Consumer Affairs

Mediation - modern way of conflict resolution

Mediation is a modern way of conflict resolution practised in all over the world. There are mediation boards in civil Jurisdiction in Sri Lanka. In India, there are consumer courts and mediation boards. It is time for us to make use of this concept and infrastructure.

In India, any consumer can initiate action via consumer courts in public interests litigation, a concept we too are conversant with, due to judicial activities initiated by Hon. Justice Bhahavathi a reputed and committed judge in India. We have given below a simple form on how mediation works out.

Al. Mohideen Bawa
Executive Director, CAA

What is Mediation?

Mediation is a FAIR and EFFICIENT process to help you resolve your disputes and reach an agreement.

A neutral mediator assist you in reaching a voluntary, negotiated agreement.

What is the complaint mediation?

The complaint Mediation Programme is part of the Consumer Affairs Information Division of the CAA. The Program is designed for mediating consumer complaints which have been filed against the traders/organizations.

Who is a mediator?

A mediator is a neutral, objective, third person who assists the consumer and the business in reaching a mutually acceptable resolution to settle a dispute. The mediator can propose terms to settle the conflict but will not decide how the dispute will be resolve.

What does a mediator do?

* Listen to both sides;

* Remains impartial;

* Reviews complaint for violation of laws and regulations; and

* Assists the parties in reaching at mutually acceptable resolution

Benefits of mediation

* Mediation services are free of charge

* Reduces the need for costly intervention by the courts

* Allows for a greater number of possible solutions

* Timely complaint processing

* Less stressful

* Fosters communication and enhances the future relationship of the parties by clarifying issues, interests and needs

* Convenient and effective

How does it work?

The decision to mediate is completely voluntary for the charging party and the employer.

When a complaint is filed, the parties may be offered mediation.

If both the charging party and employer agree, mediation will be scheduled by an experienced mediator.

During mediation, both sides will be able to exchange information and express expectations for reaching resolution.

The parties work to reach common ground and resolve their differences. An agreement reached in mediation is as binding as any settlement reached.

If an agreement is not reached, the case will be referred to investigative process to be handled like any other case.

Mediation... Is fair and neutral

Parties have an equal say in the process and the parties decide the settlement terms. Not the mediator! There is no determination of guilt or innocence in the process.

Saves time and money

Many mediated settlements are completed in one meeting and legal or other representation is permitted in all cases, but not required.

Is confidential

All parties sign an agreement of confidentiality at the beginning of the process.

Avoids unnecessary litigation

Lengthy litigation CAN be avoided.

Codex Alimentarius and consumers

“Codex Alimentarius” is a Latin word for Food Code or standard. The Codex Alimentarius Commission was established in 1962.

The statute of the Codex Alimentarius Commission was to “guide and promote the establishment of definitions and requirements for foods, to assist in their harmonization and in doing so, to facilitate international trade.

Codex standards also contain “requirements for food aimed at ensuring for the consumer a sound, wholesome product free from adulteration, correctly labelled and presented.

In summary the two requirements of Codex are; to facilitate trade and to ensure consumers are provided with sound wholesome food. Maintaining the balance between these two goals has in recent years become more complex.

Prior to the signing of the general agreement on Trade and Tariffs in December 1994, Codex decisions were not binding on members nor had any formal legal status.

However, since 1st January 1995, and the setting up of the World Trade Organization (WTO) with the application of its agreement on sanitary and phyto sanitary measures there has been a change in the status of Codex standards, guide lines and recommendations. Codex is now the legal reference used by WTO and is binding on WTO members.

Impact of Codex on consumers:

It is fair to say that most consumers have never heard of the Codex Alimentarius Commission. Consumers are unaware of its deliberations, complicated procedures, and decisions and how this impact on the foods they select, prepare and consume every day.

Food are subject to Codex as it determines the baseline for international food trade rules. Foods will ultimately be directly or in directly influenced by Codex. In safety standards; additives, pesticide use, labelling of pre packeted goods, international trade, competition and pricing.

The impact of Codex on international trade and consumer’s food choices long term should not be under estimated.

Since December 1994, and the signing of the GATT agreement, Codex standards have become reference texts used by WTO for the settlement of international trade disputes, and hence, are increasingly becoming used as baseline, reference food standards in international trade.

Many Codex commodity standards have become accepted standards for food trade such as the Codex requirements for milk and dairy products, fresh fruits and vegetables, natural mineral water, fats and oils and processed meats.

New issues of concern in food trade, such as animal feed stuff and bio technology are being addressed in newly established task forces.

With the globalization of food trade and the emergence of scientific knowledge, national differences in approved lists of food additives and pesticides for example, are being reconsidered since internationally approved lists are being established under Codex.

Codex standards and decisions are reviewed periodically, particularly on the basis of new scientific safety assessments. The safety of all inputs such as additives, pesticides and veterinary drugs, to the food supply is of great interest and concern to consumers.

Issues that have a great impact on consumers food choices, such as labelling guidelines, standards for food hygiene, nutrition standards, special dietary needs as well as the levels of residues in food and food additives are important activities of the Codex.

One major issue and challenge for Codex is to ensure that consumers’ views are acknowledged at all stages in the decision making process.

Codex achievements

Some of the achievements of the Codex are as follows.

* Food standards for commodities

* Codes of hygiene or technical practice

* Pesticide evaluation

* Limits for pesticides residues

* Guidelines for contaminants

* Food additives evaluations

* Veterinary drugs evaluations

As a result of Codex activities over the past decades, they have accomplished substantial achievements. They were noted by WHO/FAO as “sensitizing the global community to the danger of food hazards, as well as to the importance of food quality, hence leading to the need for food standards. (Source: Consumers International website)

Chandrika Thilakaratne Director Consumer Affairs and Information, CAA

Consumer Affairs Authority Act, No. 09 of 2003

Direction under Section 12 (1)

The Consumer Affairs Authority Acting under the powers vested in it by Section 12(1) of the Consumer Affairs Authority Act, No. 09 of 2003, directs that no manufacturer, importer, packer, distributor or trader shall manufacture, import and use or distribute, pack, store or sell or display for sale, expose for sale or offer for sale in bulk or in bags/packs any item of Cement classified below unless it conforms with the corresponding Sri Lanka Standard Specifications and bear the SLS Product Certification mark issued by the Sri Lanka Standards Institution.

It further directs that all types of Cement shall carry the generic name applicable to the product, as given in the relevant Sri Lanka Standards.

(1) Blended Hydraulic Cements - SLS 1247

(ii) Portland Limestone Cement - SLS 1253

(iii) Masonry Cement - SLS 515

(iv) Ordinary Portland Cement - SLS 107

This directions No. 18 shall come into effect from 1st of January, 2008.

Questions and Answers

Q: Is Fair Trading Commission Act in force now?

No, nevertheless, the Consumer Affairs Authority Act No. 09, 2003 is in force. It has replaced the Consumer Protection Act 01, 1979, Fair Trading Commission Act No. 01, 1987 and Price Control Act.

The main objectives of the CAA Act are the promote competition and protection of the consumer.

Q: What is an Anti-competitive Act?

Under the CAA Act, any act that restrict distorts or prevents competition among the business community is illegal and liable to be prosecuted.

What should we do when an Anti-Competitive Act is visible?

Complaint on Anti-competitive Acts can be made to any consumer association or traders organisation.

Q: How does the CAA Act when a complaint or an Anti-competitive Act is made?

Under the Section 34(1) CAA Act, the CAA is empowered to conduct investigation. Which must be completed within 100 days.

Q: What steps have been taken by the CAA to promote competition?

(1) Investigating complaints on Anti-competitive Acts by an organisation

(ii) Investigating complaints by the CAA

The Promotion of Competition Division of the CAA conducts market surveys to detect Anti-competitive Acts and draw attention to various trends in the market.

Awareness Programme

An Awareness Programme was conducted for the benefit of the officers of the CAA in the form of a semianr at the Consumer Affairs Authority on November 29 on protection and Legal Framework of Intellectual Property Act.

The main speaker was D.M. Karunaratne, Director General of Sri Lanka Intellectual Property Office and the other speaker was Ms. Ayesha Jinesena, Senior State Counsel of the Attorney General’s Department.

D.M. Karunaratne highlighted the local and international dimension of intellectual property, where Sri Lanka has to promote and improve the innovation as well as the creativity to develop intellectual property in order to compete with regional and international level business practices.

Ms. Ayesha Jinasena focused on conducting raids and on the legal aspects under Intellectual Property Act, No. 36 of 2003. She also clarified in detail the practical application on protecting consumers’ intellectual property under Consumer Affairs Authority Act. No. 9 of 2003.

Process of handling complaints

The Authority has the mandate and the power to inquire into complaints regarding Sec. 13 (a) and (b) of the Consumer Affairs Authority Act. The complaints should be received at the Authority within three months of the alleged incident. Then the Authority will take steps to seek whether there is a possibility to explore settlement.

According to the Sec. 13 (1) the Authority may inquire into complaints regarding -

(a) the production, manufacture, supply, storage, transportation or sale of any goods and to the supply of any services which does not conform to the standards and specifications determined under section 12; and

(b) the manufacturer or sale of any goods which does not conform to the warranty or guarantee given by implication or otherwise, by the manufacturer or trader.

A complaint under subsection (1) which relates to the sale of any goods or to the provision of any service shall be made to the Authority in writing within three months of the sale of such goods or the provision of such service, as the case may be.

At any inquiry held into a complaint under subsection (1), the Authority shall give the manufacturer or trader against whom such complaint is made an opportunity of being heard whether in person or by an agent nominated in that behalf.