Business Consumer Affairs

Answers to frequently asked questions

01. What should be contained in a receipt issued by a trader to a purchaser?

a) The date of sale

b) The quantity of goods sold

c) The price paid for such quantity

d) Nature of the transaction, whether the sale was wholesale or retail.

e) Any other requirements that may be imposed under any law relating to the issue of receipts by a trader.

02. On what type of consumer complaints can the Authority hold inquiries?

The Authority may inquire into complaints regarding -

a) the production, manufacture, supply, storage, transportation or sale of any goods and to the supply of any services which does not conform to the standards and specifications determined under Section 12; and

b) the manufacture or sale of any goods which does not conform to the warranty or guarantee given by implication or otherwise, by the manufacturer or trader. And received within 3 months from the date of purchase.

In every contract for the supply of goods or for the provisions of services by any person in the course of a business of supply of such goods or provisions of such services to a consumer, there is an implied warranty that -

a) the services will be provided with due care and skill.

b) that any materials supplied in connection with provision of such services will be reasonably fit for the purpose for which they are supplied,

c) the goods supplied or services provided will be in conformity with the standards and specifications determined under Section 12 of this Act, and

d) the goods supplied will be reasonably fit for the purpose for which they are supplied.

03. What is the relief that can be granted to an aggrieved consumer at an inquiry held under Sec. 13 of the Consumer Affairs Authority Act?

The Authority can order the manufacturer or trader to pay compensation to the aggrieved party or to replace such goods or to refund the amount paid for such goods or services.

04. Is the Authority empowered to send warnings to traders?

Yes. The Authority may send a warning to any trader who has contravened any of the provisions of the Act or any direction given thereunder on the first occasion.

05. Are offences which are specified in the Consumer Affairs Authority Act, cognisable?

Yes. Every offence under the Act is deemed to be a cognisable offence under the Criminal Procedure Act which means a Peace Officer has power to enter into any business premises and search the place without a search warrant.

06. Is there any provision to offer rewards to any person who provides information leading to any conviction?

Yes. 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.

I. to the person who provided the information leading to such conviction of the seizure and 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.

07. Is the principal liable for offences of agents and servants?

Yes. According to Sec. 68 of the CAA Act the principal is liable for offences of agents/servants unless he proves that the offence was committed without his knowledge.

Inordinate delays can be avoided:

Your complaints should provide sufficient information

A.L. Mohideen Bawa, Executive Director, CAA

The consumer Affairs Authority receives complaints daily in plenty by phone, e-mail, letters etc. Invariably we find that most of the complaints do not indicate sufficient information resulting in, inordinate delays in finding solutions.

While making a complaint, there are certain basic questions which need to be answered, so that those answers to questions would facilitate the process of inquiry.

Here are some of those basic questions you have to bear in mind while making complaints. The answers to the question below will serve you as guidelines.

What? Describe as completely as you can the problem you are having with a product or service you purchased, leased or rented. The description should include enough information for us to understand the situation and why you believe it is a problem.

For example, were you told something that was untrue? If so, describe what you were told and why you believe it was untrue. Is something defective? If so, explain what was wrong.

Who? Identify the business you are having problems with by name and current address. Identify also all the individuals with whom you have dealt in your attempt to resolve this problem.

How? Identify the method of approach to or from the business. For example, did you respond to a print ad, or did you receive a telephone solicitation? Did you visit a store or order on the Internet?

Identify the location where the problem occurred and the date (or the first point in time, if it took place over several days, weeks or months). These two pieces of information are crucial in determining whether we have jurisdiction to address the dispute.

What resolution are you seeking? Explain how you believe the dispute should be resolved, such as by issuance of a refund, cancellation of the contract, or repair or the item. Since we mediate many of the complaints we receive, we need to know what resolution you desire.

How can we contact you? It is of vital importance that you give us your mailing address, an e-mail address and a daytime phone number so that we may respond to you.

Questions and Answers

Q: What kind of action do you resort to when you come across anti-competitive practices which are considered inimical to the public interest?

Ans: Where an anti-competitive investigation indicates that one has acted against the public interest appropriate orders under Sec. 41 of the Act can be made.

Thus read as on completion of an investigation if the Council is being satisfied that an anti-competitive practice exist and that operates against public interest, order may be made either to terminate such anti-competitive practice or any other action for the purpose of remedying or preventing the adverse effects of any anti-competitive practice.

Q: How do you view the dumping of goods? Is every case of imported cheap goods entering the Lankan market is case of dumping? Has the Consumer Affairs Authority any jurisdiction in such matters?

Ans: Import of cheap goods into the Sri Lankan market is not necessarily dumping; although an anti-dumping legislation is in very primitive draft stage exists in Sri Lanka not in practice.

Dumping could be considered as an anti-competition practice falling under Sec. 35 of the CAA Act. Which defines as “Where a person in the course of business, pursues a course of conduct which of itself or taken together with a course of conduct pursued by persons associated with him, has or is intended to have or is likely to have the effect of restricting, distorting or preventing competition in connection with, supply or acquisition of goods in Sri Lanka or the supply or securing of services in Sri Lanka.

The contracting parties recognise that dumping by which products of one country are introduced into the trade of another country at less than the ‘normal value’ of the products, is to be condemned if it causes or threatens material injury to an established industry in the territory of a contracting party or materially retards the establishment of a domestic industry.

For the purposes of this article a product is to be considered as being introduced into the trade of an importing country at less than its normal value, if the price of the product exported from one country to others.

a) is less than the comparable price, in the ordinary course of trade, for the like product when distinct for consumption in the exporting country or, b) In the absence of such domestic price, is less than either,

I. The highest comparable price for the like product for export to any country in the ordinary course of trade, or

II. The cost of production of the product in the country of origin plus a reasonable addition for selling cost and profit.

Q: Do you find consumers resistance to poor quality goods etc?

Ans: Question relating to quality are monitored by the Sri Lankan Standards Institution, the Consumer Affairs Authority and Public Health Authorities. We see that there is a growing awareness of the Sri Lankan consumers because of steps taken by us.

Q: Are you satisfied with the awareness level among consumers and traders?

Ans: We are satisfied by the number of consumer complaints we receive in the recent past after our consumer awareness programs and establishment of consumer organisations.

Similarly we are planning for trader awareness programmes throughout the country focusing on benefits of competition and consumer interest.

Director, Competition
Promotion, CAA