Business Consumer Affairs

Responsibility of all to optimize use of energy:

Saving energy begins at home

As we all know at present Sri Lanka has faced several problems with regard to the availability, use and prices of different energy sources used in the country.

The responsibility of all consumers is to try to optimize the use of energy at the individual household level and this will contribute to mitigate the energy crisis at national level. This article attempts to draw your attention to different ways that the efficiency of energy use can be improved at the household level.

Use of energy efficient appliances:

Suppose you want to buy a refrigerator. The best to buy is the fridge with the lowest price; is it a correct decision? Not really. How much an appliance costs depends on 3 things; purchase price, repair and maintenance cost and energy cost. To estimate how much you will spend on an appliance over time, you have to consider all these costs.

Energy efficiency is an important part of any decision. What makes one appliance more efficient than another? Most of the differences are on the inside. Even if two models look the same, certain features can mean a big difference in your energy bills.

To make an energy smart decision

* Select the appropriate size and style

Measure the space in your kitchen to be sure your new appliance will fit. Make sure that you have room to open the door fully and have enough space for ventilation

* Calculate the operating cost as well as the purchase price

Checkout your choices for the equipment and look for the energy star logo to find the most energy efficient models.

* Know where to shop

Appliance outlets, electronic stores, local retailers often carry different brands and models. Once selected your choice compare the deals of different retailers.

* Ask about special offers

The company may offer cash rebates, low interest loans or other incentive programs. Inquire about them.

Energy saving tips

* Move your refrigerator away from the cooker or other heat sources. Make sure the door seals are air tight. Minimize the number of times you open the refrigerator.

* Use pans that fit the size of the burners on your cooker. Use lids then you can cook at a lower temperature.

* If you use the pans made out of clay in the gas cooker select the ones specially made for gas cookers. These pans are thinner than the normal ones and this helps to save gas.

* Use a pressure cooker whenever possible this will cut down the cooking time and saves energy.

* Clean the burners of the cooker regularly. This improves the efficiency of the cooker.

* Make sure that the refilled gas cylinder has the correct weight before you purchase.

* Match the water level on your washing machine to the size of your load. Don’t fill the machine for just a few items.

* Iron all the clothes required for one week at once.

* If you use air conditioners switch off it 30 minutes before you leave the room & switch on the air conditioner after about 30 minutes of your arrival next day.

Shedding light on buying bulbs:

What do you need from a light bulb? You want the right amount of light, and you want it to last a long time. But you don’t want it to add to your electricity bill. You can get everything you want if you use a little energy know-how.

Energy efficient lighting can save you money. You have to pay attention on the following when purchase bulbs.

- Light Output

* How much light the bulb produce, measured in lumens. A 60 watt regular bulb yields about 855 lumens. A 15 watt compact fluorescent bulb yields 900 lumens.

Energy use

* The total electrical power a bulb uses, measured in watts.

- Average life in hours

* How long the bulb will last

Start saving energy today. Enjoy the benefits of reduced energy bills. Help the country to combat a national problem.

Chandrika
Thilakaratne
Director Consumer Affairs and Information, CAA

Consumer is sovereign

We all are concerned about our rights, talk about our rights, write books, lengthy articles etc. about our rights and preach about our rights.

There are numerous rights that we enjoy such as Human Rights, Child Rights, Women’s Rights, Workers’ Rights, Consumer Rights etc. But do we for a moment think about our duties, responsibilities or obligations towards our families, towards our employers, towards our society? There are individuals, Government and Non Government Organisations who will assist us, support us, encourage us, speak on behalf of us if our rights are violated.

But it is heartening to note that we do not find any organisation which will come forward when we do not discharge our duties, responsibilities, or obligations towards our family, towards our employer, towards our society and towards the country at large.

As consumers it is true that we should be concerned about our rights but also we should give the same level of consideration towards our responsibilities as both rights and responsibilities go hand in hand. Through serious consideration of the responsibilities only we should be able to safeguard our rights as consumers.

As consumers, you have to be more vigilant about the prevailing market situations, availability of goods and the quality and standards of goods.

We should also be aware about the family consumption patterns and should be able to adjust the consumption patterns according to the availability of goods and avoid buying them when the prices go up due to various reasons.

Eg. You can avoid purchasing upcountry crop during rainy seasons when the prices go up and instead purchase vegetables grown in the low country which will be available in abundance for a cheaper price.

During ancient times when technology has not developed as at today our housewives have always used various methods to preserve food items specially the items which you find in abundance during the particular seasons/harvesting times.

Pickles, dried fish, chutneys etc. are some of the methods adopted by ancient people to preserve food in order to consume during non-seasonal times.

When purchasing electrical or electronic appliances try to buy from reputed dealers and go for reputed brand names. Although they may cost you a little more, the extra rupee you pay goes a long way.

Always insist on the warranty and fill up all required from accurately so that you are not only covered for manufacturer’s defects but you will become entitled for repairs during the period of warranty. If the seller fails or ignores to give any warranty, report it to the relevant authorities.

Be extra cautious about what is printed in small letters in a warranty card. This also applies to services specially when obtaining insurance policies.

When purchasing processed food items in packets, bottles, tins, cans, containers etc. always read the labels, specially the date of expiry/date of manufacture. Maximum retail price, name of the manufacturer etc. Do not buy items which do not have any label although it may be cheaper in price.

Consumers must be always assertive and be actively involved in order to ensure a fair deal as consumers would be exploited if they remain passive consumers.

Consumers should never be carried away by advertisements. The consumer should be able to look at a product analytically and think and act critically. In such a situation the trader will not be able to take him for a ride with advertising gimmicks.

It is not the average consumer that the traders target by their advertisements but most of them target children which has become really a tough job on the parents. It is our duty to teach our children on food habits, nutritional values etc. from a very young age in a way they could understand, specially in schools and at home.

Consumers should always be able to distinguish needs from wants specially when you possess ‘plastic money’. Make sure that you buy what you need because you tempt to spend more when you carry plastic money with you. If you analyse your needs and wants, before you buy, you will not regret later.

As far as possible avoid shopping during festive seasons and never be carried away by various special offers, sales, easy payment schemes etc. which are tricks played by traders in order to attract customers.

Always be mindful about the prices prevailing just before any festive season and compare them with the special offers, sales, easy payment schemes etc. which are tricks played by traders in order to attract customers.

Always be mindful about the prices prevailing just before any festive season and compare them with the special offers etc. and decide for yourself whether its worth buying it or not.

Also you have to be vigilant about the quality of the items offered during these seasons in various ways and methods.

We are all consumers and we have to be mindful that the ideal economy where the consumer is sovereign is something that is hard to achieve. Give some thought to what has been stated in this article and try to act with responsibility as a consumer. Then you can be happy about yourself that you have done your part as a consumer.

Deepthi Tissera, Actg. Director General,
Director, Legal, CAA

Benefits of competition and monopoly

The benefits of competition are lower prices, better products, wider choice for consumers and greater efficiency than would occur under conditions of Monopoly. According to economic theory, social welfare is maximized in conditions of perfect competition.

The allocative and productive efficiency will be achieved in society’s wealth maximization. Consumer welfare which is concerned with gains to consumers as opposed to society at large, is also maximized in perfect competition.

A relative benefit of competition is that it will have the dynamic effect of stimulating innovation as competitors strive to produce new and better products for consumers. The producers will constantly innovate and develop new products as part of the continual battle to striving for consumers’ business.

Thus competition may have the desirable dynamic effect of stimulating important technological research and development. The Monopolist is in a position to affect the market price. Since it is responsible for all the output, and since it is a aggregate output that determines price through the relationship of supply and demand.

The monopolist will be able either to increase price by reducing the volume of its own production or to reduce sales by increasing price. The later occurs in the case of highly branded products, which are sold at higher prices.

Assuming a motive to maximize profits, the monopolist will see that it will be able to earn the largest profit If ti refrains from expanding its production to the maximum possible.

The result will be consumers will be deprived of goods and services that they would have enjoyed at the competitive market specially the price. Therefore there is inefficiency in society’s resources, or are not distributed in the most efficient way possible.

A final objection to the monopolist is that since it can charge a higher price than in conditions of competition (it is A price - settler), wealth is transferred from the helpless consumer to the monopolist.

This may be particularly true where it is able to discriminate between customers, charging some more than others. However it is important to recognize that price discrimination in some circumstances may be welfare enhancing, or at least neutral in terms of social welfare.

The present Consumer Affairs Authority Act is a combination of Competition Promotion and Consumer Protection. One of the functions of the Authority as spelt under Section 8 (a) (iii) is to control or eliminate abuse of dominant position with regard to domestic trade or economic development within the market or in a substantial part of the market. In promoting consumer interest and welfare the Authority shall control of eliminate abuse of dominant position through competition promotion.

Shanthini/Director
Competition
Promotion CAA

Effective business competition

History shows the market economy is the best system to bring about and maintain public welfare. In a market economy, the activities of producers and consumers are not planned by a central body but rather by individual economic agents and it is COMPETITION that acts as the invisible hand “co-ordinating” their plans.

A competitive system would make production, distribution, marketing, consumption and allocation of resources (natural, human and capital) efficient. Competition can therefor rightly be seen as the driving force behind a market economy.

For a market economy to work well and give benefits to all parties, competition must be effective. It must involve a large number of free competitors to prevent monopolistic practices and/or unfair business competition.

It is our mission in the Consumer Affairs Authority for the supervision of business competition to ensure that the driving force of the market economy viz, effective business competition-function well for the benefit of the consumers.

The Authority for the promotion of healthy competition, function as an independent Authority establish to supervise the law concerning the “Abuse of dominant position”, “unfair trade practices” and “Anti-Competitive business practices”.

In implementing, the Authority is conducting examinations/investigations of any party alleged to have violated the Act No. 9 of 2003. On conclusion of the investigation/inquiry, the Authority is issuing binding decisions, and imposing legal sanctions on any violations of the Law.

In ensuring healthy competition “empowering the business community” is considered mainly as the preventive method. Business opportunities resulting from the prevention of practices that restrict effective competition will open wide consumers’ opportunities to exercise their right to make appropriate choices.

Control or Prohibition of abuse of dominant position, unfair trade practice and Anti-Competitive practices does not only benefit the Consumers as widely misunderstood. Implementation of these sections of the Act also befits producers, for elimination of unreasonable obstacles to business activities. The Authority performs its duties to benefit both producers and consumers for it protects the working of a fair market economy.

Consumer protection follows from supervision of business activities to ensure effective business competition. Free interaction between supply and demand will lead to fair and reasonable prices to consumers, enabling them to make free choices of goods and services with prices and the quality that they could afford.

A well functioning market economy will also encourage the optimal allocation of resources such as natural, human and capital and also the implementation of new, efficient technologies.

A conducive business climate will make businesses better and able to compete internationally and therefore provide opportunities for economies of scale, employment, and ultimately increase the public welfare/wealth.

Shanthini, Director,
Competition Promotion, CAA.

Questions and answers

Q: The expiry date of the film roll which I purchased has passed, but the seller refuses to take the responsibility?

A: Selling items after the expiry date is an offence. The seller should be responsible. Matters of this nature could be reported to CAA.

Q: Due to a defective condition of electrical equipment purchased by me, it was brought to the attention of the company. They have rejected any responsibility on the matter.

A: Every electrical or electronic item should carry at least six month warranty from the date of sale.

Q: When I inquired about the prices of cars from several motor companies they did not respond well.

A: Every customer has the right to be aware of the prices of every item before making the purchase. So the company has to display the prices of the items.

Q: As breads are not properly baked, there is a doubt that they are unsuitable for human consumption?

A: As per the provisions of the Food Act No. 26 of 1980 legal action can be initiated against the bakers. Customers can complaint to the Public Health Inspector.

Q: Can I get a refund of the money spent on a water filter as it does not purify the water as expected.

A: Before asking for a refund, as an alternative you may request for a replacement of the item.

Q: I borrowed some money for an urgent matter at monthly interest rate of 6 percent, and as a result, it amounts to 72 per cent per annum which is a big amount?

A: You can send your complaint to the following address Chairman, Debit Council, 428/11, Denzil Kobbekaduwa Mawatha, Battaramulla.

Q: I was given six month warranty only for the engine of an excavator purchased, paying a large sum of money. Is it reasonable?

A: Considering the amount paid it is a fair trade practice to give warranty coverage for every part of the vehicle.

Q: There is a change in the colour when the paper is printed?

A: Customers should be made aware of the sheets specified for printing purposes by the traders as it is their responsibility.

Q: A studio took over the negatives of a film roll for printing some pictures selected from it. But after two days, I was informed that they had not saved them in the computer?

A: Pictures given should be saved and stored in the computer at least for three days or otherwise the customer should be advised to keep the negative in safe custody.

Q: I purchased a roll of polythene and when trying to use I found that it is slicked together?

A: This can be brought to attention of the officers of the company requesting either replacement or refund of the money paid in this regard. If they fail, you may make a complaint to the Authority.

Consumer tips:

How to prevent a cold

A Boil on my neck’, said Sir. Winston Churchill, is more important to me than World War II’ likewise when you have a bad cold, you cannot see anything beyond your nose. The world seems so dreary. You suffer alone. You can’t concentrate on anything. You can’t speak clearly, you can’t breath freely and you can’t even pronounce’ ‘Macbot’ or mucus’! People give you advice by the buckets. But your agony persists. It’s time you could tell the myths from the facts and, with a few tips, got well soon.

1. Bacteria cause a cold and antibiotics cure it.

False: Viruses cause a cold. Antibiotic treat bacterial infection and, therefore, don’t cure a cold. Antibiotics may be necessary if the cold causes a secondary bacterial infection such as in the ear or sinuses,

2. Being in crowds puts you at risk for a cold.

False: It actually can take up to several hundred hours or exposure to a cold virus to catch a cold. You are more likely to catch a cold from family members.

3. A child catching a cold has a weakened immune system.

False: Healthy children too catch colds. One study in healthy adults found that 95 per cent developed cold symptoms when drops of the virus were placed in their noses.

4. Washing your hands can prevent a cold.

True: Most colds are caused by rhinoviruses that concentrate in the nasal passage. Cold viruses are mostly transmitted by hand to nose or hand to eye contact. Scrubbing your hands well kills the viruses and is the most.

5. Drinking lots of fluids will help hydrated during a cold.

True: Keep your body well hydrated during a cold. Drink adequate amounts of liquids such as water or juice. A dehydrated - or water - starved-body - will cause the lining of the nose and throat to dry out. Lots of liquid will ensure that the mucus stays moist and continues to flow out of the body.

6. Becoming cold or chilled leads to catching a cold.

False: Almost everybody becomes infected, whether they are chilled or not, if cold virus enters the nose. However, studies carried out in the 1940s showed that volunteers who were wet and exposed to cold air were no more likely to catch a cold than control subjects were.

7. Drinking milk increases nasal mucus during a cold.

False: Milk is digested like any other protein and is not specifically converted into nasal mucus. According to an Australian study, people drinking lots of milk have no more nasal mucus than those not drinking milk. There is also no evidence that drinking milk will increase the amount of mucus.

8. One catches a cold by going from the heat into air conditioning.

False: Just as exposure to cold weather does not cause a cold, Going barefoot, having wet hair or clothes, or not wearing a hat in winter do not make one sick.

9. Vigorous work out and/ or not getting enough sleep cause cold.

False: Exercise doesn’t cause a cold. But if you are emotionally or physically stressed, your ability to fight off a virus may be reduced making it easier to become sick.

Courtesy: The Consumer Magazine