Consumer Affairs

Do not fish in troubled waters

The Consumer is experiencing difficult times due to the price hike in petroleum products. The Government was compelled to raise the prices of petroleum products due to the conditions beyond its control. The rise in prices in the world market is mainly caused by the threats of imminent invasion by big Powers of certain oil-producing countries.

Unfortunately, certain opportunistic traders are keen on earning a fast buck by raising the prices of essential goods disproportionately to the fuel price increases.

In fairness, to trishaw drivers it must be said that they have not decided on a fare increase admitting that the new increase in fuel price cost them only 10 cents per k.m.

In addition a good example is the role of A.H.M. Fowzie, Minister of Transport and Petroleum who arrived at a negotiated settlement with the Bus operators to cushion the burden on the commuters and also to off set the losses to the bus owners, ensuring an efficiency bus service.

We hope the railway authorities will solve the problem fair by the commuter.

We appeal to traders to match the proportion in price increase and the price of each product before fixing the new price, by emulating the example set by trishaw drivers and bus operators.

It is sad that the anti social elements in the business community have resorted to "fish in the troubled waters" by raising the prices of essential items without any justifiable reason.

For example some unscrupulous bakers and traders have raised the price of bread by fifty percent and the poor man's cup of tea by 25%.

The Consumer Affairs Authority has instructed the investigation officers of the CAA at district level to be alert on the antisocial acts of the traders and to bring them to book.

At this juncture, the government is facing crucial crises on two fronts: against terrorism and the rising world prices of fuel.

So, it is the prime duty of the civic conscious trader, manufacturer and importer not to depart from fair trade practices for the benefit of the man-in-the-street.

Last but not least we are unable to assist you without your co-operation, assistance and suggestions. We urge the public to bring to the notice of the CAA and the Government Agents (District Secretaries) of any unfair price increase of essential food items, other goods and articles.

H.K.

Be Eco - Friendly

As consumers of the environment, we all need to be reminded that ownership of the environment is a shared one, and it could do with a little appreciation and care from all of us, everyday.

It only takes seconds - everyday

You can be a reasonable, gracious citizen without having to plant trees or pick up litter on beaches. Tips to share with our reader, but it only takes seconds to do each of the following environment-friendly acts done often enough, it will become second nature to you, but will do a world of wonder in contributing towards the care and conservation of our environment.

* Collect the water from the washing machine to be reused for washing the porch/backyard or flushing the toilet

* Instant water heaters generally use less electricity than storage water heaters. If you are using storage heaters, switch the heater on for a few minutes and switch it off before your shower, instead of leaving it on the whole time while showering

* Use refillable stationery-those that come with refillable cartridges such as pens and highlighters

* Lights and the air-con can be switched off during lunch time. If you use an air-con during the night, use a timer to switch if off about two hours before you wake up

* Useless plastic bags-slip purchases into your own bags if possible to minutes waste

* Use both sides of the paper for printing to re-use waste paper

* Empty out bottles, mugs and containers filled with liquid before leaving the office for the weekend

* Toilet hygiene the three easy steps- Use, flush, and wash (your hands)

* Have separate boxes in your home or company for depositing waste paper and cardboard, cans and glass bottles respectively. Look up the NEA website www.neA.gov.sg, for locations of public recycling bins and collection centres to deposit them.

Getting the Most Out of your Petrol

Rising oil prices are a burden for motorists as these costs will have to be passed on to motorists eventually. To help cushion the impact of high oil prices, motorists can save on their fuel bills by practising driving tips which can help them stretch their rupee.

How else can a motorist save with the ever increasing fuel prices? Here are 10 simple tips to get the most out your petrol

1. Avoid high speeds, accelerating and braking too hard.

2. Use higher gears - change up gears as the higher the gear, the better your fuel efficiency.

3. Tune and service your engines - a clean, serviced engine means better fuel efficiency.

4. Keep your tyres at the right pressure - as recommended in your hand book.

5. Avoid carrying excess weight - keep your boot or back seat clear of unnecessary items that add weight to your vehicle.

6. Keep the windows closed - wind blowing through an open window will slow you down.

7. Plan your route in advance to avoid unnecessary detours.

8. Use the correct oil - always use the recommended grade of motor oil. Higher quality motor oils provide better engine protection and a well-maintained engine helps optimise vehicle fuel efficiency.

9. Use air conditioning sparingly - limit use to particularly hot days. On temperate days use the fan instead.

10. Avoid excess idling - turn the engine off when you're in a queue, or waiting for someone.

Questions and Answers

Q. 01. If a trader does not display a price list, what action would the CAA take?

A. If the price is not indicated on the label, on the container or on the packet, then the trader is bound by law to exhibit the list of prices of all commodities conspicuously.

Q. 02. Do all articles advertised in the media have to be price marked?

A. The Act provides that all articles sold should be price marked. If not it is a violation of the CAA Act. Consumers are advised to bring such instances to the notice of the CAA for appropriate steps.

Q. 03. Many fruit vendors are in the practice of using harmful chemicals for premature ripening of fruits. What are the steps taken by the CAA to prevent this practice?

A. This is an offence a consumer who is aggrieved may complain to the CAA who will take Legal action against the errant vendor who has used unhygienic and toxic material for premature reserving or for preservation.

Q. 04. Sometimes, traders refuse to sell certain articles, saying they are reserved. What would the CAA do?

A. No. A trader cannot refuse to sell goods in the shop or reserve it. Section 15.1 is clear which states that no trader who has in his possession, custody or under his control; any goods for the purpose of trader in Sri Lanka shall refuse to sell such goods. But, if the customer has paid an advance and reserved it that should be stated on the product exhibited or the product removed from the counter.

Q. 05. In some cases, the trader refuses to issue a warranty for certain products? What steps can the consumer take?

A. A trader has to offer a warranty for all electronic and electronic items he sells. The consumer can complain to the CAA to obtain relief if the trader refuses and the CAA will request the trader to offer a warranty.

Q. 06. Some traders sell products different from what is advertised. What steps can the consumer take?

A. It is a bad practice if the trader does not sell the item that is advertised. The CAA will at the outset suggest to you to negotiate with the customer and settle the matter amicably, failing which please communicate with us immediately as the CAA has the power to investigate it and assist the consumer to obtain redress.

Consumer protection and Constitution of the Democratic Socialist Republic of Sri Lanka

In the chapter entitled 'Directive principles of state policy and Fundamental Duties' in the Constitution of 1977, there are several references to matters that affect consumers.

The Directive Principles are a guide to lawmakers and do not confer legal rights or obligations that are enforceable.

However, in the chapter on 'Fundamental Rights' the right to equality prohibits any restriction regarding access to shops and restaurants.

Article 14 guarantees to every citizen the freedom to engage by himself or in association with others in any lawful occupation, profession, trade, business or enterprise; it should be noted that the operation and exercise of this right is subject to such restrictions as may be prescribed by law in the interests of national economy or in relation to (a) the professional, technical, academic, financial and other qualifications necessary for practising and profession or carrying on any occupation, trade business, or enterprise, whether to the exclusion, complete or partial, of citizens or otherwise.

Apart from these specific grounds, the right may also be restricted in the interests of national security, public order and the protection of public health or morality or for the purpose of securing due recognition and respect for the rights and freedoms of others, or of meeting the just requirements of the general welfare of a democratic society.

Unlike noncompliance with the Directive Principles of state policy, the infringement or imminent infringement of a fundamental right guaranteed by the Constitution can be challenged before the Supreme Court.

Fair Trading and You

a) Protecting Consumers

b) Improving business practices

Fair-trading means refraining from

1) Making false claims about a product

2) Claiming that goods are from a certain country when they are not

3) Claiming that used goods are new

4) Lying about the history or extent to which second-hand goods have been used

5) Falsely claiming that goods are available in large quantities to attract buyers when there is actually only a limited number

6) Telling the customer that the product he bought needs repairing when there is no such need

7) Claiming that the product prices have been discounted when they have not

8) Charging a price higher than what was estimated by the seller, unless both parties had agreed upon the final price earlier

9) Claiming that a product comes with a warranty when it does not

10) Representing that the seller has the authority to close a deal when he does not

11) Bullying a consumer by using oppressive terms in the sale contract

12) Using undue pressure to get the person to buy items

13) Giving out false vouchers

14) Using a scientific report to sell goods without stating that it is an advertisement

15) Falsely claiming that someone else is about to buy the goods, to pressure on the consumer

16) Saying that there are facilities where a consumer can go to get his terms repaired, when that are none

17) Falsely claiming that gifts will be given out with the sale of a product

18) Stating that a sale is for a fixed period, when it goes on for much longer

19) Giving false reasons for selling goods cheaply

20) Using small print to hide fact from consumers.

C.A.L.

Buyer Beware

A weekly look at what to watch out for in the world of retail.

Figures, case studies and tips come from the Consumers

Association of Singapore.

The world of hotel banquets

6 No. of cases filed 2005

Top complaints

1. Unsatisfactory services

2. Misrepresentation

3. Failure to honour contract

Case study

After meeting a banquet sales person, a couple proceeded to make a reservation in a hotel's ballroom to solemnise their marriage. The contract sum in the agreement was $ 15,950.

On their big day, they were shocked to discover that the ballroom decorations were half done, and their names and the date of the event were printed wrongly in the menu cards. Food was also served cold.

To make matters worse, the portable dance floor gave way suddenly, causing several guests to trip and fall. The traumatised couple wrote in to the hotel but did not receive a satisfactory explanation.

Outcome of case

The couple sought Case's advice. After Case wrote to the hotel, it offered to reduce the contract sum which the couple accepted.

Consumer Tips

1. Compare prices of different banquet packages.

2. Take note of all terms and conditions. Do not sign any agreement on the spot without taking time to consider it.

3. Discuss and follow up with the banquet organiser to minimise disputes arising from miscommunication.

4. Case and the Singapore Hotel Association (SHA) have signed a memorandum of understanding to help resolve disputes between consumers and SHA members. Consumers may approach Case to help mediate such disputes.

Courtesy Straight Times

Consumer Affairs Authority Act, No. 9 of 2003

Continued from April 20

18. (4) Where the Authority fails to give a decision within thirty days of the receipt of an application as required under subsection (3), the manufacturer or trader who made the application shall be entitled to, notwithstanding the provisions of subsection (1), increase the price;

Provided however, where the delay in giving its decision within the stipulated period was due to the failure of the manufacturer or trader to give any assistance required by the Authority in carrying out its inquiry into the application, the Authority shall have the power to make an interim order preventing the said manufacturer or trader from increasing the price, until the Authority makes its decision on the application.

19. (1) Where it appears to the Director-General that any goods are being sold or any services are being provided by a manufacturer or trader at an excessive price or any market manipulation or other market imperfection exists in respect of such goods or services provided by such manufacturer or trader, the Director-General may, in consultation with the Authority as he may deem necessary and having regard to whether -

(a) the sale of such goods or the provision of such services is of general economic importance; or

(b) any category of consumers are significantly affected by such excessive price. refer such matter to the Council for investigation and report.

(2) The Council shall conclude it investigation and submit its report to the Director-General within two months of such reference being made to it by the Director-General.

20. (1) Where an reference is made to the Council by the Director-General under section 19, the Council shall cause such reference to be brought to the notice of such persons, who in the opinion of the Council would have an interest in the proposed investigation to be carried out by it on such reference, and shall further give such persons adequate notice of the date on which the investigation is scheduled to commence.

(2) For the purpose of carrying out an investigation, the Council may by notice in writing require any person or any one authorised by such person, to produce such documents as may be specified in the notice, and at such time and place as mentioned therein, which are under the custody or control of such person and which relates to the matter under investigation.

(3) At the conclusion of an investigation, the Council shall, subject to the provision of section 21, cause its decision with its reasons to be published in such manner as it shall consider appropriate, and submit a report on such investigation to he Director-General as required under subsection (2) of section 19.

(4) Where the Council concludes that the goods are being sold or the services are being provided at an excessive price, it shall recommend to the authority in writing the maximum price above which such goods should not be sold or such services should not be provided or the price structure in accordance with which such maximum price shall be fixed.

(5) On receipt of the recommendations of the Council under subsection (4), the Authority shall, by order published in the Gazette, fix the maximum price above which the goods shall not be sold or the services shall not be provided. Every order made under this subsection shall come into operation on the date of publication of such order in the Gazette. (6) Nothing in this section shall be construed as precluding the Council from proceeding with a subsequent investigation which relates wholly or partly to the same matter which was the subject matter of a previous investigation carried out under this section.

(7) Any person aggrieved by an order made by the Authority under subsection (5) may appeal against such decision to the Court of Appeal.

(8) Any document produced in compliance with a notice issued under subsection (2) shall be considered confidential, and nothing contained in such document shall be disclosed to any person by the Council. except where it is required to do so under any law.

21. (1) At anytime before making a recommendation under subsection (4) of section 20, the Council may accept any undertaking offered by a manufacturer or trader in respect of whom the investigation is being carried out, regarding the price at which the goods shall be sold or services shall be provided as the case may be, by such manufacturer or trader.

(2) Where an undertaking given under subsection (1) is accepted, it shall be the duty of the Council to-

(a) give adequate publicity to such undertaking in a man near it consider appropriate:

(b) periodically review the implementation of such undertaking:

(i) the undertaking has become no longer appropriate and as such the person should be released from his duty to implement the undertaking:

(ii) whether any changes should be made to the undertaking: or

(iii) whether the existing undertaking should be replaced by a fresh undertaking; and

(d) give notice to the person giving such undertaking, of any failure or shortcoming of such person in implementing the undertaking.

(3) Where the Council is of the view that action should be taken under paragraph (c) of subsection (2), the Council shall issue a notice to the person who entered into the undertaking, informing such person.

(a) of the changes required to be made to the undertaking;

(b) of the requirements of the fresh undertaking which should replace the existing undertaking:or

(c) of his release from the duty of implementing the undertaking.

(4) The Council shall, after issue of a notice under subsection (3), make a fresh decision.

(a) agreeing to a fresh undertaking, or to the undertaking being changed, in accordance with the recommendations made by the Council; or

(b) agreeing to a fresh undertaking or to the undertaking being changed as offered by the trader or manufacturer on his own initiative.

(5) Where an undertaking given by a manufacturer or trader is accepted by the Council under this section, any violation of such undertaking by that manufacturer or trader, shall be an offence under this Act.

22. (1) Where goods are being sold or services are being provided at an excessive price and any member of the public or any association of persons or any organisation wish the Council to investigate into the matter, such member of the public, association or organization, as the case may be, may request the Director-General to refer the matter to the Council for investigation.

(2) On receipt of a request under subsection (1) the Director-General may, where he is of the opinion that it is a matter which, having regard to the provisions of section 19 should be investigated into by the Council, refer the matter to the Council for investigation and the provisions of sections 20 and 21 shall, mutatis mutandis, apply to and in relation to, such investigation.

23. The Minister may, either of his own motion or on representations made to him by a person or body of persons, refer any question relating to the price of any goods or the charge for any service, to the Authority for examination and report, and accordingly, the Authority shall examine such question and send its report to the Minister within one month from the date of receipt of such reference.

24. The Authority may, either of its own motion or on representations made to it by any person or body of persons, review any question relating to the price of any goods or the charge for any service and report thereon to the Minister.

25. The Minister may cause to be published any report made to him under the provisions of this Act, or any recommendation made in such report, in such manner as he thinks fit.

26. (1) Every trader shall exhibit conspicuously in his place of business, a notice specifying the maximum retail or wholesale price, as the case may be, of goods available for sale in his place of business other than the price of any goods, the price of which is marked on the goods itself or on the wrapper or pack containing it or marked in any other manner as may required by any law.

(2) A complete list of the price of goods available for sale shall be kept within the place of business at all times for inspection whenever required.

27. Every trader shall, register with the Authority on payment of an annual fee of a sum not exceeding rupees one hundred thousand as may be determined by the Minister, in consultation with the Minister in charge of the subject of Finance.

28. Every trader who sells any goods shall on demand, issue to the purchaser thereof, a receipt 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.

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, shall be guilty of an offence under this Act.

30. 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.

To be continued