Author Topic: CAA to take legal action against Prima  (Read 1430 times)

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Offline sithari

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CAA to take legal action against Prima
« on: August 18, 2006, 07:28:44 PM »
The Consumer Affairs Authority (CAA) has decided to initiate legal action against Prima Ceylon Ltd. for the recent wheat flour price hike effected by the company.

CAA Chairman Sarath Wijesinghe said that the price hike which came into effect from August 12 was illegal as the company did not obtain prior permission from the Authority for the increase.

"Wheat flour is a commodity declared as an essential food item by the Trade and Consumer Affairs Minister.

"Prior approval is a mandatory requirement for increasing the price of an essential item. Therefore this price hike has clearly violated consumer protection law," he said.

Wijesinghe said that steps have already been taken to pursue legal action against the company which enjoyed a long standing monopoly over the wheat flour trade before the Government decided to declare it as an essential item.

Prima Ceylon Ltd increased the wheat flour price by Rs. three last week bringing the price of one kilogram of wheat flour upto Rs. 36.

The price hike also resulted in a Rs. 2 increase in bread prices.
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