Workshop/Seminar with business community

The Consumer Affairs Authority (CAA) has an enormous task to perform on behalf of the public. The only piece of legislation on the above subject available today, after the new changes brought in by the introduction of the Act No. 9 of 2003 is the Consumer Affairs Authority, which is in force.

The Preamble to the Act specifies the intention of the legislature, that it is established for the better protection of consumers through the regulation of trade and the price of goods and services and also to protect traders and manufacturers against unfair trade practices.

This is very difficult balancing exercise which the Consumer Affairs Authority alone is not able to implement. We had a very successful day on May 27, on the formation of the All Island Central Organization of Consumer Associations. Our target today is to establish Consumer Associations in every village, town and district.

Now it is the turn of the Business community. We are encouraged and pleased about the co-operation extended by the Business Community. We invite the Business Federations and Councils, Industrialists to take part at the dialogue with the Consumer Affairs Authority, the Law Makers and Enforcement Bodies and the public on June 19, at 9.15 am at the CWE Auditorium. Minister of Trade, Commerce, and Consumer Affairs Marketing Development and Highways Jeyaraj Fernandopule will be the Chief Guest.

There will be several other Cabinet Ministers and other important senior officials such as Dr. P. B. Jayasundera, Secretary to the Ministry of Finance and Ajith Nivard Cabraal, Advisor to the President, Prof. Kamal Karunanayake and many others.

Prof. I. M. Dharmadasa of Sheffield University, United Kingdom will deliver the keynote address.

Please communicate with the Consumer Affairs Authority to make reservations for your attendance.

Sarath Wijesingha, Chairman

Questions and Answers

Q: I bought a water pump from a shop. The price paid was Rs. 10,500. In a few days the motor became dysfunctional. I was unable to come to a settlement with the shop-owner by discussion. I was also unable to get a refund. What is my remedy?

A: The Consumer Affairs Authority has power to take legal action on any problem concerning an article purchased, if it is brought to its notice within three months. Since it can be assumed that the incident here had occurred within the required period, it may be possible either to get a new water pump or replace the defective one or to get a refund the price paid of Rs. 10,500.

Q: I purchased a gas cylinder from a shop. I paid a deposit as well as the cost of the gas at the time of the said purchase. As the requirement of gas at the residence became reduced I wished to return the cylinder to the shop and get a refund of my deposit. The shopkeeper refused a refund. What is my remedy?.

A: A deposit is taken from a consumer at the time of purchase of a cylinder only to enable the shopkeeper to cover the value of the cylinder and refund same if it is surrendered in good condition. At the same time the deposit is considered to be the charge of the Gas Company for the use of the cylinder by the consumer.

However, if the consumer at any time surrenders a cylinder in good condition and demands the return of his deposit, he has a right to a refund of same. It is possible to take legal action in this regard if no refund is made.

Q: I purchased some tiles from a ceramic establishment. On inspection at home it was found that most of the tiles were defective. Unsuccessful in getting any relief from the institution by discussion, what is my remedy?.

A: It is the responsibility of the consumer to examine any article, at the time of its purchase, to see if it is in good order. It is wrong for a consumer not to do so. However, articles such as tiles do not lend themselves to inspection one by one. Since the tiles have been purchased from a reputed company, it is possible to obtain some relief. If the concerned company admits that some tiles had suffered damage before the sale, the company will have to replace the broken or damaged tiles.

Q: I purchased a DVD set from a reputed company. On returning home, I found that a certain part was missing. I have lost confidence in the said company. Can I therefore return the said DVD set to the company and get a refund of the monies paid?

A: If it is possible to have someone competent accompany you when purchasing such an item, a problem such as this can be minimised.

However, the shop sells such as item holding the guarantee to the consumer that what is sold is in good condition.

Therefore, the seller is bound to give consumer some relief. We can help you to get you a refund of the amount paid.

Q: Is there any power to the Authority to send a warning to a Trader?

A: Yes. The Authority may deem necessary, that any person has contravened any of the provisions of this Act or any direction given there under, in the case of the first contravention, send to such person a warning in writing.

Q: Is there any power to the Authority to call for information or any such document to proceed with the functions of the Authority if necessary?

A: Yes. The Authority or any person authorised by the Authority may, by notice in writing require any person within such a 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 proper discharge of this function 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.

Q: Is there any power for an authorised officer to enter, inspect and search a business premises?

A: The Authority or any other officer authorised in writing in that behalf by the Authority may,

i. 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 of any other premises where any goods are being stored or exposed for sale.

ii. To seize and detain any goods found in such premises in contravention of the provisions.

iii. To inspect, take copies of or seize and detain any records or documents required to be kept by or under this Act.

Q: Is there any provision to offer rewards to any person who provids the information leading to any conviction?

A: Where any person is convicted of any offence under this Act or where any goods are seized ordered to be forfeited under this Act, the Authority may, pay.

i. to the person who provided the information leading to such conviction of the seizure an forfeiture of such goods; and

ii. to any person who was concerned in the detection of such offence or effecting the seizure and forfeiture of such goods.

Q: Is there any power to the Authority to obtain samples for purpose of ensuring compliance with standards and specifications?

A: The Authority may where it has reason to believe that any goods that are being sold do not conform to the standards and specifications laid down under this Act.

a. authorised an officer in writing obtain a sample of such goods from any premises which a manufacturer or trader of such goods are carrying on his business

b. from any premises where any such goods are being stored

c. from any vehicle in which such goods are being transported.

Effects of CAA inquiries

Nature of complaint - Breach of guarantee in respect of a refrigerator.

Summary - The door of a refrigerator got rusted during the period of the guarantee. Request was made either to replace it with a new door or to supply a new refrigerator in exchange.

In response to an inquiry by the CAA, the supplier agreed to give a new refrigerator of the same model as that which the complainant had purchased. The complainant by letter has informed the Authority that he had got a replacement and appreciated Authority's service whilst thanking it.

Nature of complaint - Refusal to repair defective monitor

Summary - The Complainant purchased outright a computer with all components for Rs. 125,000. Within two weeks of the purchase, the monitor became dysfunctional and nothing was visible thereon. A spare monitor supplied till necessary repairs were done to the defective one. There was a delay in repairing the said monitor.

A request was made either to refund the amount paid for the monitor or to replace the defective one. The complaint has thanked the CAA for assisting him to get the monitor back in a short time.

Nature of complaint - Failure to print wedding photographs according to required specifications.

Summary - A leading photographic studio had failed to print the complainant's wedding photographs according to the required specifications and demanded a refund of the charges levied. The CAA Inquiry Officer visited the said studio and after an inquiry proposed to the management that the payment of Rs. 10,000 be made to the complainant in settlement.

This being agreed to, the complainant was notified. The complainant had informed the Authority by letter that he had received the said sum and thanked it for the service it had rendered to him.

Consumer Affairs Authority Act, No. 9 of 2003

Continued from last week

(a) where such person is not a body corporate, to a fine not less than rupees one thousand and not exceeding rupees ten thousand or to an imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment in the case of a first offence, and to a fine not less than rupees two thousand and not exceeding rupees twenty thousand or to an imprisonment of either description for a term not exceeding one year or to both such fine and imprisonment in the case of a subsequent offence: or

(b) where such person is a body corporate to a fine not less than rupees ten thousand and not exceeding rupees one hundred thousand in the case of a first offence, and to a fine not less than rupees twenty thousand and not exceeding rupees two hundred thousand in the case of a subsequent offence.

(6) The Authority may publish or cause to be published in such manner as it shall deem fit, the names and addresses of all persons convicted under this Act.

(7) Where any offence under this Act is committed by a body of persons, then -

(a) if the body of persons is a body corporate every director and officer of such body corporate: and

(b) if the body of persons is a firm, every partner of that firm.

shall be deemed guilty of that offence:

Provided that no such director, officer or partner shall be deemed guilty of that offence if he proves that such offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

Consumer

61. (1) The Authority may where it has reason to believe that any goods that are being sold do not conform to the standards and specifications laid down under Section 12 of this Act-

(a) authorize an officer in writing to obtain a sample of such goods-

(i) from any premises in which a manufacturer or trader of such goods are carrying on his business:

(ii) from any premises where any such goods are being stored or exposed for sale; or

(iii) from any vehicle in which such goods are being transported; and

(b) issue a directive to the manufacturer or trader from whose possession such sample was obtained, to refrain from selling or exposing for sale the goods concerned for a period to be specified in the directive, so however such period shall not exceed a period of six weeks from the date of the issue of such directive.

(2) It shall be the duty of the officer who obtained the sample to forthwith submit it to an approved analyst for purpose of determining whether such goods conforms to the standards and specifications laid down under Section 12, and the said approved analyst may, except in exceptional circumstances, submit his report to the Authority within a period not exceeding one month of the receipt of the sample.

On receipt of the report of an approved analyst, the Authority shall-

(a) where it discloses that the goods concerned conforms to the standards and specifications laid down under Section 12, forthwith remove the restriction imposed by the directive issued under Subsection (1); or

(b) where it discloses that the goods do not conform to the standards and specifications laid down under Section 12 of this Act and that such non conformity has resulted in the goods concerned being rendered unfit for any use or consumption, seize and detain such goods or consignment of goods as the case may be.

(4) Where any goods or consignment of goods are seized and detained under Paragraph (b) of Subsection (3) from any manufacturer or trader as the case may be, such manufacturer or trader shall be guilty of an offence under this Act.

(5) In a prosecution for an offence under this section, a certificate issued under the hand of an officer authorised by the Director-General in writing to analyse any goods for the purpose of this Section, stating the ingredients or the composition of the goods in relation to which the offence is alleged to have been committed, shall be admissible in evidence and shall be prima facie proof of the statements made therein.

(6) A prosecution for an offence under this Section shall not be instituted except by or with the written sanction of the Director-General.

(7) For the purpose of this Section, and "approved analyst" means a person who is qualified to perform such function and approved by the Director-General.

62. (1) Where in a conviction for an offence under Subsection (4) of Section 61 it is proved that the non-conformity with the standards and specifications has rendered the goods or consignment of goods unfit for any use or for consumption, then-

(a) if no appeal has been preferred to the High Court of the relevant Province established by Article 154P of the Constitution, against the relevant conviction within the time allowed therefor; or

(b) if an appeal has been preferred to the High Court of the relevant Province established by Article 154P of the Constitution, against the relevant conviction, and the conviction is affirmed, the court shall order that such goods or consignment of goods be forfeited to the State to be destroyed in such manner as the court may direct.

(2) Where in an action for an offence referred to in Subsection (1), the accused is acquitted for the reason that it was not proved to the satisfaction of the court that the non-conformity with the standards and specifications has rendered the goods or consignment of goods unfit for any use or consumption, then-

(a) if no appeal has been preferred to the High Court of the relevant Province established by Article 154P of the Constitution, against the relevant acquittal within the time allowed therefor; or

(b) if an appeal has been preferred to the High Court of the relevant Province established by Article 154P of the Constitution, against the relevant acquittal and the acquittal is affirmed by the Court of Appeal, the court shall order the release of goods or consignment of goods seized.

63. Every court shall give priority to the disposal of any case filed under Section 61 before such court, and to the hearing of any appeal from any conviction against any order imposed on such conviction.

64. No civil or criminal proceedings shall be instituted-

(a) against the Authority for any act which in good faith is done or purported to be done by the Authority under this Act; or

(b) against any member. Director-General, Director, Deputy Director, Assistant Director, officer, servant or adviser of the Authority or any member of the Council, for any act which in good faith is done or purported to be done by him under this Act or on the directions of the Authority or the Council as the case may be.

65. (1) Any expense incurred by the Authority in any suit or prosecution brought by or against the Authority before any court, shall be paid out of the Fund of the Authority, and any costs paid to or recovered by the Authority in any such suit or prosecution, shall be credited to the Fund of the Authority.

(2) Any expenses incurred by any member, Director-General, Deputy Director, Assistant Director, officer, servant or adviser of the Authority or any member of the Council in any suit or prosecution brought by or against such person before any court, in respect of any act which is done or purported to be done by such person under this Act or on the directions of the Authority or Council shall, if the court holds that such act was done in good faith, be paid out of the Fund of the Authority, unless such expenses are recovered by him in such suit or prosecution.

66. All members of the Authority and the Council. Director-General, Directors, Deputy Directors, Assistant Directors, officers, servants and advisers of the Authority shall be deemed to be-

(a) public servants within the meaning of, and for the purposes of the Penal Code; and

(b) public servant within the meaning of Section 136 of the Code of Criminal Procedure Act, No. 15 of 1979

67. The Authority and the Council shall be deemed to be Scheduled Institutions within the meaning of the Bribery Act and the provisions of that Act shall be construed accordingly.

68. Where any offence under this Act is committed by an agent or servant of any manufacturer or trader, such offence shall be deemed to have been committed by such manufacturer or trader, unless he proves that such offence was committed without his knowledge.

69. Where any person is convicted of any offence under this Act or where any goods are seized and ordered to be forfeited under this Act, the Authority may pay-

(a) to the person who provided the information leading to such conviction or the seizure and forfeiture of such goods; and

(b) to any person who was concerned in the detection of such offence of effecting the seizure and forfeiture of such goods, such amount as it may deem reasonable, as a reward.

70. Notwithstanding anything to the contrary in the Code of Criminal Procedure Act, No. 15 of 1979, every offence under this Act, shall be deemed to be a cognizable offence within the meaning and for the purposes of that Code.

71. The Director-General, Directors, Deputy Directors and Assistant Directors of the Authority shall be deemed to be peace officers within the meaning of the Code of Criminal Procedure Act, No. 15 of 1979 for the purpose of exercising any of the powers conferred upon peace officers by that Code.

72.(1) The Minister may make regulations in respect of any matter required by this Act to be prescribed or in respect of which regulations are authorised by this Act to be made.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (1), the Minister may make regulations in respect of all or any of the following matters:-

(a) Prescribing the manner in which meeting of the Authority shall be convened;

(b) Prescribing the manner of conduct of meetings of the Authority;

(c) Prescribing the persons by whom, and the manner in which, the expenses of witnesses notifies to attend inquiries and investigations held by the Authority and the Council are to be paid.

(3) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in such regulation.

(4) Every regulation made by the Minister shall as soon as convenient after its publication in the Gazette, be brought before Parliament for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of such disapproval, but without prejudice to anything previously done thereunder.

(5) Notification of the date on which any regulation made by the Minister is deemed to be rescinded, shall be published in the Gazette.

73. (1)(a) The Consumer Protection Act, No.1 of 1979 is hereby repealed.

(b) Notwithstanding the repeal of the aforesaid Act-

(i)(aa) every scheme of distribution published under Section 3 of the repealed Act;

(bb) every general direction issued by the Commissioner of Internal Trade under Section 6 of the repealed Act;

(cc) every standard and specification determined by the Commissioner of Internal Trade under Section 8 of the repealed Act; and

(dd) every written agreement entered into by the Commissioner of Internal Trade with any manufacturer, trader or any association of manufacturers or traders under section 10 of the repealed Act, and in force on the day prior to the date of commencement of this Act, shall be deemed to be a scheme published, direction issued, standard and specification determined and written agreement entered into by the Authority;

(ii) all moneys lying to the credit of the Consumer Protection Fund established under Section 33A of the repealed Act on the day immediately prior to the date of commencement of this Act, shall stand transferred with effect from that date, to the Fund established under this Act;

to be continued

Cost of Living, the theme

The theme of the Page today is "Cost of Living". There are complaints on the price of cost of living in the country. The Cost of Living always is on the rise. It is rarely that the cost of living comes down in any country. It is the duty of the Government in power to provide or make provisions for goods and services at reasonable cost, which is a basic human right.

The Government cannot fulfill this obligation alone. Consumer Affairs Authority being a main player in this exercise too needs public co-operation to achieve the objects of the Act and also to help bring down the cost of living.

On 27.5.2006, we formed a Federation of All Island Consumer Organisations. On June 19, we will be having a dialogue with the Business Community and the Industrialists. Our collective exercise is to find ways and means of bringing down the cost of living.

Please attend the Seminar and the Workshop on June 19. Please help us to help the Public, states Sarath Wijesingha, Chairman Consumer Affairs Authority in a press release.

Flash Vo-TEC

From June 12 to 15, 2006 the Consumer Affairs Authority is participating at the Vo-Tec, Exhibition in Beliatta.

A Legal Aid Clinic will be conducted with the voluntary assistance of the Bar Association Branches of Hambantota, Tangalle, Walasmulla and Lawyers in the area.

We thank all lawyers and those who have pledged their help for the Consumer Clinic.

Consumer Organisations will be formed in all villages in the deep South, "Consumer Jana Sabha" will be organised and addressed by the Consumer Affairs Authority.

Mahapola

A Mahapola - will be held in Weliweriya from June 22, onwards. The Consumer Affairs Authority too will take part at the Mahapola in order to educate people of their rights and duties. It is also proposed to commence a dialogue with the public to find ways and means to bring down the cost of living.

Volunteers please communicate with us. We need young, energetic and concerned citizens.

Workshop

19.6.2006 - A Workshop on the Cost of Living - is progressing fast. Speakers - Prof. I. Dharmadasa from UK, Dr. P. B. Jayasundera, Ajith Nivard Cabraal, Prof. Kamal Karunanayake and many others are due to address. Please call to reserve your space. T' phone Nos. 2393577, 2445897 and 2393495.

Compiled by C. A. Samaradivakara