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[Consumer Affairs page]

Federation of Consumer Associations formed

On 27 May 2006 delegates of all the Consumer Associations in Sri Lanka gathered to form the Federation of Consumer Associations in order to establish and to achieve the objects of the CAA Act. Representatives of various organisations and the public came from all over the country. There were representatives from Jaffna, Ampara, Batticaloa, Galle, Matara, Kandy, Nuwara Eliya and Kurunegala.

The theme of the full day workshop was energy and to save energy. There were academic presentations from Prof. P. Wijethunga, Dr. Jayatissa de Costa and demonstrations from various companies to introduce the concepts and saving of energy. If energy is used carefully the cost can be reduced by 60 per cent from gas and electricity and fuel.

If we reduce congestion running an engine and developed network of IT and television the cost of fuel can be reduced. We also proposed a national strategy, for nutrition, transport and if the Government introduces a network of lorries connected to the railway system, the price of fuel and local vegetables and other foodstuffs could be drastically reduced. This is part of our campaign to bring down the cost of living.

After having adopted the constitution of the Federation our next move is to initiate a dialogue with the business community. We invite the traders and manufacturers to communicate with us on the project scheduled to be held on June 19, 2006.

We urge the public to communicate with us on telephone 2393496/2393577, fax 2399148, e-mail [email protected], states Sarath Wijesingha, Chairman, CAA in a news release.


Questions and Answers

01. Q: Who can make a complaint to the Consumer Affairs Authority?

A: Any person (aggrieved party) can make a written complaint against a seller or manufacturer whose sales or supply services which do not confirm to the standards or specifications that are published by the Consumer Affairs Authority.

02. Q: What kind of relief could be granted to the aggrieved consumers?

A: The Authority has power to make a decision to replace such goods or refund the amount paid for such goods or services or to award compensation.

03. Q: What is the procedure of implementing the decision under Section 13 of the inquiry?

A: The sum of money due on the order as compensation or refund may be recovered on an Application being made on that behalf by the Authority to the Magistrates Courts.

04. Q: What are the directions the Authority could issue to a manufacturer or trader for the protection of the Consumers?

A: (a) Issue general directions to manufacturers or traders in respect of labelling, price marking, packeting, sale or manufacture of any goods

(b) Issue special directions to any class of manufacturers or traders specifying

i. the times during which and places at which such goods may be solved

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

05. Q: 1. What is the nature of the complaint the Authority may inquire in to?

A: (a) The production, manufacture, supply, storage, transportation for sale of any goods and to the supply of any services which does not confirm to the standard and specification determine under Section 12

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

2. What is the time limit to make a complaint relating to the above?

A complaint regarding the sale of any goods or to the provision of any service shall be made to the Authority within three months of sale of such goods or the provision of such service

06. Can a trader refuse to sell goods?

No a trader who has in his position or custody or under his control any goods for purpose of trade within Sri Lanka shall not refuse to sell such goods.

07. Who has the power to specify goods or services as specified goods or services and when it is being declared?

Where the Minister is of the opinion that any goods or any services essential to the life of the community the Minister in consultation with the Authority may order to publish in the Gazette and specify such goods or such services as specified goods or specified services as the case may be

08. Can a manufacturer or trader increase the retail or wholesale prices of any specified goods or services?

No a manufacturer or trader shall increase the retail or wholesale prices of any services or goods specified except with the prior written approval of the CAA.


Case for a People-Friendly market

Critics of the free-market economy are of the view that the free-market economy is hardly free in that, it serves only the high and the mighty and the poor are marginalised, leaving them in the lurch. In fact free-market economy is euphemism for the free operation of Big Businesses, they stress. On the other hand, closed economies, limit the consumer's choice and the initiative and dynamism of the individual.

In this backdrop the enlightened citizens advocate strategies to strike a balance so that the free market be a boon to the people and the Big Business barred from abusing the freedom. The free market is the arena for most efficient exchange of goods and services. But the million dollar question is to what extent one markets in service of human development?

Powerful business interests often place barriers to the access to "free markets" and those who participate are not equally benefited. Further estimates of costs and profit do not reflect human values and environmental issues. So in order to achieve a balance between efficiency, equity and sustainability markets need to be more finely tune.

In other words, markets should be means of human development and should be made to serve people. Hence, the term, people friendly markets, which allow people to participate fully in their operation and to share equitably their benefits. (The report on Human Development, 1993 published for UNDP). Four important measures are required for the successful transformation of free markets into people-friendly markets.

The creation of people-friendly markets will necessarily involve generating more employment, increasing the purchasing power of the individual, improving their social standing and self-esteem, giving them political clout to influence decision-making. So a people-friendly market will offer productive work, which is the most important and rewarding human activity.

The state and the market are often seen as antagonistic. It is argued that state activities should be minimised. The question should not consider so much the size, but rather the nature of these activities, state initiatives can provide stable conditions for people-friendly functioning of markets.

The state and markets often controlled by the same authority, cannot be really separated. Ideally they should work together in such a way as to provide people with the power to assert influence over both.


Technical Committee formed

The Technical Committee to monitor the adulteration of coconut oil was recently formed at the Coconut Development Authority (CDA).

K.W.E. Karaliyedda, Secretary to the Ministry of the Coconut Development presided over the inaugural meeting of the Committee.

S.S. Purasinghe, Chairman, CDA, Dr. Janaka Gunaratne, Senior Research Officer, Industrial Technological Institute, S. Nagaiah Assistant Director, Food Control Administration, Major Bandula Sarath de Silva, Sri Lanka Standards Institute, J.V.R. Dias, President, Coconut Growers' Association, Sarath Wijayaweera, Assistant Secretary, Ministry of Coconut Development, Gamin Rajanayake, City Analyst, V. Baskarasingham, Assistant Director, Marketing Coconut Development Authority participated. A.L. Mohideen Bawa, Executive Director, Consumer Affairs Authority was elected the Chairman of the Monitoring Committee on the adulteration of coconut oil.

Investigations on adulterated coconut oil

The Monitoring Committee will collect information on adulteration of coconut oil and develop a strategy to investigate the adulteration of coconut oil. Further, the development of a program to eliminate practice of adulteration which is health hazard is the prime objective.


Consumer Affairs Authority Act, No. 9 of 2003 Continued from last week

Consumer

(3) Director-General shall be paid such remuneration as may be determined by the Authority in consultation with the Minister.

(4) Whenever the Director-General is by reason of illness or absence from Sri Lanka or for any other cause, unable to perform the duties of his office, the Authority may, with the approval in writing to the Minister, appoint some other person to act in his place, during such absence.

53. The Authority may appoint such number of Directors, Deputy Directors, Assistant Directors and other officers, servants and advisers as are necessary for the performance of the work of the Authority and of the Council, who shall be remunerated at such rates as may be determined by the Authority in consultation with the Minister.

54. (1) At the request of the Authority, any officer in the public service may, with the consent of that officer and the Secretary to the Ministry of the Minister in charge of the subject of Public Administration, be temporarily appointed to the staff of the Authority for such period as may be determined by the Authority, with like consent, or with like consent be permanently appointed to such staff.

(2) Where any officer in the public service is temporarily appointed to the staff of the Authority the provisions of subsection (2) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall, mutatis mutandis. apply and in relations to him.

(3) Where any officer in the public service is permanently appointed to the staff of the Authority, the provisions of subsection (3) of section 14 of the National Transport Commission Act, No. 37 of 1991, shall, mutatis mutandis. apply to, and in relation to him.

(4) Where the Authority employs any person who has agreed to serve the Government for a specified period, service to the Authority by that person shall be regarded as service to the Government for the purpose of discharging the obligations under such agreement.

Part VII General

55. (1) Notwithstanding anything to the contrary in any provisions of this Act, the Authority may, if it is satisfied after such inquiry as it may deem necessary that any person has contravened any of the provisions of this Act or any direction given thereunder, in the case of the first contravention, send to such person a warning in writing.

(2) A warning under subsection (1) shall be sent by the Authority by registered post.

56. (1) The Authority may, for the proper discharge of its functions under this Act, require the manufacturers, importers, distributors and exporters of any goods or services -

(a) to maintain records in respect of such matters as the Authority may consider necessary for the proper discharge of its functions under this Act and in such form as may be determined by the Authority; and

(b) to furnish to the authority returns in respect of such matters as the Authority may consider necessary for the proper discharge of its functions under this Act, at such intervals and in such form as may be determined by the Authority.

(2) It shall be the duty of all manufacturers, importers, distributors and exporters who are required under paragraph (a) of subsection(1) to maintain records, to preserve the records being so maintained, for a period not exceeding six years.

57. (1) The Authority or any person authorised in that behalf by the Authority may, by notice in writing requires any person within such period as shall be specified in the notice, to furnish any information or to produce any document as shall be specified in such notice, which the Authority may consider necessary for the proper discharge of its functions under this Act, and it shall be the duty of any person who receives such notice to comply with such requirement within the time specified in such notice, notwithstanding the provisions of any written law which may prohibit such person from disclosing such information or from producing such document.

Provided however, that nothing in this subsection shall be read and construed as enabling the Authority or any person authorised in that behalf by the Authority, by notice to require any person to furnish any information or to produce any document, if the disclosure of such information or the production of such document is prohibited by any provision of any law providing for the imposition and recovery of any tax.

(2) No information contained in a return furnished under section 56 and no information furnished or the contents of a document produced in compliance with the terms of a notice issued under this section, shall be published or communicated by the Authority to any other person except with the consent of the person furnishing such return or information, or producing such document, as the case may be, or in the course of the discharge of its functions by the Authority.

58. (1) The Authority or any other officer authorised in writing on behalf by the Authority may, for the purpose of ascertaining whether the provisions of this Act or any regulation made thereunder are being complied with, have the power on reasonable grounds and on production, if so required, his credentials -

(a) to enter, inspect and search at all reasonable hours of the day the premises in which any manufacturer or trader is carrying on his business or any other premises where any goods are being stored or exposed for sale;

(b) to seize and detain any goods found in such premises in contravention of the provisions of section 16 or 17; and

(c) to inspect, take copies of or seize and detain any records or documents required to be kept by or under this Act or any other law in respect of such business.

(2) Any goods seized and detained under paragraph (b) of subsection (1) shall be produced in court, and on conviction of such manufacturer or trader, be forfeited and disposed of in such manner as may be determined by court, and any money realised shall be credited to the Fund of the Authority.

59. (1) Where any goods seized and detained under paragraph (b) of subsection (1) of section 58, is of such perishable nature, as in the opinion of the Authority render their immediate sale necessary or advisable, the Authority shall give not less than three days notice of the sale of such goods by an advertisement published in one Sinhala, Tamil and English newspaper each circulating in Sri Lanka and thereafter cause such goods to be sold.

(2) The proceeds of a sale under subsection (1) of any goods, shall be credited to a special account to be maintained for that purpose by the Authority, and where the person from whom the goods were seized is acquitted or discharged subsequently by the court, the amount realised from the sale of such goods shall be given to such person.

(3) Where the court convicts the person from whom the goods were seized, the money realised from the sale of such goods and lying to the credit of the special account referred to in subsection (2) shall be credited to the Fund of the Authority.

60. (1) Any person who -

(a) fails or refuses to furnish -

(i) a return when required by the Authority to do so under section 56: or


Flash

The Consumer Affairs Authority (CAA), the Coconut Development Authority (CDA) and other relevant institutions had a meeting on May 29, on the adulteration of coconut oil and it is learnt that most of the coconut oil is adulterated with Palm oil and is unfit for human consumption.

The CAA and the CDA and other relevant institutions appointed a joint monitoring committee headed by Mohideen Bawa, Executive Director, CAA to launch a strategy to raid the traders and manufacturers. The CDA agreed to facilitate and to work together.

The CAA has the power to prosecute the traders but it is the duty of the public to bring to the notice of the CAA about such traders. The CAA is in turn, communicate, with the CDA and Bureau of Standards, Ministry of Health and other relevant statutory bodies to implement the program.

We urge the public and the Consumer Associations to contact Telephone 2393496/2393577, Fax 2399148, E-mail [email protected].


Consumer Affairs Authority, CWE Secretariat,
Vauxhall Street, Colombo, 02.
Telephone No. 393577

 

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