By The Pulseline News Desk
The Consumer Affairs Authority (CAA) has launched islandwide market inspections and raids following reports of an increase in wheat flour prices, warning that legal action could be taken against traders, manufacturers and distributors found violating consumer protection laws.
The Authority has said the relevant wheat flour manufacturers had neither held prior discussions with the CAA nor formally informed it of any decision to increase prices, despite media reports of a price hike.
Under Section 18 of the Consumer Affairs Authority Act, No. 9 of 2003, wheat flour is classified as a specified commodity, requiring manufacturers to obtain the Authority’s prior written approval before increasing its price.
The CAA has already requested explanations from the relevant manufacturing companies regarding the reported price increase, including details of the price revision.
The Authority has said further action would be determined after examining the manufacturers’ responses and the findings of the ongoing investigations.
Legal action warned
The CAA has warned that traders found selling wheat flour in violation of applicable laws would face legal action.
Manufacturers and distributors could also face legal proceedings if investigations establish that they have breached the law.
The islandwide inspections are intended to establish whether businesses are complying with the legal requirements governing the pricing of wheat flour and whether the reported increases have been implemented without the necessary approval.
The Authority’s intervention comes amid concerns over rising prices of an essential food commodity, with the investigation expected to determine the circumstances surrounding the reported increase and whether regulatory violations have occurred.
The CAA has not yet announced the outcome of its inquiries, saying further decisions would depend on the explanations provided by manufacturers and evidence gathered during inspections.
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