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Latin American Consumer Guide 2024

Bahamas

(Latin America/Caribbean) Firm McKinney, Bancroft & Hughes

Contributors Gweneth Diane Stewart

What is the applicable legal regime addressing consumer protection in your jurisdiction?
Consumer Protection Act, Ch 337C
Consumer Protection Regulations
What is the definition of a consumer?

The definition under the CPA for "Consumer" in relation to:

  1. any goods, means:
    1. a natural person who acquires or enters a
      contract to acquire goods for his own private
      use or consumption; and
    2. a commercial undertaking that purchases
      consumer goods;
  2. any services or facilities, means any person who employs or wishes to be provided with the
    services or facilities (otherwise than for the
    purposes of any business of his); or
  3.  any accommodation, means any person who
    wishes to occupy the accommodation (otherwise than for the purposes of any business of his).
What goods and services are covered by consumer protection legislation in your jurisdiction?

Under the CPA the same goods which are covered under the Sale of Goods Act are covered. These include all personal chattels other than things in action and money, emblements, industrial growing crops and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Under the CPA Section 29(1) provides that a provider shall only provide such services as are approved by the consumer and shall not require a consumer to sign an open-ended commitment to pay for services which, in addition to those contracted, may, in the provider's opinion, be necessary or appropriate.

Do the applicable regulations provide a list of consumer rights?

Yes. They have a right to make a complaint to the Consumer Commission against the service provider. Rules governing the processing and resolution of complaints are set out in the statute.

 

Do the applicable regulations provide a list of consumer duties?

Yes. The consumer duties under the Regulations are:

  1. Consumers are bound by a Service Provider's terms of service upon acceptance of the contract.
  2. A Consumer shall not resell any Service provided by a Service Provider to other persons, or permit the same to be taken by other persons, except where it is expressly permitted by the Customer's contract.
  3. The Consumer has an obligation to pay the specific fees, costs or other charges resulting from his or her use of the contracted Services with his or her Service Provider on or before the payment due date stipulated by the Service Provider.
  4. A Consumer is responsible for notifying his or her Service Provider in the event of changes to
    personal details, including contact information.
Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?

No. 

Is there any alternative or special regime depending on the type of good or service?

No.

What is the minimum information required to be provided to the consumer with respect to goods?

The minimum information to be provided to the consumer is origin, the price in the currency of The Bahamas, care terms, components, hazards, proper use, assembling, installation, weight and size of the goods, and where chargeable, the professional fees of the provider being charged in respect of the goods.

Is there a general warranty for products and/or services?

Yes.  Conditions and Warranties governing sales and services are contained in the Sales Of Goods Act.(SGA). In a contract of sale, unless the circumstances of the contract are such as to show a different intention, there is —

  1. an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods, and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass;
  2. an implied warranty that the buyer shall have and enjoy quiet possession of the goods;
  3. an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party, not declared or known to the buyer before or at the time when the contract is made

There is no implied warranty or condition as the quality or fitness for any particular purpose of goods supplied under a contract of sale, except as follows —

  • (a) where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller's skill or judgment, and the goods are of a description which it is in the course of the seller's business to supply (whether he be the manufacturer or not), there is an implied condition that the goods shall be reasonably fit for such purpose: Provided that in the case of a contract for the sale of a specified article under the patent or other trade name, there is no implied condition as to its fitness for any particular purpose.
  • Where goods are bought by description from a seller who deals in goods of that description (whether he be the manufacturer or not), there is an implied condition that the goods shall be of merchantable quality: Provided that if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed;
  • An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.

A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect.

In the case of a contract for sale by sample —

  1. there is an implied condition that the bulk shall correspond with the sample in quality;
  2. there is an implied condition that the buyer shall have a reasonable opportunity of comparing the bulk with the sample;
  3. there is an implied condition that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

 

Are there any products that have a legal warranty different from the general warranty?

Yes. As set as the previous answer.

For what reasons could the consumer initiate a complaint regarding a purchased product or service?

A complaint may be made to the Consumer Commission by a person who claims to have suffered a disadvantage in relation to the acquisition of goods or services but it does not specify particular reasons for the complaint. However, Prime Minister the Hon Philip Davis stated during his Communication on the Consumer Protection Bill of 2023, that with the new Bill "consumers can make complaints even while outside The Bahamas, and we are expanding the list of who can make a complaint on behalf of the complainant".

Is there a specific judicial action to resolve lawsuits arising from consumer matters?

Yes. The Act provides that any written contract formed between a consumer and a provider shall include a clause providing for the parties to attempt to settle their disagreements through mediation by the Consumer Commission before taking the matter to court. This will allow for parties to resolve the dispute efficiently, and in a more cost effective way.
However, matters may also be litigated.

If there is no specific judicial action, how does the consumer make a claim?

N/A

What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.

The CPA provides that upon the conviction of a provider of an offence the court may order the provider to pay to the:

  1. consumer, by way of damages, a sum representing the costs incurred by that consumer as a result of the offence, and;
  2. Consumer Commission such sum which represents the costs incurred in relation to the prosecution of the offence.

In actions which are litigated the normal measure of compensatory damages will flow from the breach of contract.

 

Can consumer issues lead to class actions?

No.

How often does this occur?

N/A

Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.

The provider.

Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?

Yes. The Consumer Commission as well as The Utilities and Regulations Competition Authority which regulates licensees who provide certain utilities and services to the public.

What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment

Where there are breaches of regulations imposed , URCA may impose sanctions such as

  1. an Order or determination to do or to refrain from doing such things as are
    specified in the order to remedy, prevent or rectify the breach or anticipated breach which is
    the subject matter of the determination. The Order may impose a fine as well and should specify the contravention and the penalty imposed;
  2. Impose a financial penalty not exceeding 10 percent of that person's relevant turnover; and
  3. Suspend or revoke the Service Provider's licence.
Does the legal regime regulate safety campaigns or product recalls?

Yes. The Minister may provide for the recall of certain goods which are dangerous or hazardous to safety.

Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?

Yes. The product recalls apply to goods inside and outside of the country. Where goods are recalled in accordance with a requirement made by the Minister, a person who has supplied any of the recalled goods to another person outside The Bahamas shall, as soon as practicable after the supply of those goods, give notice in writing to that other person, stating that the goods are subject to recall.

Are there any special regulations on e-commerce?

Yes. The Regulations state that a Consumer shall not misuse public electronic communications or carriage services, including:

  1. Dishonestly obtaining electronic communications or carriage services.
  2. Possessing or supplying equipment that may be used to obtain such Services dishonestly or fraudulently; or.
  3. Using Services to send messages that are obscene, threatening or otherwise contrary to
    applicable laws or regulations.
What types of e-commerce platforms are regulated by your legislation? List and define them.
No types are listed.
Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.

No. The normal rules governing contracts would apply. Electronic communications and transfers are also governed by statute.

Is this regime applicable for the purchase and sale of crypto assets?

Yes. The Securities Commission of the Bahamas governs the trading in crypto securities.

Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?

 Yes, the CPA provides that no person shall in the course of trade, advertise at a specified price, goods or services which they do not:

  1. intend to offer for supply, or
  2. have reasonable grounds for believing that they can be supplied for that price, having regard to the nature of the market and the nature of the advertisement. Failing to comply will result in summary conviction to a fine not exceeding $5,000.

The Regulations provide that Service Providers must comply with certain requirements when advertising such as regulations relating to: disclaimers; availability of services as it relates to whether there are any geographical or technical limitations on the availability of the service to consumers; savings claims; the advertising of packages, tied, or bundled services and whether they are able to supply all the components of the service package, tied offer or bundle if advertised; and the information that should be disclosed in the advertisement.

Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?

 Yes, in May 2023, Prime Minister of The Bahamas the Hon. Philip Davis during his Communication on the Consumer Protection Bill of 2023, stated that the proposed amendments will evolve consumer needs in the digital era.

 

Latin American Consumer Guide 2024

Bahamas

(Latin America/Caribbean) Firm McKinney, Bancroft & Hughes

Contributors Gweneth Diane Stewart

Updated