Violation of consumer rights from price fixing

(Baonghean) - In recent days, public opinion has been upset about transportation fares because despite the drop in gasoline prices, freight rates remain unchanged.

Buses operating in Nghe An

In less than the first 2 months of 2016, domestic gasoline prices have decreased 4 times in a row, a total of 2,278 VND/liter (16%), giving transportation businesses and taxi companies a golden opportunity to receive additional profits because most businesses are still persistently maintaining their fares (or decreasing by 1-3%). The slow reduction in transportation fares is justified with all kinds of reasons, both financial and technical, such as the cost of time and money to complete procedures for stopping vehicles, registering new fares and reprinting fares, adjusting meters, and inspecting... It should be emphasized that the reasons mentioned above are not given when transportation units apply to re-register new prices to increase prices every time gasoline prices increase, even by just a few percent...

The consequences of the slow reduction in fares not only directly cause damage to consumers, but also prevent the positive impact of the reduction in gasoline prices from reaching people and does not help reduce transportation costs in production costs and inflationary pressure in socio-economic activities, does not create a positive impetus for economic growth, and does not help offset the negative impact of gasoline price reduction on the reduction in production and export income of the national crude oil industry.

Freight rates are a measure of responsibility and service quality towards society in the culture of enterprises and transport associations; also a measure of the level of completion and capacity, effectiveness and efficiency of the market mechanism under the management of the rule of law state...

Managing and controlling transportation fares cannot be done solely by recommendations and relying on the self-awareness of businesses, but it is necessary to increase both the market and the state, accordingly: It is necessary to increase the pressure to reduce prices from the market through full and truly healthy competition between transportation service providers, as well as increase information and opportunities for consumers to choose services with prices commensurate with the desired quality in the transportation industry; In particular, it is necessary to add to the regulations on managing transportation fares in the current Circular 152 a principled requirement on re-declaring and registering new fares associated with the framework of gasoline price fluctuations, creating a legal basis and administrative pressure forcing transportation units to re-register new fares within the framework of gasoline prices and a certain implementation time. At the same time, functional management agencies need to enhance their responsibility in reviewing, reducing procedures and costs for declaring fares, adjusting taximeters; Proactively and promptly request transport business units to review, update, and re-declare transport fares in accordance with new fuel price reduction fluctuations in the market; strengthen investigation, timely and strict handling of financial and administrative matters, create deterrence and recover opportunistic profits that businesses have unjustly gained from acts of deliberately delaying transport fare reduction, collusion, price fixing and market manipulation, protection or intentional harassment in business and management for group interests, violating the provisions of the Competition Law and the Law on Protection of Consumer Rights, etc.

It is known that next week some car companies will announce fare reductions, consumers are still following.

Dr. Nguyen Minh Phong