PROPOSED AMENDMENTS TO THE PRICES REGULATION ACT (CHAPTER 320)

The Independent Consumer & Competition Commission (ICCC) is a multi-sector regulator of the supply and sale of goods and services under the Prices Regulation Act Ch. 320 (PR Act).

The ICCC advises all stakeholders and the general public of our proposal to amend Part VII of the PR Act to ensure the application of unilateral price controls under special circumstances (based on grounds of social equity).

The ICCC is required to consult stakeholders and the general public to obtain their views on the proposed amendment. The ICCC therefore seeks comments or views from all stakeholders and the general public on its proposal to amend Part VII of the PR Act to empower the ICCC to apply unilateral price controls under special circumstances. Under the current legislative regime, the ICCC can only apply price control if it satisfies the economic justification of market competition. Only when a market is less competitive, the ICCC will apply some form of price control. This approach is to prevent businesses with market power from charging monopoly prices. It does not prevent all businesses from charging excessive and unreasonable prices. As a result, the cost of living has risen and continues to rise across the economy regardless of the level of competition in certain markets.

The following changes are proposed, with respect to Part VII of the PR Act:

1. Insertion of Section 56A;
2. This creates two subsections; 56A (1) and 56A (2);
3. Section 56A (1) provides for the ICCC to impose unilateral Price Controls; and
4. Section 56A (1) is subjected to section 56A (2), which sets out the circumstances where the ICCC may exercise unilateral price controls:

The proposed amended Section 56A will read as follows: –

56A. Unilateral Price Control.

1. Notwithstanding Section 21(2A) and subject to subsection (2)–
2. the Commission may, without consultation required under Section 20A, decide the maximum percentage margins, or the maximum selling prices, to apply to goods and services that are not declared under Sections 10 and 32A of this Act or the ICCC Act or any other Act; and
3. The Commission shall publish any Price Control Order made under Section 56A (1)(a) in the National Gazette.

1. The Commission may apply subsection (1):
2. Where required under the National Pandemic Act, any other Emergency Laws, or the Constitution; or
3. During natural disasters such as but not limited to; hurricanes, earthquakes, drought, famine, frost, flood, landslide, cyclones, and tsunamis; and any form of civil unrest resulting from any natural disasters with the likely effect of affecting the supply and prices of goods and services; or
4. In periods of inflationary pressures to prevent the exploitation of consumers by body corporates or individuals setting excessive prices of goods and services; or
5. In instances of public interest concerns, to ensure access to essential goods and services or services for vulnerable populations are met at reasonable costs; or
6. In instances of a market failure where markets fail to allocate resources efficiently, align prices of goods and services with long term consumer interests; or
7. In instances of international trade considerations on imported goods to protect domestic industries from unfair competition, to stabilize domestic prices affected by global market fluctuation.

Please contact the ICCC at the address below to obtain copies of the relevant documentation discussing the proposed amendments. The documents will also be available for access on our Website, www.iccc.gov.pg and Facebook (ICCC PNG) page.

The consultation timeline for the proposed amendments is set out below.

The ICCC kindly requests all stakeholders and the general public to provide written submissions on the proposed amendments before or by 11^th September 2024.

Written submissions must be delivered to the following address:

Independent Consumer and Competition Commission

Level 2, Post Office Building,

Nita Street, Boroko

P.O Box 6394

BOROKO

National Capital District

Attention: Mr. Paulus Ain, Commissioner and Chief Executive Officer

Electronic submissions can also be sent to Mr. Jason Sirue, Corporate Secretary and Legal Counsel, by email, at jsirue@iccc.gov.pg.