thereafter desist from counterfeit goods.”She stressed that consumer education wouldempower consumers to counteract deceptivemarket conducts and make informed pur-chase decisions.

Likewise, Hon. Mbene called on FCCManagement to present a strong case for in-creased budgetary allocation from the ex-chequer in order to make the Commissionmore effective in administering its duties andresponsibilities as a market supportinstitution.

Online FCC Newsletter April-June, 2014 Issues No. 0014

3

Deputy Minister MIT Visits FCC,Urges Opening of Zonal Offices

By Staff Reporter

INS

IDE Operation Wipe Out

Nets 269.6m/- IllicitGoods

Pg. 2

FCC Sensitize Stakeholders in Manyara Region

Pg.3

FCC Seize 30m/-Counterfeit Goods

in Arusha andMwanza Cities

Pg. 4

“You should open zonal offices in orderto spread consumer education and reach outto more consumers, where you can advisethem on appropriate redress mechanisms,”she urged.

She added, “Most of Tanzanians takebusinessmen word for ‘absolute-truth’. Theyhardly reason differently, thus ending upbuying shoddy goods, which were falselyadvertised as genuine; You should take thiseducation to them so that they may have theopportunity to know how to identify and

DEPUTY Minister for Industry and Trade,Hon. Janeth Mbene (MP) visited the FCCOffice Premises in mid April, 2014 whereshe called for the Commission to open zonaloffices in order to serve consumers better.

Hon. Mbene gave the remarks shortlyafter having an opportunity of learning Com-mission activities, which included demon-stration of differences between genuine andcounterfeit brands of various merchandise.

Head of Anti-Counterfeit Department, Mr. John Mponela, explaining to the Deputy Minister for Industry and Trade, Hon. Janeth Mbene (MP) howto identify counterfeit goods during the Deputy Minister's visit to FCC on 15th April, 2014. Right is the FCC's Director General, also the Chief In-

spector of the Merchandise Marks Act (1963), as amended, Dr. Frederick Ringo.

Welcome to our 14th issue of the FCC On-line Newsletter. FCC Editorial Board ex-tends sincere gratitude to you, our esteemedreader for patience and trust you have hadin us in preparing and bringing you the read-worthy edition after a long, but successfulpreparatory exercise.

We are committed to continue bringingyou accurate, informative, useful and educa-tive articles in our Newsletters. We are alsocommitted to improving it as days go by.

We had a challenging and eventful threemonths session. During this time, we con-tinued discharging our responsibilities as acredible market support institution, in an ef-fective manner. We had been promoting andprotecting effective competition in trade andcommerce as well as consumers from unfairand misleading market conducts.

We continued applying the required pro-cedures, policies and guidelines relating toenforcement of the Fair Competition Act(FCA) and the Merchandise Marks Act(MMA). We also continued advocating tostakeholders for voluntary compliance.

FCC undertook appropriate counterveil-ing measures against counterfeit goods inline with the MMA. We have published astory on continued efforts to combat couter-feit goods, which saw a seizure of a numberof counterfeit goods, thereby discouragingthem from entering in trade and affect con-sumers.

Our newsletter captures importantevents which had taken place at the Com-mission during this time. These include Agrand operation of search and seizure ofcounterfeits, Dubbed “Operation WipeOut”. The operation was coordinated by thePolice Force’s INTERPOL Branch and in-volved all agencies dealing with quality as-surance, Matric and anti-counterfeiting aswell as anti-piracy. We have a story on thisaspect.

Similarly, by powers conferred upon theChief Inpsector of MMA, FCC donated mu-sical instrument to Prisons Departmentseized in Arusha some two years ago. Thisis amongst the stories we have carried in thisedition.

FCC also undertook advocacy aware-ness campaigns in Arusha and Manyara Re-gions during this period. The same wereofficiated by Regional Commissioners whohad some words of wisdom to enforcementagency, the FCC. We have highlighted thisin relevant stories in this newsletter.

Enjoy the reading of the running editionof FCC Online Newsletter.

EditorialBoard

MembersAllan S. Mlulla ChairpersonMagdalena Utouh Deputy

ChairpersonDr. Deo Nangela MemberJoshua Msoma SecretaryFrank S. Mdimi EditorEmmanuel Kaale MemberChester Kapinga Member

AssistantsZuberi KabongeJanath Bushako

Editorial

2

Director GeneralFair Competition Commission, 2nd Floor, Western Wing, Ubungo Plaza, Morogoro Road, P.O.Box 7883, Dar es Salaam, Tanzania. Tel. +255 22 2461565/6/7, Fax +255 22 2461568, E-mail info@competition.or.tz, Website: www.competition.or.tz

Operation Wipe Out Nets269.6m/- Illicit Goods

ARTICLE ON COUNTERFEITS /EDITORIAL

THE two days search and seizure operationdubbed “Opera-tion Wipe Out”conducted coun-trywide in May,2014 has facili-tated the seizure ofvarious contra-band goods worthTZS 269.6 million

The operationcarried out from13th to 14th May, 2014 coverd eight majorbusiness-hub Regions of the Mainland Tanza-nia. It involved eleven (11) GovernmentAgencies dealing with inspection of goodsand National security matters. The operationalso involved brand owners representing reg-

istered brands in Tanzania Mainland.Regions involved in the “Operation Wipe

Out” were Mwanza, Arusha, Kilimanjaro,Mbeya, Njombe, Singida, Mtwara and Dar

es Salaam. The agencies in-

volved include theFair CompetitionCommission (FCC),Tanzania Bureau ofStandards (TBS),Tanzania Food andDrugs Authority,Tanzania RevenueAuthority (TRA),

Police Force, Weight and Measures Agency(WMA), Copyright Society of Tanzania(COSOTA), Office of the Director of PublicProsecution (DPP), Judiciary, GovernmentChemist Laboratory, Interpol and the Tanza-nia Fertiliser Regulatory Authority (TFRA)and EWURA.

Five officials and one Head of Counter-feit Surveillance participated in the OperationWipe Out countrywide.

Brand owners who participated in the op-eration include ORYX Gas, Master Mind To-bacco (T) Ltd, NABAKI Afrika,UNILEVER, YARA Caterpillar and TECNO.

The operation led to seizures of 1,096counterfeit mobile phones worth TZS59.5m/-, 6.5 tonnes, 34 dozens and 181pieces of banned and expired cosmetics val-ued at TZS 83.8m/-, 164 underweight andsub-standard gas cylinders valued at TZS21.7 million, two decanting machines esti-mated at TZS 6m/-, Pirated CDs and piracyequipment valued at TZS 7,51m/-, expiredfertilizer and insecticides valued at TZS2.5m/-, Contraband cigarettes valued at TZS2,2m/- as well as 142 cans and 31 dozens ofun-registered infant milk valued at TZS11.1m/-.

All seized products were referred to re-spective agencies for enforcement proce-dures. A number of businessmen werearrested in connection with the seized goodsand a total of 32 cases files were initiated inconnection with the seizures made. The filesshall be sent to the Director of Public Prose-cution (DPP) after the completion of investi-gations.

Similar operations were also carried outin Kenya, Uganda, Zambia, Rwanda,Namibia and Botswana.

Interpol coordinates similar events eachyear in an effort to curtail counterfeit andshoddy goods from proliferating in the Tan-zanian and other African markets.

By Magdalena Utouh, Headof Counterfeit Surveillance

FA

IR C

OM

PETITION COM

MIS

SIO

N

for fair play in the economy

Regions involved in the “Opera-tion Wipe Out” were Mwanza,Arusha, Kilimanjaro, Mbeya,Njombe, Singida, Mtwara and

Dar es Salaam

Hon. Mbene also receivedand promised to channel to ap-propriate authority the Commis-

sion’s recommendations for Tanzania Islesto also have a law that counteracts counter-feit goods. The recommendation emanatedfrom the fact that a substantial amount ofshoddy goods (both counterfeit and sub-standard) cross to the Mainland through theIsles and that the same are mostly smuggledto the Mainland without paying appropriatetaxes.

She also called for increased inter-agency cooperation between FCC and itscounterpart consumer focused organisations,notably the Tanzania Bureau of Standardsand the Tanzania Foods and Drugs Authority(TFDA).

Welcoming Hon. Mbene to FCC, theCommission’s Director General, Dr. Freder-ick Ringo, pointed out that lack of adequatefiscal resources, has tremendously affectedFCC operations.

The Head of Consumer Protection De-partment, Ms. Martha Kisyombe and theHead of Anti-Counterfeit Enforcement, Mr.John Mponela, explained the duties and re-sponsibilities of their departments to theDeputy Minister Mbene. Ms. Kisyombepointed out that redress for most of con-sumer grievances is provided by ordinarycourts instead of the Commission. She addedthat proposed amendments to FCA intends

3 MANYARA ADVOCACY SEMINAR

Deputy Minister Visits FCC, Urges Opening of Zonal Offices

to empower FCC to resolve such disputesthrough Alternative Dispute ResolutionMechanisms, which will speed up dispensa-tion of justice, particularly for small claims.

On the other hand, Mr. Mponela toldDeputy Minister Mbene that the Commis-sion continues with regular inspections at theDar es Salaam Port and Inland ContainerDepots (ICDs), in shops and privatelyowned premises, countrywide in search forgoods that contravene the Merchandise

1

Marks Act, 1963, as amended (MMA). He pointed out that the lack of the legal

framework to curtail counterfeit trade inTanzania Isles has been a challenge towardscurbing counterfeit goods smuggled into theMainland from the Isles. “These create un-even playing field because no import duty ispaid upon their importation and that theyfrustrate the investment efforts in research,development and marketing done by thegenuine brands owners.

FCC Sensitise Stakeholders in Manyara Region

By Staff Reporter

Director General of FCC, Dr. Frederick Ringo, giving welcoming remarks to Deputy Ministerfor Industry and Trade. Hon. Janeth Mbene (MP) (not in the picture) who paid a visit to FCC

Offices on 15th April, 2014.

THE FCC has carried out an outreach advo-cacy seminar to various public and private sec-tor stakeholders in Manyara Region in aneffort to cement the competition culture in the

country. The advocacy seminar, which was held at

the White Rose Hotel in Babati, brought to-gether stakeholders from the Regional andDistrict Trade and Cooperative Officers, theJudiciary, Attorney General’s Chamber,

Weight and Measures, Tanzania Revenue Au-thority, District Council representatives, Man-ufacturers, Traders, Trade AssociationRepresentatives, the Police Force and theJournalists. The same was centered on issuesof competition dynamics, consumer protectionissues as well as anti-counterfeit efforts carriedout by the Commission.

The seminar was officiated by the Man-yara Regional Commissioner, Hon. ElastolMbwilo, who was represented by the BabatiDistrict Commissioner, Hon. Hemed Mandia.In his speech, Mr. Mbwilo called for strongercooperation between various government bod-ies and the private sector in curtailing conductsthat impair effective competition in trade andcommerce.

He stressed that whenever producers andservice providers observe consumer rights intheir business undertakings, they ensure sus-tainability of their very own businesses as theywill become more innovative.

“Stakeholder awareness efforts give us anopportunity of speaking at the same wave-length when it comes to government-privatesector dialogues and teamwork spirit amongststakeholders. This will be a powerfulforce in curtailing anticompetitiveconducts, and putting deceptive mar-ket conducts to check. Consequently,

4

Senior Enforcement Officer, Ms. Celina Mloge, explaining a point while presenting a paper onAnti-Counterfeit efforts to stakeholders in Manyara Region on 1st April, 2014.

Labour Laws, Rules and Guidelines. Thetraining session was administered by two re-source persons from the Commission of Me-diation and Arbitration, Mr. EmilyoMwidunda and Mr. Andrew Mwalyisi.

During the training, Council Memberswere encouraged to employ the Labour Lawsin the correct perspectives by mainstreamingsector expertise and professionalism in orderto improve service provision to the public andkeep the FCC staff morale high.

It was emphasized that rule of law, in-tegrity, transparency and accountability arethe corner stones for institutional success.

The Council had an opportunity of dis-cussing the Commission’s Five years Strate-gic Plan 2013/2014 – 2017/2018, AnnualPerfomance Report 2013/2014 and the pro-posed Business Plan and Budget for2014/2015.

In order to achieve organizational goal, itwas recommended that the organizationshould encourage and accommodate differentviewpoints and strategies, which will lowerthe opportunities for labour frictions at theworkplace.

The Council also advised for employingamicable settlement of labour disputes at theworkplace through making use of PublicService Laws and Trade Union negotiationmachinery.

this will make Tanzania an at-tractive investment destinationcapable of benefitting both

local and international investors, while at thesame time according consumers a wider op-portunity to exercise their right to choose”,he said.

He observed further that effective super-vision of the market economy frameworkalso calls for the need for Government Agen-cies to trust each other and exchange infor-mation when need arise.

FCC’s Director for Mergers. Researchand Advocacy, Mr. Allan Mlulla, led theFCC resource person delegation.

Mr. underscored the need for supportingFCC efforts in enforcing FCA which aim atreducing barriers to entry and protecting con-sumers, thereby making the Tanzanian mar-ket remain contestable.

Apart from a paper on Competition is-sues, other presented papers touched on con-sumer protection, anti-counterfeit efforts,competition principles and research. A Paperon research highlighted reasearch findingson sugar, cement and tobacco sectors. Thefindings of these researches have been

shared with relevant stakeholders.A paper on anti-counterfeit enforcement

was centered on raising general awareness andpointing out the offences the offences underthe Act. It cited that the penalties are associ-

Employees, Departments and Divisions toadhere to Public Service Laws, Regulationsand Guidelines. It also called on them to em-ploy expertise and professionalism in theirdaily undertakings in order to ensure that theycontinue to be the “Centre of Excellence” incompetition and consumer protection mattersin the country.

The session included a one day trainingfor Members of the FCC Workers Council on

4WORKERS COUNCIL

FCC Sensitises Stakeholders in Manyara Region

Worker Council Advocates onIncreasing Staff Morale

By Joshua Msoma, Senior Consumer Protection Officer

THE second FCC Workers Council hascalled on the Commission to devise strategiesfor increasing and sustaining a “high morale”staff base. The call was made during the sec-ond Workers Council session held in Dar esSalaam from 20th to 21st June, 2014.

The Council also called on individual

3

ated with long jail terms and fines.Similar seminars had also been held in

Tanga, Kilimanjaro, Mara, Mwanza,Dodoma, Morogoro, Mtwara, Mbeya andArusha in the past seven years.

A cross-section of stakeholders learning how to differentiate genuine and counterfeit productsas part of the advocacy awareness seminar held in Babati, Manyara Region on 1st April, 2014.

Chairman of the FCC Workers Council, Dr. Frederick Ringo (left) explaining a point duringsecond Council Meeting held in Dar es Salaam on 20th and 21st June, 2014. Right is the Deputy

Secretary of the Council, Godfrey Gabriel.

ulatory bodies, whose work affect con-sumers, to enforce their duties at the full ca-pacity of their respective legal mandate. Hesaid if that will be observed, all parties re-sponsible for infringement of consumer andIPR laws will be apprehended and penalizedaccordingly, thereby deterring further in-fringements.

“The Government and the public in gen-eral expects these bodies to deliver as per thereasons of their establishment. This way theywill justify the use of taxpayers’ money infunding their activities.” said Mr. Mulongo.

Mr. Mulongo also called for stepped upinter-agency collaboration amongst regula-tory and supervisory bodies so as to comple-ment each other and lower operation costs.“Should you cooperate and yield positive re-sults, unruly businessmen will learn to re-spect the rule of law and behaveresponsibly,” he stressed.

He called for devising an alternative dis-pute resolution mechanism to address con-sumer grievances instead of using ordinarycourts which use lengthy processes and pro-cedures of administering justice

Stakeholders called for review of penal-ties for counterfeiting offences, citing thattrading in counterfeit goods that endangerhuman life or health should be grouped in thecategory of “death penalties“ due to the factthat such conducts cause too much harm tothe community, thereby warranting com-mensurate criminal sanctions to deter suchacts.

Stakeholders also called for a nationwideconsumer education and awareness, stressingthat the education component should start asearly as primary school level in order toequip the future Tanzanian generation withrequisite skills of facing market economychallenges in a more proactive manner. Theyobserved that the education will make themmore responsible at the marketplace.

The Tanzania Chamber of Commerce,Industries and Agriculture-Arusha Chapter,took the responsibility of spearheading es-tablishment of Arusha Regional ConsumerAssociation and called on its members to riseup to the challenge.

Stakeholders who attended the seminarincluded the Police Force, Attorney Gen-eral’s Chamber-Arusha Branch, Private Ad-vocates, Officers from the Tanzania RevenueAuthority, Regional, District and MunicipalTrade and Cooperative Officers, BusinessCommunity Representatives, Representa-tives from Tourism and Natural ResourcesDepartment, Traders, Manufacturers and thePress.

ishable by fines ranging between 10-50 mil-lion TZS and jail-terms ranging between 4and 15 years, depending on the severity ofthe offence and frequency of offender incommitting similar offences.

She pointed out that counterfeit goodsdeceive consumers, don’t offer value formoney and are dangerous. Referring to localresearch findings, she pointed out that elec-trical and electronic goods top the counterfeitlist with about 30% of merchandise importsin such goods being estimated to be counter-feits.

Senior Advocacy Officer, Alex Mmbaga,presented a paper on Competition Researchendavours carried out by the Commission.He pointed out that the Commission has un-dertaken competition research endeavours inthe tobacco sector, cement sub sector andsugar sector. The research endeavours werecentred in production and marketing trendsand dynamics. He said that the Commissionhas shared findings of such research with rel-evant stakeholders, pointing out some re-search findings led to change of some keytrade-related policy decisions, such as re-moval of suspended duties on imported ce-ment, the decision which led to stabilizationof consumer price of cement. The Govern-ment decision also benefited the manufactur-ing sector.

The seminar was officiated by the ArushaRegional Commissioner, Hon. Magessa Mu-longo.

In his speech, Mr. Mulongo urged all reg-

5 ARUSHA ADVOCACY SEMINAR

THE FCC has reached out to more stake-holders in Arusha on competition, consumerprotection and anti-counterfeit issues in a bidto instill competition culture in the commu-nity.

The outreach advocacy seminar was heldat the Kibo Palace Hotel on 4th April, 2014 inthe City of Arusha. Director of Mergers, Re-search and Advocacy, Mr. Allan Mlulla, ledthe FCC delegation of resource persons inthe awareness programme.

Speaking at the Seminar, Mr. Mlullapointed out that FCC is charged with respon-sibility of making the market contestable byputting to check all anti-competitive con-ducts through quasi-judicial powers con-ferred upon it by the Fair Competition ActNo. 8 of 2003. He pointed that out in a paperon the theory of competition law and policy.

He further said that competition instillsinnovation as companies compete for buyers’patronage through quality and product differ-entiation as well as price variations for goodsand services. He said competition createsmore opportunities for consumers to makechoices and buy goods and services at com-petitive prices.

In a paper on combating counterfeitgoods, which was presented by a Senior In-vestigation Officer, Ms. Celina Mloge, it waspointed out that counterfeiting is a criminaloffence in accordance with the MerchandiseMarks Act (1963), and that offences are pun-

By Staff Reporter

FCC Sensitise Stakeholders in Arusha

Director of Mergers, Research and Advocacy, Allan Mlulla, speaking to members of the pressduring an advocacy awareness seminar held to Members of Business Community and Govern-

ment Officers at the Kibo Palace in Arusha City on 4th April, 2014.

6COUNTERFEIT GOODS

FCC Seize 30m/- Counterfeit Goods in Mwanza and Arusha Cities

FCC inspectors, seized counterfeit productsin Mwanza and Arusha Regions in separateoperations conducted between 8th and 12th

April, 2014, leading to seizure of goodsworth TZS 30m/-.

In the operation carried out in Mwanzacity, the inspectors netted 216 counterfeitTECNO mobile phones, 2,556 batteries, 15Baygon insecticide sprays and 496 pieces ofbanned cosmetics. Seized cosmetics includeCarolight, cocoderm, Prolight and Diprosoncreams, as well as Betanol lotion. Inspectorsundertook the dawn raid operations actingwith powers conferred upon them under theMerchandise Marks Act (1963) as amended,and MMA Regulations 2012.

Banned cosmetics were handed over toTanzania Food and Drugs Authority for en-forcement procedures.

Similarly, The operation in Arusha net-ted a number of counterfeit products includ-ing 46 Lorenzetti heaters, 130 Nivea creamsand lotions.

Offenders were given specific instruc-tions in compliance with the MerchandiseMarks Act and its relevant regulations.

All search and seizure operations wereconducted in collaboration with representa-tives of brand owners of the seized counter-feits and the police officers.

The FCC team of inspectors, also con-ducted search operations in four points ofwholesale and retail sales suspected to stock

By Staff Reporter counterfeited Tiger Head Batteries on 9th

April, 2014. FCC seized counterfeit goods worth

TZS 200m/- in search and seizure operationsconducted countrywide between July 2013and April, 2014.

The operations led to penalisation of 171traders for contravening the provisions ofthe Merchandise Marks Act (1963), asamended.

Various counterfeit goods were seized insuch operations, including counterfeited

Samsung, Nokia and Tecno mobile phonesIPS pipes, Simba Sports Club Sports gears,Mosquito nets, Phillips electrical appliances,Gillette shaving blades and MEM MainSwitches.

The search operations covering all prem-ises suspected to stock counterfeit goods isan on going countrywide operation aimed atapprehending and bringing to justice all of-fenders, whose acts infringe the intellectualproperty rights of brand and IP holders, con-sumer rights and the economy at large.

FCC’s MMA inspectors inspecting and seizing suspected counterfeit lotions in a cos-metics shop in Arusha in April, 2014. Left is the police officer providing security cover

to inspectors in the operation.

Seized counterfeit NIVEA lotions (close to camera, on the top of the display stand), seized in one of the shops during a search andseizure operation conducted in Arusha City in April, 2014.

News in Pictures

Director of Compliance, Dr. Deo Nangela, emphasing a point while mak-ing a presentation during a consumer awareness seminar to members ofthe Business Community (not in picture) at the Peacock Hotel on 25th

June, 2014

Head of Advocacy, Mr. Shadrack Nkelebe, making a presentation to un-dergraduate and post-graduate students in Law at Bagamoyo University.

The awareness seminar was conducted at the University premises in Kaweon 7th June, 2014.

Counterfeit goods undergoing destruction at Vingunguti area on 1st

April, 2014. Counterfeit goods are destroyed based on safe disposalprocedures as recommended by the National Environmental Protec-

tion Council (NEMC)

Director of Mergers, Research and Advocacy, Mr. Allan Mlulla, making apresentation on competition policy and law to undergraduate and post-

graduate students in Law at Bagamoyo University. The awareness seminarwas conducted at the University premises in Kawe on 7th June, 2014.

A cross section of FCC staff passing before the Guest of Honour, PresidentJakaya Mrisho Kikwete, at the National Stadium during May Day celebra-

tions on 1st May, 2014

FCC’s MMA inspectors administering summary trials to businessmencaught trading in counterfeit goods in Arusha in April, 2014. Businessmen

whose goods were seized are the two seated and the first standing on theright.

7 NEWS IN PICTURES

8ADVOCACY SEMINARS IN PICTURES

Pictures from Arusha and Manyara Advocacy Seminars

Seminar participant representing the Tourism sector, speaking during astakeholder seminar, held at the Kibo Palace in Arusha on 4th April, 2014.

Arusha Regional Commissioner, Hon, Magesa Mulongo, delivering hisopening speech during a stakeholders seminar held at the Kibo Palace in

Arusha on 4th April, 2014.

Director of Mergers, Research and advocacy, Mr. Allan S. Mlulla, em-phasing a point during a presentation to stakeholders from the businesscommunity and the Government in Manyara Region on 1st April, 2014.

Left is the Senior Research Officer, Selina Mloge.

Participants to the stakeholders seminar held at the White Rose Hotel in Babati on 1st April, 2014 in group photo with the Babati District Commis-

sioner Mr. Hemedi Mandia (centre, seated).

A cross section of participants making a close follow up of proceedingsduring the Advocacy seminar held at the Kibo Palace Hotel in Arusha on

4th April, 2014.

A cross section of participants making a follow up during the Advocacyseminar held at the White Rose Hotel in Babati on 1st April, 2014.