Priceless

It was quite some time ago that the Consumer Affairs Authority (CAA) urged all advertisers to mark the prices of the products featured in their advertisements. While some reputed companies promptly adhered to this regulation, many others did not pay heed. We still see advertisements in all media without any price marking.

The CAA has now taken legal action against 40 companies that have failed to mark prices on products featured in their advertisements.

Co-operatives and Internal Trade Minister Johnston Fernando has said that legal action would be taken against companies which fail to display the prices of products including refrigerators, deep freezers, air-conditioners, push cycles, medicines, construction material, soap, motor vehicles, hospital equipment, musical instruments and electrical items advertised through newspapers, TV, radio and online outlets.

He said the CAA has intensified monitoring of advertisements in the print, electronic and online media to ensure that product advertisements carry the prices of the item(s) sold. This is for the benefit of consumers who wish to purchase such products.

The minister said that the CAA has introduced these laws to prevent the advertising of products without displaying prices for the benefit of consumers. Manufacturers, importers and distributors should issue instructions to their advertising agencies to mention the price of the products in such advertisements.

Taking legal action against these errant advertisers is a praiseworthy step. It is the fundamental right of a consumer to know the price of an item. Then he can compare prices across several stores/brands and make his choice. He or she can then decide whether to visit a particular showroom based on that information.

Imagine the hassle if one has to visit a number of showrooms just to know the prices ? On the other hand, a consumer armed with the knowledge of prices beforehand can narrow down his search. Of course, the price would not be his or her sole criterion for selecting a particular item - there are factors such as quality, brand name, warranty/service that come into play. But price is an important determinant for most people and knowing about it is an advantage.

There are also many instances where prices of products are not displayed inside showrooms either. This is a great inconvenience to customers who have to get assistance from a salesperson just to know about the prices. Once they know the prices, they can perhaps ask for further information on the desired product from a passing salesperson.

Another widespread practice is saying 'price Rs. ................... upwards' which only gives but a vague idea of the prices. It is better to give exact prices for all models in the range of products advertised. 'Advertisers must also specify whether the quoted prices include or exclude VAT and other taxes. Customers could be deceived otherwise. There are also instances where stores advertise 'sales' without giving any idea of the discounted prices or discount percentages. Sometimes a sale percentage is quoted, without giving the original price (40 per cent off - from what?). Again, consumers have a right to know such information.

The stipulation on price marking should be extended to the service sector as well. For example, an advertisement for a hair salon can disclose how much they charge for a basic haircut. A hotel advertisement should carry the basic room rates, a telephone service should give the package details and so on.

Moreover, many retail stores have done away with the 'price board' which they should be displaying especially with regard to vegetables, fish, dried fish, fruits etc whose prices fluctuate wildly. The absence of price indicators makes it very difficult for the customer to know the actual prices. At some places, the prices are marked for goods sold in loose form by weight (eg: sugar, flour, dhal), but the weight applicable to the price indicated (eg: Rs.90 per 1 kilo) is not given. This is also misleading.

In the end, what usually happens is that the store owner calculates the final bill on his own and just communicates it verbally to the customer. There is no breakdown of the unit prices or even a rudimentary bill. Some traders naturally seize this opportunity to fleece customers.

Even in supermarkets, some of the prices are displayed in small print which is a big hassle for most customers. Of course, in a supermarket the customer can inspect the product itself to check the price printed on the packaging. But this may not be possible in the case of some products. Prices should be marked clearly and in large print. Retail or supermarket, customers should always demand a bill for their purchases so that any queries on damaged/expired goods can be conducted with ease.

There still are rare instances of the price not being printed on the packaging, especially in the case of imported food items where the importer has to paste a separate label with pricing and expiry information. Sometimes this label is not pasted or it goes missing after being pasted. However, some manufacturers have taken the commendable step of requesting the manufacturer to print the Lankan rupee price on the packaging at source. This should be done for all food items which are imported to the country in sufficient quantities.

Matters are not helped by consumers who have little or no knowledge of their consumer rights. If a particular retailer does not highlight prices either in an advertisement or in-store, consumers can complain to the CAA.

The same goes for selling damaged and expired goods. Strong deterrent action against such traders could be the only relief for hapless consumers islandwide. The CAA should also widen its awareness programs for companies and traders and advertise their regulations more often for the benefit of both sides. In other countries, these matters are taken very seriously and it is heartening to note the CAA adopting a similar approach here.

It is often said that the 'Customer is King' but this should be practised in the real world. Their rights should be protected at all times without necessarily harming the interests of the traders. It is a balancing act that should benefit everyone.