Beat cost of living during the festive

season

Thursday, 31 December 2015

Consumer
The festive season has emerged and the citizen is testing the buying power
in purchasing consumer items. A consumer is any actual or potential user of
any goods or services made available for consideration by any trader or
manufacturer (s75 of The Consumer Affairs Authority Act). This shows that
every citizen is a consumer and needs protection from the State to protect
the consumer against unfair trade hazardous to life and property of
consumers, adequate access to goods, and to seek redress against unfair
trade practices (s 7 of the Act no of 2003).
Is the consumer the king and powerful?

In theory, yes but in practice, it may not be so; especially in Sri Lanka
where the consumer is not organised as in other parts of the world.
Consumer Day falls on 15 March and the World Consumer Federation has
started the agitation throughout the world claiming the legitimate share for
the consumer as Kennedys statement in 1983 that the consumer includes
us all the largest economic group affecting and affected by almost all
public and private economic decision yet they are the only important group
whose views are often not heard. In other parts of the world, the consumer
is restricted from becoming unfair by the government, as well as the strong
lobbying of powerful organisations in maintaining the quality, standards,
price and consumer rights of return goods, and maintaining standards by
the trade, manufacturer and the trader. Sri Lanka is full of adulterated and
poisonous food and other consumer goods, unhealthy food chains and
goods adulterated and downgraded with no restrictive conditions.
Unhealthy food chains are thriving and there is no proper control of the
quality and price of the consumer items expected to be monitored by the
main regulator, the Consumer Affairs Authority.
Powers of the Consumer Affairs Authority as the main
regulator
It is established in place of the Fair Trading Consumer Act no. 1
of 1987 and Price Control Act 1 of 1987 for promotion of
effective competition and protection of the consumer with a
blend of UK, Australian and Western modelled concepts,
creating a main regulator to regulate trade under S9 of the Act,
which has power to undertake studies, issue directions, restrict
selling above market price, determine standards, inquire
complaints, enter into agreements, deal with offences such as
refusal to sell, hoarding goods, investigations publication, prevent
misleading , deceptive conduct and many more powers and expectations.
Due to the abolition of the price control under the Price Control Act, the new
concept of price making was introduced where every trade is expected to
exhibit the price mark and maintain standards of the items (S29). It is left to
the consumer to judge the effectiveness of the enforcement mechanism in
maintaining the price and the standards of the consumer items. Whether
the CAA is competent to beat the cost of living, or if it is a toothless
organisation, is a matter the citizen will be deciding on based on the
performances of the organisation.
Beat cost of living
The cost of living is a relative term which depends on conditions,
environments, and jurisdictions. Rarely the prices of consumer articles are

receded, but the salary and income increases from time to time. Price of
rice or bread is not static, but the consumer is ready to adopt the price
fluctuations. In the west, a major portion of the salary or income is utilised
for accommodation when the food items are generally affordable, which is
not the case in Sri Lanka. In the UK, one could be comfortable living with
the minimum wages and in addition government subsidiaries where
necessary. In Sri Lanka, though salary and income is less for many,
traditional food items such as jackfruit, leaves, and village grown items
(available in Polas street markets in towns too) assist consumers to
make ends meet comfortably. If the consumer is sharp and careful, it is
easy to beat the cost of living provided that the cost of a mobile phone,
tuition and extravagance is restricted. In short, one should know (a) when
to buy (b) where to buy, (c) how to buy and (c) what to buy. In England the
apple at Selfridges the most expensive food chain could be purchased at
the street market near the store for a lesser price. In Sri Lanka, street
markets are plenty and food can be carefully purchased and stored to be
used later. Consumers make the biggest blunder by eating out in food
chains with unhealthy oily food and colas inviting long term diseases.
Consumer should be trained for healthy food at identified outlets. It is an
exercise one should practice.
Complains to public bodies and to be organised is your civic duty
Ideally, the CAA is expected to entertain complaints on the phone, via net
and all over the country. This extends to all consumer items and to services
as well. In other parts of the world the consumer is so well organised that
the trader is under pressure and the control of the consumer. Media plays a
vital role in this matter. In the UK when cola company used the water from
Thames River, it is the media that came forward as in the Bopal case in
India to teach unfair trade practices of multinational companies. In Sri
Lanka, the CAA is expected to organise a consumer federation to assist the
consumer. It is the duty of the NGOs to take the mantel forward without
wasting time for human rights situations in Sri Lanka which maintains the
highest standards. It is time for the citizens to organise themselves to beat
the cost of living and to lead a careful, systemic, planned, organised life
with other fellow citizens.
Careful during the festive season
It is illegal to perform bogus sales and overprice the consumer items
especially during the festive season. Consumers have no right to demand
price reductions but they have the right to purchase quality and healthy
goods. Citizens may complain to the 1919 services, CAA and the Board of
Standards for quality and price of consumer items. A joint exercise should

be launched by the CAA organising the trader, manufacturer, industrialist

and the citizen to work together is a competitive but a friendly environment
to beat the cost of living and for quality and health consumer items at a
reasonable price.
Way forward
It is the right of the citizen and the duty of the State to ensure the
consumer should be able to purchase quality items at a reasonable price,
and it is his/her duty to look for healthy food in the interest of the citizen.
The United Nations too have recognised the right to satisfaction and ensure
basic needs, safety, information, a chance to be heard, redress, consumer
education and a healthy environment, as a right and a requirement to be
facilitated for the consumer/citizen by the State. It is the duty and a
statutory requirement of the main regulator, CAA, to organise consumer
organisations and to work on a joint project with the consumer, state,
trader, manufacturer and the citizen for a fair and reasonable system of
trade and business for a better life for the consumer. Consumers should be
vigilant and smart, the trader should be fair and reasonable and the State
should be efficient for a better day for the consumer/citizen.
Articles by Sarath Wijesinghe (1) Sri Lanka Guardian on World Consumer
Day on 19.01.2014, (2) Sunday Business Times Lead a simple life to beat
cost of living 25.03.2012 (3) Rice price and cost of living on 20.04.2008
Observer (4) Measure to bring down cost of living Observer 15.07.2007.

(The writer is the former Chairman of the Consumer Affairs

Authority, former Ambassador to UAE and Israel
,Email: Sarath7@hotmail.co.uk .)
Posted by Thavam