Sri Lanka Consolidated Acts

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Consumer Protection Act (No. 1 of 1979) - Sect 21

Price discrimination

21.
(1) A trader shall not, in a trade or business, Price discriminate between purchasers of goods of like grade and quality in relation to-
(a) the prices charged for the goods ; or
(b) any discounts,. allowances, rebates or credits given in relation to the supply of the goods ; or
(c) the provision of services or facilities in respect of the goods ; or
(d) the making of payments for services or facilities provided in respect of the goods.
(2) The provisions of subsection (1) shall not apply in relation to a discrimination if-
(a) the discrimination makes only reasonable allowance for differences in the cost or likely cost of manufacture, distribution, sale or delivery resulting from the different places to which, methods by which or quantities in winch goods are supplied to the purchasers; or
(b) the discrimination is constituted by the doing of an act in good faith to meet a price or benefit offered by a competitor of the supplier.
(3) In any proceeding for the contravention of the pro visions of subsection (1), the burden of establishing that, that subsection does not apply in relation to a discrimination by reason of subsection (2) is on the party asserting that subsection (1) does not so apply,
(4) A person shall not, in a trade or business-
(a) knowingly induce or attempt to induce a trader to discriminate in a manner prohibited by subsection (1); or
(b) enter into any transaction that to his knowledge would result in his receiving the benefit of a discrimination that is prohibited by that subsection.
(5) In any proceeding against a person for the contravention of subsection (4), it shall be a sufficient defence if that person establishes that he reasonably believed that by reason of subsection (2), the discrimination concerned was not prohibited by subsection (1).
(6) The National Prices Commission may, where it considers it expedient, in the interest of the national economy exempt any trader from the application of the preceding provisions of this section to such trader.


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