• Discussion with CAA sheds light on the myriad aspects that bind both manufacturers & traders together with consumers & regulatory bodies 

The Consumer Affairs Authority (CAA) is essential in protecting consumer rights and welfare, ensuring that manufacturers and traders adhere to established rules and regulations. Governed by the CAA Act, No. 9 of 2003, the CAA has been active for over two decades, garnering both commendation and condemnation from consumers and other stakeholders. However, the question persists: is the CAA's involvement sufficient to guarantee consumer welfare and legal compliance among manufacturers and traders? 

To explore this issue, the Department of Government Information (DGI) recently organised a special discussion with several senior officials from the CAA. Moderated by the DGI Assistant Director Harsha B. Abeykoon, the discussion was attended by the CAA Acting Chairperson Jayanthi Wijethunge and CAA Assistant Directors Janaka Prasad and Udara Nanayakkara.

Consumer protection overview

Briefing on 'consumer protection', Nanayakkara emphasised that 'consumer protection' is a legal framework designed to ensure that consumers get an adequately satisfactory product or service for their money. He highlighted that "the point of payment is very important" as it underscores the complexity of consumer behaviour and their changing needs. He asserted that "the Government should take responsibility for the extent to which the customer who lives with such ever-changing needs should be happy" but said that it would not happen easily just because the Government is involved. Since the Government cannot do it alone, he said that regulatory bodies are globally entrusted with this responsibility. "When it comes to Sri Lanka, various institutions are dedicated to consumer protection. For example, the public health inspectors (PHIs) enforce the Food (Amendment) Act, No. 20 of 1991, the Telecommunications Regulatory Commission of Sri Lanka addresses telecommunication related issues faced by consumers, and the Ceylon Petroleum Corporation handles petroleum related issues. There are several other institutions such as the Measurement Units, Standards and Services Department (MUSSD), the National Medicines Regulatory Authority, the Road Passenger Transport Authority, etc. Each of these institutions has responsibility for different matters. It is crucial for consumers to be aware of these institutions and their roles." He further said that the CAA is just one of many regulatory bodies operating in the country, highlighting that "it is not the only Government agency to solve consumers' issues."

Legal action & awareness progs.

Affirming that the CAA is initiating legal action against both manufacturers and traders who neglect consumer protection, he said that "both parties (manufacturers and traders, and consumers) have their own portion of ignorance". Businessmen are often "not aware of the laws and regulations that apply to their operations" and consumers are "not aware of the legal protection that they are entitled to as consumers. However, he emphasised that there is no way to allow the consumers to suffer injustice all the time due to their ignorance. To address this, he said that the CAA implements consumer awareness programmes while also intervening to "formalise and regulate the market." He acknowledged the complexity of this task, stating that, "it is not easy to regulate the ever-changing market conditions, as although there is a general law to act upon, it is not possible to make changes to it with all market changes that happen frequently."

Regulatory progs. & key laws

Nanayakkara further revealed the CAA's programme to formalise and regulate the market, thereby preventing consumers from being exposed to various forms of injustices. "The CAA conducts market raids and regulatory activities through 20 District offices, alongside the Head Office”. Discussing pricing related laws and regulations that should be followed by manufacturers and traders, he said: "The country has imposed a law that every businessperson must display the price of every product that they sell.” While this might seem like a "general rule", he stressed that it is the most important law when it comes to consumer protection. To ensure comprehensive consumer information, he said that all packaged products must include the "price, the batch number, the expiration date, the date of manufacture, and the manufacturer's information", as "consumers can go to the right choice based on the information." He discussed warranty related requirements, noting that warranty cards must now be provided in all three languages - Sinhala, Tamil and English - to ensure customer understanding. He added, "When selling electronic equipment, a minimum warranty period of six months must be provided." Nanayakkara further said that no merchant can collect goods in bulk to manipulate prices, and explained the new regulation that "non-expired goods cannot be kept together with expired goods and that businesspersons must maintain records of expired goods." He emphasised the importance of proper billing and measurement, noting that, "if a consumer asks for a bill, the trader must issue a bill" and that "there must be a scale approved by the MUSSD at the place of business." He insisted that consumers have the right to ask for the balance money after paying for a certain product rather than accepting products such as toffees and boxes of matches in lieu of the balance.

Online platforms & consumer savvy

In response to a query regarding various criticisms surrounding online platforms selling products, Prasad said that consumers must deal with such platforms with some knowledge and understanding. "The way consumers buy goods is changing faster than the Government can impose systems of laws. These rapid changes in the market present a global challenge. In response to such changes, the customer should deal with these market changes with some knowledge and understanding." He warned that without such, there is a high chance of facing various misdeeds on online platforms. He also advised consumers to be savvy and aware of their actual needs, noting that some people buy products that are not necessary, or make purchases on online platforms while engaging in other work. Emphasising that literacy is not just about reading a book, Prasad said that everyone should apply it wisely in making decisions. However, compared to other consumers worldwide, he said that Sri Lankan consumers have a weak level of applying their literacy in decision making processes. This deficiency is particularly problematic in a "very fast-changing market" where consumers play the most crucial role. He acknowledges the difficulty of legislating for such a rapidly evolving market, noting that in the 19th and 20th Centuries, changes in the market, society, and environment happened very slowly, but that in the last 20 years, it has become very fast.

Educational progs. for traders

Apart from programmes aimed at raising awareness among consumers, Nanayakkara revealed that several programmes are also being implemented to educate the manufacturing and trading community including mobile awareness programmes. He encouraged businesspersons to "think lovingly and emotionally about the rules that have been imposed by the Government without hatred." He explained that many businesspersons mistakenly believe that "organisations like the CAA are there to oppress businesspersons and block trade", but asserted that they (CAA) instead support manufacturers and traders to obey the law. Nanayakkara highlighted the benefits of compliance to laws and regulations: "In that law abiding, their business turns profits. When consumers feel safe, they fearlessly fulfil their needs." He added that if businesses follow all the rules and if they are friendly, then the consumers' confidence in the business will naturally increase. He added that the same would lead to increased sales and profits, minimised waste, reduced unnecessary advertising costs, and eliminated chances of legal challenges. He concludes by stating, "All this will benefit the businesspersons. They should look at these laws and regulations in a positive manner. If they don't think so, their consumers will go to shops and return without making any purchases, leading their businesses towards bankruptcy."

Need for greater discipline

Adding to Nanayakkara' s remarks on the need for businesspersons to follow rules and regulations set out by the Government, Prasad said that they also must have the discipline to provide the goods and services to the customer in the right way and highlighted that testing goods every day or taking legal action would not be the prime solution in ensuring consumer protection. He called for greater societal discipline, particularly among traders, stating that, "manufacturers and traders should work with the idea that what they produce or sell should improve the quality of life of the consumer. As citizens, they should fulfil their responsibility." He further said that compared to other countries, there is a great weakness in the organisation of consumers against injustices in Sri Lanka. He contrasted it with countries like India, where he said consumer organisations are extremely strong and have the ability to significantly influence the quality and price of goods. He concluded by highlighting the need for a more robust consumer organisation to address these challenges effectively.

Citizen consumer service comms.

In an effort to adopt and adapt the concept of consumers' organisations to contemporary needs, both Nanayakkara and Prasad said that Citizen Consumer Service Committees have now been established at the Divisional Secretariat level with the guidance of the CAA. According to them, this initiative, which required significant effort, aims to bring consumer issues to the forefront and to seek solutions within the administrative system. They said that this grassroots level approach would ensure that consumer concerns are heard and managed, promoting a more responsive and accountable system for consumer protection.

Amendments to the CAA Act

Joining the discussion via Zoom technology, Wijethunge said that in 2004, efforts to amend the CAA Act began, and that now, two decades later, the relevant amendments have reached their final stage. "The revised Act will be designed to fulfil the CAA's objectives, vision, and mission more effectively. Nearly all existing clauses have been updated to better align with contemporary challenges and requirements. This comprehensive overhaul aims to enhance the framework for consumer protection and ensure that the legislation meets the evolving needs of both consumers and businesses."