In his column “Last vestiges of monopoly,” (May 26) Abdel Aziz Aluwaisheg has very finely addressed the issues of monopolies and oligopolies.

Agency agreements are not considered monopolistic but often they turn out to be so. Even if the pricing of the goods is fixed in tandem with international prices, some agents extract profits from the sale of spare parts and compromise on after-sales service.

For instance, it is common knowledge that spare parts of vehicles for which there is an exclusive agent are sold at hefty prices and the customers have no option but to buy them or take the risk of getting duplicates or counterfeits.

I totally agree with the writer that for well-established brands there is little to gain from entering into exclusive agency deals with local merchants. On the contrary it will prove detrimental as the agent, benefiting from the popularity of the brand will fix as high a price as possible, and will also not feel obliged to provide the after-sales services as expeditiously knowing fully well that the customer has little choice.

In the long run, this practice will damage the image and reputation of the principals. At the same time, it will not be easy for them to terminate the agency arrangements in view of legal protection accorded to agents who would claim compensation and damages.

In contrast, if there are multiple agents, the principals will have the option to obtain services from different outlets thereby eliminating the dependency on one agent and ensuring continuity of the required services.

The US Federal Trade Commission and European Union Commission proactively champion the cause of consumers and provide continual guidance through different means. The Ministry of Commerce and Industry here too, through their web portal, should proactively provide similar guidance to consumers about their rights and propagate through different media the existence of such a channel of communication. It should facilitate the registering of consumer complaints against the businesses and issue notices to them seeking explanation and taking appropriate action. — Safi H. Jannaty, Dammam