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A basic principle in marketing is that the Consumer is always right.  The consumer rights in Sri Lanka are protected by the Consumer Affairs Authority and Authority consider that protection of consumer rights is a means of developing responsible civic society. 

 

We uphold internationally accepted basic consumer rights:

 

  1. The right to satisfaction of basic needs – To have access to buy essential goods and services: adequate food, clothing, shelter, education, public utilities, water and sanitation.

 

  1. The right to safety – To be protected against products, products processes and services which are hazardous to health or life.

 

 

  1. The right to be informed – To be given the facts needed to make informed choice, and to be protected against dishonest of mislead advertising and labeling.

 

  1. The right to choose – To be able to select from a range of products and services, offered at competitive prices with an assurance of satisfactory quality.

 

  1. The right to be heard – To have consumer interests represented in the making and execution of government policy, and in the development of products and services.

 

  1. The right to redress – To receive a fair settlement of just claims including compensation for misrepresentation, shoddy goods or unsatisfactory services.

 

  1. The right to consumer education – To acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them.

 

  1. The right to a healthy environment – To live and work in an environment which is non-threatening to the well-being of present and future generations.

 
     
:: Frequently Asked Questions ::

Question - 1
How was the consumer Affairs Authority established?

Question - 2
Who can obtain the services from the Consumer Affairs Authority?

Question - 3
Whether Fair Trading Commission and the Department of Internal Trade are in existence?

Question - 4
What are the main functions of the organization?

Question - 5
Q. What is the mechanism adapted by the CAA in granting redress to aggrieved consumers?

Question - 6
Q. What are the main sections of the CAA Act which empower the Authority to conduct market investigations and raids?

Question - 7
What are the powers of the Authority?

Question - 8
Q. Requirements to be fulfilled by the aggrieved consumers when seeking any redress.

Question - 9
Q. Is there any cost involvement for the service provided?

Question - 10
Is any legal assistance required to lodge a complaint?

Question - 11
Should all complaints be made to the head office?

Question - 12
Whether any aggrieved consumer can make a complaint to the Authority even if there are regulatory bodies established for certain specific services?

Question - 13
How can a complaint or interested party make a complaint or obtain information?

Question - 14
Is “Price Control “applicable to any commodity in Sri-Lanka?

Question - 15
Is there any form of price intervention in the market place at present?

Question - 16
Who has the power to specify a commodity or service as an essential item under S.18 (1) of the Act?

Question - 17
What is the procedure for specifying an item?

Question - 18
Who are required to make applications?

Question - 19
What is the manner of making an application?

Question - 20
Should any documents be attached to the application?

Question - 21
What is the position of a shortage in the information or documents furnished?

Question - 22
What will happen due to a failure on the part of the applicant to furnish the documents / information on time, or to give any assistance required to carry out the inquiry?

Question - 23
What is the validity period of the Interim Order?

Question - 24
What is the period within which a decision will be communicated by the Authority?

Question - 25
Which division of the CAA does the examination of price applications?

Question - 26
What are the contact details?

Question - 27
What is the manner of communicating a decision?
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Answers For The Questions
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Answer - 1

The consumer Affairs Authority was established by the Consumer

Affairs Authority

Act No. 9 of 2003.

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Answer - 2

Aggrieved Consumers and Traders.

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Answer - 3
No. The Fair Trading Commission and the Department of Internal Trade were abolished by the Consumer Affairs Authority Act No. 9 of 2003.
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Answer - 4

·         Handling of consumer complaints by Aggrieved Consumers.

·         Handling of complaints by traders on anti- competitive practices and unfair trade practices.

·         Conducting market investigations and market surveys.

·         Specifying goods and services which are essential to the life of the community and regulating the prices of the goods and services.

·         Consumer awareness and empowerment  mainly by establishing consumer Organizations

·         Issuing of directives to traders and manufactures on labeling, packeting, price marking etc.

·         Obtaining the required redress for the aggrieved and punishment of offenders through the judicial system.

·         Warning of any trader or manufacturer in the case of first contravention of the provisions of CAA Act.

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Answer - 5

A written complaint along with supportive documents which relates to the sale of goods or to the provision of service shall be sent to the authority within 3 months. An inquiry is held in to the complaint .After an inquiry the Authority shall order the trader or the manufacturer to pay compensation to the aggrieved party or to replace such goods or to refund the amount paid for such goods or the provision of services.

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Answer - 6

Sections 10,11,15,16,17,18,26,28,29,30,31 and 61.

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Answer - 7

·         CAA has quasi judicial  powers in respect of inquiries vide sections 13 &  32

·         Powers to enter into written agreements with the manufacturer’s or traders on areas specified in the Act.

·         To specify goods and services which are essential to the life of the community and regulation of the prices thereof

·         To determine standards and specifications relating to goods and supply of services (standards and specifications prescribed by the Sri-Lanka Standards Institution could also be adopted )

·         The Authority has power to call for any information from traders.

·         The Authority has power to sell perishable goods that are seized and detained under section 58 of the CAA Act.

·         Offences under the act deemed to be cognizable offences, ie, power to search, take in to custody without a search warrant from the police.

·         Certain offencers have been categorized as peace officers who could act in terms of the code of criminal procedures Act No. 15 of 1979.

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Answer - 8

Complaint must be made in writing .It must be forwarded with the specified time       by the Act. It should be supported to relevant documents

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Answer - 9

No. Cost is solely borne by the Authority.

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Answer - 10

No. Any individual can lodge a complaint

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Answer - 11

No. We have a district office network where any complaint could be

made to  such offices as well.

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Answer - 12

Yes. Even if there are regulatory bodies established for specific

purposes consumers can make complaints to the Authority as well

where CAA plays the role of a monitoring body.

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Answer - 13

Complaints should be addressed to Director General of the

Authority.

     Address,                 Consumer Affaires Authority
                            CWE Secretariat Building 
                            27,
Vauxhall Street,                           
                            Colombo 02

     Chairman                 Tel:  011-2393496/239914
Director General        Tel: 011-2302981
General Tel.                    011-2445897
                                    
2393577/2393495

                                   Fax: 011-2399148

                            
Email:  chairmancaa@sltnet.lk
                                       dgcaa@sltnet.lk

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Answer - 14

No. There is no price control of any commodity, the last

beingPharmaceutical Drugs which were only subject to a pricing

formula under the former Fair Trading Commission. This “Control” was

totally discontinued on 1 st November 2002

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Answer - 15

Yes. There is price Supervision and intervention on price increases of

certain specified essential commodities .This is basically implemented

through section 18 of the Consumer Affairs Authority Act. No 9

of 2003, which became operative from 17 th   March 2003.

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Answer - 16

The Hon. Minister of Trade, Commerce and Consumer Affairs.

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Answer - 17
The Minister in consultation with the Authority decides.
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Answer - 18
Any importer, manufacturer, or trader who wants to increase the price of the specified item above the level prevailing at the time of gazetting the item under S.18(1) of the Act.
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Answer - 19

By a letter signed by the CEO or other officer authorized by the

company to do so, giving a description of the item, brand name, pack

size,present price, proposed price and reasons for the price increase.

The application should be addressed to the Director General of the

Authority:

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Answer - 20

                Yes.
     

 (i). Comprehensive Cost Structure, giving a breakdown of

      costs of individual elements of cost, for the prevailing

      price and the proposed price.

         (ii). Supporting documents, eg., Copies of Invoice, Letter of

              Credit,Bill of Lading, Packing List, Customs certified Customs

              Declaration Form (CUSDEC), Bank bills, invoices and receipts

              for landing , delivery and transport expenses, up to 1st

              go-downs

        (iii). Invoices for packing and processing expenses

        (iv). Description of all direct expenses, including labor and

              material

        (v).  Analysis of indirect and overhead expenses, and basis of

               allocation, apportionment and recovery of overheads.

        (vi)  Company profit margins, and basis

       (vii)  Distributor / Dealer and retailer margin

       (viii)   Charge for taxes|

        (ix)   Copy of the latest  audited Final accounts with notes and

              schedules thereon for the present period and for the period

              applicable for determining the current price.


A “SPECIMEN COST SHEET” is available on request. This can be

suitably modified by the applicant to suit the peculiarities of the

product or the industry

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Answer - 21

The applicant will be duly requested to furnish the information, on or

 before a specified date, and applicant will also be informed by an

 inclusion of the following condition in the letter:

                     Please note that your application for approval of the proposed price increase will be considered having being received by this Authority only on the submission of the above information and the receipt of any other documents or clarifications we may require in due course while examining the information supplied, or referring to other matters relevant to the subject.”

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Answer - 22

An Interim Order” under Section 18(4) of the Act will be

issued to the applicant prohibiting the applicant from

increasing the price, until a decision is made by the

Authority.

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Answer - 23

Indefinite – until the information is furnished and decision
communicated

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Answer - 24

Thirty days from the date the Authority having received a duly
completed application together with all supporting information / clarifications / documents.

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Answer - 25
The Pricing & Management Division
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Answer - 26

Director, Pricing & Management.

Telephone: 94-11-2391618 or

Senior Executive / Pricing.

Tel: 94-11-2432253

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Answer - 27
By facsimile & registered mail
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Last Modified Date 03/09/2010