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Consumer protection legislation in Sri Lanka can be traced back to the onset of the 2nd World War, an era of scarcities in essential food commodities that paved the way to pass the first ever legislation for food and price control. These regulations were meant to implement a rationing scheme of distribution of staple food items, basically rice and wheat flour and to control prices of such items. They continued to be in force until 1950 in which year both the Price Control Act and the Food Control Act were passed. Thereafter, different legislations were passed to regulate the market prices of essential commodities until the implementation of the ‘Free Open Market Competitive Economic Policy” in 1977.
Enactment of the Industrial Promotions Act in 1990 caused the removal of most items under price control. The Consumer Protection Act of 1979 was the first legislation, which attempted to lay down Consumer Rights while enforcing penal provisions against offenders and to provide redress and compensation to aggrieved consumers. The provisions of the Consumer Protection Act were implemented by the Internal Trade Department. In 1987 the Fair Trading Commission was established under the Fair Trading Commission Act No.1 of 1987. The mandate of the Fair Trading Commission was to deal with monopolies, merges and other anti-competitive practices while regulating the movement of prices of selected goods. The Consumer Affairs Authority Act repealed three former legislations namely; the Consumer Protection Act of 1979, the Fair Trading Commission Act of 1987 and the Control of Prices Act of 1950. Therefore, Consumer Affairs Authority is the successor to the former Internal Trade Department as well as the former Fair Trading Commission. The vision, mission and objectives and functions of CAA are laid down as below. |
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- To protect consumers against the marketing of goods or the provision of services which are hazardous to life and property of consumers
- To protect consumers against unfair trade practices and guarantee that consumers interest shall be given due consideration
- To ensure that wherever possible consumers have adequate access to goods and services at competitive prices
- To seek redress against unfair trade practices, restrictive trade practices or any other forms of exploitation of consumers by traders.
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· Control or eliminate
- Restrictive trade agreements among enterprises
- Arrangements amongst enterprises with regard to prices
- Abuse of a dominant position with regard to domestic trade or economic development within the market or in a substantial part of the market or
- Any restraint of competition adversely affecting domestic or international trade or economic development
- Investigate or inquire into anti-competitive practices and abuse of a dominant position
- Maintain and promote effective competition between persons supplying goods and services
- Promote and protect the rights and interests of consumers, purchasers and other users of goods and services in respect of the price, availability and quality of such goods and services and the variety supplied.
- To keep consumers informed about the quality, quantity, potency, purity, standards and price of goods and services made available for purchased
- Carry out investigations and inquiries in relation to any matter specified in the Act
- Promote competitive prices in markets where competition is less than effective
- Undertake studies, publish reports and provide information to the public relating to market conditions and consumer affairs.
- Undertake public sector and private sector efficiency studies
- Promote consumer education with regard to good health, safety and security of consumers.
- Promote the exchange of information relating to market conditions and consumer affairs with other institutions.
- Promote, assist and encourage the establishment of consumer organizations.
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