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Consumer Ombudsman

by The National Consumer Watch of Sri Lanka

In this weeks column, we detail for the benefit of our consumer public an account of the Consumer Affairs Authority Act No. 9 of 2003 (CAA Act) which is Sri Lanka's current legislation on the subject of consumer protection.

As stated in last Sunday's Consumer Ombudsman Column, this legislation repealed the earlier statutes that applied, namely, (i) The Consumer Protection Act (ii) The Fair Trading Commission Act and (iii) The Control of Prices Act.

However, it is important to note that though the new legislation repealed the three laws listed above, there are several sections from each of them that have been incorporated into the new Act. The new legislation came into operation on March17, 2003.

Policy and objects of the new legislation

The CAA Act has a preamble, running into two paragraphs, in which the policy of the Government in enacting this legislation is set out: The policy is:

(a) to provide for the better protection of consumers through the regulation of trade and the prices of goods and services;

(b) to protect traders and manufacturers against unfair trade practices and restrictive trade practices; and

(c) to promote competitive pricing wherever possible and ensure healthy competition among traders and manufacturers of goods and services.

The CAA Act has also established TWO principal bodies to give effect to it, namely,

(i) The Consumer Affairs Authority (which consists of about eleven members including its Chairman) and,

(ii) The Consumer Affairs Council (which consists of three members)

The Authority may be considered as the body that implements the Act while the Council is considered the advisory body. The Chief Executive Officer of the Authority is the Director-General.

Consumer Complaints regarding Goods or Services

The CAA Act provides for any consumer to make a complaint to the Authority regarding any goods or services. Such complaints can relate to 'the production, manufacture, supply, storage, transportation or sale of any goods', or to 'the supply of services which do not conform to required standards or specifications'.

Complaints must normally be lodged with the Authority within three months of the sale or the provision of services that is the subject of the complaint.

The Authority must hold an inquiry on such complaint and if it is justified, the Authority can order the manufacturer or trader of such goods or services to -

(a) Pay compensation to the aggrieved consumer, or

(b) Replace the goods, or

(c) Refund the amount paid for such goods or services.

Definition of Terms

The term 'goods' has been defined to mean 'any food, drink, pharmaceutical, fuel and all other merchandise'. This is an exhaustive definition as exemplified by the use of the term 'mean' or 'means'. In addition to the four items specifically mentioned, the definition captures 'all other merchandise'.

The term 'services' has been defined to mean 'service of any description which is made available to actual or potential users' and includes -

(i) Banking, financing, insurance, shipping and entertainment.

(ii) Construction, production, manufacture, supply, storage, maintenance, repair, treatment, cleaning, processing or alteration of goods;

(iii) Services in connection with the import, export or distribution of goods;

(iv) Transportation of goods and passengers;

(v) Cleaning of buildings and building premises;

(vi) Sale and supply of any utility services including electricity, water, gas and telecommunication;

(vii) Provision of information technology and communications; and

(viii) Professional services such as accounting, auditing, legal, medical and health, surveying, architecture and engineering. A "consumer" has been defined to mean any actual or potential user of goods or services made available for a consideration by any trader or manufacturer.

A "trader" has been defined to mean any person who -

(a) Sells or supplies goods wholesale to other persons;

(b) Sells or supplies goods at retail rates to consumers;

(c) Imports goods for the purpose of sale or supply;

(d) Provides services for a consideration.

The above definition captures those who engage in retail and/or wholesale transactions as well as importers. Persons who export, on the other hand, are excluded.

A "Manufacturer" has been defined as any person who -

(a) Makes any article or any goods;

(b) Assembles or joins any article or any goods whether by chemical process or otherwise.

(c) Adapts for sale any article or any goods.

Consumer studies

The Consumer Affairs Authority can cause studies to be done relating to consumer goods and services about their,

* Satisfactory quality;

* Reasonable prices; and

* Adequate quantities.

Directives on Consumer Goods

For the protection of consumers, the Authority has been empowered to issue 'general directions' to manufacturers or traders in respect of -

* Labelling

* Price Marking

* Packeting

* Sale

* Manufacture

Of any goods (i.e. any food, drink, pharmaceutical, fuel and all other merchandise)

The Authority can issue directives to -

(a) to mark the maximum retail price;

(b) to specify the Batch Number;

(c) to specify the expiry date on any article or on the pack or on the container of the wrapper.

The current Director General of the Consumer Affairs Authority is Mr. Lal Abeygooneratne. He may be contacted at the General Office of the Authority situated at CWE Secretariat, 2nd Floor, No. 27, Vauxhall Street, Colombo 2, Tel No. 2399149/2393577, Fax No. 2399148.


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