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The CAA can also, on its own motion or on representation being made to it by anyone else, review any question relating to the price of any goods or the charge for any service and report to the Minister. The CAA also has made it mandatory for every trader to exhibit a notice notifying the maximum retail price or wholesale price of the goods available for sale on the products, other than when the price is marked on the goods.[2] According to the Act a trader should on demand by the purchaser issue a receipt that sets out the date of the sale, the quantity of the goods sold, the price paid and whether the sale was wholesale or retail and any other specifications imposed under any law.[3]
The CAA can also determine the standards and specifications relating to goods and services in order to protect the consumer.[4] The Authority can also direct any manufacturer or trader to mark the maximum retail price, batch number, expiry date on the product[5] so that the consumer is protected from fraudulent acts. The Act also prevents traders from hiding or hoarding goods since this affects the availability of goods for consumption. ‘Specific goods’ that are necessary for daily life are identified by the Minister for Trade in consultation with the CAA and have their prices regulated. Any change to the product price requires the prior written approval of the CAA.[6] The Authority will take 30 days to examine any such requests. The main consideration of the Authority would be that prices do not increase indiscriminately and create undue hardship for the consumers.
There exists a Consumer Affairs & Information Division within the CAA that is responsible for promoting the establishment of consumer organizations and encouraging consumer education. This consists of programs and competitions for schoolchildren and messages in the mass media. Further, the Sri Lankan Legal Aid Commission, an independent statutory body, also has a Consumer Protection Desk, which works closely with the CAA and conducts consumer awareness programs around the island; it also assists aggrieved consumers through the provision of legal advice about seeking redress from the CAA.[7] A Compliance and Enforcement Division exists within the CAA to investigate written complaints made by individual consumers or consumer organizations. These complaints need to be filed within three months of receipt of the service. Disputes are either settled through discussion and negotiation or referred to courts if agreement is not reached.
A Financial Ombudsman was established to hear financial-related consumer complaints. A voluntary Financial Ombudsman scheme was established in 2003 by the banking industry, registered finance companies, leasing companies and others supervised by the Central Bank.[8] The Financial Ombudsman pursues satisfactory settlement and resolution of complaints made by consumers of banks and financial institutions and can impose binding monetary awards on participating financial institutions. The CAA has been effective in conducting raids and has earned millions through court fines from errant traders as a result.[9] The CAA continues to receive daily complaints of violations of the law and regulations made by the CAA. This raises the question as to whether fines are a sufficient punishment for offenders of consumer rights.
[1] s.14 of the CAA Act No.9 of 2003
[2] s. 26 of CAA Act No. 9 of 2003
[3] s.28 of the CAA Act No.9 of 2003
[4] s.12 of CAA Act No.9 of 2003
[5] s. 10 of CAA Act No.9 of 2003
[6] s.18 of the CAA Act No. 9 of 2003.
[7] See http://www.bu.edu/bucflp/countries/sri-lanka/
[8] id.
[9] http://www.colombopage.com/archive_13B/Oct31_1383199532CH.php
Sources