Seminar to strengthen linkage between Business Community and CAA

The Consumer Affairs Authority (CAA) is the apex Government body mandated 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 a very difficult balancing exercise which the Consumer Affairs Authority alone is not able to implement without the assistance, advice, co-operation and criticism of everybody which includes the Public, Consumers, the Business Community, the Government, Statutory Bodies and the World Community.

As an important step in this consultive process, CAA had organised a Seminar for the business community on June 19 from 9.30 am - 1.30 pm at the CWE Auditorium. The CAA had invited the Business Federations, Chambers, Councils, associations and Industrialists to take part at the dialogue with the Consumer Affairs Authority, the Law Makers and Enforcement Bodies and the public.

The seminar was addressed by Minister of Skills Development Sripathi Sooriyarachchi and the Governor of the Western Province Alavi MowlanA.

They have highlighted the important role assigned to the private sector by the present Government and how the co-operation between Government and Business Community could benefit all parties including consumers as well as the Business Community.

Welcoming the gathering CAA Chairman Sarath Wijesinghe expressed the view that the CAA never considers the business community as an enemy, invited to all segments of the Business community to join hands with the CAA to combat the increasing prices and cost of living.

Prof. Kamal Karunanayake, Advisor to the President, highlighted the importance of building a continuous dialogue between CAA and the Business Community. Representing the Business Community Sunil Wijesinghe, Chairman, Dankotuwa Porcelain Ltd expressed his views and suggestions on how interests of consumers and the business community could be balanced for the well-being of both parties.

Nimal Weerasekara, Executive Director, Sri Lanka Institute of Marketing discussed the expectations of the Business Community towards the CAA and pointed out areas that can be improved to strengthen the link between CAA and the Business Community.

A special Guest Lecture was delivered by Prof. I.M. Dharmadasa of Sheffiled University, United Kingdom on ‘Solar energy for Social Development and Poverty Alleviation’.

A panel discussion which was participated by the public sector and the Business Community was also held to discuss the problems that are encountered by Consumers and the Business Community in the country.

Cost of Living

Consumer Affairs Authority Chairman Sarath Wijesinghe states: “We are going through a crucial and decisive era in our contemporary history. We are pleased to note that the President is on the correct path in finding an ‘honourable solution’ to the North - East issue which was miss-handled and miss-managed by previous successive regimes. Our people and the international community are now united in finding a lasting and honourable solution to this ongoing problem.

Our ‘interest’ and ‘mandate’ today are on the ‘Cost of living’. The rising cost of living is a common feature in any ‘civil’ society - be it in Sri Lanka or in any other country of the world.

People accuse, the Governments (present and previous) World Economic Order, and at times the Consumer Affairs Authority, for the escalation of the prices of goods and services. Who is really responsible?

My humble answer is everyone of us is responsible. It is time for us to stop and take stock and take a count of our mistakes. To avoid collective destruction, we must have a vigorous, sincere and joint approach.

We have invited a fair cross-section of the Business and Industrial community, in order to commence a heart to heart dialogue, on ‘cost of living’ - if I may say so in simple common man’s language. We do not intend discussing complicated economic issues.

You are committed and dedicated to your business, profession and industry. But it should not be forgotten, that your existence depends on the smooth functioning of civil society. When there is destruction, enmity, vengeance and displeasure, Business and Business Community are directly and equally affected.

As an important and responsible section of civil society you have a major/decisive role to play. Let me now discuss our mandate and responsibility. The only piece of legislation today to protect the consumer, and the business community is Act No. 9, of 2003 which is a consolidation of most previous acts, conventions and trade practices such as:

1. Fair Trading Commission Act

2. Control of Prices Act & Subsidiary legislation.

The preamble to Act is clear on the concept, which is a mixture of British and Australian models. It provides for better protection to consumers through the regulation of trade, the prices of goods and services and the protection of the traders, industrialists and manufacturers as well.

It encourages healthy competition among traders and manufacturers of good and services.

Let us find a solution to help our people to arrest cost of living.”

Questions and Answers

Q. Are the offenses which are specified in the Consumer Affairs Authority Act, cognizable?

A. Every offence under the Act is deemed to be a cognizable offence under the Criminal Procedure Act.

Q. Who are the officers who have authority to arrest offenders?

A. The Director General, Directors, Deputy Directors, Assistant Directors of the Authority.

Q.What is the procedure of determination after concluding an investigation of anti completive practices?

A. The Authority may make an application to the Consumer Affairs Council.

Q. What is the Consumer Affairs Council?

A. The Consumer Affairs Council is established under the Consumer Affairs Authority Act.

The Council consists of the following persons appointed by the Minister.

a) one person who has had wide experience in field of commercial law

b) one person who has had wide experience in the management of business enterprises, and

c) an economist with wide experience in a trade practices and consumer affairs

Q. What is the function of the Consumer Affairs Council?

A. The function of the Council is to hear and determine all applications and references made to it under the Act.

Q. What are the orders to be made by the Consumer Affairs Council?

A. Where an application is made to the Consumer Affairs Council and if it is satisfied that;

a) an anti competitive practice exists but such anti-competitive practice does not operate or is not likely to operate against public interest, by order made in that behalf authorize such practice, or

b) an anti-competitive practice exists and that it operate against public interest, by order provide for;

i. the termination of such anti-competitive practice in such manner as may be specified in the order, and

ii. such other action as the Council may consider necessary for the purpose of remedying or preventing the adverse effects of any anti-competitive practice.

Q. What are the facts taken to in consideration by the Consumer Affairs Council in determine whether any anti-competitive practice operates or is likely to operates against public interest?

A. a) maintaining and promoting effective competition between persons supplying goods and providing services;

b) promoting the interest of consumers, purchasers and other uses of goods and services in respect of the price, quality and variety;

c) promoting through competition the reduction of cost, the development and use of new techniques and products and facilitating the entry of new competitors into existing markets

Q. How can witnesses be called for an inquiry conducted by Consumer Affairs Council?

A. By a notice issued by delivering it to the person named therein or by leaving it at the last known place of abode of that person.

Every person to whom a notice is issued shall attend before the Council at that time and place mentioned therein and give evidence or produced such documents, records etc. as required.

Q. Is there any provision to convict a person who fails to obey a notice issued or to give evidence?

A. If any person upon whom a notice is issued, fails without reasonable cause to appear before the Council, refuses to be sworn in or affirmed or having been duly sworn in or affirmed refuses or fails without reasonable cause to answer any question put to him relating to the matter being inquired, or refuses or fails without reasonable cause to produce any document etc. which are in his position or power shall be guilty of the offence of contempt against or in disrespect of the council.

Q. A certain hotel was booked for a party of 250 guests. But the food served was not up to the expected standard. Is there any remedy?

A. As the hotel has not acted as per agreement, the Authority can intervene in the matter.

Q. Can the CAA intervene in a consumer complaint against any other Government Authority?

A. This Authority refers such complaints to the relevant Regulatory Authority for action and pursues follow-up.

Q. According to the powers vested by Section 57 of Consumer Affairs Authority Act, the Authority can call for information or require the relevant party to produce any documents within a specified time. In case a party fails or refuses to furnish any information or produce documents what action can the Authority take?

A. The Authority can take legal action as per the provisions in Section 60 of the Act. On conviction after a trial before a Magistrate, the accused is liable to punishments prescribed in the Act.

Q. Does the Authority have power to make a trader/manufacturer guilty of two offenses committed the same time? e.g selling or offering to sell above marked-up price, and selling without an expiry date

A. Yes, the Authority has the power to charge the trader on two offenses.

Q. How long does it take to complete an investigation into a complaint?

A. There is no specified time framework but as soon as possible.

Q. What measures has the Authority taken to make the general public aware of its activities?

A. Through consumer education, empowerment and promoting the establishment of Consumer Associations.

Q. Are there special units or divisions to promote and monitor those activities within the Authority?

A. Yes, There are two divisions namely; Consumer Affairs and Information Division and Competition Promotion division.

Q. When an aggrieved party makes a written complaint against a manufacturer/trader for selling goods or supplying services which do not conform to the normal standards and specifications, can the Authority conduct inquiries?

A. Yes. The Authority can act in terms of Section 13 of the Act and grant redress to consumer.

Q. One of my friends had filled his car tank with petrol at a filling station. Immediately after starting his journey the car had stopped. After examination it has been found that petrol has got mixed up with water. Can the Authority take any action in this matter?

A. Yes. There are provisions in the CAA Act to enable it to intervene.

Consumer Affairs Authority Act, No. 9 of 2003

Continued from last week

(iii) every regulation made by the Minister under Section 34 of the repealed Act and in force on the date of commencement of this Act and which is not inconsistent with the provisions of this Act, shall be deemed to be regulations made under this Act, and may accordingly be amended, added to or rescinded, by regulations made under this Act;

(iv) all suits and prosecutions instituted under the repealed Act by or against the Attorney-General as representing the Department of Internal Trade in his official capacity, in any court or tribunal and pending on the day prior to the date of commencement of this Act, shall be deemed to be suits and prosecutions instituted by or against the Authority and may be continued accordingly;

44. (v) all decrees and orders entered or made by any competent court in favour of or against the Attorney-General as representing the Department of Internal Trade in his official capacity and remaining unsatisfied on the date of commencement of this Act, shall be deemed to have been entered or made in favour of or against the Authority and may be enforced accordingly ; and

(vi) all debts, obligations, assets and liabilities incurred and all matters and things engaged to be done with or on behalf of the Department of Internal Trade shall be deemed to have been incurred, and engaged to be done by, with or on behalf of the Authority.

(2) (a) The Fair Trading Commission Act, No.1 of 1987 is hereby repealed.

(b) Notwithstanding the repeal of the aforesaid Act-

(i) all moneys lying to the credit of the Fund established under section 30 of the repealed Act, on the day immediately prior to the date of commencement of this Act, shall be transferred to the Fund of the Authority established under this Act;

(ii) all inquiries and investigations pending before the Fair Trading Commission on the day prior to the date of commencement of this Act, shall be deemed to be inquiries and investigations pending before the Authority under the provisions of this Act, and may accordingly be continued and concluded before such Authority under the provisions of this Act;

(iii) all requests made under Section 18 of the repealed Act and all questions referred to the Fair Trading Commission under the repealed Act and pending before such Commission, on the day prior to the date of commencement of this Act, shall be deemed to be requests made and questions referred to the Authority under this Act, and may accordingly be inquired into and examined by the Authority under the provisions of this Act:

(iv) all orders made and reports submitted by the Fair Trading Commission under the provisions of the repealed Act, shall be deemed to be orders made and reports submitted by the Authority under the provisions of this Act;

(v) all suits and prosecutions instituted by or against the Fair Trading Commission in any court or tribunal and pending on the day prior to the date of commencement of this Act shall be deemed to be suits and prosecutions instituted by or against the Authority and may be continued accordingly;

(vi) all decrees and orders entered or made by any competent court in favour of or against the Fair Trading Commission and remaining unsatisfied on the date of commencement of this Act, shall be deemed to have been entered or made in favour of or against the Authority as the case may be, and may be enforced accordingly;

(vii) every regulation made by the Minister under the repealed Act and in force on the date of commencement of this Act and which is not inconsistent with the provisions of this Act, shall be deemed to be a regulation made under this Act and may accordingly be amended, added to, or rescinded by regulations made under this Act;

(viii) all officers and servants of the Commission on the day immediately preceding the date of commencement of this Act -

(a) who are offered employment with the Authority and accepts such offer, shall be employed therein on such terms and conditions as are not less favourable than the terms and conditions of employment that were applicable to them on the day immediately preceding the date of commencement of this Act; or

(b) who are not offered employment with the Authority or who are offered such employment and who do not accept such offer, shall be entitled to the payment of such compensation as may be determined by the Minister; and

(ix) all debts, obligations, assets and liabilities incurred and all contracts and agreements executed or entered into and all matters and things engaged to be done by, with or for the Fair Trading Commission shall be deemed to have been incurred, executed, entered into and engaged to be done by, with or for the Authority.

(3) The Control of Prices Act, (Chapter 173) is hereby repealed.

74. From and after the commencement of this Act. every reference to ‘Price Control Inspector’ in any written law, shall be read and construed as a reference to the relevant officer of the Authority, assigned by the Authority to perform the functions relating to the regulation of the pricing of goods.

75. In this Act, unless the context otherwise requires -

‘consumer’ means any actual or potential user of any goods or services made available for a consideration by any trader or manufacturer;

‘Council’ means the Consumer Affairs Council established by Section 39 of this Act;

‘fuel’ includes all petroleum products in liquid or gaseous form, oil, other gases, coal or lubricants:

‘goods’ means any food, drink, pharmaceutical, fuel and all other merchandise;

‘local authority’ means a Municipal Council, Urban Council, Pradeshiya Sabha and includes andy authority created or established by or under any law to exercise, perform and discharge, powers, duties and functions corresponding to or similar to the powers, duties and functions exercised, performed and discharged by any such Council or Sabha;

‘price’ means a charge of any description;

‘Provincial Council’ means a Provincial Council established under Chapter XVIIA of the Constitution;

‘manufacturer’ means any person who -

(a) makes any article or any goods;

(b) assembles or joins any article or any goods whether by chemical process or otherwise; or

(c) adapts for sale any article or any goods; ‘service’ means service of any description which is made available to actual or potential users, and includes -

To be continued

Always ask for a receipt

Section 28 of Act No 09 of 2003 starts as follows

“Every trader who sells any goods shall on demand issue to the purchases thereof, a receipt setting out -

A. the date of the sale

b. the quantity of goods sold.

c. the price for such quality.

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 any law relating to issue of received by a trader.”

If the trader is refusing to give a receipt or gives an incomplete receipt, please call 2445897, fax 2399148 or write to 27, Vauxhall Street, Colombo 02.

Pyramid schemes and investments today

We have received a number of inquiries about the “Pyramid” and other “investment” schemes.

Please form Consumer Associations and communicate with us.

The definition of Consumer is as follows:

“Consumer means any actual or potential user of any goods or services, made available for a consideration by any trader or manufacturer”.

The consumer has a right to seek redress from Consumer Affairs Authority.

Unfortunately the public is unable to invoke the power of individually as in India and many parts of the world. The Consumer Affairs Authority Act is being amended and it is proposed to give power to litigate direct without going through Consumer Affairs Authority.

We need your views, proposals, and suggestions, on this matter.

Effect of CAA inquiries

Complaint - Unsatisfactory repairs of an oven

Summary - Although a sum of Rs. 10,000 was charged for the repair, it has not been done properly. A request was made to the Authority for help to obtain a refund.

Consequent on an inquiry by the Authority the respondent agreed to pay back Rs. 4,000 to the complainant in settlement which the latter accepted. Payment was made at the office of the Authority.

Complaint - Failure to repair a television set properly.

Summary - A television shop charged Rs. 1,500 for the job but the repairs was not done properly compelling the complainant to get the service of another repairer. He asked the former for a refund which was refused. On a complaint, an inquiry was duly held and a refund of Rs. 750 obtained.

Complaint - Refusal to refund the advance paid on a failed transaction.

Summary - An advance was paid to a motor car dealer who refused to refund the amount when demanded as the transaction did not go through. After an inquiry it was possible of obtain a refund of Rs. 10,000 paid.

Appeal for volunteers

This week’s Consumer Page is compiled by Yasapala Karunasinghe (Attorney-at-law). We thank him for giving his time to help us despite his busy schedule. We need more volunteers.