Fines charged for arbitrary price hike of essential items increased
Posted on September 4th, 2021

Courtesy Adaderana

The amendments to the Consumer Affairs Authority Act will be tabled in the Parliament on Monday (Sep. 06), says State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna.

These amendments are expected to allow necessary action to be taken against individuals and companies who deliberately increase the prices of essential items and sell the goods above controlled prices.

As per the provisions of the CAA Act, the fines are categorized as individual businesses and companies.

Accordingly, the maximum fine charged from an individual business for a first-time offence has been increased from Rs. 10,000 to Rs. 500,000.

Individual businesses will be fined a maximum of Rs. 1 million for a subsequent offence. This amount previously stood at Rs. 20,000.

Meanwhile, the maximum fine for a company for a first-time offence has been raised from Rs. 100,000 to Rs. 5 million.

The maximum fine imposed on companies for a subsequent offence has been increased from Rs. 200,000 Rs. 10 million.

More details on amended fines imposed on individual businesses and companies for arbitrary price hikes are as follows:

  Fines (current)  Fines (amended) 
 Individual businesses  First-time offence Minimum Rs. 1,000 Rs. 100,000
 Maximum  Rs. 10,000 Rs. 500,000
 Second-time offence  Minimum Rs. 2,000 Rs. 200,000
 Maximum  Rs. 20,000 Rs. 1 million
 Companies First-time offence Minimum Rs. 10,000 Rs. 500,000
 Maximum Rs. 100,000 Rs. 5 million
 Second-time offence Minimum Rs. 20,000 Rs. 1 million
 Maximum Rs. 200,000 Rs. 10 million

Leave a Reply

You must be logged in to post a comment.



Copyright © 2021 All Rights Reserved. Powered by Wordpress