To curb proliferation of the local market by counterfeit products, the Fair Competition Commission (FCC) must expand and intensify its operation scope.

 

To affect this need, the FCC Vice Board Chairperson Abihudi Nalingigwa called for government support in opening of FCC zonal posts.

 

Speaking during a seminar on competition and consumer protection organised for executives of the Ministry of Industry and Trade, he said the Commission is facing a dire lack of financial resources necessary for the successful implement of their various activities including expanding services to regional areas.

 

“This Commission needs to take its operations upcountry but it’s difficult to open zonal offices without financial muscles and we call on the government to support us,” he said.

 

He said opening of zonal offices will among other things ensure that consumer awareness campaigns reach rural communities.

 

“It will also allow efficient response to consumer complaints,” he added.

He also took the opportunity to remind traders that it is illegal to trade in counterfeit products of any kind and called on them to reject purchases of fake and substandard products cautioning them of severe legal repercussions.

 

FCC Director General Dr Frederick Ringo explained that trade in counterfeits and pirated products are more prevalent in low income economies due to a number of reasons including low purchasing power of consumers, ignorance and the general effects of globalisation.

 

“Poor societies are lured because these products are cheap and so easily affordable for low income societies,” he explained.

 

Dr Ringo also admitted that counterfeit products are difficult to identify for ordinary consumers but went on to ask consumers to be vigilant and ensure what they buy is certified and has a valid expiry date among other things.

 

According to the Counterfeiting Intelligence Bureau (CIB) of the International Chamber of Commerce, counterfeit goods make up to 5 and 7 per cent of world trade.

 

A report by an organisation for Economic Cooperation and Development (OECD) states that in 2007 up to USD 250bn worth of goods in international trade could have been counterfeited.

 

Dr Ringo said other estimates show that the figures could be much higher, up to an approximated USD 600bn, since the OECD estimates do not include online sales or goods counterfeited and sold within the same country.

 

In Tanzania, he said, the Confederation of Tanzania Industries estimates the magnitude of counterfeit goods to between 15 and 20 per cent of all merchandise imports.

 

He said since 2007, FCC has made substantial achievements in fighting counterfeit goods leading to seizure of goods worth over 3.5bn/-.

FCC is empowered by law to deal with counterfeiters administratively by imposing fine and destroying offending goods at counterfeiter’s costs.

 

The law of the Merchandise Marks Act, 1963 (MMA) as amended in 2007, provides that counterfeiting is a criminal offence and Penal Code. Section 3(1) of the MMA prohibits the following, Owning, possessing or controlling any counterfeit goods, Manufacturing, producing or making any counterfeit goods.