CONCLUSION
We need to advocate best and responsible trade practices and fair competition in our marketplace. Consumers cherish fair prices while businesses need to make normal profits to be viable and sustainable and as rightful reward for their risk-undertakings and entrepreneurship but not too excessive.
Open competition, free pricing and profit incentives are the crucial elements of supporting the foundation of a free market. It is a fallacy that APM would lead to lower prices as the opposite price effect is likely occur as high direct and hidden costs associated with the compliance borne by the businesses would ultimately and eventually be pass onto consumers in the form of higher prices.
The imposition of APM on a well-functioning and free competitive market causes welfare losses to both consumers and producers. Consumers would have fewer choices of competitively priced and quality products and services. This is because of market and price distortions which not only waste resources and reduce economic efficiency but also discourage investors to invest and increase supply in the products market.
Excessive regulations stifle the growth of enterprises, reduce entry of new market players and dampen investment in the long-term as investors seek better returns elsewhere. The price controls and APM can cause hoarding, create black markets, incur costly enforcement for regulator and compliance for businesses.
The PCAPA 2011 is an adequate regulatory tool to protecting consumer interests and maintaining a competitive market. Our research show that Singapore does not have anti-profiteering law while Thailand’s anti-profiteering was superseded by Business Competition Act. Australia had disbanded the price exploitation regulation after 24 months of implementation when the GST was introduced. Canada only prohibits profiteering during emergencies while Philippines only targeted to selected goods, especially the basic necessity and primary commodity.
The gazetted price-controlled on essential consumer goods and services during festive celebrations, calamities or emergency situations should be maintained to ensure price stability and minimize the impact on the livelihood of households.
In a nutshell, a more practical and equitable approach of keeping a market economy in a globalized environment is to instill consumer activism and education that help consumers make right decisions. Businesses must be allowed to flourish in a freer open market, which reflects the dynamic interaction of supply and demand. The government must be an effective facilitator and not a deterrent to businesses. Most importantly, the PCAPA 2011 should not at all create a climate of fear and anxiety among the lawabiding businesses.
