[Consumer Affairs]

CAA Act to be amended

The Consumer Affairs Authority (CAA) has decided to solicit views and suggestions from concerned consumers to give more teeth to the existing legislation Consumer Affairs Act No. 9 of 2003 with due attention to Sections 28 and 29 with a view to provide relief to the consumer public by lessening the burden of rising cost of living.

Sarath Wijesinghe, Chairman, CAA told the "Daily News Consumer Page" that since the consumer is at the mercy of errant traders and manufacturers, the CAA is prepared to safeguard the consumer rights.

He further added that the consumer should be aware of their rights and lend their cooperation to the CAA.

At this juncture, Chairman Sarath Wijesinghe stressed that Consumer Associations should play a vital role. Especially the heads of the consumer societies, professionals and intellectuals are invited to participate in the forum to be open.

The proposed amendments are expected to help the country keep abreast with the trends in the modern world, emulating the enlightened legislation in other countries to create a conducive atmosphere for the consumers in Sri Lanka.

How the CAA Act protects consumers

Consumers, be careful when you purchase any goods during this festival season. When you purchase any items be more careful of the following -

Purchase only goods that are fresh and new.

Do not purchase anything that is not up to required standard.

Do not purchase any item that has exceeded the expiry date.

Always check the price marked.

Obtain a receipt for every item that you purchase or for any service rendered.

Make sure that the goods that you purchase are in conformity with the Sri Lanka Standards.

When you purchase an item always check the date of manufacture, date of expiry, batch No. and serial No.

Receipt must be issued on demand

Section 28: Every trader who sells any goods shall on demand, issue to the purchaser thereof setting out-

a. the date of the sale

b. the quantity of goods sold

c. the price paid for such quantity

d. nature of the transaction, that is to say, whether the sale was wholesale or retail: and

e. any other requirements that may be imposed under any law relating to the issue of receipts by a trader.

2. Notice Board, a must

Section 29: (1) Every trader shall keep in conspicuous place in his place of business, a notice board for the display of any notice, direction or warning issued by the Authority under this Act.

(2) Every trader shall affix or cause to be affixed on such notice board any notice, direction or warning issued to such trader by the Authority under this Act.

(3) Any person, who removes, alters, obliterates, erases or defaces such notice, direction or warning other than a person acting under the direction or authority of the Authority, shall be guilty of an offence under this Act.

3. False representation, an offence

Section 31: Any trader who, in the course of a trade or business, in connection with the supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services.

(a) Falsely represents that goods or services are of a particular standard, quality or grade, or that goods are of a particular style or model:

(b) Falsely represents that goods are new.

(c) Represents that goods or services have sponsorship approval, performance, characteristics accessories, uses or benefits they do not have

(d) Represents that such trader has a sponsorship approval or affiliation he does not have:

(e) Makes false or misleading statements concerning the existence or amounts of price reduction or price increase:

(f) Makes false or misleading statements concerning the need for any goods, services, replacements or repairs: or

(g) Makes false or misleading statements concerning the existence or effect of any warranty or guarantee.

Consumer Education

Consumer Education Course 1

Looking back

Every country in the world has become a part of a global village, as a result of the globalization process. The countries the world over have removed trade barriers and begun to share the technologies and have strengthened mutual relations.

Consumers in our country are also influenced by the latest trends in the international trade and have begun to consume imported goods, without considering their quality. To protect the consumer from this risk, the Consumer Affairs Authority has launched an awareness program.

The Consumer Page in Daily News will serialize articles on consumer education for the benefit of teachers, students and the general public.

Price Control Act

The Second World War (1939-1945) caused many serious problems, mainly an acute food shortage, threatening the health of the common man. During this period, people of Sri Lanka had to undergo hardships due to the collapse of the self sufficient economy caused by the foreign invasions, making the people dependent on imported food for their sustenance. The war had restricted naval transport and ravaged the food growing land.

As a result, the Colonial Secretary in Ceylon launched an emergency food distribution program under which a food rationing system and a price control policy were introduced. Accordingly the Price Control Ordinance, No. 29, 1939 was enacted. In spite of the price control, unscrupulous traders resorted to selling short weight and measures. To combat this menace, Weights and Measures Ordinance No. 27, 1944 was enacted.

Consumer protests in USA

Although Sri Lankan consumers are unaware of their rights and hesitant to complain or loath to organize protest in the streets, urging their governments to enact laws to protect them.

Former US President John F. Kennedy guaranteed four rights of the Consumers in a White Paper heeding the mass protects in the early sixties. The rights mentioned in the White paper were:

I. The right to safety and protection

II. The right to be informed

III. The right to choose

IV. The right to be listened to

Later, former US President Richard Nixon enacted laws to realize another important consumer right that is,

V. The right to receive redress subsequently, George Ford, US President, added the sixth right.

VI. The right to be educated with consumer knowledge. These rights were recognised worldwide, and the International Consumer Organisation was formed and the rights, 7 and 8 were added.

VII. The right to fulfill basic needs

VIII. The right to live in a healthy environment

Further school children will be educated on the rights of consumers and the broadening of the scope of activities of the Consumer Affairs Authority to be taken for the protection of consumers. The Authority has planned to conduct seminars, workshops and exhibitions to promote education on consumer rights. Stalls in exhibition premises will be opened. The awareness program mainly will stress on the implementation of the Consumer Act.

The Authority will not only educate the consumers but also will raise awareness of the business community on the proper implementation of the Consumer Act.

It is expected that through the awareness programs, the number of offences by the traders and the manufacturers will be minimised. Also, seminars for traders and manufacturers will be conducted to ensure the safety of the consumer.

Field investigations too will be continued to bring the errant traders to book and initially they will be instructed to amend their ways.

The organisation of consumers is of paramount importance. Consumers have a right to organise themselves. It is their responsibility, too. An organised approach, will definitely strengthen their clout.

In this context, the consumer organisations are the most effective means of combating unfair trade practices. Already, nearly 100 Consumer Organisations have been formed by the Authority. The President, the Secretary, and the Treasurer of a Consumer Organisation have been issued with identity cards to facilitate their service.

The Authority has organised Inter school contests. Painting, Essay, Drama and this year, a Quiz competition will be held, beginning in the Sabaragamuwa Province.

Quiz contests

A Series of Inter-School Quiz Contests was held in Ratnapura and Kegalle Districts in the Sabaragamuwa province, organised by the Consumer Affairs Authority. The first round was held on 06 November 2005 and the Finals will be held in January, 2006.

The prize-giving was held on 15 March, 2006 to mark the International Consumer Day. The Consumer Affairs Authority is engaged in broad-based islandwide awareness program.

[Comment]

Let us promote fair trade

The islandwide program of organizing Consumer Associations is in full swing, with active participation of social workers and in collaboration with community-based organizations, functioning at grassroots level.

In the modern world in which trade and commerce are liberalized, the consumer is at the mercy of the traders and manufacturers.

In this backdrop, consumers in many countries have organized themselves and act as pressure groups and urge the government to enact legislation to protect them. So it is high time that Sri Lankan consumers organized themselves to form a powerful social movement.

Unless the consumer protection lobby becomes a broad social movement, embracing all strata of society, from the urban poor living in slums, middle classes in the city, the rural folk, the unscrupulous traders and manufacturers fleece the people.

Consumer protection involves not only providing them the opportunity to save their hard earned money but also ensuring them a healthy and conducing environment to lead a happy and contented life.

Meanwhile, arrangements are being made to establish the Federation of Consumer Associations (FCA) and community-based organizations on 27 May 2006 at the CWE Auditorium at the CWE Secretariat Building, Vauxhall Street, Colombo 02.

Consumers are welcome to participate as delegates or observers and may contact the organizer FCA for reservations before 15th May 2006.

The Organizer FCA, Consumer Association Division, Consumer Affairs Authority Sri Lanka, Level 02, CWE Secretariat Building, Vauxhall Street, Colombo 02, Telephone 2393577, 2445897, 2399148.

Fair trading

It is heartening to note that on the whole fair trade practices prevailed throughout the island mainly due to precautionary measures adopted by the CAA, in warning the traders through the media before the advent of the Sinhala and Hindu New Year.

The CAA conveys its highest appreciation to the traders and manufacturers who engaged in fair trade practices and the investigation officers of the CAA who were on alert to nab errant traders.

After successful raids errant traders have already been prosecuted.

During the forthcoming Vesak season too CAA will be on alert to prevent unfair trade practices. (HK)

Frequently asked questions

Q1. How can the CAA assist in the event a trader refuses to accept an article that the consumer returns?

A. The consumer can complain to the CAA. Under Section 13 of the Act, the CAA is empowered to conduct an investigation. After the inquiry the CAA will take one of the following steps:

(i) Order the trader to refund.

(ii) Order to replace the product.

(iii) Or Order the trader to pay compensation.

Q2. Is the CAA empowered to prevent fraudulent acts by the trader?

A. Under Section 30 of the Consumer Affairs Authority Act, No 09, 2003 it is an offence to mislead or cheat the consumer.

The relevant section reads as follows:

A: "No trader shall, in the course of a trade or business, engage in any type of conduct that is misleading or deceptive or is likely to mislead or deceive the consumer or any other trader".

Q3. Can the CAA intervene in the pricing and packing of goods sold in the markets?

A: Gazette notifications dated 25 August 2003 and January 21, 2004 under Section 10 (1) of the CAA Act, No. 9, 2003.

i) The maximum retail price

ii) Expiry date

iii) Batch No. shall be indicated.

The traders who violate these orders shall be prosecuted.

Q4. Can a trader refuse to sell an article when he speculates a rise in the price?

A: Let me quote Section 16, which is relevant "No trader who has in his possession or custody or under his control any goods for purpose of trade within Sri Lanka, shall-

a) deny the possession if such goods; or

b) offer such goods for sale subject to a condition requiring the purchase of any other goods or the making of any payment in respect of any other condition, other than the condition that the buyer shall pay the price of such goods forthwith"

Q5. Can the trader indicate a new change of expiry date?

A: Under the Section 10(4)(1) of the Consumer Affairs Authority Act, No. 9, 2003, It is an offence. Let me quote the relevant section, "any person who removes, alters, obliterates, erases on defaces any label, description or price mark on any goods in respect of which a direction under subsection 910 has been issued, or sells or offers for sale any such goods from or on which the label, description or price mark has been removed, altered, obliterated, erased or defaced, shall be guilty of an offence under this Act.

If the relevant manufacturer has changed the price, such change should be clearly indicated with the name of the manufacturer.

Q6. Can the CAA intervene in the sale of illicit liquor?

A. This is a matter for the police to probe into. The CAA has power under Section 7A to protect consumer against market of goods as a provision of services which are hazardous to life and property and consumers. But this is a controversial area as products sold are illicit and the traders act illegally we look into this case by case. The best is to lodge a complaint with the CAA together with the police.

Q7. What redress can the retailer obtain if the manufacturer does not produce the article ordered is not within the specification agreed?

A. The CAA will order a replacement or a refund to the value of the consignment if a complaint is lodged with it.

Consumer Affairs Authority Act, No. 9 of 2003

Part II

Regulation of Trade

9. The Authority may -

(a) undertake such studies in respect of the sale or supply of any class of goods and services as would ensure the availability to the consumer of such goods and services of satisfactory quality at reasonable prices and in adequate quantities;

(b) promote, assist and encourage the State or other organisations including organisations of consumers, for the purposes described in paragraph (a); and

(c) assist and encourage associations of traders to enter into agreements with the Authority for the purposes described in section 14.

10. (1) The Authority may, for the protection of the consumer -

(a) issue general directions to manufacturers or traders in respect of labelling, price marking, packeting, sale or manufacture of any goods; and

(b) issue special directions to any class of manufacturers or traders, specifying-

(i) the times during which and the places at which, such goods may be sold; and

(ii) any other conditions as to the manufacturing, importing, marketing, storing, selling and stocking, of any goods.

(2) Every direction issued by the Authority under subsection (1) shall be published in the Gazette and in at least one Sinhala, one Tamil and one English newspaper.

(3) Any manufacturer or trader who fails to comply with any direction issued under subsection (1) shall be guilty of an offence under this Act.

(4) Any person who removes, alters, obliterates, erases or defaces any label, description or price mark on any goods in respect of which a direction under subsection (1) has been issued, or sells or offers for sale any such goods from or on which the label, description or price mark has been removed, altered, obliterated, erased or defaced, shall be guilty of an offence under this Act.

11. Any person who sells or offers to sell any goods above the price marked on the goods in accordance with a direction issued under section 10 shall be guilty of an offence under this Act.

12. (1) The Authority may for the purpose of protecting the consumer and ensuring the quality of goods sold or services provided, by Notification published in the Gazette, from time to time, determine such standards and specifications relating to the production, manufacture, supply, storage, transportation and sale of any goods, and to the supply of any services.

(2) The Authority may be Notification published in the Gazette adopt such standards and specifications prescribed by the Sri Lanka Standards Institution established by the Sri Lanka Standards Institution Act. No. 6 of 1984, relating to the production, manufacture, supply, storage, transportation and sale of any goods, and to the supply of any services, as standards and specifications, to be determined under subsection (1).

13 (1) The Authority may inquire into complaints regarding -

(a) the production, manufacture, supply, storage, transportation or sale of any goods and to the supply of any services which does not conform to the standards and specifications determined under section 12; and

(b)the manufacture or sale of any goods which does not conform to the warranty or guarantee given by implication or otherwise, by the manufacturer or trader.

(2) A complaint under subsection (1) which relates to the sale of any goods or to the provision of any service shall be made to the Authority in writing within three months of the sale of such goods or the provisions of such service, as the case may be.

(3) At any inquiry held into a complaint under subsection (1), the Authority shall give the manufacturer or trader against whom such complaint is made an opportunity of being heard either in person or by an agent nominated in that behalf.

(4) Where after an inquiry into a complaint, the Authority is of opinion that a manufacture or sale of any goods or the provision of any services has been made which does not conform to the standards or specifications determined or deemed to be determined by the Authority, or that a manufacturer or sale has been made of any goods not conforming to any warranty or guarantee given by implication or otherwise by the manufacturer or trader, it shall order the manufacturer or trader to pay compensation to the aggrieved party or to replace such goods or to refund the amount paid for such goods or the provision of such service, as the case may be.

(5) An order under subsection (4) shall be made in writing and be communicated to such manufacturer or trader by registered post.

(6) Where any manufacturer or trader fails or refuses to comply with an order made under subsection (4) of this section, such manufacturer or trader shall be guilty of an offence under this Act, and the sum of money due on the order as compensation or refund may, on application being made in that behalf by the Authority to the Magistrate's Court having jurisdiction over the place of business or residence of such manufacturer or trader as the case may be, be recovered in like manner as a fine imposed by such court, notwithstanding that such sum may exceed the amount of a fine which that court may, in the exercise of its ordinary jurisdiction, impose.

14. (1) The Authority may enter into such written agreements as it may deem necessary, with any manufacturer or trader or with any association of manufacturers or traders or with any association of manufacturers or traders to provide for -

(a) the maximum price above which any goods shall not be sold;

(b) the standards and specifications of any goods manufactured, sold or offered for sale:

(c) any other conditions as to the manufacturer, import, supply, storage, distribution, transportation, marketing, labelling or sale of any goods.

(2) Every written agreement entered into under subsection (1) between the Authority and any manufacturer or trader or with any association of manufacturers or traders, shall be binding on every authorised distributor of such manufacturer or trader and every member of such association, as though he was a party to such agreement and whether or not he was a member at the time of entering into the agreement.

(3) Every manufacturer or trader or any authorised distributor of such manufacturer or trader or any association of manufacturers or traders or any member thereof, who contravenes any provision of any agreement entered into with the Authority under subsection (1), shall be guilty of an offence under this Act.

(4). Every agreement entered into with the Authority under subsection (1), shall be registered with the Authority and shall contain a schedule giving the name and description of each authorised distributor of such manufacturer or trader or members of such association, as the case may be.

(5) Every agreement entered into with the Authority under subsection (1), shall come into force from the date of such agreement, unless such agreement provides that the agreement shall come into force on any subsequent date.

(6) Where the Authority thinks fit, it may cause any agreement made under this section to be published in the Gazette. Where an agreements is published in the Gazette, the production of a copy of the Gazette in which such agreement is published shall, until the contrary is proved be proof of the contents of such agreement.

(7) For the purpose of any prosecution under this section, a certificate given by the Authority that any person is an authorised distributor of any manufacturer or trader or is a member of any association of traders or manufacturers shall be admissible and be prima facie proof in a court of law that such person is an authorised distributor of such manufacturer or trader or a member of such association.

15. (1) No trader who has in his possession or custody or under his control any goods for purpose of trade within Sri Lanka, shall refuse to sell such goods.

(2) In any prosecution of any trader for the contravention of the provisions of subsection (1) it shall be a sufficient defence for the accused to prove that -

(a) on the occasion in question, he supplied a reasonable quantity of the goods, or had not a sufficient quantity in his possession to supply the quantity;

(b) he carried on business in the goods as a wholesale trader only, and that the sale of the quantity demanded by the buyer would have been contrary to the normal practice of a wholesale business; or

(c) the sale of the goods on that occasion in question would have been contrary to any provisions of any written law or any general or special direction issued to him by the Authority under section 10.

16. No trader who has in his possession or custody or under his control any goods for purpose of trade within Sri Lanka, shall -

(a) deny the possession of such goods; or

(b) offer such goods for sale subject to a condition requiring the purchase of any other goods or the making of any payment in respect of any service or to any other condition other than the condition that the buyer shall pay the price of such goods forthwith.

17. (1) No trader shall conceal in his place of business or in any other place, any goods in such quantity as is in excess of the normal trading requirements of such trader.

(2) No trader shall have in his possession or custody or under his control in his place of business or in any other place, any goods in such quantity in excess of -

(a) the quantity required for his personal consumption and of the members of his household; or

(b) the requirements of the normal trading activities of such trader.

(3) No person other than a trader shall have in his possession or custody or under his control any goods in such quantity in excess of the normal personal requirements of such person.

18. (1) Where the Minister is of opinion that any goods or any service is essential to the life of the community or part thereof, the Minister in consultation with the Authority may by Order published in the Gazette prescribe such goods or such service as specified goods or specified service as the case may be.

(2) No manufacturer or trader shall increase the retail or wholesale price of any goods or any service specified under subsection (1), except with the prior written approval of the Authority.

(3) A manufacturer or trader who seeks to obtain the approval of the Authority under subsection (2), shall make an application in that behalf to the Authority, and the Authority shall, after holding such inquiry as it may consider appropriate -

(a) approve such increase where it is satisfied that the increase is reasonable; or

(b) approve any other increase as the Authority may consider reasonable, and inform the manufacturer or trader of its decision within thirty days of the receipt of such application.

To be continued