The Consumer Protection Commission has urged the public to report businesses refusing to accept Point-of-Sale (POS) transactions, focusing on those rejecting Zimbabwe Gold (ZiG) payments in favor of U.S. dollars.
The blitz comes as Zimbabwe’s local currency continues its downward slide, further complicating the economic environment for consumers and businesses alike.
The ZiG traded at 26.8596 against the US dollar on 18 October, a further weakening from the 26.0692 recorded last week. The depreciation of the currency, which has lost 11% of its value since being devalued, is raising concerns over rising import costs, inflation, and diminishing purchasing power.
Consumer Protection Commission, in a statement yesterday, mandated that all businesses provide customers with the option to pay electronically using POS machines, a move designed to protect consumers from unfair practices.
Businesses refusing to use swipe machines are attempting to bypass the local currency by only accepting US dollar transactions, the commission said. This has placed added strain on consumers who rely on the ZiG as their primary source of funds, particularly in an inflation-ridden economy where carrying large amounts of cash is both impractical and unsafe.
“To protect consumers from unfair business practices, the Consumer Protection Commission is carrying out an enforcement blitz, starting with the fuel retail industry where several service stations have been found wanting and issued with compliance notices by the commission in line with Section 68 of the Act,” read the commission’s statement. It revealed that 80% of the 27 service stations inspected did not have POS machines.
The crackdown has now expanded beyond fuel stations to all businesses nationwide. “Those businesses found not to be complying will be penalised in line with the requirements of the law,” the statement added.
The Consumer Protection Act prohibits businesses from denying consumers the right to choose their payment method, and the Finance Act Number One of 2018 requires all businesses to provide electronic payment options, including mobile and computer transactions.
Members of the public have been urged to report businesses refusing to offer swipe transactions, a move that could bolster efforts to hold businesses accountable.
“Members of the public are being urged to assist the commission by reporting businesses not giving consumers the option of swiping for their goods and services through hotline numbers,” said the commission.
In addition to the Consumer Protection Commission’s efforts, the Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has also previously launched crackdowns on businesses refusing to accept Point-of-Sale (POS) transactions in Zimbabwe Gold (ZiG).
The unit has issued warnings and penalties to businesses found violating regulations around electronic payment acceptance.
However, many businesses argue that their refusal to accept payments in ZiG is driven by economic necessity. Retailers and service providers claim that accepting payments solely in the inflation-ravaged local currency jeopardizes their ability to restock goods and remain operational.
The rapid depreciation of the ZiG means that by the time they receive payments and attempt to restock, the value of the money has diminished significantly, leaving them with insufficient funds to replenish inventory.
