Consumer protection groups divided on Government response to rising prices

Moroccan consumer protection groups are split over whether government intervention is needed to address the recent surge in prices, as outlined in Law 104.12 on price freedom and competition.

The law grants the government authority to regulate prices in sectors or regions where competition is limited due to factors like monopolies, subsidies, or supply shortages. Specifically, Article 4 allows for temporary measures against excessive price fluctuations caused by extraordinary circumstances, disasters, or abnormal market conditions.

Some consumer protection NGOs argue that the recent price hikes, particularly noticeable over the summer, necessitate government action. Ahmed Biyoud, founding president of the “With Consumers” association, expressed doubts about the effectiveness of Article 4.

He told Hespress Ar that the article is too vague and lacks clear guidelines for implementing government interventions. Biyoud questioned which government body would enforce such measures and whether they would operate on a regional or national level. He stressed that proper market regulation could negate the need for intervention.

In contrast, Abdelkrim Chafaï, vice president of the Moroccan Consumer Protection University, supports government action, pointing to unsustainable price increases for essential items such as meat and fish. Chafaï told Hespress Ar that many Moroccan households are struggling with the current prices. He criticized intermediaries in the supply chain, who he believes contribute to inflated costs.

“Given the growing prevalence of monopolies, it is imperative to find effective solutions to prevent these practices from exploiting consumers,” Chafaï said. “Eliminating intermediaries, who often inflate prices under the pretense of rising input costs, could help address this issue.”

The debate highlights the ongoing tension between maintaining market freedoms and ensuring consumer protection amid rising costs.