FIJI, like many island nations and indeed most countries around the world, faces unique economic challenges that contribute to the rising cost of living.
Over the past decade, the prices of essential goods and services have steadily increased, placing financial strain on households.
Multiple factors, many out of our control, contribute to the unprecedented cost of living we are currently facing.
Fiji’s dependence on imported food, fuel, and goods drives up prices due to shipping costs, tariffs, and currency fluctuations. Frequent fuel and energy price shifts, along with supply chain disruptions from events like COVID-19 and global conflicts, have caused shortages and further price increases.
Beyond global economic trends, local market forces also play a significant role in the rising cost of living.
A recent example is the sharp increase in chicken prices, which recently prompted Deputy Prime Minister and Finance Minister Professor Biman Prasad to warn supermarkets and suppliers against unjustified price hikes.
Consumers reported increases of $4 to $8 per whole chicken in just a few weeks. Professor Prasad warned of potential government interventions, including price controls or opening up imports to introduce more competition.
However, this situation has also exposed weaknesses in the Fijian Competition and Consumer Commission (FCCC), the state-funded statutory body responsible for regulating prices and preventing unfair market practices.
While the FCCC launched an investigation into these price increases, the reality is that the approach is often reactive. By the time action is taken, the damage has already been done.
Without proactive oversight from FCCC, businesses can continue to exploit market conditions, passing costs onto ordinary Fijians.
This is happening across nearly every industry, with traders taking advantage of consumers with little fear of facing consequences.
For years, I have warned that the FCCC is not set up to handle economic crises that drive up the cost of living.
The body does great in stable conditions, but is set up to fail when it comes to navigating crises like inflation spikes, global supply chain disruptions, or sudden commodity shortages (as we can see happening in real time).
This structural weakness has become increasingly evident as Fiji faces rising prices on essentials like fuel, food, and housing with no hope in sight.
This inability to fully enforce the FCCC Act is quickly eroding public confidence in the FCCC and the government is taking the brunt of people’s dissatisfaction.
Furthermore, while the FCCC exists to protect consumers, the general public remains largely uninformed about their rights in disputes with traders or service providers.
Many people I talk to still are unsure about what constitutes a breach or what remedies are available, leaving the vulnerable at a significant disadvantage.
FCCC’s media presence has taken a significant dip in the last few years, something which the commission must address quickly.
In most cases, the FCCC reacts to already-blown-up situations by issuing statements and warnings. But they need to be tougher, not just act tough.
One of the most critical areas for improvement within the commission is its legal team, which is meant to function as a prosecutorial body that upholds the laws governing market practices.
Unfortunately, the FCCC’s legal arm has proven largely ineffective, especially when it comes to holding violators accountable and ensuring that regulations are enforced in a timely and meaningful way.
Despite the growing number of complaints from consumers about price hikes, unfair market practices, and instances of price gouging, there remains a concerning lack of follow-through when it comes to taking violators to court.
Many traders are getting away with pretty much whatever they want.
To effectively address the rising cost of living, restructuring the FCCC is paramount. The current system is not equipped to meet the demands of an increasingly dynamic, tech-driven economy.
The FCCC’s approach to regulation has largely been reactive — responding to issues after they happen, and often only when they’ve gone viral on social media. This gap in proactive regulation must be bridged with a more modern, technology-driven framework that matches the pace of change in the market.
A restructured FCCC could utilise advanced data analytics and real-time monitoring tools to keep track of price fluctuations, identify market trends, and spot potential violations early.
For instance, price tracking software could be implemented to monitor the cost of essential goods like food, fuel, and medicine across different regions and retailers.
This would allow the FCCC to detect any price gouging or unfair price hikes as they happen, and take swift action before consumers are burdened with excessive costs.
The government should also establish a centralised digital platform where consumers can easily report complaints, access pricing information, and get advice on how to handle market disputes.
A properly functioning FCCC is in everyone’s best interest. Not only will it protect consumers from unfair market practices and price manipulation, but it will also provide the government with a shield against public dissatisfaction.
