SENATE President Edith Deleon Guerrero on Tuesday introduced Senate Bill 23-38 which proposes to establish a Better Business Bureau within the Department of Commerce.
The new bureau will “protect consumers from unfair, misleading or fraudulent advertisement and selling practices.”
The CNMI Consumer Protection Act of 1989 established consumer protection standards for the Commonwealth to prohibit unfair business practices, including those that “deceive, mislead, or confuse the consumer.”
The Office of the Consumer Counsel of the CNMI Office of the Attorney General enforces the Consumer Protection Act and investigates violations.
According to Senate Bill 23-38, the proposed new bureau will investigate and set standards for business practices, receive complaints of improper practices, conduct educational campaigns, and alert the public to methods of deceit and fraud in advertising and selling.
Further, the new bureau will offer consumers a way to communicate with a business entity their concerns, and can issue business reliability reports, strengthen fraud prevention, deal with complaints and dispute, allow for truth-in-advertising and carry out consumer and business education.
S.B. 23-38 would give the bureau the following duties and responsibilities:
1) Scrutinize the language of advertisements, write-ups and documentation illustrating the description of products or services offered by businesses, companies and corporations.
2) Keep a record of all consumer complaints with regard to a specific business, and as result, greater focus and investigative measures are put forth toward businesses receiving a large volume of complaints.
3) Investigate the integrity, construction, and manufacturing of any and all products that have been reported as causing injury and damage.
4) Meticulously review the wording in associated documentation and manuals, such as expressed warnings and statements of liability.
5) Implement a rating system using A + through F letter-grade scale. The grades represent the degree of confidence that the business is operating in good faith and will resolve customer concerns filed with the bureau.
According to the bill, the Better Business Bureau “shall be headed by a director appointed by the Secretary of the Department of Commerce. The director shall hire staff and personnel as reasonably necessary to carry out the functions of the office.”
The bill did not mention an amount of funding or a funding source for the proposed new bureau.
Senate President Edith Deleon Guerrero speaks during a Senate session on Tuesday. Also in photo are Senate legal counsel Jose Bermudes, Senate Vice President Donald Manglona, Sens. Frank Q. Cruz, Paul A. Manglona and Dennis Mendiola.
