An outdated consumer protection law in the country is affecting consumer rights, with stakeholders highlighting the need to bring in amendments that can respond to the current market climate.
National Consumers’ Front (NCF) Leader Asela Sampath criticised the current Consumer Affairs Authority (CAA) Act No.9 of 2003 as being an “expired” law that failed to address the needs of the new world and the future.
“For example, doctors warn that certain chemicals are harmful but those aren’t banned from consumption. Potatoes are imported to the country for three or four months at a time, but market prices change every day. How does that happen?
“The same kilo of rice is sold at five different prices in five different shops. Rents are not regulated or taxed by the Government. There is poor regulation for electronics and no transparency in telecommunication services,” said Sampath.
He alleged that new laws had not been passed to adequately address these issues due to bribes from industries and corporations to successive governments.
“Regulations should come before raids. The 2003 law isn’t being implemented properly in 2025, nor is it relevant to the current time.”
‘No stakeholder consultations’
National Movement for Consumer Rights Protection Chairperson Ranjith Vithanage also highlighted the need to update the law to suit the current context. According to him, in addition to the CAA Act, the Food Act No.26 of 1980 also offers some protection to consumers.
However, the world has changed “drastically” since these laws were introduced – “both industrially and technologically”.
These changes had affected trade relations and consumer attitudes, reflected Vithanage.
The primary action needed to improve consumer rights was to change the law, he said, especially noting how the CAA Act did not govern the online business world.
“We have been asking for a new law for a long time. Multiple governments have tried to amend the current one from the time that Rishad Bathiudeen was the Minister of Industry and Commerce. However, there is no point in amending the existing law as the act itself is unfair to consumers.
“For instance, investigations are carried out by unqualified people who may not be fully aware of consumer protection rights and laws. Provisions that state warranty cards must be provided in the three languages aren’t followed,” he pointed out.
Due to poor implementation of the law and the weak law itself, traders are aware that their punishment for violating it would only result in a fine. They are able to pay this, and hence do not fear breaking the law, leaving consumers facing the short end of the stick.
Vithanage also claimed that previous attempts to change the law had not consulted organisations such as his, which focus on consumer rights and protection. He stressed that if consultations were to happen, they could highlight the practical aspects needed to be addressed in a new law and how to practically implement one.
He further said that the CAA needed better checks and balances as currently, it was focused on both the market and the consumer. “The agriculture institutions, the Public Utilities Commission of Sri Lanka (PUCSL), and the Health Ministry also need to be better linked to the CAA, through something like a consultative committee, so that complaints could be handled in a coordinated manner,” he noted.
History of attempts
A former official at the CAA told The Sunday Morning that changes to the law had been attempted multiple times, to little success. The CAA Act was only amended once – a change to Section 20 to increase fines.
“Other than that amendment, there have been no amendments for the past 22 years. It is an outdated and old law. At multiple instances, amendments were attempted but they have only gone through the same cycle before governments or the board changes and the process restarts,” the official said.
Key recommendations for changes in the law include:
- Competition promotion – recognising that one reason for the breakdown of consumer rights is monopolisation and mergers, the recommendations aim to fix the supply and competitive problems in the market.
“A lack of competition for essential goods such as eggs and rice is leading to problems for the consumer. Prior to the establishment of the CAA, there existed a Fair Trading Commission which addressed this issue, but the 2003 law removed that. We have gone backwards while other countries have gone forward,” the former official noted.
- Regulations for online businesses
- Provisions to strengthen responses to consumer complaints
- Fines
“Amendments are urgently needed as the world is fast changing. In such a world, this kind of law needs amendments at least every five years as trade changes. The authority also needs to be strengthened as it lacks human and other resources,” said the former official.
The Sunday Morning learns that the present administration has recognised the need for updating the law, but the process is yet to begin.
Speaking to The Sunday Morning, Deputy Minister of Trade R.M. Jayawardana said they would study the current legislation to understand whether it needed amendments or whether a new law must be brought in.
The ministry is in the process of making changes to the law governing co-operative societies.
Multiple attempts to contact CAA Chairperson Hemantha Samarakoon and Trade Minister Wasantha Samarasinghe proved futile.