Wanting of consumer alert in Sri Lanka
Act exhaustive but lacks teeth!
By Sarath Wijesinghe
Recently in the United Kingdom, famous phone company "Car phone
Wherehouse" was fined nearly Euros 300,000.00 by the regulator for
misguiding the consumer on insuring mobile phones. Recently again in the
United Kingdom "I" mobile was introduced with revolutionary changes
where one could buy the travel cards, conduct bank transactions,
purchase daily needs and able to deal with most needs with the use of
the mobile. In the west the way of life and economy is fast changing due
to the development of mobile industry.
In Sri Lanka too mobile industry has eaten into the national end
family economy. Consumer and media are always in the war path on the
increase of any consumer item. But ironically silent in arbitrary
increase of prices and exploitation by mobile phone industry. It drains
our economy and retards the development and education though there are
indirect benefits at a high cost. UK and Europe too is extremely
concerned about this newly introduced monster.
Car phone Wherehouse was on the defensive when the media criticised
the UK business giant on their attitude on the consumers on high pricing
the new product and the insurance. They had to give in to the pressure
by the media and consumer organisations. They immediately brought down
the price of the product and insurance. Consumer won the day due to
their organisational ability and the support from the media as a whole.
This is not the first instance the world multinational companies had
to bow down to the consumer and media pressure. A world famous Cola
company infamous for the after effects and the ingredients of the
product was found fault using water from the "Thames River". In this
instance too consumer organisations and media clamped down the company
in the eyes of the public and law.
England, Wales and Scotland consumerism is highest in the agenda.
Frequently asked questions, answers, assistance, and guidance to
consumers are available in Citizens Advice Bureaux and Legal Aid Centres
countrywide. Times has "Times on Line" to help consumer online. City
Regulators deal in various areas such as mortgages, vehicle, consumer
goods, and Essential items for the Public and educating the public. In
the United States the Federal Government has decentralised the consumer
network giving high priority for the subject. In Europe ECC Net works,
Websites, Protective rules, and Advertisements are keeping consumerism
in the region active. In India Consumer Protection Act and Essential
commodities act formulates policies, receive complaints, monitor prices,
control essential commodities, and have a control on statuary bodies. In
China Ministry of Consumer Affairs is active with the Motto - "Consumer
Transfection with Confidence" With Global industrialisation and experts
to the entire world, China is giving top priority to quality and
satisfaction of the consumer worldwide. In Singapore the Ministry of
Domestic Affairs and Consumer Affairs have taken over the consumer
activism from the Airport to the entire country. Even Airlines are not
spared and the visitors to the country are educated on consumer rights
and duties at the entry to the country.
This is the situation in nutshell in few countries in different
regions and economic policies. But the global phenomena on consumerism
today are unique and demanding. Our Consumer Act no 9 of 2003 was
introduced on 17th March 2003 with best of intentions, replacing
Consumer Protection Act, Fair Trading Commission Act and Control of
Prices act, with the change of the economic concepts of closed economy
to open economy where the price control is replaced by price monitoring
by regulatory powers. Under part 2 of the act on Regulation of trade the
CAA became the main regulator in the country shelving price control into
the history book. Previously most consumer items were price controlled
and it was a simple process. Under the present set up indirect price
control has become a complicated process, where it has to be implemented
under section 18 of the CAA act by declaring in the Gazette the named
item as essential by the Minister on the advice of the CAA.
Under S/18 of the CAA only few items come under the scrutiny of the
organisation. Gas, milk powder, cement and wheat flour are some items of
which wheat has become controversial as to the legality of implication
of the directions which states that "No manufacturer or trader shall
increase the retail or wholesale price of any goods or any services
specified without the prior approval of the authority. Our experience
since 2003 has shown the difficulties in implementing this mechanism,
though the drafters have imported the concept from other jurisdictions
to help our consumers.
It is time to reintroduce the price control concept again to meet the
aspirations of the consumers and traders in the modern free economy and
world economic order.
Who protects the consumer in Sri Lanka and what is the mechanism? CAA
Act is exhaustive but lacks teeth and implementary powers. But using the
available resources and raw materials, the authority is able to guide
and assist the consumer which is defined as "actual or potential user of
any goods or services made available for consideration by any trader or
manufacturer".
The definition is broad and exhaustive. Every citizen including the
"King" is a consumer in everyday life. Always the consumer is cheated
and ruthlessly exploited mainly by "Giant Traders". In our country most
consumer items are controlled by multinational giants. Wheat Flour is
controlled by one multinational company set up as a BOT in 1977 s with
the blessings of the government in power at the time. There is a sad
history behind the transactions and currently public has to pay the
price of the steps taken by the short sighted politicians at the time.
Even today the company has the monopoly due to the power of money and
facilities enjoyed over others. No new player can take part in the
business and industry due to obvious reasons. Consumer is used to
consume wheat floor though it should be discouraged due to many reasons.
CAA has taken the initiative to popularise rise based products and
discourage consumption of Wheat via the consumer pages and continuous
activism. It is heartening to note that the Ministry of Agriculture has
taken up the challenge of popularisation of rice based and local food
consumption instead of imported wheat floor which is not healthy and
ruins our economy and health as well.
Gas industry too belong the same category. Short sighted politician
in the past has entered into agreements with multinational companies,
giving them monopoly and facilities in the monopolised industry. The gas
terminals and all the infrastructure is in the hands of multinational
industrialists thereby no new players can enter. These are only few
examples of many unfortunate transactions and steps taken not tin the
best interest of the consumer, who is paying the highest price.
It is time for us to be in par with the international developments
and learn from the achievements of consumers at large. Though there are
number of "Human Rights" organisations and NGOs in Sri Lanka based on
locally and otherwise there are hardly any consumer organisations in
action other than the organisations set up with the directions of the
CAA countrywide.
Consumer Rights is a Human Right recognised and embodied in the
Constitution of Sri Lanka and major UN instruments. Consumer Rights are
recognised worldwide and vigorously implemented as an essential part of
daily life. 15th March of the year is the world consumer day and
consumerism is alive and active every second world wide. It is time that
we continue to be a part of the motion in the interest of our people
depending on our assistance to exercise their legitimate right to live
and agitate for healthy consumer's items of slandered for a reasonable
price.
The "Act" (CAA act) states in S-8-(I) that it is the duty of the
authority to promote assist and encourage the establishment of consumer
organisations.
Accordingly arrangements have been made to set up organisations in
village, district and provincial levels with the help of Governmental
and Non Governmental organisations backed by the consumer pages
published every week in all three media educating the public of their
rights and duties. CAA officers for the last two years worked hard to
achieve this end and it is time to catalyse the trend with the help of
existing network such as Samurdi Movement, Youth centres, and
organisations of grass root level countrywide. Central consumer
organisation is formed with the blessings of the CAA by inviting all the
organisations in the country and it is time for the public to take part
in this simple process. Any 15 members of the public may start a
consumer organisation which will be registered and recognised by the CAA
through which the organisation too will become a part of the consumerism
mechanism in the country.
For the consumer to be given the due place, they must be educated and
organised. The public (consumer) should be educated of their rights and
duties as well. The main vehicle to achieve this is the media, which is
ever ready to take up the challenge. The media too should know their
duties, mandate and limitations. Very often "Media" takes up isolated
and sensational matters connected to consumerism to promote the media
products rather than serving the public. CAA has taken up the challenge
in publishing three consumer pages in three languages to educate and
organise the public. 'Daily News' consumer page published weekly for the
last two years is read locally and internationally (via internet too)
keeping us in par with international developments. This must be
strengthened and organised. The Tamil page is extremely popular in the
North and East educating our people in all parts of the country for a
better living, when the prices of consumer items are rising fast.
It is not only the consumer who should be educated and organised. The
government, trader, consumer and CAA must act together in achieving the
objects. Trader is broadly defined in the Act as one who sells or
supplies goods wholesale or retail, import goods, and provide services
of any kind.
CAA has taken progressive and revolutionary steps conducting
educational programmes all over the country guiding and educating
traders, industrialists and manufacturers. The programmes organised in
Hatton, Nuwara Eliya, Maharagama, Kottawa, Tangalle, Kegalle, have been
a great success and brought funds, unity and understanding among the
four key players mentioned above. These projects are to be continued
with vigour and strength as it is one of the main projects planned for
the future of the organisation.
Judicial activism
Judicial activism and consumer organisation is the key for a
successful consumerism as in India, where any aggrieved party has the
right to seek redress from the court. This writer mooted consumer courts
in Sri Lanka via the consumer pages and media. Currently CAA has to
carry the full burden and the litigation is restrictive and complicated.
Legal Aid is making genuine efforts in this field which needs assistance
from the public. Indian and Asian model is the best to my view with a
mixture of the Austrian model with our own traditional system. Other
proposition is to get the mediation boards to use as primary canceller
courts. It is time for the active groups form a consortium with a
defined object and plan of action with the help of all the main layers.
Alert consumer, just trader
Consumer should be educated and alert. CAA has a duty in implementing
this challenge. Trader should be just. He must be educated and directed
and there are ample provisions under "Regulation of Trade" to implement
this concept for the consumer to be given the due place fully or partly.
Amongst other powers and duties Authority has power to study, issue
directions to manufacturers in respect of price and marking, picketing
of gods, prevent selling or offering to sell above marked price,
determining standards and specifications relating to goods and supply of
services, inquire into complaints, enter into agreements for maximum
prices, prevent refusing to sell, prevent hording goods, refer matters
to the Council for redress to consumers, compel traders to display
prices, compel to issue receipts, prevent misleading and deceptive
conduct, false representation and many other duties and powers statutory
and otherwise.
Agreements under the Act
This is the most revolutionary and innovative introduction to launch
a joint efforts with the traders, industrialists manufacturers and
traders in entering into long and short term agreements to maintain
standards and specifications. Gas, Milk food, and essential consumer
items came under this schema and implementation appear to be smooth and
workable.
Consumer in Sri Lanka is not as powerful as their counterparts in the
other parts of the world. But the situation is changing for good. The
people, media Government and all players have now realised the need to
work together in the interest of the consumer as a result of rise of
cost of living and direct and indirect exploitation. In the UK
Organisations and magazines such as "WHICH" are in the forefront in
protecting the consumer and give him the due place. We understand that
there is new and emerging consumer organisations country wide. There is
a grave need for more and more consumer pages, magazines and
periodicals. It is time for the professionals and NGO to enter into this
most needed area to make our country a better place to live and to pave
the way for the consumer to have consumer items and services of proper
standards at a reasonable price. With joint efforts of all the players
namely the Government, Trader, Industries, Manufacturer, Ministry, NGOs
and professionals the consumer can be given the due place and "Crown"
him in the near future.
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