Gov’t accused of sidelining consumer protection reforms

Opposition Leader Marlon Penn has accused the government of sidelining consumer protection reforms and weakening the independent framework that was intended to oversee consumer affairs and business regulation in the territory.

The Virgin Islands Trade Commission Act — passed in 2020 and brought into force in 2022. — was that framework. However, the government subsequently moved away from the independent commission model, arguing that it would create an unnecessary and expensive layer of bureaucracy. The amendments instead transferred responsibilities from the dormant commission to the minister and other officials.

Penn criticised that approach, arguing that consumer protection required greater independence from ministerial control.

“They made some modifications to the Consumer Protection Act so that it could remain under the ministry instead of a board so they could have control over it,” Penn stated.

The dispute has taken on greater significance following the government’s introduction of temporary relief measures to cushion residents from higher living costs. Those measures included electricity subsidies, reduced import duties and port fees, and concessions on selected essential goods.

The government also passed amendments intended to ensure that businesses pass savings from concessions on to consumers. Premier Dr Natalio Wheatley said these measures would permit limited price controls where businesses receive government concessions.

Penn, however, questioned whether consumers had benefited from the measures and said the government lacked an effective mechanism to hold businesses accountable.

“We’ve had three months since the subsidies have been put in place; still no consumer protection legislation. The three million-plus dollars that he said he’s budgeted will be spent and the people are no better off after,” Penn said.

According to the Opposition Leader, an independent structure was necessary to strengthen the business environment while limiting political involvement in its day-to-day operations.

“You need to have a level of independence,” Penn stated. “Try to get out of the way of the business sector.”