificat io n ( RE).

The Co mm ission had explored and assessed the o ptions for improvement of t he capital Somosomo Hydro Dam - Taveuni Moni toring Depa rtm e n t 25 approximately 6000 shops and the nort hern division includes approximately 40 00 shops.

The monitoring team also undertake rural and maritime inspection.
Rural tours and outreach programs form a fundamental part of the Commission’s mission to reach out to the rural and maritime communit y.

The Commission is of a view that the communit ies at large in rural and maritime areas are the ones that are most disadvantage d and vulnerable to business practices that are in violation of the CCD 2010.
For the Financial year, the three divisions: (Central, Eastern, Northern and Western ) conducted a total of 5910 ins pections of which 350 traders were fou nd to be i n breach of the CCD 2010.

This accounts of 5.92% to be non compliant .

During the year price sur veys were also conducted.
and t hat ens ures Mo nitor ing The E nfo rcement traders De par tm ent t he bu siness co mply with t he m axi m um prices set by the Com miss ion pursuant to a Price Co ntro l Order and the provis i o ns of the Co mm erce C om miss ion D ecree 20 1 0 via daily in specti ons, m arket m onitor ing and price sur veillanc e .

T he depar tment is he aded by M anager M onitoring.
to ensure The f unction of the Monitoring Department inspec tions , s ur veys, and in cl udes ons ite investigate s that businesses abide by the provis ions of the C ommerce Co mm ission Dec ree (CCD 2010 ) including any pr ice control orders made under the sec tio ns o f the CCD 2010.

The M o nitoring De par tm ent is also engaged in improv ing the areas w here there is high rate of non co mpli ance by busines s es and stake holders .
FCC has em barked on ways to im prove the m ar ket efficienc y and at the s ame time educating the general public on improv ing time ab out com petition an d m aintaine d consumer protect io n the Fi jian mar ket.

the sa me in The Mo nito ring D epart ment has a total of twenty six (26) officers.

Six (6) o ff icers are located at the Head Office, Six ( 6 ) in the No rt her n Offic e and Five ( 5) in the Western Office .

T he Western and Norther n Office are heade d by the D ivisional Man agers .
The rem aini ng staff members are bas ed in other centers, two in Sigatoka and o ne each in Rakirak i, and Savusavu.

We als o have three (3) part time inspectors bas ed in Rotuma, Lev uka, and Taveuni res pec tively.

The Ce ntral D ivis ion inc ludes approximately 11,00 0 shops .

The western divis io n includes Commission Officer doing price inspection in one of the shops.

26 Infrin gement s to Trad er s Fo r the t hree divisions 35 0 infrin ge ments were noted.
The most common breaches noted we re overc ha rge of item s and fai l ure to mark or display prices.

Of the 350 infringement s that were noted in t he year 2016, 87 we re related to breaches under Section 52 CCD on ove rcharg ing , 19 1 were in relat io n to related failure to have prices indicated, S ectio n 5 4, and o ther breaches were failure to display pu ll dates, offering for sale expired items, false and misl eading adver tisem ents and not issuing proper tax invoice.
Ta ble 4: Summa r y of in spect ions by Divisions for a period of 6 year s. Divisions Central/Eastern Western Northern Total Ta ble 5: Summa r y of in fri ngements/Bookings for a period of 6 Years Divisions Central/Eastern Western Northern Total Grap h 1: Summa r y of total inspections and infringements for t he year 2016.
2500 2000 1500 1000 500 0 2377 2055 1478 157 85 59 Central / Eastern Western Northern I nspect i ons I nf ringe ment s / Boo kings G ra ph 2: Summ ar y of i ns pe c t ions from 201 1 to 201 6.

27 Statistic Ti tle 28 The Commission from its routine inspection noted that the most common breaches relates to no price marking and display which is a breach of Section 54 of CCD 2010 and overcharge which is a breach of Section 52 of CCD 2010.
For western division, there was a sharp increase in breaches noted for no price marking/display from the year 2011 to 2012, and then it gradually declined.

This is similar to the Central division.

Northern division showed an increase from the year 2012 to 2013 and then gradually declined from 2013 to 2016.

The year 2016 indicated a decline in breaches relating to no price marking display / display as shown in the graph below.
Grap h 3: Common brea che s relating to no price marking/ display Line graph shows one of the common breach of no price marking/display for last six years.

s e c n e ff o f o o n On breaches relating to overcharged on maximum price set by the commission, Central and Northern division noted sharp increase depicted above from the year 2012 to 2013 which gradually declined in the year 2014.

Western division noted an increase in overcharge breach from the year 2011 to date.
In the year 2015 Western division had more overcharge issues.

However, In the year 2016, Commis- sion recorded low numbers for this offence.

Commission officers doing price inspection for expiring items.
Compliance De par tmen t 29 Th e C o mplianc e and Fair Trade D epartment o f t he Com mi ssi on is tas ked to a dminister co m pliance of CC D 20 10 to ensure consumer pro te ction and rest rictive t rade practices, handle cons ume r com plaint s and m ediation to res olve s om e of th e complai nt s. The acti v ities of t he Depar tment is carried out w ithin the provisions of Sec tion 15 (1 ) of the CCD 2010 and in accordanc e with the re leva nt powers pres cribed therein.
Th e Depar tment rec eives and deliberates on co m plaints re ga rding unfair trade practices and rest rictive trade prac tic es and t hes e include thos e cons idered by com plainants as unfa ir but do not directly inf r inge the CC D2 0 10.

In detail, t he tas ks invo lved cas e ass es sme nt, invest igations, Med iat ions and creating aware ness in the Fij ia n markets .

Th e De partment also conduct s market sur vel lance , and investigates any possible In addition, bre aches o f t he CCD2010.
the prov isio n requires the D ep ar t ment to diss eminate inform ation to cons umers and traders about marketplac e iss ues to assist in t he fo rmation of informed cho ices.

the divisional offic es Th e D e partme nt star ted in the year 2016 w ith 8 staff m em bers based at t he head o ff ice with a Ac ting Manager Co mpliance, w hile as sisted in handling cas es wit hin t hei r area of jur isdi ction.
D uring the year, o ne staff re sig ned w hile one staff was relo cated to E xec utive Support Ser vices.

The Acting Mana ger Co mplianc e rotated o n act ing dutie s a mo n gst the Senior Off ic e rs working the re in.

The Department ’s mission was to ensure that the cons um er ’s interests are s afe guarded as per t he provis ions of the CCD 201 0 and thro ug h the princ iples of com mon law.
Such is expected when bus ines s e s operate in o pen, fair a nd healthy com pet ition wit h each o ther which of ten to t he co ns umer ’s benefit.

We strive to improve the welfare of consumers by working to bring about competitive and efficient market s, by thwarting deceptive and subsequently coercive trading practices and empowe ri ng consumers with the knowledge and skills they need to make rational and informe d buying decisions.
As a result, consumers benefit from improved value, choice and in products and ser vices, and quality likely to encou nter such less are much prohibited trade conducts.
The Department pursues this goal by : • encouraging businesses and traders to comply with CCD2010 and to improve their trading practices; • acting decisively to stop hard core or flagrant offenders; • empowering consumers with t he knowledge and skills to make informed choices and get the best value from markets; • having business consultation program, balancing business and consumer needs; create consumer awareness t hrough articles, social media websites, etc; • one to one discussion on compli ance • • req uirements during mediations; continuing our proactive compliance program, whe re consumers are more at risk; • investigating consumer complaints; and • developing g uidelines and monitoring targeting areas their compliance.
Further, the Department of Compliance and Fair Trade and the Depar tment of Monitoring shared workload part icularly in the inspection area where the inspectors took on dual role whilst out on inspect ion assignments.

Th ey conducted pr ice control inspections as well as rent ins pect ions.

This co-sharing worked well throughout the year and will remain under the current organisational set up.
30 Fair Trading Ca se s In 20 1 6, the D epartm ent recorde d complaints received, resolved and in-progress for all its div is io nal o ff ices .

Tab le 6: S umm ar y of compla ints re ce ive d a nd re so lve d for all t hree Di vi si on s .
Divisions Northern Division Western Division Head Office Total Total Number of Cases received Total Number of Cases resolved Total Number of Cases In-progress 39 61 190 290 37 35 52 124 2 26 134 162 Tab le 7 : Un fair Trad i ng Compla in ts 2 01 0 – 2 0 1 6 Divisions 2010 2011 2012 2013 2014 2015 Jan – July Northern Division Western Division Head Office Total - - 140 52 12 304 368 56 63 449 568 173 88 458 719 145 60 656 861 149 52 183 384 2016 39 61 190 290 Graph 4: Tota l Com p la i n ts re ce ive d 20 1 0 – 2 01 6 for a ll Divi sions Major Cases 31 1.
Trave l Age nts Highlights In t he ye ar 2016 the C o m mission A major challenge for the department was investigated s ome bogus Travel A gents to streamline the complaints han dling na me ly, R iya’s Travel A gent, Australian process.

Recr uitment Ser vic es and Star A gencies whic h obtained money f rom the m embers The Department faced various challenges of the public for an overseas wo rk v isa during the year 2016 and some notabl e but did not provide the ser vice s .
These ones are mentioned below: agents have been under the Com m i ssion’s 1. the inability to process cases wit hin spot lig ht fo r quite s om e time and due to the required timeframe provided unde r the ir evasivenes s, investigation to o k longer the Commission’s Standard Operating than expected.

However, t he Depa rtment Procedures (SOP).


Many cases took co ntinue d to pursue the indiv iduals well over the period to resolve due to co nce rned and cur rently the m atters are various factors such as non co-operation befo re the courts .

of Respondents and Complainants; 2. lack of commitment and willingness by 2.
Onli ne Traders the parties to resolve cases; The se r io us purs uit against bog us online 3. complexity of issues attached to t he traders s elling clot hes and ac cess o r ies via complaints.

Facebo o k was anot her maj or invest igation 4.

Changing demands from complainants by t he Departm ent and one suc h trader –etc.
id entif ie d in different nam es : “Des i Fashio n”, “ Fashion Palace” a nd “Pink Case Summar y W indows Creations ” was ch arged for Below is a dynamic representation of unfair offenc es under the CCD 2010 a nd the trade cases received by the three divisions m atte rs are pending before the co ur ts.

of the Commission.
of the Commission.

Note that in some cases there is likely chance that more t han The indiv iduals involved were posting one section of the CCD 2010 may have be en ad ver t isem ents of Indian costum es for s ale breached, or there may not be breach of on so cial network suc h as ‘Fac ebo o k’ and CCD 2010. inv iti ng custom ers to depos it m o ney into se le cted bank accounts with th e promise of di rec t de liver y to address es p rov i ded to the trader.
Report s were rec eived by the De part ment indicat ing t hat pe o pl e were paying the required sum but were not rec ei v ing the items.

32 Fig ure 1: Compl ai n ts by Type of B re a c h offensive conduct in relation to Land 0% 79.

False or misleading representa- tions & other misleading or 1% Commission officer doing a vehicle inspection.

Re nt Section High lights 33 The ye ar 2016 saw the continuatio n of rent the negotiation stage of tenancies.
co nt ro l since 1973, whic h was captured in Co unter-Inflation A ct (CI A) o f 1 9 73 and Recently Fiji has encountered a signifi cant cu rre ntly the Comm erc e Comm is s io n Decree rise in urbanization that saw an increase in 201 0 ( CCD 201 0).

Rent is a co m ponent urban population from 359,495 in 1 996 to of th e Ho u sing Index in the National 424,846 recorded in the 2007 census .
T he Co nsum er B as ket of goods and s er vices increase significantly raises the demand whe re Fiji ’s C onsumer Pric e I ndex (CPI) is for housing in the urban centers which der ive d. Du e to t his , rent was i ncl uded in stretched the already limited supply of the list of goods and s er vices to be under housing beyond the limit.

With the limited price co ntrol.


The indexation st r ucture of space available in these centers, acquisit ion Co nsum er Pr ices was revis ed in 2 0 1 1 , which of land for formal housing is a challenge, saw housing relocated to the gro up that so the incoming groups are compelled to in cl uded e lec tricity, water, gas and other settle in rented flats, including informal fu els, t hereby making it the t hird major housing areas or squatter s ettlem ents.
Over co mpo ne nt of t he CPI having a weighting the years, it was noted that limite d opt ions of 1 1 7 .3/ 1000 points .

The tradit i o nal price available to tenants created a disparit y co nt ro l on rents focus ed on it s inf lationar y in the bargaining position of landlords as pe ct and not on any ot her con side ration.
and tenants and has res ulted in an abuse At the inc e ption of t he Fij i C o mmerce existence of rent control to addres s the Co mm ission on 1 J uly 2010, the focus of disparity of bargaining powers between rent co ntro l shifted f rom its inf l ationar y landlords and tenants and to stabilize of p ower.

Such a situation warrants the as pe ct to capture fair trade and co ns umer rental prices.

pro te c tion iss ues .


Under the C C D201 0, this shift was inevitable as the co nduct of On 2nd March 2007, following t he la ndlords against tenants was bro ught to government ’s move to cushion the impact the fo re front.
The CCD2010 im po ses on of the global financial crisis that hit our the C o mm iss ion t he task to protect tenants shores through the imposition of a wage fro m the pangs of unfair and un rea s onable freeze, a rent freeze was subsequent ly co nduct s of landlords and t heir agents.

introduced and administered by Pr ice s and Evic tions on unfair grounds , no n refund Incomes Board (PIB).
The freeze has been of bo nd mo ney, harass ment o r coercion ex tended through subsequent M inisterial of tenants are deem ed breac he s of the directive since then to 2016, C ommerce CCD 20 1 0.
Als o covered are con ducts such (Rent Increase Restriction on Resident ia l as fal se o r m is leading repres entat ions of and Ground Rent) Order, 2015 was in force pro per ties and aut hor it ies, accepting of effectively restricting any increase bet we en payment s of m onies without bei ng able to 1st Januar y to 31st December of 2 016. supply what was ordered by tenant s during 34 Def ini tion its line Minister to require landlords to By def initio n under CCD 201 0 , ‘rent ’ give a twelve (12) weeks written not ice refers to the sum payable by a te nant to for any proposed increase in rent to a landlo rd for the us e of a prop er t y (land, which the CCD 2010 applies.
Counter- bu ilding , etc.)

for a fixed per iod o f time or Inflation (Notification of Proposed fo r an undefined duration under a tenancy Increase in Rent) O rder, 1996 is in force agre ement.

It excludes any charge s lev ied under this provision.
by the Fij i Elec tricity Author it y, Water • Part 7 of CCA2010 captures most of t he Autho r ity of Fij i and Municipal Council trade practice of letting that ser ve s rate s. to protect tenants from unfair and unreasonable conducts of landlords and Le ga l Framework or agents.
Rent is co ntrolled under the fo llowing prov is ions of the CCD 2010 : Rent Control Administration • Sectio n 56 requires all thos e engaged Rent is one of the ser vice charges cont rolled in the business of letting or continued under the CCD2010.
The rent freeze started letting (inc ludi ng the State ) to keep to in March 2007 and was ex tended to 3 1st the s atisfact ion of t he Com mi ss i on such December, 2016 by virtue of the Comme rce re co rds including tenancy a greement (Rent Increase Restriction on Resident ia l and re c eipts a s customar y and proper in and Ground Rent) Order 2015.

The Rent the type of busi nes s car ried on by them.
section within the Compliance and Fair • Sectio n 45 e mpowers t he C om mis sion Trade Department of the Commissio n to fix and decl are by order t hrough was tasked to administer the rent control the approval of the Minister the enforcement work.

maximum rental of any prem is es under any resident ia l tena ncy a nd g round During the period, the Rents Section re ntal to whic h the C CD 2 01 0 applies .
did the following to fulfill its task and in Co m merce (Rent I ncreas e Rest r ictions conjunction with the Commiss ion’s Key o n Re sidential and Ground rent) Order Performance Indicators (KPI) for 2 016 : 2 01 5 is in forc e for t his purpos e. • receives complaints and queries on • Sectio n 46 provides exempt ions on the rental matter within the ambit of the types o f rental not under cont rol and CCD2010; included the fol lowi ng: i.
Native Land Trust Act , Cap 134; i i. Agr icultural Landlords and Tenants A ct, Cap.

270; • • • • conducts rent inspections; investigate rental complaints ; conduct mediation of rental cases; raise awareness on rental provisions of iii .

Rotuma Lands A ct , Cap.

1 3 8 ; CCD2010; iv.

B anaban Settlement Act , Cap.


123 ; • administer voluntar y registration of and landlords; v. P ublic Rental Board rental rates • Carr y out any other task assi gned • Sectio n 47 em powers t he Com mission from time to time by the Deputy Chi ef to is sue orders through t he a pproval of Executive Officer and The Rent s Se ctio n proces sed com plaints and queries in accordance with the Commission’s 35 Standard Operating Proc edures (S OP).
Rent C omp lai nts Processi ng For the re porting period, a total o f 3 29 formal complaints were registered in all divisions an d 4 1 5 info rm al comp laint s re co rded from the Central Eastern and North alone.

The breakdown per division is as foll ows - Tab le 8: N um ber of Comp la ints R e ce ive d Division Northern Division Western Division Head Office Total No.

of Complaints Received 209 109 11 329 The table below is a s umm ar y ana lyzed of the nature of complaints received.
Table 9: Na ture of Com p la ints 36 Co mplaints proces sing consist o f t he major quantum of work u ndertaken by the Re nts Sect ion through t he as s istance o f t he Compliance team and div isional staffs.
Below are ill ustratio ns o f the com plaints and queries processed by the Commission for 2016: Graph 5: Compl ai n ts R eceive d by Divisi on Gra ph 6 : Na ture of Complaint s Re ceived Public Awarenes s Th ere have been concerns rai s ed about well as trad ers to eliminate any cau se of lack o f info rm ation available to t raders asymmetr y of information that can result in and co ns umers, res ulting in a sy mmetr y general breakdown of trust and s ocial capi - o f infor mation and creating an im balance tal which could lead to negative impact on betwee n cons um er and bus ines s expecta - volume of transactions and thus a ge neral tio ns, requirem ents and respons ibili ties .
In decline in business and economic grow th.

additi o n, there are nu merous co m plaints from members of the public a nd other One of the strategies employed by the Com - stakeholde rs conc erning the m an ner in mission in 2015 was conducting Awareness w hich c er tain traders are conduc t in g their Programs in various setups within our Fijian busi nes se s in relation to misleadi ng adver- community.
The focus of the exercise was tis em e nts, non- disclosu re of impo rtant in - to empower consumers and traders alike for mation about the produc ts o r s er vices, including landlords on what the Commis - ove rall bus in es s conduct, lack o f cl ar ity in sion deems to be fair and reasonable t rade cont ra ct te rms , lac k of consum er redress practices.

The process is more infor mal in and o ther unfai r trade pract ic es .
These are nature and provides an atmosphere of fre e o f great conc ern to th e Comm iss ion and interaction between the Commission and being t he custodian of the CCD 2 0 1 0 , it has consumers in settings comfortable to t he to explo re ways to emp ower cons umers as community participants.

37 In addition to awarenes s programs and in 2016.


This self-regulating guideline in re cog nit io n of it s legal o bligation is designed by taking into account t he un de r the Com merce Commiss io n Decree common complaints received pertaining 201 0 , the C om miss ion has devel o ped the to online trade scams involving locals.
It Self Regulating Guidelines to prov ide an explains in simple lang uage either right s opportunity to traders to fix all the anomalies and responsibilities under the Commerce in the ir conduc t in a voluntar y way.

The Commission Decree 2010 (“CCA201 0”) and gui deline is an initiative of t he C o m mis sion other relevant laws in Fiji.

This guide line to suppo r t its long-term foc us to s hift from contains practical guidance on comm on m ar ket regulation to s elf-regu lat ion and trad e situations.
The guideline aims to vo luntar y co mplianc e. As suc h, hav i ng the encourage traders and consumers to bette r gui deline in place was c rucial to e ducate understand their rights and responsibilitie s the tra ders and cons umers on the practices and move towards self-reg ulat ion in the that a re de em ed fair and reas ona ble under major trade markets in Fiji.

the C C A2010 and related legis lat io ns.


The issues addre s sed in t he guidel ine were Trader & Community awareness we re der ive d fro m the common is sue s raised in held in the urban, rural and outer island the com plaints and quer ies recei ve d by the communities.

The team conducts ins pection Co mm ission.

as well.
as well.

The Commission strong ly argues that the communities at large in rural and The first Self Regulating G uideline outer Islands are the ones that are most deve lope d by the Comm is sion was the vulnerable to unfair trading practices t hat “SRG Tex ting Com pet ition in Fij i ” in 201 2. may be violations of the CCD 201 0 .
We The s uccess of this guideline me asured by have considered Rule of Law, element to the reduction in the number of co m plaints increase compliance with clear regulations rece ived by the Comm is sion, prov ided so that these retail institutions grow and stim ulus to the Com miss ion to develop spur healthy competition in Fijian market.

similar g uide lines for t he other industr y.


The E-C omm erc e Self Regulat ing G uidelines was under development at t he C o m mission Table 10: Num ber of Aware ne s s Co nduc te d Division No: Of Trader Awareness No: Of Consumer Awareness Total No.
Of Awareness No: Of Participants Percentage awareness by Divisions Percentage participants by Divisions Central 6 17 22 1124 36.66% 56.9% Western 9 3 12 273 20% 13.8% Northern 36 20 26 578 43.33% 29.26% Total 51 40 60 1975 100 100 38 De partment of Com pe titio n L aw Th e Depar tm ent of Compet it io n L aw has proceedings will eventuate if all avenues a tota l o f four (4) staff com pr ising of in solving the matters are ex hausted.
P ro secutors; one in t he Wester n Div ision, When taking legal action the availa ble o ne in t he Nor ther n D ivision and two in remedies are fines, compensations, refund the Ce ntral D ivis ion.

T he D epar t me nt is and replacement for t he complainant s. headed by Senior Prosecutor.

Mediation is encouraged to comprehend if the matter can be settled rat her t han Co mpetition Law Departm ent provides proceeding to Court.
so und le gal advic e to the C o m mis sion conce r ning th e provisions in the C o mmerce Br ief Report on Failin g to Comply to Rent Co mm is sion Dec ree 2010 (CCD 2 0 1 0 ), Pr ice Restriction Co ntro l O rders, Rent Freeze Orders, Self- For the period Januar y - June 2 016 t he Regul ating G uidelines and other re levant Department received seven (7) case s in laws.

Leg islative draft ing i n rev iewing regards to rent.
Most of the cases in t he O rde rs , Self-Regulat ing Guideline s and central division were rental is sues because o ther laws is a role t he depar tment is tasked the Commissions stance in Rent F re eze to exe cute effic iently an d effect ive ly.

Order was prominent.

Addi tio nally, the Departm ent repres ents the One Mr. Aiyub Ali has five (5) complaint s Co mm is sion in a ll its criminal p ro s e cut ing against him which have been registered and matters in Cou rt s and Tribuna ls in Fiji.
charges filed in Nasinu Magistrate Court .

Mo reove r, t he D epartm ent ass ist s other The cases have been set for formal proof in depar tments in t he Com miss ion to ens ure Nasinu Magistrate Court.

all decisio ns m ade by the dep ar t mental heads a re n ot in conflict to othe r relevant laws.
We s uccor the num erous depar tments in prov iding Legal Opinions o n is sues hig hlig hting cer tain provisions o f t he CC D 20 1 0 t hat ha s been breached by t raders , com panies, s hops , pers ons and l andlords.

Lastly, the D epart ment investi gates and handle s internal disc iplinar y m atters to ensure the se are dealt wit h in a fair and just manne r. In pros ecutin g criminal matters fo r breaches unde r the CC D 2010 is the fo remost o bjec tive the D epartm ent engages in.
Legal Cen tral/ Eastern Division Pros ec ut i on A nnual Report 2016 C entral /Eastern Division (1st J anuar y 20 16 - 31 st July 20 16) Table 11: Prosec uti on S umma r y Ce n tral / Eas te rn Di vis ion 39 Case Type/Category Section Breached Number Completed (Court has made a decision) Number pending before the court(YTD) Total Value of Fines Imposed $ Number of Cases Registered (1.1.16 to 31.7.16) 1 2 - 1 3 - Section 52 Section 54 Overcharging Non-Display & Marking of Prices Expiry Dates Missing Section 87J Section 56 Failure to Furnish Information False and Misleading Price Advantage Rent Others Total Note: 118 files of pending are Mukesh Naidu’s File for Central/ Eastern Division Section 77 &78 Section 53 Section 45 - 7 2 20 - - 2 8 2 - 5 3 1 1 1 - 2 - 7 118 130 - $1000.00 $1500.00 - $1,800.00 - - $1000.00 $5,300.00 In the Central/ Eastern Division, our Prosecutors attend matters in Suva, Nasinu, Nausori, Korovou and Navua court.
The above table illustrates the number of cases that have been registered and filed in court for those offences.

As shown above the total number of cases registered within the periods from 1.1.16 to 31.7.16 is twenty (20) in which eight (8) files have been closed in Court.

The number of files pending in court is 130 because 118 cases are Mukesh Naidu Files still in Court.
40 We ste rn Division Prosecuti on Annual Report 2016 Western Di vision (1st Januar y 2016 - 31 st July 20 16) Tab le 12: Pros ecut i on S umma r y We stern Divisi on Case Type/Category Section Breached Number of Cases Registered (1.1.16 to 31.7.16) Number Completed (Court has made a decision) Number pending before the court(YTD) Total Value of Fines Imposed $ Section 52 Section 54 Overcharging Non-Display & Marking of Prices Expiry Dates Missing Section 87J Section 56 Failure to Furnish Information False and Misleading Price Advantage Rent Others Total Section 77 &78 Section 53 Section 45 - 1 - 2 - - 1 4 2 2 - 2 - 6 12 - $500.00 - $1500.00 - - $1350.00 $3350.00 - 2 - 4 6 In the Western Division there was only one prosecutor attending matters in Sigatoka, Nadi, Lautoka, Ba, Rakiraki and Tavua Courts.
As seen in the above table six (6) complaints were registered and filed court in the year.

Four (4) cases closed and twelve (12) cases are pending in the court.

Commission staffs during Fiji Day Celebration March.
No rthern Division Prosecut io n Annual Repo rt 2 016 Northern Division Prosecution– (1st Januar y 201 6- 3 1st July 2 016) Table 13: Prosec uti on S umma r y - N orthe rn Divis io n 41 Case Type/Category Section Breached Section 52 Section 54 Overcharging Non-Display and Marking of Prices Expiry Dates Missing Section 87J Section 56 Failure to Furnish Information as requested by the Commission Refusal to sell at MRP Rent Price Advantage Section 53 Number of Cases Registered (1.1.16 to 31.7.16) 3 Number Completed (Court has made a decision) 1 1 4 7 2 Number pending before the court(YTD) Total Value of Fines Imposed $ - 2 - - - 2 1 4 9 $1,500.00 $1,000.00 $2,500.00 Section 45 Section 77 1(g)- Make a repre- sentation concerning that a price advantage of goods or services exist if it does not.
Section 77(1) Section 59 Misleading Failed to pay spot fine Total In the Northern Division, there is only one prosecutor attending to all matters in Labasa, Savusavu, Nabouwalu and Taveuni Courts.

There were only seven (7) new complaints that were registered and filed in court, two (2) of which are closed and nine (9) files were pending in court for the year.
42 Corpora te a nd Human Reso u rce s D e pa rtm ent Over vi ew of t he Depart ment Th e H uman Re sourc es depar tm ent played a pivotal role in these seven (7) mo nths within the C omm is s ion.

For the first time, a five (5 ) year strategic plan is be ing develo ped for the C omm is sion to addres s the compliance, competition and pri ce contro ls in the Fij ian market(s).

The Department prepared a plan to address t he expiring cont ra cts against requirements in the coming financial ye ar.
Th e De partm ent also pl anned for the coming financial year to ; 1 .

Co nduc t Trai ning Needs Analysis and develop Training Plan; 2 .

Develop Perfor ma nce M anagement System; 3 .

To P rograms to retain tec hnical staff; 4 .

See k f unding from donor age nicies for training specialised to; • Co m petitio n, • Regu lator y Func tions , • P rice Controls, • Co m plianc e, • Mar ket Sur veillance.

5 .

Ide ntif ying a suitable H RI S system.


Com mi ssion Staf fing Th e B oard approved total staff restablishment of 55.

The number of staff employe d in t he Com m is si on on 1 Januar y 20 16 was 51 and t he staff roll reduced to 4 3 by 31 Jul y 2017.

Staff tur nover during this period was equivalent to almost 1 6% .

Senior Prosec utor upon app roval, proceeded on six (6) months paid study leave to do his Post Grade D ipl oma in Legal Practice (“PDLP ”).
Af te r ser ving t wo compl ete terms the Commission also bid farewell to the first C EO of the Comm is s ion M r. Bobby M aharaj.

Mr. Maharaj h ad ser ved the Co m mission for s ix (6 ) years .

Th e g re atest challenge pose d to the Commission was expiring contracts by 31 July 2 016.

30 staff m em bers ha d their contracts expiring on 31 July 2016.

To address thi s t he Com mi ss ion ha d advertised all positions in adva nce.
43 Co ns idering new financia l yea r commencing 1 A ugust, 2016, th e departments shal l prepa re new Key Per form ane Indicators and workforce plan to address human capital requirm ents at t he Commis sion.

Financi al Year 1 A ugust 2016 to 3 1 J ul y 2 0 1 7 Th e depar tm ent plans to addres s expiring contracts as the first priority in the co ming fi nanci al year.
Gi ven t hat a new strateg ic plan is being envisaged for the Co m mis sio n any new posi ti on wil l be created only after th e adoption of the sa id St rategic Plan.

The Strategic Plan once adopted will p rovide a basis for ana lyz ing t raining needs at individual, department and organisational level.

Fur the r the re quired num ber of staff will be a reflection of the strategic goals set fo r t h e organisation.
H R D epartment with the Executive Ma nagement and Board will now prepare the Commission for a possible restructure to address mar ket demands in Fij i. Th e departm ent takes t his opportunity to thank all staff mem bers for their se r v ice to the Commiss ion.

La st ly all members of the staff are encouraged to apply fo r pos ition as t hey becom e available.

Fo r t he comi ng f inancial yea r 2 016/ 2017 the department wishes well to all staff me m bers and es pecially t hei r families.
Staff training at FNU, Nasese.

44 Corporate Social R es p on si bi l t y The Co mm erc e Co mm isis io n is ver y much active towards the events and s ocial well be ing of the Society and the staff.

Prom oting Can cer Aware n es s Commission officers visiting cancer patient during cancer awareness in Suva.
Mr. Vil iame Baleiwai Ra uluni 02 /01/1963 - 10/05/2016 In t he Year 20 16 the Com m erce C ommission sustained a great loss of (Late M r. V iliame Baleiwai Rauluni) Late Mr. R auluni j oined Pr ices an d I ncomes Board (PIB) in 1981 , as an Assistant Prices and Inco me s Inspector, whereby in the year 1985 he was promoted as a Prices and I ncomes Ins pe cto r. In the year 2 008 he was f urther prom oted to the position of Officer incharge Central / Eastern divis ion whilst e m ployed at PIB he also represented F iji in the National Rugby Sevens Team, when Fi ji wo n H o nk Kong Sevens 3 years in a row from 1990 to 1992.
In July 2010, P IB m erged wit h Co m m erce Commission whereby he retained the positio n of Pric es and Incomes Inspector.
45 Fiji Commerce Comm iss i on Fi nanc i al statements for the sev en months peri od e nded 31st j uly 20 16 46 Fij i Commerce Commis s i on Fi nanc i al statements for the sev en months peri od e nded 31st j uly 20 16 Table of Contents Contents Commissioner’s Report Statement By Commissioners Independent Audit Report Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to and Forming Part of the Financial Statements Page No 45 - 46 47 48 - 49 50 51 52 53 54 - 61 Staff officer doing a routine check in shops.
47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 (43,132) 113,183 62 63 FIJI CO MM ERCE CO MMI SSIO N ANNUAL REP ORT 2 0 1 6 LEVEL 1, GARDEN CITY, RAIWAI (T) 337 2178 (M) 891 1619 / 891 1620 (P) P.O BOX 5031, RAIWAQA, SUVA, FIJI (E) HELPDESK@COMMCOMM.GOV.FJ