Protecting consumers

Friday, 14 March 2014 06:18 -     - {{hitsCtrl.values.hits}}

  • World Consumer Day is on 15 March
  • Theme this year 'Fix your Phones Right'
Consumerism Consumer movement is an effort to protect consumers through an organised social movement which is in many places led by consumer organisations. It advocates the rights of consumers, especially when these rights are infringed upon by the actions of corporations, governments, and organisations which provide products and services to consumers. Consumer movement is a subset of the discipline of “consumerism.” In Sri Lanka it is not only the consumer organisations that are responsible for the protection of the consumer from bad practices by traders and industrialists. There are regulators and statutory bodies designed to carry this mission forward. Kennedy said that “consumers are the largest economic group affecting and affected by most public and private economic decisions. But they were also the only important group who are not effectively organised, whose views were not heard”. Today consumer movement in the USA is active and powerful. Today the consumer is celebrating the World Consumer Day organised by Consumer International to show the power and strength by flexing muscles of worldwide consumer organisations. People say consumer is powerful and he is the king and a king maker. Traders say the consumer is always right. If the consumer really is king in Sri Lanka is a moot issue. Consumer The Control of Prices Act (Chapter 173) and other legislation connected to instruments was replaced by the Affairs Act No. 9 of 2003  which brought drastic changes to consumerism by transforming the concept of price control to the practice of consumer items by regulatory procedure. In the UK, consumerism is strengthened through Citizen Advisory Bureaus, Law Centres, legal aid activists managed by solicitors and through group and class actions. New consumer laws are often modified in the Russian Federation for consumers. China is concentrating on quality and interests of consumers and the UAE imposes strict regulations implemented by the Government. In Caledonia, the Legal Remedies Act protects the consumer. In Australia, Canada and New Zealand there are CAB’s and the western model of protection of consumers. The Consumer Protection Act in (COPR) in India provides enormous power and protection to consumers via public interest litigation. Israel’s consumers are protected by strict rules formulated by statutory bodies. Every world citizen is a consumer entitled to be protected by the state and organisations. Consumer Affairs Authority The most powerful statutory body  in this field is the Consumer Affairs Authority - the main regulator and “watchdog” of the consumer, which is a powerful body; a mixture of USA, Australian, Canadian and traditional UK-Sri Lankan systems enacted with lot of hopes, but unsuccessful as it has not been properly implemented. It has power to control prices directly and indirectly, issue directions, prohibit sale above marked prices, determining standards, inquire into complains, enter into agreements, prevent  hoarding of goods and control of consumer items and services identified by the act. A consumer court is a necessary part and it is necessary to bring about proper legislation by amending the current act to be more vibrant, more effective and consumer friendly. The other regulatory and connected institutions on consumerism are the Public Utilities Commission, Telecommunication Regulatory Authority, Financial Ombudsman, Insurance Ombudsman, as regulator and Trade Mark Ordinance, Poison Opium, and dangerous drugs Ordinance, Control of Prices Ordinance. Food and Drugs Act, Food Control Act, Licensing of Traders Act, Bureau of Ceylon Standards Act, national Prices Commission Law, Code of International Properties act, Petroleum Products Act, Food Act, Cosmetic Devices Act, Sri Lankan standards Institution Act, Fair Trading Commission Act, Measurement of Unit Standards and Services Act, in addition to the Main Consumer Regulator Consumer Affairs Act. World Consumer Day World Consumer Day was first observed on 15 March 1983. Two year later on 9 April 1985 the United Nations General Assembly adopted the UN guide lines for consumer protection, following a decade of hard lobbying and the hard work of consumer organisations worldwide. The guidelines adopted the principles of eight consumer rights to provide a frame work to strengthen national consumer protection policies of respective states and the government has changed them according to the trade practices and economic policies. John Kennedy who addressed the US Congress, on the issue of consumer rights is one of the first and pioneered to lead the consumer movement. Since then, World Consumer Day was effective worldwide in the interest of the consumer who is now considered to be as powerful as a king; as one of the most organised international organisations. They say that the consumer is always right and the King of economic strength of a country. The Consumer Affairs Authority – the main regulatory body for the consumer is organising events annually which coincides the World Consumer Day on behalf of the consumer and the consumer movements. CAA and organisations Consumers, refer to individuals or households that use goods and services generated within the economic, which uses any product or service. In free market economies, consumers are presumed to dictate what goods are generally considered in the centre of economic activity. Other parts of the world of consumers are organised and powerful tools to combat the cost of living and prevent monopolisation by traders, industrialists and business in general. The Consumer Affairs Act provides for the CAA to initiate and support the consumer movement by catalysing and directing to form consumer organisations. Consumer International which organises World Consumer Day is the umbrella organisation of these worldwide organisations.  CAA and the community must work together in combating cost of living and mal practices of the trader and the industrialist. World Consumer day will remind the duties and responsibilities of the CAA and the community – in particular the NGO’s and active social organisations. It is time to give priority to the noble venture without diverting attention to other international activism on areas pertaining to international Non-Governmental Organisations. Our ultimate goal is to protect the consumer and maintain the goodwill and equilibrium with all other players. We need to alert both the consumer and the trader. The umpire in the process is the government and the regulator is the watch dog of fair play and impartiality. UN recognised consumer rights The consumer rights identified by the United Nations are, the right to satisfaction of basic needs, right to safety, right to be informed, right choose, right to be heard, right to redress, right to consumer education, and right to healthy environment and by adopting the guidelines, consumer rights were finally elevated to a position of international recognition and legitimacy, acknowledge developed and developing countries alike, yet they can continue to ignore or trivialised by governments procedures companies, and powerful interest. These rights sometimes are embodied in the legislature. Consumer right a fundamental right? The chapter on our fundamental rights jurisdiction and public law remedies available in our system of law has some opening in the promoting and protecting and enjoying consumer rights which is a basic human right. These rights are codified and implemented in various ways. The best and most effective mode is consumer activism which is in the top of the agenda worldwide in the world of consumerism. Mobile phones and “Fix Your Phone Rights” theme this year The theme for 2014 is focused on mobile phones with the slogan “Fix Your Phones Rights”. The themes on previous past have been on “Our Money, Our Rights” in 2012, “Consumers for Fair Consumer Services” in 2011, “Our Money Our Rights” in 2010, “Junk Food Generation” in 2008, “Unethical Drug Promotion” in 2007, and “Energy Sustainable Access To All” in 2006. This indicates that every year the consumer international identifies and area which is very close to the consumer in general. The current topic is very timely and opportune, considering the large number of consumers using mobile phones in their day to day lives, business profession and other areas of public and private life. Does local mechanism sufficient to combat the inadequacies and needs of the consumer on the chosen topic “Fix Your Phones Rights”? “There are 7 billion mobile phones worldwide and are more mobiles than the population in Sri Lanka.” Today mobiles have become a responsible part of our lives and it is growing day by day adding new developments to the instruments and the networks. Currently there are around 7 billion mobile phone users worldwide waiting for an organised consumer activism for their rights and benefits. This amount of subscribers is growing rapidly. The quality of the service they receive from the companies earning billions from the consumer is a concern to the consumer and the consumer activist groups including the World Consumer Organisation organising the World Consumer Day. The proactive mechanism and the stringent rules in the west and the developed world are developing faster and the ripple effect is spread with the increase of subscribers worldwide. Fierce competition in the mobile phone trade has brought down the price of instruments and the networks but the direct and indirect exploitation of the giant mobile business empire adopts various methods to misdirect the consumer. A necessary part of life today The time has passed when the mobile phones are not only convenient to the life of average citizen but an important tool making it a necessary part of the life to every sector of the society. Mobile phones today are omnipresent, being utilised by all sectors of society. The utility value is expanded every day with the addition of new gadgets and components and offers by converting it to mini mobile computers. It is estimated that there are around 20.3 million mobile phone subscribers for a population of 20.8 million which is a substantial number compared to the average population. According to the TRC (Telecommunications Regulatory Commission), the subscribers of mobile phones have been estimated at 19,533,724. Anyway the number of subscribers is growing day by day. Not only a tool for the rich today It is not only the rich or privileged that are using mobile phones in society. It has become accessible to the ordinary masses due to competition between companies and the popularity of this facility despite the financial commitments and the burden to the budget which are substantial. The consumer is very sensitive to the cost of living of other consumer items, yet they keep on using mobile phones with growing demand day by day with modern sophisticated machines. Due to modern and advanced gadgets it has become a mobile version of the word processor with people using them as mobile offices. Benefits and dangers to society Mobile phones benefit society as well as causing dangers in the misuse of this valuable device. The spread of crime, drugs, and misuse by children are dangers to be given attention to in regulating the use of mobile phones. It is a tool for development, business, education, health, as well as criminal activities and the causes of children being spoiled. But it has become a tool and a trend which is unstoppable and the only way out is to impose regulations on their management and financial aspects. Despite the competition of the mobile companies, expenditure on mobile phone bills have become a substantial burden to the family unit and the country as a whole. Instead of the traditional land line for the family which is gradually diminishing in use, every other member including school children possess mobile phones making it a burden to the Sri Lankan economy and the budget of an average family. Most of the mobile companies are foreign based. Consumers racing the voice and concerns on the rise of food and other consumer items willing to pay the expenditure of the mobile bill which is substantial with modern instruments with multiple purposes. Whether mobile phone subscribers in Sri Lanka get a reasonable return and service is a moot issue, that is yet to be discussed, when the giant mobile companies fast accumulating wealth develop fast and prosper at a disproportionate rate. The statutory body which regulates consumerism in Sri Lanka is the Consumer Affairs Authority who are expected to safeguard and protect the consumer. The Consumer Act gives protection to the consumers. The Sri Lankan CAA is the Government mandated authority to preserve consumer interests and to ensure a fair market competition in Sri Lanka. It says consumer is the king because the organised consumer organisations are powerful so that they are in a position to shape powerful organisations. On the other hand the organisation monitors and regulates consumer rights with the existing Acts and regulatory bodies. The TRC in Sri Lanka (Telecommunications Regulatory Commission) is the main regulatory body in Sri Lanka and acts in parallel to the CAA and other organisations and regulatory bodies. Currently there are mega multinational companies in the mobile trade penetrating the length and breadth of the country with enormous revenue. Consumer International and consumerism worldwide It is time for the consumer; consisting of all the world citizens-and the organisations to get together and clamour for their due rights in one voice on 15 March 2014 with the world umbrella organisations (Consumer International) for consumerism activism and promote consumer rights. It is not advisable and prudent to organise this major event in isolation. A joint effort will be beneficial and effective. The media has a major role to play in this exercise. California CAA regulates 2.3 million professionals successfully. European Union regulates consumers by UK directives including UK which has the domestic model too. Cooperatives in the UK own chains of supermarkets, and the Japanese cooperative movement has 40 million members. In the UK Rail Tract and many other institutions have their own regulators. It is time consumers organise themselves against errant traders and industrialists exploiting the ordinary masses every minute, especially in the food market. It is timely and opportune that the world body on consumerism has chosen the mobile phone this year which is fast growing among the entire globe with the fast development of the modern technology. The mobile phone will be a tool for anything and everything on the spot including business, education, purchasing, communication, management, and all parts and sectors in life in hand. We understand many organisers are planning to organise different events on world consumer day through the network of NGOs. In the future, the Consumer Affairs Authority and interested parties should discuss matters pertaining to consumer activism well in advance at a common forum and involve all stake holders to draw up a strategy for the benefit of the consumer which is the mandate and a part of the job of the Consumer Affairs Authority. Private and public sector participation in this exercise is essential. International support could be obtained via Embassy outlets and the leading international institutions. (Sarath Wijesinghe is the Ambassador of Sri Lanka to Israel and a Former Chairman of the Consumer Affairs Authority)  

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