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Consumer Ombudsman column

by The National Consumer Watch of Sri Lanka

Some years back the Sunday Observer ran a Consumer Ombudsman column in association with the National Consumer Watch (NCW) of Sri Lanka. For the consumer public of our country, we are happy that the paper has agreed to restart this column. First, a word about ourselves.

The National Consumer Watch of Sri Lanka which was established in 1994 is an incorporated body consisting of well-known professionals. Our main objective is the promotion, protection and advancement of the interests of consumers in Sri Lanka. Another important objective is to create public awareness of consumer issues through the media, both print and electronic.

Since our establishment there is today in Sri Lanka, a very useful and powerful piece of legislation called The Consumer Affairs Authority Act No. 9 of 2003. Although the Act came into operation on March 17, 2003, many of our citizens are not aware of this legislation or its comprehensive coverage. What is equally important is that this new legislation repealed three other basic laws that had applied in Sri Lanka for several years. The laws that were repealed were (1) The Control of Prices Act No. 29 of 1950 (2) The Consumer Protection Act No. 1 of 1979 and (3) The Fair Trading Commission Act No. 1 of 1987.

Still there are consumers, traders, businessman, public officials and professional lawyers who are under the impression that these three statutes are in operation. It is indeed a great pity that the new Consumer Affairs Authority Act of 2003 (called the CAA Act) is not publicised and widely known in the country.

The only newspaper that constantly refers to it is the Ceylon Daily News which contains small advertisements almost on a daily basis asking traders to price mark their products because it is a stringent requirement of the CAA Act. Indeed, the Ministry of Trade, Commerce and Consumer Affairs should give greater publicity to this legislation and its coverage.

The Consumer Affairs Authority Act is far reaching in its application in that it applies to goods and services and includes within its coverage all service providers. One should read the Interpretation Section of the Act which is Section 76. In that section, "Consumer" means any actual or potential user of any goods and services who pays for such goods or services. "Goods" means "any food, drink, pharmaceutical, fuel and all other merchandise".

The word "service" is given an all embracing meaning and includes "banking, insurance, financing and even entertainment". The section then goes on to say that all "professional services" are covered. Under "professional services" are included all the commonly known professions such as doctors, lawyers, auditors, accountants, engineers, architects and surveyors etc. Even professions not specifically mentioned in the section would be covered under the general rules relating to statutory interpretation. Under the legislation, the term "trader" is also given a very wide definition because it includes "any person who provides services for a consideration". Thus, only those persons who do honorary work not charging a fee or payment are excluded from the operation of the Act.

In the above context, today we have in Sri Lanka, an important and comprehensive piece of legislation that protects all consumers. Thus, a huge responsibility is placed on the Consumer Affairs Authority, its Chairman, its Director General and its staff to ensure that the salutary provisions of this all embracing legislation is used to protect and benefit consumers.

Already, the Consumer Affairs Authority has used the powers given to it under the legislation to prevent unreasonable increases in the price of milk foods and gas. They may do so for the price of flour so as to prevent the soaring price of bread.

However, milk foods, gas, flour and bread are the customary areas for consumer watchdogs. There are other areas that can be watched and this is where non-government bodies like the National Consumer Watch of Sri Lanka can play an important role.

We are grateful to the Sunday Observer for re-starting this Consumer Ombudsman column. Each Sunday, in this column, we hope to raise some practical issues that will benefit the public who are, after all, all consumers. In this column we will also discuss the rights, duties and obligations of manufacturers and traders vis-…-vis the consumers.

For a start, in order to create greater awareness, we will explain in simple English the various provisions of the Consumer Affairs Authority Act No. 9 of 2003 and the functions and powers of the Consumer Affairs Authority created under the Act and how any member of the public can apply to it for redress or relief.

An excellent book on the subject is the one written by Dr. Dayanath Jayasuriya, a well-known lawyer who is currently the Chairman of the Securities Exchange Commission and the Insurance Board. Dr. Jayasuriya's book is titled "A Guide to the Consumer Affairs Authority Act". In this book of 200 pages you find all that you need to know about the new legislation.

We also welcome contributions to this column from members of the public and from associations and organisations involved in Consumer Protection. Any queries or questions you may have, may also be directed to this column as "The Consumer Ombudsman Column", C/o. The Editor, Sunday Observer and we will do our best to answer them.

Those interested in joining the National Consumer Watch of Sri Lanka are welcome to do so and can apply for membership to us by letter addressed as follows -

The National Consumer Watch of Sri Lanka, 143A, Vajira Road, Colombo 5


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