Plumbing repair services claims

On an article March 2008, the NCAC reported a feature of complaints regarding a spate of problems involving plumbing repair services:

A number of problems can take place in the plumbing system such as in the kitchen, bathroom and/or toilet and problems include water leakages from taps or blockages in pipes. In the event of such a problem, it is often the case to look up distributed advertisements and flyers and/or advertisements in telephone books to find a plumber appearing to provide services at a ‘low cost.’ However, there have been spates of consumer inquiries and complaints relating to plumbers called to provide services in an emergency situation concerning their fees and services provided.
Under these circumstances, NCAC provided the following information to consumers in order to prevent further consumer damages:

Number of consumer inquiries and complaints

As for plumbing repair services provided to a consumer who called the plumber by looking at advertisements such as flyers, PIO-NET received 1,104 consumer inquiries and complaints in the Fiscal 2006 and 795 in the Fiscal 2007 (there were 522 cases in the corresponding period of last year, demonstrating a year-on-year increase of 273 cases with an increase rate of 52.3%). In this manner, the number of consumer inquiries and complaints shows an upward trend year by year.

Case examples of consumer inquiries and complaints

After looking through distributed advertisements, flyers and telephone books, the consumer called a plumber advertising ‘Water leakage repair service – Base rate: From 3,000 yen.’ The consumer asked the plumber to perform the repair by assuming that the fees would be reasonable though was charged at a surprisingly high rate.

The consumer called a plumber to have a water leakage and pipe blockage repaired. However, the plumber did not explain the causes or status of the problems in a sufficient manner but insisted that the installation needed to be replaced. The consumer consequently concluded a contract which bore high costs.

 When making a complaint to the company, the consumer was intimidated and payment was demanded. The consumer felt threatened and paid what the company asked for.

Final report about new consumer affairs agency

A governmental panel, the Council for Promoting Consumer Policy, in charge of  establishing a new consumer affairs agency has compiled a final report. A new agency will  be established based on this report hereafter. The report was submitted to Prime Minister Yasuo Fukuda on 13th June 2008.

Acceleration for establishing a new agency

Moves to integrate consumer-related activities, which are currently handled by different government ministries and agencies, come in the wake of a recent spate of food mislabeling incidents, faulty products and other problems, including the outbreak of food poisoning involving Chinese “gyoza” dumplings, over which the ministries and agencies were criticized for their slow initial response.

Orgnization

The agency, set up as an external organ of the Cabinet Office, is expected to be comprised of 150 to 200 officials. It wil be expected to contain at least one committee comprised of members from consumer affairs-related civic groups.

The agency will be empowered to design, execute and coordinate consumer policies and unify contract offices for consumers. Whilst there are 75 laws relateing consumer protection, only 30 laws will come under its auspices; these law are relating to four consumer areas — product labeling, commercial transactions, product safety, and prices and livelihood. The laws that are transfered to the agency perfectly is counted as 14. As a result, the agency will not be granted strong authority on consumer policy yet.

Regarding to the Specific Commercial Trading law, part of trading practices are transfered to the new agency. In terms fo JAS law, the Ministry of Agriculture, Forestry and Fisheries will still has the authority concerning standerising work of food safety; and the jurisdiction of of inspections and amendment order will be withhold in the MAFF.  

Jurisdictionsand authorities

The agency’s tasks will include: regulating commodities and financial products transactions; ensuring product and food safety; ensuring proper food and product labeling and tackling matters concerning commodity prices.

The agency may take charge of approving revisions of public utility fees, prevention of extreme price hikes and supervising the Food Safety Commission. This will enable the agency to decide on the appropriateness of price raises. The Construction and Transport Ministry and the Cabinet Office agreed to revise fees on trains, taxis and buses. If the consumer agency is set up, it would take over the Cabinet Office’s role and discuss such matters with the ministry.

The government has prioritized preventing deflation, economic stagnation and falling prices. However, recent surging oil prices are pushing up prices of food and other products, raising the cost of living. The agency will also handle the nation’s price policy, including revising utility rates, by having laws and regulations transferred to it from the Cabinet Office.

The consumer agency also is expected to be authorized to prevent retailers from withholding food supplies from the market.

The agency will also be empowered to recommend remedial measures against problematic companies or individuals.The government will consider legal action to help victims of fraud and other illicit commercial activities, including seizing profits earned via such activities and enabling the state to sue on behalf of the victims.

New legislation will be established requiring municipal-run consumer centers to immediately report life-threatening cases to the Consumer Agency; It would be based on a view of the lukewarm govenment response to food-related problems in the past.

Cnflicts with other authorities

The government plans to make the envisaged agency responsible for consumer affairs, which are currently handled by multiple government entities. It also plans to quickly respond to unfavorable economic situations, such as opportunistic price rises. However it means that the government faces stiff resistances from existing ministries and agencies which have jurisdictions to consumer’s affairs partly.

Whilst the new body will be given the authority to issue advisories for other ministries and agencies on consumer-related issues, the new agency has to take counsel with existing ministries or agencies. Transition of jurisdictions about commercial practices is limited or restricted. Thus, it would be worried to invite double jurisdictions on same affairs whereas those measures may prevent bloated of the new agency;  It is because the jurisdiction of the new agency is vague; it might provoke confusing or contradiction to make administrative enforcement.

Shedule

The government plans to submit a bill to set up the new agency during an extraordinary Diet session that may convene in August so the agency can be inaugurated next spring.

Futures work

One of panel members, my acquaintance, points out several unsolved issues; how to accomplish consumer protection activities in local government effectively; how to improve gathered information to the government; how to implement advisory empowerment; how to reflect consumer opinion to the agency. 

Reference

the Yomiuri on 14th  June 2008 and 13th June 2008, the Japan times on 14th June 2008