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 |