The Barbados Consumer Empowerment Network (BCEN) wants a regulatory and legislative review of the Fair Trading Commission’s (FTC) mandate following the latter’s published stance on the introduction of a 30-cent end-user convenience fee by SurePay (Barbados).
In a statement issued on Wednesday, the FTC said it had completed its review of the fee and determined it related to the pricing of a payment service and therefore did not fall within the commission’s authority to regulate under the Consumer Protection Act (CPA). The FTC also stated that alternative payment channels remained available to consumers without the imposition of a service charge, and that there has been no breach of the requirements administered by the Utilities Regulation Act.
“In reaching its conclusion, the Commission also engaged with relevant stakeholders, including senior representatives of SurePay and the Barbados Postal Service (BPS). The Commission examined the availability of alternative payment options for consumers and confirmed that bill payments may be made without incurring the convenience fee through the following channels: The SurePay online platform and mobile application; Online banking platforms offered by financial institutions; and BPS locations across the island,” the statement read.
Precedent
In response, BCEN issued its own statement, warning the FTC’s position could set a concerning precedent, “opening the door for similar fees across other payment services” and “increasing the cost of everyday transactions”.
As such, the body is calling for a review of the FTC itself.
“The organisation is now calling for urgent regulatory and legislative action, including a review of the FTC’s mandate and amendments to the CPA to ensure that payment intermediaries are subject to appropriate oversight. BCEN insists that consumers should not be penalised for using the most accessible means for them to pay their bills. Fairness and access must remain at the centre of Barbados’ consumer protection framework,” it stated.
Significant gap
BCEN is accusing the FTC of a narrow interpretation of the CPA, which it said exposed consumers to “unfair costs”.
“While acknowledging the commission’s engagement, BCEN argues that the FTC’s narrow interpretation of the CPA leaves a significant gap in consumer protection, particularly in relation to modern payment services.
“Payment platforms like SurePay now function as essential service providers, facilitating bill payments for utilities and other critical services. So when consumers must use these platforms to access basic services, they should not be subjected to fees that are neither reviewed nor regulated,” it stated.
The consumer body also challenged the FTC’s reliance on alternative digital payment options, pointing out that many Barbadians, especially the elderly, low-income, and those without reliable internet access, remained dependent on over-the-counter transactions.
“As a result, the convenience fee places a disproportionate burden on the most vulnerable.
BCEN believes that transparency alone is not enough, and that a fee can be clearly disclosed and still be unfair. Consumer protection must address not just awareness, but equity,” it stated.
Beginning this month, SurePay has introduced a 30-cent VAT inclusive convenience fee on all cash and cheque payments made over the counter at their physical locations.
(CA)
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