Abusive business practices on the rise

FRIDAY, JULY 8: Last week I wrote about the recent amendment to the Consumer Protection Act 1999 (the Act) as it relates to estimates, quotes and prices. This week I will address aggressive and abusive business practices that negatively affect consumers.

As I mentioned last week, the amendments to the Act have significant impact on the way business is conducted in Bermuda and businesses that understand their responsibilities under the Act are less likely to engage in unfair business practices that could result in prosecution.

Aggressive and abusive

The Department of Consumer Affairs data reveals aggressive practices by providers of goods or services who intimidate or financially exploit consumers by restricting their ability to make a free or informed alternative decision.

This practice has increased by 57 per cent over the past five years and the Department has seen an increased incidence of aggressive practices that take advantage of consumers due to their age or physical or mental status across a number of sectors.

There are many forms of aggressive practices prevalent in the purchase of goods and services in Bermuda, such as exerting undue influence, harassment or coercion, threatening behaviour and verbal abuse. 

It’s particularly disturbing when the victims are physically or mentally challenged or when they are seniors.

You take your car in for a full service, the cost of which is x dollars and you are told up front and you agree to the price.  The company then takes it upon themselves without seeking your permission to replace things that are not within the scope of the full service. 

You go in to collect your car only to be told that the price has now doubled. You are now placed in a position where you are required to pay the bill for the unauthorized work so that you can take possession of your car or alternatively you force the company to put back the items replaced which means that you will not get the car until a later date, if the company agrees to do this. 

In cases like this the consumer’s freedom of choice has been taken away and made for him by the service provider at a significant financial cost. 

The consumer may be unable to pay, which then results in a lien being placed on that item or significant interest charges on a debt incurred without their consent. 

The Consumer Protection Act 1999 protects consumers from this type of unfair business practice and a violation of the Act can result in a maximum of $15,000 fine and/or imprisonment for up to 12 months.

Honey Adams is the education officer for the Department of Consumer Affairs.