Seminar on Consumer Law at BMICH

A seminar on Consumer Law will be held at the BMICH during the National Law Week (30.10.06 - 05.11.06) organised by the Bar Association of Sri Lanka, Consumer Affairs Authority, and Lions International.

This is an ideal opportunity for the lawyers, business community and consumers at large. Entrance is free prior reservation is advised.

The speakers will be: 1. Hon. Chief Justice, 2, Hon. Attorney General, 3. President, Bar Association, 4. S. S. Wijeratne, Chairman Legal Aid Commission, 5. Sarath Wijesinghe, Chairman Consumer Affairs Authority, 6. Walter Laduwahetty, Finance Ombudsman, 7. Dr. Wikrema Weerasooriya, Insurance Ombudsman, 8. A representative from Lions International, 9. A representative from the Business Community, 10. A representative from Consumer Organisations and 11. A consumer.

News Flash

Further information about the National Law Week

1. Law Week commences on 30.10.06

2. Exhibition will be based on 'Access to Justice'

3. The theme is 'Facilitating Access to Justice'

4. CAA will be a co-partner in achieving the objects of educating the consumer.

Every Citizen is a Consumer. It is one of our main mandate to educate the rights and duties of the Consumer. Consumers are invited to take part at the deliberations all over the country during the Law Week.

Please communicate with Y. Karunasinghe, Senior Attorney-at-Law (072-3574361), Miss. Sawera Guruge, Attorney-at-Law (2393577) and S. Baghidaran, Senior Attorney-at-Law (4211999), who are in the Organizing Committee of the Seminar which would be held during the Law Week at BMICH.

Further information can be obtained from the Bar Association of Sri Lanka (2447134, 2331697 Fax 2448090 e-mail basl.lawnet@stmail.lk) or The Law Week Organizing Centre (The National Law Week Secretariat, C/o Global Events & Convention Services, 9B, Perahera Mawatha, Colombo 03, T.P. 5320496).

Another Budget Shop

Our next Budget Shop will be opened at the CWE Complex in Maligawatta on October 12 at 9.00 a.m. It will be inaugurated by the Minister of Trade, Commerce, Consumer Affairs, Marketing Development and Highways, Jeyaraj Fernandopulle.

Control of price increase through regulatory powers

Sarath Wijesinghe, Chairman, Consumer Affairs Authority states in a press release that the concept of price control is not in operation as per the provisions of the CAA Act and the free economy and that the control of such price increases by CAA could be enforced through regulatory powers as specified in the Act.

The press release:

"Though presently the concept of price control is not in operation based on the CAA Act and the free economy, it is within our purview to control such price increases indirectly enforcing the regulatory powers except in the cease of goods and services specified by the Minister in charge under the CAA law.

It is through these provisions that there is a check on the quality, standards and directing the traders to display the prices.

Most importantly, it is with the help and the blessings of the public and the Consumer Organizations that we can enforce these regulations to bring down the prices.

"At the same time, there is another important matter worth mentioning at this juncture. We must look for long term and short term solutions to help the consumer at large. Above mentioned are a few short term solutions. Rice is more nutritious and easily available. By importing wheat flour we help the farmers in wheat producing countries.

By consuming products out of rice flour we help our farmers and also avoid diseases "imported" along with wheat flour such as diabetes and high blood pressure. It is high time for us to re-activate our traditional rice culture.

The CAA has been involved for quite sometime in popularising bread from rice flour. Steps are being taken to intensify the campaign in every corner of the country."

Competition law and consumer...

Continued from last week

"Sri Lanka has a long way to go to ensure consumer rights and protection through competition promotion".

(The first part of the paper presented by CAA Chairman Sarath Wijesinghe at the 11th International Workshop on "Competition Law and Consumer Protection Enforcement in Sri Lanka" held recently in South Korea, appeared in this page last week (05/10/2006). Today we carry the second and final part)

A paper presented by CAA Chairman Sarath Wijesinghe at the 11th International Workshop on Competition Policy held recently at Kaundai in South Korea.

"Competition Law and Consumer Protection Enforcement in Sri Lanka are complex topics, it is essential therefore, to comprehend some of the powers vested in the Consumer Affairs Authority Act.

"Sri Lanka has adopted the Consumer Affairs Authority Act replacing the Fair Trading Commission Act, 1987, Consumer Protection Act, 1979 and the Control of Prices Act. This new law takes a unified approach in dealing with competition and consumer protection issues.

Given that Sri Lanka is relatively a small economy, such an approach seems appropriate. Further, the new law provides for the establishment of the Consumer Affairs Authority (CAA) for investigation and prosecution of consumer cases and the Consumer Affairs Council (CAC), for adjudication of Competition cases.

In effect, it brings about the separation of investigative and adjudicative functions, especially for competition cases. This is a welcome step.

The Consumer Affairs Authority Act has a preamble in which the policy of the Government in enacting the legislation is articulated. 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 main objectives can be broadly classified into four areas:

1. To protect consumers against the marketing of goods or the provision of services which are hazardous to life and property of consumers;

2. To protect consumers against unfair trade practices and guarantee that consumers' interest shall be given due consideration;

3. To ensure that wherever possible consumers have adequate access to goods and services at competitive prices; and

4. To seek redress against unfair trade practices, restrictive trade practices or any other forms of exploitation of consumers by traders."

"The current Authority has merged the Former Competition Authority (FTC) and the (DIT) Consumer Protection Authority.

It comprises an Authority, and a Council for appeal. Under the CAA Act, there is a minimum of 11 member Authority and a three member Council with separate sets of duties. The Authority is to do the investigations, in respect of any or all matters specified under the Act and make applications to the Council for determination.

The Council, which has adjudicative power, is to hear and determine all applications and references made to it under the Act and make orders. It is the duty of the Authority to have such orders published in such manner as it thinks fit."

The Council is specially empowered to make determination on the existence or possible existence of anti-competitive practices and matters relating to excessive pricing.

The separation of powers between the Authority and the Council is an attempt to streamline and expedite the activities of the Authority." The present CAA Act has wider powers and authority for investigation, implementation and imposition of penalty than the FTC and DIT taken separately or together.

It covers both public and private sector businesses, locally or foreign owned, in-shore or off-shore, including both goods and services inclusive of professional and technical services.

This Act is an improvement incorporating shortcomings of the previous two legislations, except in the area of monopolies and mergers.

The Government is planning to enact a separate legislation to deal with monopolies and mergers to meet the country's present day requirements of competition policy. However, how effective or efficacious this law and policy will be in ensuring consumer rights and protection could depend upon their implementation.