Today is World Consumer Day MAKING FAIRER DIGITAL MARKETPLACES

World consumer day is the day the world consumer is expected to show consumer strength by organizing the membership worldwide initiated by the Consumer International. Sri Lanka takes part in a low profile as the consumer is not well organized as in other parts of the world, due to lack of leadership and inefficiency of the main consumer regulator expected to organize and catalyze the celebrations. 

• The CAA, with enormous powers now given and with branches countrywide, is now in the process of regularization of a market
• The Indian legal system complements consumerism with Consumer Courts and advanced jurisprudence and case laws on the subject
• How do you make digital regime fairer in Sri Lanka with outdated regulator CAA and fast developments in technology?

The strength of the consumer, who is also the citizen is education, activism and organization to engage in protecting and enhance the due rights and entitlements as the powerful group, not recognized and looked after by the regulator, trader, industrialist and the business community.

They say the consumer is a king and mighty powerful, who is always correct, well organized in the West with the help of the media, organizations and the State contributing for a fair consumer regime, while looking after the trader and industrialist.

In the United Kingdom the magazine “WHICH” guides and protects the consumer, with the Department of Trade and Industry as the regulator supervising the consumer, protecting and safeguarding the citizen from providing them with quality consumer items at a reasonable price.

Trade Law including competition process and self-regulatory regime to avoid naming and shaming are direct and indirect methods of maintaining high standards of consumerism.

The EU consumer is protected by EU regulations applicable to EU countries. In Canada, Australia and even Latin American and African countries, consumerism is of high standards compared to Sri Lanka. Singapore and Hong Kong are so advanced the consumer is educated from the airport onwards.

The Indian legal system complements consumerism with Consumer Courts and advanced jurisprudence and case laws on the subject.

Dhammika Perera said at his recent presentation in Colombo that online trend was settling to a mixture of online and storage (stores) worldwide again

Main Consumer Regulator
In Sri Lanka the main consumer regulator is the Consumer Affairs Authority (CAA) set up under Act No 9 of 2003 giving regulatory powers in place of traditional price control regime, with controlled prices.

The CAA, with enormous powers now given and with branches countrywide, is now in the process of regularization of market.

The CAA is expected to initiate and promote consumer movement to organize the consumer and it is doubtful whether there is any consumer organization to assist the consumer in combating the cost of living and demand quality consumer goods and services at the quality at a reasonable price and standards.

The quality of goods services food and consumer items are substandard, adulterated, and of inferior quality due to lack of supervision and regulation by the CAA and other regulators such as TRCSL, Insurance and Trade Ombudsman, Public Health Inspectors, Local Councils, Health Department and many Statutory bodies.

With the advancement of technology, Sri Lankans are now at the doorstep of digitization with mobile phones in everybody’s hand and computer literacy of 40%.

The younger generation is now armed with excellent computer skills, and is able to use credit cards, advanced banking methods, and engage in modern technology via Facebook and other social media platforms for day-to-day life.

However in Sri Lanka online shopping is not in practice as in the United Kingdom and worldwide where 40% of the consumer items are purchased online.

Sri Lanka appears to be getting ready for a leap with the advanced applicability of modern technology in businesses and day-to-day transactions and the day will be not far when majority of the population makes its purchases online.

Uber a main digital application catering to millions of customers worldwide including Sri Lankans. These techs are expanding to bring blow drying and food chains to doorsteps which will revolutionize online purchasing further.

Sri Lanka has a Digital Minister linked to telecommunication having entered into a number of MOUs with foreign Governments and multinational companies on the introduction of digital advancements.

Digitization of Education has commenced by setting up digital classrooms which equip students and teachers with laptops and tabs.

On why consumer is not king in Sri Lanka but in the well organized West

Digital Regime
How do you make digital regime fairer in Sri Lanka with outdated regulator CAA and fast developments in technology?

And are we in the digital age or in the doorsteps? Are the issues to be resolved today?

Digitization in the world is fast with adverse effects of shedding billions of jobs, unlimited changes in lifestyles due to innovative changes making life easier.

However, these changes include the risk of health, other unexpected and undesirable changes in the economy.

Will Sri Lanka be affected by the ripple effect or to what extent it will invade Sri Lanka is a matter of time.

Digitization developments depend on the vision and the strategy of the State and the leaders of the private sector.

Digital Market Places
Are digital marketplaces, which are thriving in the West has a foothold in Sri Lanka and the potential is very interesting considering the internet and mobile users are young.

The theme of the year The theme of the year is appropriate to the rest of the world but not for Sri Lanka with limited penetration of the threat/prospects of the digital marketplace.

Experts predict saturated digital market in Sri Lanka in 10 years with innovative smart cities in line with Israel, Hong Kong, and UAE.

When 40% of the global population is online with 750 million global internet users, Sri Lanka will be finding it difficult to join the world out of necessity 
and compulsion.

Sri Lanka takes part in a low profile as the consumer is not well organized as in other parts of the world

Way out and Future Strategy
Before making digital marketing fairer we have to make our existing system, which is inefficient and ineffectual to be advanced and compatible with the world trends according to the needs challenges and, requirements.

Chinese multi-national company Alibaba started by an English Teacher Hangzhou is the biggest retailer with 100 British Brands and with 440 million active clients, which is also protected by the UK Government (Gov.UK). Alibaba could be considered as a guideline for our Digital Ministry.

The energetic Minister should agitate for an appointment of an educated head for the CAA with the legal background as the Chairman.

Introduction of Microsoft 365 with cloud business transformation by commercial banks are in the right direction, However, it is good to be careful to maintain the balance on excessive growth.

It is time we encouraged and promoted our young entrepreneurs in line with the vision on the Israel Youth on innovations taking them up to the world standards on 
creative innovations.

Dhammika Perera, supposed to be the richest man in Sri Lanka, who bought Singer recently, said at his recent presentation in Colombo, he had increased online business of Singer by 38% after taking over and observed that online trend was settling to a mixture of online and storage (stores) worldwide again, indicating the uncertainty of world business trends which changes at excessive speed.

Writer Sarath Wijesinghe is a former Chairman of the Consumer Affairs Authority and former Ambassador to the UAE and Israel. He could be reached on [email protected]