World Consumer Day - March 15:

Consumer is always right, consumer is king

Sarath Wijesinghe Chairman Consumer Affairs Authority, (Solicitor in England and Wales and Attorney-At-Law)

Consumers trying to get value for money.

World consumer day falls on March 15 every year. It is celebrated all over the world, including Sri Lanka where consumerism is not as developed as in other parts of the world. Consumer activism is an essential ingredient in any country whether the economy is open or controlled.

Every citizen is a consumer and it is mandatory for him/her to be a party to consumer activism. Consumer right too is a human right legal and a moral right which is enjoyed and recognized in many jurisdictions all over the world.

Universal declaration of Human Rights signed on 10th December 1948 provides, (in Article 25) right to standard of living adequate for the health and well being of himself and the family, including full clothing housing and medical care and necessary social services and the right to security amongst other rights, which is directly relevant to consumer rights.

Article 14 (1) of the Constitution of the Democratic Socialist Republic of Sri Lanka provides for a freedom of speech, (b) freedom of peaceful assembly (c) freedom of association, (g) engage in lawful occupation profession trade business or enterprise and (h) (i) freedom of movement and return to Sri Lanka which are complimentary of the consumer rights directly and indirectly.

In Sri Lanka the major legislation in the field of consumerism is the Consumer Affairs Act No 9 of 2003, which is replaced by all previous legislation namely Consumer Protection Act No 1 of 1979.

The Fair Trading Commission Act No 1 of 1981 and the control of prices act which followed the traditional British Model. The new Act is mixture of Australian, British, Sri Lankan and other models.

One of the main new features of the current legislation is the change of traditional price control mechanism applicable during the closed economy of indirect price control by other means and regulatory procedure. On closed economy the State has full control over the trade and many consumer items were price controlled.

Now the situation has changed. Now the items price controlled are the items determined by the Minister as under section 18 of the CAA Act which states that when the Minister is of the opinion that any goods or any service is essential to the life of the community or part them of the Minister in consultation with the Authority may by order be published in the Gazette prescribed such goods or such services as specified goods or specified services as the case may be. Presently items so identified are as follows.

1 to 14. In the case of all other consumer items and services the trader industrialist and the manufacturer is free to determine the price, subject to the quality, standard, guarantee good trade practices and section 19,20,21 and 22 where excessive pricing and the Consumer Council is dealt with.

This is a very interesting and important section which should have been but unfortunately not been used often due to practical reasons. If the price of a good or a service is excessive the Director General in his/her own initiative (S/19) or on the information by the public (S/22) the Consumer Council has power to investigate and make a determination.

The Council has been given sufficient powers to conduct inquiries. The public are requested to make use of this opportunity, bring down prices of goods and services which are excessive.

These provisions have been enacted with best intentions and expectations. The applicability since the inception of the Act No 9 of 2003, is not satisfactory. Attempts made to educate the consumer and request to make use of this process has not been successful.

Either we have to amend the section or a vigorous campaign will have to be launched, with certain modifications to the Council, which is hardly making use of Director who has a role to play and has a responsibility to initiate and proceed with matters on (1) excessive prices of goods (2) market manipulation or (3) other market imperfections.; The Director General is bound to consult the Authority (S/3 Chairman and members) and to consider whether (a) the sale of such goods or the provision of such services is of general economic importance and (b) any category of consumers is significantly affected by such excessive price.

Members of the public, associations, or organizations too can refer matters to the Director General, when and where goods are being sold, services are being provided at an excessive price.

It is strange that this right is hardly made use of in Sri Lanka though it is often used in other parts of the world with similar legislation. In this instance too the Council will investigate into council for investigation.

Despite the constraints on the existing legal framework and the implementation of the mechanism, people have high hopes and expectations on the CAA, for goods and services of quality at a reasonable price. People have no option but look upon for the CAA, bring the only statutory body available in the country.

Other countries consumerism is developed and organized. Even in India, consumer lobby and public interest litigation is working hand in hand. People have access and right to direct litigation on consumer matters whereas in Sri Lanka it is the CAA that procures on behalf of the people.

The Consumer is always right and consumer is the king are accepted norms in any country. The CAA Act defines a consumer as “any actual or potential user of any goods or services made available for a consideration by any trader or manufacturer” which means even a person who intends to purchase or obtain services, enjoys rights and benefits of a consumer.

This gives wide powers to consumers shopping round for goods and services and gives time for comparative study on shopping. This is an interesting definition the consumer should make use of.

Individual consumers and organizations may use this opportunity, to monitor and supervise the traders, making sure to be careful before leap based on the famous adage” be careful before you leap”.

The Preamble of the CAA is clear on the intentions of the Legislature. It is established to provide for the better protection of consumers through the regulation of trade and the prices of goods and services and to protest traders and manufacturers against unfair trade practices and restrictive trade practices in order to promote competitive pricing wherever possible and ensure healthy competition among traders and manufacturers of goods and services.

Therefore the mandate of the CAA is not necessarily to protect consumer alone. It is bound to promote and protect traders, industrialists and manufacturers.

Mahinda Chintana too promotes the same or similar vision. It promotes a flourishing society and sustainable development based on a new national policy, giving protection to local farmers, industrialists, traders, and manufacturers, while maintaining the free economy. Objects of the CAA are far reaching and exhaustive and ambitious. The main objects (Section 7 (a to d) are as follows.

(a) To protect consumers against the marketing of goods or the provision of services which are hazardous to life and property of consumers.

(b) to protect consumers against unfair trade practices and guarantee that consumers interest shall be given due consideration.

(c) To ensure that wherever possible consumers have adequate access to goods and services at competitive prices and

(d) To seek redress against unfair trade practices restrictive trade practices or any other forms of exploitation of consumers by traders.

Though the objects are far and wide the mechanism to implement is not very clear and straight forward. One has to explore and innovative to implement the intentions and objects, by using regulatory powers coupled with functions which are enumerated in Section 8 in detail.

Competition promotion and anti merger are areas and concepts lacking in the current legislation. This matter was dealt with in Fair Trading Commission Act which is now repealed.

It is time to incorporate anti competition and merger where the procedure and legislature is developed and functioning well.

One of the functions of the CAA (8/iv) is to control or eliminate any restraint of competition adversely affecting domestic or international trade or economic development where the international trade too has taken to the ambit of the working programme.

Other function is to investigate or inquire into anti-competition between persons supplying goods and services. Authority has power to promote competition and consumer interest by carrying but investigations (S/34, 35 and 36) into anti competitive practices. Any citizen, organization of consumers or an association of traders may complain to the CAA and it is the duty of the authority to investigate into the matter within one hundred days.

Promotion of competition and consumer interest are as important as other functions as in a free economy, consumer redress is achieved by encouraging competition, anti merger practices and improving consumer interests.

If there are complaints of anti competitive practices, the authority will carry out investigations. This too is an opportunity not explored by the business community and it is time to make use of this peace of legislation for good trade practices and improve consumer interest.

This is an area strong consumer activism is needed. Not only goods (S/75 any food drink, pharmaccutieal, fuel and all other merchandise) but the quality of the services (S75-service means service of any description which is made available to actual or potential users.

Though respective professions have their own mechanism to maintain professional standards, there is not bar for the CAA to act within the preview of the legislature. Though there is overlapping on the implementation, certain areas we are compelled to intervene. Many instances CAA takes notice of the existence of respective professional bodies and try to work in harmony.

Quality of services and the professional standards are generally matters within the purview of the respective bodies. When there are instances where the professional body does not help the consumer for example in not issuing a receipt in terms of the CAA the Authority may intervene to help the consumer.

The issue of a receipt is mandatory (S/28 a receipt should issue on demand, and the format is given in the act).

Warranty in relation to supply of goods and services are an important ingredient in good trade practices. The concept of implied warranty is a marked factor which is often applied in the inquiries conducted by the Authority.

Consumer aggrieved by the breach of an implied warranty may make a complain to the authority, in writing against such breach within one month of the supply of goods or the provision of such services as the case may be or the supply of materials supplied in connection with the provisions of those services.

Authority is required to undertake studies regarding the satisfactory quality at reasonable process and in adequate quantities, promote, assist and encourage state and other organizations or consumer organizations, and to assist and encourage associations and traders to enter into agreements with the authority in order to provide for the maximum price, standard and any other conditions as to the manufacture report supply, storage distribution, transportation, labelling or sale of goods.

The Authority entered into agreements (S/14) with wholesale traders in order to stabilize prices of essential goods for a short period-until the festive season. The traders voluntarily entered into agreements and it is the first occasion this concept was applied. Refusal to sell, hoarding of goods by any trader and acting against the agreements entered into are offences under the act, and persecuted if violated.

The CAA and the Minister has taken steps to declare the following items essential under S/18 of the act thereby the traders are bound to seek permission from Following the CAA to increase process of “listed consumer goods”.

1. White sugar 2. Dried Chillies 3. Big Onions. 4. Red Onions 5. Dhal 6. Dried Sprats 7. Gram 8. Green Moong 9. Canned Fish 10.Chicken Meat.

In addition the Goerament has removed duty on the following items. 1. Green Gram 2. Dried Chillies 3. Dried Fish 4. Sprats 5.Umbalakada 6. Green Moong and Canned Fish.

The Minister and Ministry of Trade, the Treasury, Consumer, Trader, Manufacturer, the Industrialist and the CAA, must work together hand in order to achieve the objectives of the legislature and good trade and consumer practices, in their own interest.

It is a salutary situation that the traders today are extremely helpful to the call of the CAA on their implementation of rules and directions. We have continuous and constant dialogues with the business community and the consumer at large. The results are far reaching, and successful.

The price of essential goods is steadily coming down! Our target areas are essential goods. Not luxury or imported items. We initially aim at looking after the needy, before concentrating on the entire community. We need public support to help them by helping us to provide us with information, act with us together by suggesting, advising and critising us on our hard work.

We celebrate the World Consumer Day with the world community as a community not as well organised as other parts of the world, especially the west. We have to learn and are learning from their organizational powers and experiences, in order to raise the position of our consumers as a powerful and united force to work in harmony with the business community and the establishments.

Today is the day of the consumer - Trade Minister

Message from Minister of Trade, Marketing Development, Co-operatives and Consumer Services Bandula Gunawardana to mark World Consumer Day

‘Today is the day of the Consumer. In other parts of the world consumerism and the consumer has been given the due place.

Their due place was taken by sheer hard work. A strong network of the Consumer Organizations and strong Consumer movement, educated and alert consumers and good traders are pre-requisites for a just society. We are committed to a free economy.

Even in a free economy we are empowered to regulate trade. Mahinda Chintana too is committed to a flourishing society, and a new national economic policy.

We congratulate the Consumer Affairs Authority for having organised the World Consumer Rights Day in this year too in line with the World trends. I take this opportunity to invite all those who are interested to attend the Seminar organized by the Consumer Affairs Authority at Sri Lanka Foundation Institute, Colombo 7 at 3.00 p.m.

I congratulate and wish all success to the consumers at large and the Consumer Affairs Authority for having organized this international event today.’

‘Consumers should be organised’

Message from H. R. Mithrapala, Minister of Consumer Affairs

‘The World Consumer Rights Day is observed today, March 15. This is the day that the consumers all over the world show their strength in an organised way.

It is very encouraging for us to note that Consumer Affairs Authority too has taken the initiative to celebrate the day in a highly productive way, by organizing an international event on 15th March at the Sri Lanka Foundation Institute.

I wish all success to the Consumer Affairs Authority and the consumers at large for having organized the function in a fitting manner.’

Consumers show their strength

Message from Dr. R. M. Ratnayake, Secretary to the Ministry

‘Today is the World Consumer Rights Day. The consumers all over the world show their strength, duties, powers and the mechanism to help themselves in an organized way by observing the World Consumer Rights Day.

I am pleased to note that the Consumer Affairs Authority this year too has organized an event in a more productive manner by arranging a seminar on various subjects relevant to Sri Lanka situation.

We wish all success to the Consumer Affairs Authority and the consumers at large.’

“Unethical promotion of drugs”

Agenda for World Consumer Rights Day Seminar, March 15:

3.00 p.m. - Lighting the traditional oil lamp

3.05 p.m. - Welcome Address, D.K.J. Amarasinghe, Director General, Consumer Affairs Authority.

3.15 p.m. - Role of the Consumer Affairs Authority, Sarath Wijesinghe, Chairman, Consumer Affairs Authority.

3.55 p.m. - Address by Guest of honour, H.R. Mithrapala, Minister of Consumer Affairs.

3.35 p.m. - Address by Chief Guest, Bandula Gunawardana, Minister of Trade, Marketing Development, Co-operatives and Consumer Services.

4.15 p.m. - Address by Dr. R.M.K. Ratnayake, Secretary, Ministry of Trade, Marketing Development, Co-operatives and Consumer Services.

4.35 p.m. - Tea break

4.50 p.m. - Promotion of Western Medicinal Drugs. (English medium), Prof. Colvin Gunaratna, Lecture of Medical Faculty, University of Colombo.

5.10 p.m. - Unethical promotion of infant milk foods. (Sinhala medium), Dr. S.S.P. Godakandage, Medical Officer, Acting Programme Officer for Neo-Natal Care Breast Feeding Promotion Programmer.

5.30 p.m. - Effective Public Education on Unethical Promotion of Drugs, Dr. Ajantha Perera.

5.50 p.m. - Role of Health Ministry in countering the unethical promotion of pharmaceutical drugs in Sri Lanka (Sinhala medium), Dr. Jayasundara Bandara, Acting Secretary General, Medical Technology and Supplies Division, Ministry of Health.

6.10 p.m. - Legal background on the applicability of the Consumer Affairs Authority Act (English medium), Dr. Wickrema Weerasooria, Insurance Ombudsman of Sri Lanka.

6.30 p.m. - Vote of Thanks, Mrs. C.N. Tilakaratne, Director, Consumer Affairs and Information, Consumer Affairs Authority.

Water is as essential to our life as air

Continued from last week

The public has a major role to play on demanding pure water which is a necessity for life and a basic human right enshrined in the Universal Declaration Constitution of the Socialist Democratic Republic of Sri Lanka, other international and local legislations and legal systems and all accepted norms and practices.

In the United Kingdom when giant Coco Cola, used water from Thames River it is the Media and Consumer organisations which led the battle until the multinational company knelt down.

Since then the consumer and the companies are vigilant and cautious. In other parts of the world too water and bottled water is an important issue and it is advantages for us to learn from their experiences in combating the antisocial elements in our country.

Given below are a few sections pertaining to the subject, the public should be aware of regarding our mandate and area of powers and expectations.

Section 12(1) states that the authority may for purpose of protecting the consumers and ensuring the quality of goods or services provided, by notification published in the Gazette, from time to time to 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.

Now that the Ministry of Health has taken appropriate steps, it is a repetition for us too, to deal with this matter. Now it is our duty to assist the Ministry of Health and work as a team.

Section (13)(a) The Authority may inquire into complaints regarding (a) the production, manufacture, supply, storage, transportation or sale of any goods and to supply of any services which does not confirm to the standards and specifications determined under Section 12.

Though overlapping in this instance the CAA has a mandate to implement the intention of the legislature through the network of officials of the establishment. We need public support on this project.

The public should be vigilant and inform relevant authorities promptly and clearly. The CAA can be contacted via hotline, general phone, fax, email, text or merely calling over to make use of the Instant Advice Centre.

The CAA appeals to the public to help us to help you. Please be vigilant and communicate with us with complaints, suggestions and critics. In addition to our Hotline, General Lines, Fax, Email, the network of provincial offices, we publish three consumer pages every week in Sinhala, Tamil and English. We are at your service and we need complaints from you to act upon.

We take this opportunity to remind the public of the change of policy, strategy and concept of price monitoring. Today, the traditional price control procedure is replaced by the concept of price mongering by indirect and regulatory process. We have no control over prices, unless it comes under Section 18 of the CAA which has given powers to the Minister as follows.

(The author Sarath Wijesinghe, Attorney-at-Law and a Solicitor in England and Wales is the Chairman of the Consumer Affairs Authority. [email protected], Tel. 2399146. Hotline: 2321696. Fax: 2399148 for comments suggestions and criticism).

To be continued