Business Consumer Affairs

Goods and supply of goods - Determination of standards and specifications

The Consumer Affairs Authority may for the purpose of protecting the consumer and ensuring the quality of goods sold or services provided, by Notification published in the Gazette, from time to time, 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.

The Authority may by Notification published in the Gazette adopt such standards and specifications prescribed by the Sri Lanka Standards Institution established by the Sri Lanka Standards Institution Act, No. 6 of 1984, relating to the production, manufacture, supply, storage, transportation and sale of any goods and to the supply of any services as standards and specifications to be determined.

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.

(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.

A complaint which relates to the sale of any goods or to the provision of any service shall be made to he Authority in writing within three months of the sale of such goods or the provisions of such service, as the case may be.

At any inquiry held into a complaint the Authority shall give the manufacturer or trader against whom such complaint is made an opportunity of being heard either in person or by an agent nominated in that behalf.

Where after an inquiry into a complaint, the Authority is of opinion that a manufacture or sale of any goods or the provision of nay services has been made which does not conform to the standards or specifications determined or deemed to be determined by the Authority, or that a manufacture or sale has been made of any goods not conforming to any warranty or guarantee given by implication or otherwise by the manufacturer or trader, it shall 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 the provision of such service, as the case may be.

Where any manufacturer or trader fails or refuses to comply with an order such manufacturer or trader shall be guilty of an offence under the Act, and the sum of money due on the order as compensation or refund may, on application being made in that behalf by the Authority to the Magistrate’s Court having jurisdiction over the place of business or residence of such manufacturer or trader as the case may be, be recovered in like manner as a fine imposed by such court, notwithstanding that such sum may exceed the amount of a fine, which that court may, in the exercise of its ordinary jurisdiction, impose.

A.L. Mohideen Bawa, Executive Director, CAA

Importance of specific role of Competition Policy

Competition, though seen as a means of attaining efficiency and fairness, may not necessarily promote these objectives. A perfectly competitive market with many small firms may achieve equality of opportunity but may not achieved efficiency, as too many firms will mean that they will not be able to enjoy economies of scale.

Obviously, competition policy must deal will Trade-offs in its objectives and instruments.

This concern has led to a shift from structural approach to behavioral approach in enforcing competition in market. After all, in a fiercely competitive market, even a duopoly can produce an outcome that a perfectly competitive market generates.

Thus, it may not be necessary to have a highly competitive market structure, provided that appropriate rules of the game can be designed and enforced so that the behaviour of the market players remains competitive.

This approach may, on the other hand, become ineffective when there are natural monopolies and competition cannot be ensured as such.

Situations could also arise where there might be a number of players in the market, but the market itself is so segmented that the individual players become monopolists in the relevant market.

The only way to get ‘competitive outcome’ in such markets is to put in place effective regulation.

Competition policy is quite a complex issue. Unfortunately there has not been much research on competition issues in many countries.

A specific role of competition policy which may be of particular importance in developing countries relates to the prevention of bid rigging in public procurement processes.

Among the other goals, competition policy aims to promote consumer welfare, mainly in terms of lower prices, better quality of goods and services, more choice and easy availability.

Consumer organisations

The islandwide programme of organising Consumer Associations is in full swing, with active participation of social workers and in collaboration with community-based organisations, functioning at grassroots level.

In the modern world in which trade and commerce are liberalised, the consumer is at the mercy of the traders and manufacturers.

In this backdrop, consumers in many countries have organised themselves and act as pressure groups and urge the Government to enact legislation to protect them. So it is high time that Sri Lankan consumers organised themselves to form a powerful social movement.

Unless the consumer protection lobby becomes a broad social movement embracing all strata of society, from the urban poor living in slums, middle classes in the city, the rural folk, the unscrupulous traders and manufacturers fleece the people.

Consumer protection involves not only providing them the opportunity to save their hard earned money but also ensuring them a healthy and conducing environment to lead a happy and contented life.

One of the functions of the Consumer Affairs Authority Act No. 09 of 2003 is to “Promote, assist and encourage the establishment of consumer organisations.” In order to achieve the objectives, it is very important for rice consumers to take note of, and seriously consider the establishment of these organisations in every village.

Dear customers - be vigilant

Traders attempt to deceive customers in many ways. The following are some of them, which customers should be conscious and be vigilant of, at all times.

1. Marked Price - It is very common for most super markets to charge customers a price higher than the price marked on the product, which they claim is due to a computer entry of the price of the latest consignment, which is price higher.

Such explanation is no excuse for a trader to charge a price higher than what is marked on any particular item and the consumer has a legal right to demand that the item be purchased at the price marked on the product.

2. Price Sticker - Some traders put their own price sticker on the product, which may show a price higher than what manufacturer had printed on the label. Such practice is irregular, and a customer has a legal right to purchase the product at the price originally marked by the manufacturer on the product label.

3. The Bill - Check the bill even after going home. You could have been over billed on certain items, either on the price or on the quantity of the item/items purchased. Promptly complain to the owner or manager of the shop with the least amount of delay.

4. The Change - You can be deceived on the change in a number of ways. One way is to give the wrong change, which is less than what you should receive.

Another way is to confuse you by being asked for a further coin or note and giving you and change which cannot be reconciled at the counter. Another common way is not giving small change, like a Re. 1 coin or a cts. 50 coin claiming that small change is not available.

You should at all times insist on receiving the correct change. These practices happens mostly at super markets and in passenger busses.

5. Warranty - Whenever a purchase includes a warranty, insist on such warranty being clearly written on the invoice if no separate warranty card is issued. Note to preserve the warranty card AND the invoice or bill until after the lapse of the warranty period.

6. Expiry Date - Items which are close to the expiry date are usually stacked within easy reach of customers. Customers should reach far into the rack and pick the item which has a longer expiry date.

7. Performance - Any battery or current operated item should be tested at the shop itself before removal, since a trader is unlikely to replace such item after having been remove from the shop.

8. Weight - Be watchful of the scale when items are weighed. Certain traders are very “hasty” in taking the things from the scale. Insist that the scale be allowed to balance before removing items.

9. Bargain Prices - Be extra careful in buying items which are offered at ridiculously low prices, since they could be at the expense of quality or even be totally defective or spurious.

10. Excess Balance - To be fair by the trader, if you get change in excess of what you should get, promptly return it to the trader. ‘One good turn deserves another.’

Consumer Affairs Authority

1-2nd Floors
CWE Secretariat
27, Vauxhall Street
Colombo 2

Tel: 2445897, 2393577, 2393495

Fax: 2399148

Hotline: 2321696

Website: www.consumeraffairs.gov.lk

Government Information Hotline: 1919

Branches: Ampara 0602 638512, Gampaha 0602 839912, Kurunegala 0602 979792, Polonnaruwa 0602 279982, Badulla 0602 559582, Matara 0602 404312, Batticaloa 0602 658522, Moneragala 0602 559599, Kegalle 0602 359912, Anuradhapura 0602 858612, Hambantota 0602 489912, Matale 0602 668602, Puttalam 0602 329012, Kalutara 0602 309912, Ratnapura 0602 469912, Kandy 0602 826212, Galle 0602 929812, Nuwara Eliya 0602 539812.