Barbados Consumer Empowerment Network (BCEN) is calling on the government to consider the question of price sensitivity in Barbados and how the information could be used to benefit consumers.
In a statement on Saturday BCEN said it continues to be concerned about the trend of escalating prices in Barbados in the first quarter of the year, especially given the absence of a compact between the government and the private sector.
BCEN said the immediate focus must remain on strengthening and enforcing consumer protection regulations to prevent unfair business practices, misleading pricing, or monopolistic practices/behaviours in Barbados.
The full statement is below:
BCEN continues to be concerned about the trend of escalating prices in Barbados in the first quarter of the year, especially given the absence of a compact between the government and the private sector. Nonetheless, high prices in Barbados persist with little to no relief to consumers. Added to this, the Central Bank’s Report offers little hope for an ease in the circumstances and high prices are recorded as contributing to the nominal growth in the Barbados economy.
Therefore, it is by no means a mistake that high prices remain a major concern for BCEN, although we were unjustly criticized by the leading figures in the private sector in 2023 and given no support by the government. The fact remains that increasingly high prices and the high cost of living are a burden on households and are eroding the spending power of consumers, making it increasingly difficult for individuals and families to afford essential goods and services.
BCEN is therefore calling on the government, businesses, and stakeholders to take immediate and concerted action to address the increasing prices to mitigate the negative impact on consumers. Now is the time for government to use some of its regulatory power to intervene and administer effective regulatory oversight to achieve a more equitable and sustainable economic environment for consumers in Barbados.
By way of suggestion/solution, BCEN calls on the government to consider the whole question of price sensitivity in Barbados and how the information could be used to benefit consumers. Price sensitivity refers to how responsive consumers are to changes in the price of a product or service. It is a tool that is not only useful for businesses but equally useful for consumers.
The data and information derived from price sensitivity can be used by policymakers to tailor strategies that benefit consumers. Consumers generally trust information produced and disseminated by the government which is interpreted to mean, that research undertaken, produced, and disseminated by the government on price sensitivity will most likely be trusted and used by consumers to assist them with understanding certain market dynamics related to pricing and prices.
BCEN is of the view that the information derived from price sensitivity studies could empower consumers to; navigate the marketplace more effectively, make economically sound decisions, obtain maximum value for their purchases, and develop personal frameworks for strategic shopping so that they could exercise greater control over their spending power and habits.
Similarly, BCEN believes that policymakers could use information derived from price sensitivity studies to develop regulations that protect consumers from unfair pricing practices, while developing measures to prevent price gouging during emergencies and ensure that ther is greater price transparency in the marketplace.
Unfair prices contribute to inflated costs and as such BCEN calls for regulatory intervention to ensure that there is fair pricing and fair competition to prevent any form of anti-competitive behaviour that may drive up prices.
The Barbados government needs to get more innovative about its approach to protecting consumers insofar as dealing with the question of high prices in Barbados. At present, there seems to be a persistent inelasticity of demand pervading the Barbados economy i.e. Barbadians will pay -(are forced to pay even if it increases which happens in most cases)- for certain goods and services irrespective of the price.
The government should start by examining products and services where there is inelasticity in demand, to see what measures can be taken to protect consumers. The remedy may call for the implementation of price controls or subsidies or a combination of both. It may also call for long-term economic policies that address underlying issues contributing to e.g. price increases, inflation, or supply chain vulnerabilities.
Notwithstanding, the immediate focus must remain on strengthening and enforcing consumer protection regulations to prevent unfair business practices, misleading pricing, or monopolistic practices/behaviours in Barbados. Therefore, the government may find it necessary to invest in infrastructure, technology, or regulatory reforms that involve regulatory agencies monitoring and taking action against companies engaging in exploitative pricing to bring some relief to consumers.
BCEN with little resources, remains committed to advocating for the rights and welfare of Barbadian consumers and urges all stakeholders to come together to address the issue of high prices in Barbados and work towards creating a more affordable and sustainable social and economic environment for everyone.
(BCEN)
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