CAA gets tougher with unscrupulous traders

By Shezna Shums

The Consumer Affairs Authority (CAA) is stepping up its raids on traders and shops that do not display the prices of goods and services they offer, as well as those resorting to unethical practices.

Although these raids have been carried out by the CAA since the beginning of this year, they are to be intensified due to the forthcoming Sinhala New Year and more shops and trade outlets are resorting to many ruses to attract an increasing number of shoppers.

CAA Chairman Rumy Marzook told the Daily FT that special investigative teams have been established to go into the markets and other shops to find out if the shops are displaying prices and adhering to ethical means of trade.

One of the areas the investigative teams are looking at is that rice is sold at the correct price.

Previously the CAA had stated that the price of a kilo of Samba was Rs. 70 and a kilo of Nadu, Red raw rice and White raw rice all cost Rs. 60 in the market. Marzook stated “The maximum retail price of rice is Rs. 880.”

The investigative teams will also look into other issues such as selling food items, drinks and beverages the expiry dates of which have passed.

Earlier, there was an incident where a child died and the mother became seriously ill after they consumed a bottle of soft drink the expiry date of which had passed.

Marzook said that during the month of March a total of 2000 raids on shops had been carried out, and for the month April — so far — between, 700 to 900 raids had been carried out by the CAA.

For the first three months of this year the CAA has carried out 7000 raids, which is about 42% compared to the previous year’s figure for the same period.

Todate this year the CAA has collected approximately Rs. 20 million by way of fines imposed on traders and shops following raids by the CAA. “This figure is about 60 percent of the total of last year’s fines which was Rs. 30 million,” explained Marzook.

“The investigative teams are working everyday and they report the progress to the Ministry of Cooperatives and Internal Trade,” stated Marzook.

The CAA comes under the purview of the Ministry of Cooperatives and Internal Trade. According to a Ministry official the number of raids has doubled to meet the increasing demands during the festive season. This move was taken following complaints that traders do not display the prices of goods and services. A hot line has been set up by the CAA to receive public complaints regarding irregularities by traders and the public could do so by dialling 0112313446 up to 8.

The CAA has issued a gazette notification directing all manufactures, importers, distributors and traders to mention the retail price of all items advertised in the print or electronic media. Accordingly all advertisements in the newspapers, radio, TV, film media etc. pertaining to articles or items shall specifically mention the retail price of such article/items advertised for sale in such advertisement.

If different models, sizes, types or grades of any article are specified in such advertisement every such manufacturer, importer, distributor or traders should specify the retail price of each such model, size, type or grade of any such article specified in such advertisement.

This action was taken to avoid undue expenses to consumers, because if the price of a product or service is not advertised the consumer will have to call the shop or visit the shop to find out the price.

However if the retail price is mentioned in the advertisement the consumers, depending on their purchasing power can decide if they can buy the goods or services, without having to spend time or money to find out the price of the item advertised.