FCC issues notice on the regulation of the Standard Form Consumer Contracts in Tanzania
The Fair Competition Commission (FCC) issued a reminder notice (the Notice) to all service providers, the Business Community and General Public that all service providers must submit their standard form consumer contracts currently in use for review and registration by the FCC.
Standard Form Contracts: Definition
A “Standard Form Contract” is defined by the Standard Form (Consumer Contracts) Regulations, 2014 (the SFC Regulations) to mean an agreement created by one party that employ standardized, non-negotiated terms and conditions usually in preprinted receipts.
Penalty for failure to comply
The SFC Regulations impose a fine not less than TZS 500,000 and not more than TZS 2,000,000 to an individual and not less than TZS 3,000,000 and not more than TZS 5,000,000 to a corporate body, where such person and/or entity has failed to submit a standard form contract for registration, review and/or amendment or replacement.
The Commission reserves the discretion to arrange for dissemination of information to the public and advice concerning the operation of these Regulations in such form and manner as it considers appropriate.
Any person may submit his or her complaint to the FCC against a particular standard form consumer contract by filling in and submitting the prescribed form (Form SFC 2).
If the FCC has no jurisdiction to entertain the complaint, the FCC shall return it to the complainant with provided stated reasons, within 14 days from the date of receipt of the complaint.
Structure of the Notice
The notice on the regulation is divided into seven main parts, each with specific provisions on the regulation of consumer contracts inclusive; preliminary provisions, incorporation of standard business terms into consumer contracts, specific requirements for standard forms of consumer contracts, registration of standard form contracts, unfair terms in consumer contracts, complaints and general provisions.
About the FCC
The FCC is established in Tanzania by virtue of the Fair Competition Act, No. 8 of 2003 and among others it has mandate to promote and protect effective competition in trade and commerce and protect consumers from various market misconduct.
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