Consumers International Blog

Consumer education and protection are crucial in the face of poor financial services

2012-01-13T20:29:00.000+08:00

Indrani Thuraisingham, Head of the CI Office for Asia Pacific and the Middle East, on the importance consumer financial know-how.

Financial education must always be integrated with consumer protection. This message was reiterated during the Citi-FT Financial Education Summit in November last year where I was invited to take part in the key plenary panel discussion entitled, “Achieving the Ultimate Goal – Financial Capability for All.”

This session looked at the steps that could be taken to achieve universal financial education and the challenges that would have to be overcome. I presented CI’s position on the role of financial education in improving individuals' financial capability and empowering consumers to deal with marketplace complexities and economic volatility.

CI subscribes to the three pillar approach for financial services advocated by the Organisation for Economic Co-operation and Development (OECD), namely, education or information; protection; and, access. These three are all necessary and interlocked. There cannot be one without the other.

This is especially important now looking at the global scenario of financial services. Weak consumer protection in the form of irresponsible mortgage lending was a catalyst for the global financial crisis.

There is currently a monumental increase in consumer and household lending accompanied by unsustainable levels of indebtedness in many parts of the world.

Financial services providers are able to issue contracts which do not transparently and clearly communicate all applicable costs, fees or interest rates, and anti-competitive practices such as obligatory bundling of financial products as well as inappropriate collateralisation of borrower's debt. And for consumers with grievances, there is generally a lack of redress mechanisms.

As well as measures such as debt relief and credit counselling dispute resolution facilities such as mediation services, ombudsman, public interest litigation and legal aid clinics also have to be in place to ensure consumer welfare.

CI has contributed to the OECD and Financial Stability Board's (FSB) work under a G20 mandate to make recommendations on consumer protection . The OECD principles were endorsed in November last year by the G20 leaders and whilst CI would like them to have been stronger (in particular they lack force in terms of the development of minimum standards of suitability, product withdrawal and contract nullification, where manifestly unsuitable products are sold) they are a useful basis for further work. In contrast, the FSB recommendations, which have also been endorsed by the G20, are stronger in terms of suggesting suitability standards and prohibitions

Both the FSB recommendations and the OECD principles are voluntary, however the G20 countries have committed to their implementation and requested progress reports to be presented at future G20 summits.

There must be protection along with education and access. Financial education helps but protection is still needed so that the illiterate, vulnerable or desperately poor are not enticed into abusive agreements.

There is a difference between education for life skills and education for detailed knowledge about financial products. We want youngsters to learn the basics of budgeting and to be aware that if something looks too good to be true, then it most definitely is.

They do not have to be financial experts to know this just as we do not expect drivers to have detailed knowledge of car mechanics when they buy a car. What we do expect though is cars to be safe and for the government to pass legislation to that effect.

Consumer rights must keep pace with Africa’s mobile money miracle

2011-12-13T23:37:00.001+08:00

CI's Luke Upchurch on why consumers of mobile financial services need protecting.

African consumers have established themselves at the vanguard of mobile communications, with the continent already boasting more mobile-phone users than the United States. Now, Kenyans are leading the way in new forms of inexpensive mobile financial services that have the potential to revolutionise bank transactions, transfers, payments and personal finance.

Yet, while the 17 million Kenyans already signed up to a mobile money service are a clear sign of its popularity, consumer protection is lagging behind the pace of technological change. It is a problem that consumers of financial services in other countries may soon face too.

Mobile banking services like M-PESA, run by Vodaphone’s Kenya subsidiary Safaricom, offer Kenyan consumers cheap transaction services via their mobile phones. The service requires minimal sign-up details, and takes advantage of the huge mobile-phone ownership in Kenya.

Crucially, it allows users to access and withdraw funds from a network of kiosks – M-PESA has over 32,000 agents across Kenya - by simply providing the vendor with a verification code. This secure code is sent on request to the user’s mobile phone by M-PESA. Once verified by the vendor, cash can then be handed over instantly.

The popularity of the service is undeniable. The World Bank estimates that M-PESA alone moved over USD7 billion of customers’ money in 2010, and this could reach USD10 billion for 2011.

Together with a growing number of rival services, mobile money has quickly become the standard form of payment, transfer and withdrawals for many Kenyans. The rest of Africa is not far behind.

But, as Samuel Ochieng of Kenya’s Consumer Information Network (CIN) explains, the eagerness of companies to take advantage of this consumer demand has left legislators reeling.

“Consumer rights have not been at the forefront of the design of this service, and we feel tighter legislation is needed. Yet, when we wrote to the telecommunications regulator, the Communications Commission of Kenya [CCK], to outline our concerns, we were told it was a matter for the Central Bank. So, we wrote to the Central Bank, who in turn referred us back to the telecommunications regulator. Such confusion over accountability speaks volumes about the lack of consideration concern given to consumer rights”.

There are several areas in which consumer protection is a concern. It is clear that many consumers are already using the service as an alternative to a bank account (something Safaricom and others have done little to dissuade). The ease of use and convenience of access mean this is unsurprising. But, unlike a conventional bank account, consumers have no meaningful form of deposit protection. There are also no ‘savings’ account options, so customers have no means of receiving interest on the money held by the provider. With an estimated USD650 million in transactions a month, interest on deposits is potentially huge.

There are also few payment-protection guarantees built into the transaction system, leaving the service open to fraud. CIN have heard of several cases in which mobile payments have been agreed via the verification process, only for the person making the payment to then contact the provider and cancel the transaction (something which is possible for up to 72 hours after submission with M-PESA).

The flexibility of mobile financial services is, of course, a major part of the success story. But in this case, it is also putting consumers’ money at risk.

Samuel Ochieng also points to a worrying lack of clarity around access to customer accounts in the event of death.

“Unlike a bank account, there is currently no established power of attorney for next of kin. This has led to some distressing cases for the families of the bereaved, who often have no idea how much is held in the mobile account of a family member who has passed away. Often it is the family’s word against that of the provider.

“This is yet another reason why the Central Bank should take full responsibility for legislation around mobile money services”.

The World Bank predicts that mobile financial services will affect the lives of two billion people in developing countries by 2020. These services are changing the lives of millions of people, providing many with access to financial services for the first time. Services are also beginning to appear in developed economies, where the market potential is likely to bring a whole new dimension to mobile money.

While these developments have to be welcomed, consumer rights groups need to be vigilant against the popularity of the technology outpacing the need for effective, accountable consumer protection.

Three social media challenges for the consumer rights movement

2011-12-09T16:44:00.001+08:00

RichardBates, of the UK’s Consumer Focus, on how new consumer empowerment is changingthe role of consumer rights bodies.

In an era where consumers have a voice and are not afraid to use it, what’s therole of a body that claims to be the voiceof the consumer?

Remember the 20th century? Such question wouldn’t have arisenthen. We didn’t necessarily like it, but as consumers we knew our place. Forthe most part, we were isolated individuals, stranded at the receiving end –literally – of mass production, hyped by mass marketing, reaching us throughmass media. Of course, we were frustrated when the reality of products andservices didn’t marry up with the promise, but our only hope of resolution layat the outer reaches of a customer ‘support’ labyrinth. Our best chance of sharingexperiences widely with our peers lay in having a tale of woe that wasextraordinary enough for the press to show an interest.

The mission of consumer bodies was clear too: work on behalfof consumers to expose problems, propose solutions and ensure government,regulators and business took heed.

Just one decade into the 21st century, and the oldcertainties are falling apart. According to market research agency Forrester,we now live in the ‘age of the customer’, where a company’s success depends onits 'engaging with empowered consumers'.

WhenUnilever CEO, Paul Polman, talks about consumers being able to “bring us down in nanoseconds” you start to think Forrester might be on to something.

The balance is being tipped in favour of consumers by socialmedia. Connected and part of the conversation, we’re fast evolving from passiverecipients, to active participants in the media of the masses. As Clay Shirkyputs it in Here Comes Everybody, consumers talk back to businesses and speak out to the general public,and can do so en masse and in coordinated ways.

The upshot is dynamic new approaches to consumer empowerment.Three themes I’d pick out as having considerable impact, both individually andin combination, are:

(1) Brands inour hands: where connected consumers share experiences, feedback andinformation in ways that make brand transparency inevitable. If a brand doesn’tlive up to its promises, Polman’s prophecy comes to pass.

(2) Get it, together: where connected consumers aggregateand synchronise their buying power to achieve better value and/or social andenvironmental goals. High opportunity and transaction costs used to ensure thiswas difficult to the point of prohibitive, but technology has eroded thosecosts and ignited an explosion of activity in this space: ranging from theChinese ‘team buying’ phenomenon of tuangou, to Carrotmob.

(3) We can do this: where the growth of peer-to-peer marketplaces andcollaboration is posing a challenge to incumbent providers in some sectors – Zopa,the peer-to-peer lending platform being one such example.

None of these innovations can be traced back to the consumer‘establishment’. Instead, their origins are with entrepreneurs who havecapitalised on the opportunity to offer intermediary platforms that make newapproaches possible; or with civic-minded developers, such as mysociety.org inthe UK; or, as with Australia’sVodafail, consumers speaking back directly and with real impact.

So, is the traditional consumer body surplus torequirements? Well, no. In an age of consumer voice, many remain voiceless andin need of representation. There’s also an ongoing need to fight the consumercorner when complex decisions are made in regulated markets, especiallylong-term policy decisions. Technology that presents new opportunities alsopresents new risks – at least 50 of them according to a project we haveunderway to identify and pre-empt sources of ‘digital detriment’.

But, we have to extend our capabilities to harness new opportunitiesfor tackling old problems, and do so in ways that see us collaborate with andwork through the actions and decisions of consumers themselves. Otherwise, that‘traditional’ prefix will challenge our relevance, as more fleet-footed, innovativeactors become useful to consumers and start to command the space.

Finally, given the number ofcontentious issues on the horizon – how we meet costs of a sustainable future,for example – there’s perhaps another question we should all be considering:when a body acting in the consumer interest takes a divergent view to a vocalmass of consumers acting in the, erm, consumer interest, who’s right?

Richard Bates leadsthe Consumer Empowerment Programme at Consumer Focus, the UK’s statutoryconsumer body. The Programme is focused on analysing, developing andpromoting innovative approaches to consumer empowerment.

Financial services: what we have achieved at the G20

2011-11-05T01:27:00.001+08:00

Consumers International Director General, Helen McCallum, on thelatest major success for the global consumer rights movement.

Just over fourteen months ago, Consumers International (CI) launchedan exciting new campaign that called on the G20 leaders meeting in Seoul tomake recommendations on financial consumer protection. With the Cannessummit declaration just out, we thought now would be a good time to look atwhat we have achieved.

This is what the declaration has to say about financial consumerprotection

“We agree that integrationof financial consumer protection policies into regulatory and supervisoryframeworks contributes to strengthening financial stability, endorse the FSBreport on consumer finance protection and the high level principles onfinancial consumer protection prepared by the OECD together with the FSB. Wewill pursue the full application of these principles in our jurisdictions andask the FSB and OECD along with other relevant bodies, to report on progress ontheir implementation to the upcoming Summits and develop further guidelines ifappropriate.

In many ways this is a remarkably strong statement. The FSBreport that the G20 has endorsed, calls for more work in three areas.

Firstly, the development of a new international organisation with aclear mandate and adequate resources to support financial consumer protectionin banking and credit. This organisation will be built on the existing FinCoNetnetwork of national regulatory authorities. FinCoNet will be meeting on Wednesday9 November to discuss their new structure and mandate. CI will be there.

Secondly, the establishment of well-resourced and clearlyaccountable national institutions responsible for financial consumerprotection.

And thirdly action to help regulators define risky and unfairfinancial products, tackle conflict of interest by requiring the disclosure ofcommission payments and consider the benefits of providing basic and low riskfinancial products.

Furthermore the G20 have endorsed and committed themselves to applythe OECD high levelprinciples on financial consumer protection that – whilst they may notinclude everything we have called for – establish a good baseline that we canbuild on.

We also have a commitment that future summits will receive reportson progress in the implementation of this work – effectively giving consumerorganisations a process by which we can gauge progress in this crucial areaover the coming years.

Of course we haven’t achieved everything we were asking for but thisis a strong package that addresses many of the key issues we have beencampaigning on and gives us a lot to build on. We will lobby for the workproposed by the FSB and the development of strong guidelines that add thedetail that is currently missing from the OECD principles.

There are many reasons for our success but to mention just two;financial services was the right issue at the right time – following the chaosand hardship caused by the financial crisis, governments were finally preparedto address what were often long standing consumer concerns about the safety andfairness of financial services.

But equally important was the fact that the campaign built on theexpertise and experience of CI’s membership and received enthusiastic supportfrom members around the world.

Over the last fourteen months CI members have written to governmentsin every G20 country and many non-G20 countries, we have had coverage andcomment from many leading news agencies, we developed a set of recommendationsthat earned us considerable respect and were released before any other international body had evengot started, we held member consultation sessions for the FSB and OECD in HongKong and Brussels, and we responded toevery draft, and lobbied many of our national representatives.

Of course we haven’t achieved everything we wanted to and CI willcontinue to campaign for world leaders to build on these recommendations andwork through the international processes to ensure governments act on theircommitments.

But it is a real success for CI members around the world and oneworth celebrating!

G20 France: financial services rules in danger of getting interesting for consumers

2011-11-03T19:42:00.000+08:00

Robin Simpson

CI’s Senior Policy Adviser, Robin Simpson, dissects the G20 meetings in France in relation to financial consumer protection.

While protesters gathered the world over and markets threatened to go into meltdown, what was our contribution to financial consumer protection during the Northern summer and autumn of 2011? What can we tell our grandchildren?

In August, Consumers International (CI) responded to the public draft of the “high level principles on financial consumer protection and education” that an OECD Task Force drafted under the mandate of the G20. On 14 October, those principles were discussed at the high-level seminar on financial consumer protection jointly hosted by the OECD and the French G20 presidency, and addressed by our President, Jim Guest, and consumer colleagues from Hong Kong, France and our Brussels-based colleagues, BEUC.

I say ‘discussed’ because they were not actually delivered publicly until after the conference, being endorsed by the meeting of the G20 ministers of finance over the weekend of 14-15 October.

Despite being in the bizarre position of discussing a set of principles that we were not allowed to see, we nevertheless expressed our disappointment. The language is weak, the principles are described as “voluntary”, and “non-binding”, there are multiple insertions of terms such as “as appropriate”, “where applicable and possible” etc to qualify each of them, and there is not a single reference to the financial crisis. There is no reference to product suitability, to minimum standards, and the language around bank deposit guarantees for consumers is very ambiguous, as is the language on international cooperation.

To our astonishment, the OECD Secretary General and the Deputy Secretary General indicated agreement with our criticisms of the weakness of the language, but indicated that this was the best they could get past the government members of the Task Force. Why were we astonished? Because the starting point of the conference was praise lavished onto the work of the Task Force by the Secretary General and by the French Minister of Finance Francois Baroin.

So, were the principles worth endorsing at all? Apart from reiteration of long-standing OECD policies on disclosure and education, there is some progress on issues of conflict of interest between service providers and their customers, some mention of opening up regulation, and some very thin commitments to equitable treatment of consumers, redress and competition. All of these need beefing up.

This is where it gets interesting. The actual terms of the endorsement on 15 October were as follows: The ministers “endorsed the FSB report and the common principles on financial consumer protection prepared by OECD with FSB and call for further work on implementation issues”. The Financial Stability Board report, Consumer finance protection with particular focus on credit, was not discussed at the 14 October conference, which was a pity as it does make reference to “product suitability”, to “benchmarks for financial products”, and most explicitly of all, to the need for “an international organization of regulators to take the lead on global financial consumer protection efforts”.

This does give us something to work on, as does the ministerial call for further work on implementation issues. One of the more encouraging presentations at the 14 October conference came from the Mexican Deputy Finance Minister Gerardo Rodrigues who, representing Mexico in its capacity as next president of the G20, committed to a practical programme of work on implementation. The closer to the practicalities, the more the endless qualifications will appear to signify lack of true commitment. We look to the G20 leaders meeting at the Cannes summit this week to strengthen the commitment to reform.

One thing is for sure – the industry is not going to reform itself. On 14 October, the President of the French banking federation told the OECD conference that consumers should become responsible and realise that there is no such thing as a ‘free lunch’ (his exact words in English). Only four days before, the Franco-Belgian Bank Dexia, faced with collapse, received a EUR90 billion government-funded guarantee. Quite a few free lunches there.

What do you think? Comment below.

Failures of NCD meeting at UN: No targets. No commitment. No rules.

2011-10-25T18:04:00.000+08:00

By Indrani Thuraisingham, Head of the CI Office for Asia Pacific and the Middle East.

No targets. No commitment. No rules.

These were the reasons why the United Nations Political Declaration of the High-level meeting on the prevention and control of non-communicable diseases at the General Assembly in September was met with disappointment by consumer campaigners.

There were no time-bound goals or targets to eliminate industrially produced transfat in food and to discourage the production and marketing of unhealthy foods.

Neither was there a clear commitment to implement prevention policies or rules to manage the potential conflicts of interest that arise when interacting with the private sector.

I was invited by the President of the General Assembly Joseph Deiss to speak at this high-level meeting as a civil-society speaker at a roundtable session on "fostering international cooperation, as well as coordination, to address non-communicable diseases".

There, we had the ridiculous state of affairs whereby representatives of the pharmaceutical industry and the food and drink industry also spoke as civil society!

The World Health Organization (WHO) needs to clearly recognise the differences between business-interest NGOs (BINGOs) and public-interest NGOs (PINGOs)

Consumers International (CI), along with hundreds of other organisations, has signed up to a statement of concern by the Conflicts of Interest Coalition calling for the establishment of a code of conduct to govern civil society engagement in which the process of policy development is protected from the influence of the for-profit sector, as they are part of the problem in relation to tobacco, alcohol and marketing of food to children.

We support the development of a ‘code of conduct’ ethical framework, which will guide “interactions” rather than “partnerships” with the private sector in addressing the prevention of NCDs.

The overall annual death toll from NCDs is estimated at 36 million worldwide. Unless addressed, fatalities from NCDs are predicted to increase by 17% between 2008 and 2018.

Governments must take the lead in coordinating with WHO, as lead agency, to ensure policy coherence with all of the UN Global Strategies in addressing NCDs in relation to trade, procurement and investment policies.

CI continues to work with WHO, especially on the issue of marketing of food and beverages to children. In September, CI published a manual designed to support governments and civil society to monitor the marketing of food to children.

We can only hope that the failure of this declaration to deliver more ambitious outcomes will be a 'wake up call' to all member states and create a new sense of purpose that will lead to the development of ambitious global targets and indicators on NCDs before the end of 2012.

In the words of WHO director-general Dr Margaret Chan: “Countries cannot treat their way out of NCDs. Prevention is crucial.”

A tool to fight obesity and NCDs in the Caribbean

2011-10-01T00:00:00.000+08:00

Candice Ramessar (Caribbean Project Coordinator) launches a tool to help fight child obesity in the Caribbean region.

Yesterdaywe launched Consumers International’s (CI) 'Manual for monitoring food marketing to children', in Jamaica. The launch was undoubtedly a success. For me the bestmoment of the day was a young lady who came to CI’s office after the launch toask for a copy so she can review its applicability to her work in foodstandards.

Thelaunch was at the picturesque campus of the St George’s High School in downtownKingston, behind the world famous Sabina cricket ground.

MsDolsie Allen, CEO of the Consumer Affairs Commission of Jamaica, introduced themanual, citing some statistics of the increasing prevalence of non-communicable diseases (NCDs) in the Caribbean region.

Protestsover fried chicken

Theprincipal of St George’s High School, Ms Campbell, said she took friedchicken off the menu of the school cafeteria for three days of the week atthe all-boys high school - this resulted in protests on the campus. She wasvery happy to be associated with the launch of the manual and recommended thatthe policy makers and planners use it to monitor the marketing of food toJamaica’s children.

Turningfood theory into practice

Candice and Minister Christopher Tufton discuss manual

TheMinister of Industry, Investment and Commerce - whose ministry has responsibilitiesfor consumer affairs - Dr Christopher Tufton, said that the manual isdefinitely a first step in the right direction. He said the manual istheoretical but that he is willing to commit human and other resources inworking with other stakeholders, including the private sector, in applying themanual to monitor food marketing to children in Jamaica. He said he did not seea conflict with the tightening of marketing regulations and private sector andbusiness development, for which his Ministry also has responsibility.

Themanual was then officially presented to the Minister.

Over70% of women in Caribbean obese

Thehead of the Caribbean Food and Nutrition Institute headquartered in Jamaica, DrFitzroy Henry, shocked the audience by informing them that statistics indicatethat more than 70 percent of women and more than 10 percent of pre-schoolers inthe Caribbean were obese. He observed that the manual will be an importanttool for his institute in their work in reversing these unwelcome trends in theregion, contending that obesity in children affects their brain development.

Inpraise of healthy food

Student gives impromptu plea

TheSt George’s choir provided two beautiful renditions of Jamaican folk songs thatextolled the virtues of green bananas and mangoes. A student of the school thenasked if he could say a few words. He passionately pleaded with his fellowstudents not to choose food based on color or the food ads, but based on itsnutritional content. He asked his fellow students to choose their food wiselynow, before they also developed the health issues he has, which force him to watcheverything he eats.

Freshfruit for the audience

Theprogram ended with a thank you by Dr Lisa Lawrence of the National ConsumersLeague. Dr Lawerence thanked everybody for a morning well spent. The audiencethat included representatives of the Jamaica Standards Bureau, Ministry ofEducation Food Feeding Programme, the Advertisement Association of Jamaica,Caribbean Food and Nutrition Institute, advocates for children, youth organisations,and youth magazine reporters were then treated to some fresh local fruits andjuices.

Thelaunch also represented for me another great collaboration between the CIproject office and its Jamaican members, the National ConsumerLeague and the Consumer Affairs Commission. I would also be remiss not tomention, Gisele Perry, CI project assistant, who worked tirelessly in making thisevent a success.

Itis our hope to replicate this activity in Trinidad and Tobago as well as someof the other Eastern Caribbean states as part of Consumers International's work in the Caribbean.

Israel's cottage uprising: consumers unite on Facebook to force inflated food prices back down

2011-09-21T21:52:00.000+08:00

Prof Michal Gal, by Shmuel Almani

Professor Michal Gal reveals how consumers in Israel have used Facebook and collective power to successfully force high food prices back down.

There have been some exciting events taking place in Israel for the past three months or so. The first is a revolt by consumers, in what has come to be known as "the Cottage Uprising", which reached one of its climaxes this week when hundreds of thousands of consumers decided to boycott Tnuva products, a major supplier of dairy products. This figure represented a large number of consumers for such a small country. They were connected and informed through social networks, supporting media and volunteers.

It all started when one conscientious consumer posted a call on Facebook to boycott cottage cheese produced by Tnuva, the largest cottage cheese manufacturer in Israel. Cottage cheese is an important part of an Israeli diet and, believe it or not, it is actually tasty! He pointed to the fact that in the past year, ever since the price of cottage cheese was deregulated, it rose by more than 25% percent. Surprisingly, more than 100,000 consumers joined him within days.

Tnuva has caved in to consumer pressure

At first Tnuva, which is now largely owned by the British APAX investment fund, responded that it would not reduce prices, but soon it began to understand that it had a real problem on its hands. Within days it reduced prices and set them closer to their previous levels. The harm to Tnuva was not only the direct loss it suffered: Tnuva uses the picture of a "cottage" (house) which is posted on its cottage cheese as its main image and bases its slogan on it: "Tnuva - the Israeli home".

This was only the first step in this summer's social revolution. Hundreds of thousands of Israeli consumers (450,000 people - out of approximately 7 million people participated in the biggest march ever in Israel) protested against the high prices of many products. These high prices make it difficult for many to live a comfortable life despite many having a good education and working long hours. Indeed, research done for the Israeli parliament indicated that between 2006 and 2011 the average salary in Israel rose by 2.6 percent while the Consumer Price Index rose by 25 percent. Salaries in Israel are the third lowest of all of OECD members, while prices and taxes are among the highest.

This was mainly a protest led by the young and educated, who saw their dreams of buying their own apartment get further away from them due to the extreme rise in housing prices. They have also experienced growing difficulties of paying their bills, not to mention saving for a rainy day. They were joined by many other groups protesting against "social injustice." They pointed to, among other things, the fact that while the country's macro-economic indicators painted a bright picture, the benefits did not trickle down to most groups in society and they were largely enjoyed by a small group of business people who control large parts of the Israeli market. This small group, whose interests are often protected by politicians, enjoys the quiet life by not stepping on each others' turf.

Accordingly, the protest was not necessarily about the capitalistic model that Israel adopted, but mostly about the unnatural causes that enabled huge conglomerates to develop and prosper and the lack of regulatory tools applied to limit their market power.

As part of this social revolution, people built tents in the centres of towns all around Israel, and created "town squares" for public discussions about how to use public funding to create a better life for most citizens. It is a great example of Israeli democracy that these "temporary settlements" were allowed, despite the fact that they criticised the government quite severely (it was a great lesson in democracy for my kids).

Earlier this month, after the largest march, most tents were taken down by the protesters. The hope is that the discussion will continue and will affect governmental policies. Committees were created in order to push forward a more socially oriented policy.As studies began to accumulate that showed the high profits of many major suppliers in Israel, a group of students initiated what they call a "changing boycott," where each week one major food producer would be boycotted, to indicate the consumers' power if prices were not reduced to "fair" levels.

Tnuva reacted to this action not by reducing prices, but by increasing the sizes of its products by 10% and selling them for the previous price. We will have to wait and see what will develop.

I find this collective use of consumer power quite exciting, especially when this power is used to reduce high prices that are a result of governmental failure to perform the regulatory tasks it should have performed (eg reducing entry barriers, placing more emphasis on market power considerations in privatisation decisions, resisting interest-group pressures, and not allowing conglomerate mergers with significant market-power effects that do not create offsetting efficiency benefits). At the same time I hope that such consumer power is not abused and will not reduce incentives for dynamic and efficient production. I hope we will get the right balance.

Professor Michal Gal is a Professor, Vice Dean, and Co-Director of the Forum on Law and Markets at the Faculty of Law, Haifa University, Israel.

Welcome to the new Consumers International Office for Africa

2011-09-19T20:32:00.000+08:00

Robert Michel, Head of CI Office for Africa, introduces the new office space in Pretoria, South Africa.

Thereis good news from Africa as we have finally received our registration as anAfrican NGO. With that we can not only open a bank account, but much moreimportantly is that it should be easier to approach funders and donors in Africa. It means that Consumers International (CI) has legal status within the country and that we are part of a formal system, allowing us to develop the office, build our presence in the region and strengthen the consumer movement across Africa.

It took a long time - a very long time indeed, but today I am happy to say that CI has its own office in Africa once again - not only in a legal sense but with a physical space too. I know that some of our members in Africa thought that this moment would never come. However, we were determined not to just open any office,but an office that would offer us the right mixture of positioning, publicity and long-term affordability. I genuinely believe that we have found theright combination with our Park Corner Office.

Consumers International's new office in Pretoria, South Africa

The new CI Office for Africa is in the heart of the Hatfield suburb of Pretoria, where you can find hotels, and some 200pubs and restuarants. It is in walking distance not only to the University of Pretoria but also to embassies and foreign-donor and development agencies alike.The Canadian High Commission is just 200m away, GIZ of Germany 400m, Irish Aid 400m, and SDC from Switzerland is on the same road. Our building houses theColombian Embassy on the second floor while Consumers International will be on the fourth floor.

The cherry on the top, however, is that the fastest and most modern rail link on the African continent links Johannesburg's international airport with Johannesburg and Pretoria. The end of the "Gautrain" link in Pretoria is Hatfield station, a mere 5 minutes walking distance away from our new office.So whoever comes to South Africa or transits via Johannesburg can easily access our new office!

Some refurbishment of the office is currently under way but I hope that Cathy Rutivi and myself will be able to move in during the first week of October 2011 and start to grow our consumer-rights work in Africa.

Jamie Oliver is right - we need global action on obesity

2011-09-12T22:53:00.000+08:00

May Shelton, Project Officer at Consumers International, explains the link between food marketing to children and non-communicable diseases.

With only days left before world leaders come together for the UN high-level meeting non-communicable diseases (NCDs), global public figures from celebrity chef Jamie Oliver to former UK government chief scientist Sir David King have raised issue over the shocking levels of obesity worldwide.

Consumers International's work on junk food has been focused on efforts to tackle this global pandemic for some time. And today we publish a Manual for monitoring food marketing to children, which aims to reveal the real extent of the food and beverage industries' influence on children.

Aggressive marketing to children of products that are high in fat, sugar or salt is a contributing factor to childhood obesity, a key risk factor for NCDs. As will no doubt be heard from many sources in the run up to the summit, NCDs such as cardiovascular diseases, cancers, diabetes and chronic respiratory disease which account for an estimated 63% of all global deaths - a truly staggering figure, not matter how many times it is repeated.

Overweight and obesity is having an immediate, negative impact on children’s health and well-being and it increases their risk of NCDs in adulthood as well. Worldwide, the IOTF estimates 170 million school-aged children are overweight or obese. In addition, the WHO estimates that 43 million pre-school children carry excess body fat.

Reducing exposure to NCD risk factors early in life is essential for the future health of children worldwide. The rate of some NCDs, such as type 2 diabetes, amongst overweight children is already on the rise globally.

One of the challenges at the UN summit will be to find the answers to reverse the trend in adult and childhood obesity. And of course the issue is a complex one; the causes of obesity are the interaction of a range of factors, including social, environmental and genetic influences.

However, as argued in this brilliant article, one obvious driver is changes to the global food system. Such changes include an increased supply of cheap, energy-dense foods; improved distribution systems which makes such food more accessible and convenient; and the more persuasive and pervasive marketing of such food to children.

A range of studies, including several reports carried out by Consumers International, have documented that the global food and beverage industry heavily targets children; that the marketing pushed at children are mainly for products high in fat, sugar or salt or for brands that are associated with such products and the marketing techniques they use are refined to have the biggest possible impact on children (eg using celebrities or cartoon characters that attract their attention and which children like). That such marketing directly influences children’s food preferences and choices has also been irrefutably proven. Our own Lunchbox Challenge is one such compelling example. Lets face it, marketers wouldn’t spend millions ‘engaging’ with children if that wasn’t the case.

It is the responsibility of government to protect children’s health. Relying on industry to self-regulate what and how they market unhealthy products to children just isn’t cutting it and is failing to protect children as evidenced in several reports; from the UK, US, Australia and Canada.

As we get closer to the summit the action-oriented outcomes and quantified time-based targets that civil society organisations had hoped for are being watered down, under pressure, from the tobacco, food, and drinks industries that, regretfully, are increasingly invited to the table as ‘partners’ in the formulation of global public policies within the UN and its agencies.

If leaders are looking for answers to prevent obesity and thus help to eliminate the risk of millions of children suffering from and dying from related diseases they should stop focusing on the interests of industry and follow the recommendations by the WHO or the European Network Code and introduce policies that bring about strict controls on the ability of the food and beverage industry to market unhealthy products to children and young people.

While some developed countries have some regulation to control marketing to children, it’s a new area in many low and middle-income countries. A first step on the road to policy development is to monitor the extent to which children are exposed to food marketing and to assess the influence of food and beverage marketing to children.

Consumers International’s Manual for monitoring food marketing to children is designed to aid governments in developing such an evidence base. The manual is a practical step-by-step guide to monitoring food marketing to children that provides clear advice on research design and planning, data collection, analysis and presenting results.

Practical tools, such as the manual, provide a small but significant contribution to understanding the extent and influence of unhealthy food advertising to children and therefore the important role that restrictions on aggressive marketing directly to children will have on reducing obesity and NCDs worldwide.

Developments in Costa Rica spell sweet news for pineapple growers and consumers

2011-08-03T19:20:00.004+08:00

CI’s Catherine Nicholson on the lasting impact of Consumers International’s pineapple trade investigation.

A year ago CI were busy finalising the documentary Pineapples: Luxury fruit at what price? with the help of Banana Link and The Guardian. The film, is part of our ongoing work on the social responsibility polices of supermarkets, illustrates some of the harsh working conditions and environmental degradation resulting from large scale pineapple production in Costa Rica.

The reaction to the film – in Costa Rica and elsewhere – ranging from support to suspicion and denial reflected the intransigence of the situation. At the time, CI supported the call by trade unions in Costa Rica for a multi-stakeholder dialogue on the issues – a move that seemed to be the only possible constructive way forward.

The recent launch of the National Platform for Responsible Pineapple Production and Trade seems like a very positive step in the right direction – it brings together all players including government, growers, exporters, the retail giant Walmart and crucially, trade unions, round the table – a first for the industry in Costa Rica.

It is too early to say what this initiative will deliver for those who work in the industry now and for Costa Rica in the future. The initial focus on environmental issues is perhaps a reasonable (and less controversial?) first step but key social issues that featured in our research – freedom of association, wage trends, and the treatment of migrant workers have yet to be firmly defined on the agenda.

Proof of the commitment by all members of the platform to a truly responsible industry will be in the tangible results that we hope to see in terms of improvements in the lives of workers, their families and communities as well as the environment in which they live. Then pineapples really will taste sweeter...

Consumers International President Jim Guest talks about 'A worldwide family'

2011-07-08T00:49:00.000+08:00

Jim Guest - President of Consumers Union of the USA, publisher of Consumer Reports, and President of Consumers International - reflects on the stuggle of consumers in developing countries.

At a gathering of more than 500 international consumer activists in Hong Kong, I was handed a carved ceremonial mask. It was a gift from Romain Abilé Houehou, the president of a consumer group in the African nation of Benin, as thanks for a long-ago act.

In 1994 Consumers Union gave a fledgling organization in Benin a $5,000 grant to buy a computer and fax machine. Now the consumer movement in Benin and groups we’ve helped in several other developing countries are thriving.

As we at Consumers Union reflect on our own 75 years of struggles and successes, we’re so often impressed by the achievements of even small, new consumer groups with few resources and huge challenges in the world’s least-developed countries.

I was recently elected volunteer President of Consumers International, a federation of more than 220 consumer groups in 115 countries that sponsored the meeting in Hong Kong. The group fights for consumer rights worldwide and mobilizes members in global campaigns such as stopping abuses by the financial-services industry. Consumers in several Latin American countries are often required by banks to sign a financial contract before they’ve been given a chance to read it. That would be prohibited in Europe, where many of the same banks are based.

And while microfinance has greatly helped small farmers and entrepreneurs in India, hundreds—some believe thousands—of suicides have been reported among farmers who couldn’t repay the loans.

Consumers International’s campaign isn’t only against abuses involving financial products. It’s also about ensuring access to fair and reasonable services in rural areas of less-developed countries where basics like savings accounts and micro-loans aren’t even available. For more information about the group and its programs, go to www.consumersinternational.org.

- Jim Guest

Copyright 2011 by Consumers Union of United States, Inc., 101 Truman Ave., Yonkers, NY 10703, a nonprofit organization. Reprinted with permission from ConsumerReports.org, August 2011.

Gerd Leonhard video on 'Consumer empowerment in the networked society'

2011-07-01T17:31:00.000+08:00

Gerd Leonhard, CEO of The Futures Agency, addresses the Consumers International World Congress on 'Consumer empowerment in the networked society'. Hong Kong, 5 May 2011.

Gerd Leonhard looks at the power of networks to facilitate activism, as well as commerce. In a fascinating lecture he explores the power of Facebook, Youtube, Twitter and other social media tools, and considers future trends in consumer activity, communications and advocacy.

Vive la France – up to a point

2011-06-27T18:55:00.001+08:00

As a lifelong Francophile, my mother would have been proud to witness my participation in the meeting on 9 June of the French Consultative Committee on the Financial Sector (CCSF), which took place in the ‘gilded gallery’ of the Banque de France.

The invitation was to hear CI’s views on the G20 process regarding consumer protection in Financial Services (FS), which has been running through 2011 and is now reaching its public consultation phase. (So expect frequent bombardments by blog in the coming weeks).

As France occupies the presidency of the G20 for 2011, this was an offer we could not refuse. Such echoing splendour can be quite intimidating and it was reassuring to have an important contribution by Anne Fily from BEUC and the presence of our French members.

There was an audience of about 50 participants, many from the financial sector, and a lively discussion followed the presentations. As is often the case on such occasions, one over-prepares and anticipates strong counter-arguments, only to be taken by surprise by the expressed agreement of the industry side.

Several banking representatives indicated their broad agreement with CI’s propositions, and indeed seemed to think that many were self-evident: two intervened to say “On ne peut que etre pour” (One can only be in favour). One member from the labour union (Force Ouvriere) suggested that the committee simply adopt CI’s position as policy. If only G20 governments could be equally enthusiastic.

Despite the agreeable surroundings, we should not be lulled into a sense of overwhelming consensus. My reply was that if the propositions are so self-evident, indeed some of them are quite banal, then why is it such a struggle to get governments and industry to adopt them?

Several of the CI propositions, such as obligation of comparability on banking products are already in place in France, but met with fierce opposition from industry when put forward by Mme Lagarde last year. Not so self-evident 12 months ago then!

In contrast, product prohibition, in the form of a requirement for new products to be preceded by an agrement (approval) by the relevant regulatory authority, the Autorite du Marche Financier, seemed to be widely accepted, (although the ignoble thought crossed my mind that maybe this was because the regulator concerned was in the room).

France matters, not only because it occupies the presidency, but because they are further down the road towards our policy recommendations than many of the other big economies, and the prior authorisation issue is an example of this.

The French government has championed the consumer interest in the G20 process, including Mme Lagarde’s filmed message of support to the Hong Kong World Congress. Not that they agree with everything we say, there is disagreement with our stance on separation of high street banking from investment banking. There is however, agreement that consumer protection is about more than retail transactions at point of sale, it stretches back up the production chain, involving issues such as state aids, prudential regulation.

One argument presented by the French bankers, and being advanced by the industry in other forums (see further blogs), is that consumers must accept responsibility too for their actions in the FS marketplace.
No problem from us on that, we believe that consumers have a responsibility to disclose financial obligations when taking out credit agreements for example. We support the principle of credit reference agencies (although there is debate as to how much data they should collect).

I have yet to meet a serious consumer advocate who does not accept that consumers have responsibilities too, and have witnessed the work of our members to that effect in circumstances as varied as South African townships and eastern Slovak schoolrooms. So, no false opposition of principles please.

Anwar Fazal on consumer rights; past, present and future

2011-06-24T18:00:00.003+08:00

Anwar Fazal's closing lecture 'Consumer rights: past, present and future'. Consumers International 19th World Congress, 5 May Hong Kong 2011.

Behind-the-scenes of TACD 12th annual meeting in Brussels

2011-06-23T19:42:00.000+08:00

Jo Witt, Trainee Development Officer at CI, attended the TACD 12th Annual Meeting in Brussels and gives a behind-the-scenes glimpse.

Four days of TransAtlantic Consumer Dialogue (TACD). We were greeted with fresh coffee on Sunday morning by Monique Goyens, Director of BEUC and TACD Steering Committee co-chair at the BEUC office. We had a delicious dinner in the "Scavelat", which cannot really be translated, but means something similar to "wonky spirit level".

BEUC then topped itself by hosting a dinner for all TACD participants at the Comic Mueseum, dining with Lucky Luke and TinTin, and also Julie Brill, the US Federal Trade Commissioner.

The meetings with the US and EU governments started with the arrival of William Kennard, the US Ambassador to the EU, with no less than three security guards. Later, John Dalli, European Commissioner for Health and Consumer Affairs, had to leave early to fly to Moscow to discuss the proposed Russian ban on EU food imports.

And finally Michel Barnier, European Commissioner for Internal Market and Services, spoke in French but an interpreter ensured that both sides of the Atlantic were able to follow his view on the protection of consumers in the financial services sector.

TACD 12th Annual Meeting agenda

Chilean financial scandal: credit card fine-print rewritten by company to inflate consumer debt

2011-06-22T01:11:00.000+08:00

Marcela Ortiz, Editor CI Santiago Office

Chilean company, La Polar, is the star of the latest major financial scandal in Chile. The lack of regulation of the retail financial market is also a protagonist in the recent drama. Marcela Ortiz, Editor at Consumers International Santiago Office, gives an overview of the situation so far.

La Polar, a retail store that has sold clothing in Chile for decades, has been found to have renegotiated the terms of the debt of nearly half a million users (418,826 people, according to known figures to date) [of its store credit card] without informing them, probably since 2005.

Fraud
What is known so far is that those who carried out these actions at La Polar would select customers who were defaulting on their debts and would give them a unilateral and fraudulent renegotiation of their debt.

This meant that for consumers, their debts were multiplied and they were threatened with seizure of their property or with legal action for being in arrears. Data on many of the users was delivered to the dreaded Dicom (the national database of defaulters in Chile), which caused people to lose their jobs or not be able to apply for new jobs. It also meant they were denied access to credit, in addition to other serious costs.

Many of them paid several times over what they owed and still were in debt to La Polar.

Organisations
"This has to do with malpractice and misconduct, but also a lack of control by the economic authorities over what businesses do to consumers. Here we have organisations that do not control violations of the law by this company," said the President of the National Corporation of Consumers and Users (Conadecus), Hernán Calderón, on announcing that they were taking part in a class action opened by the National Consumer Service (Sernac) against La Polar.

Contract
The Organisation of Consumers and Users (ODECU) has conducted several studies in the past on the bank contracts of different companies, including La Polar. The contract of La Polar "shows several clauses that violate principles and specific rules of consumer law…”, such as those that would accelerate credit in favour of the superstore, wrote Alejandro Pujá at the time, head of the study and Coordinator at ODECU. The complaint was ignored by the media and authorities, the investigator said this week.

Outside the law
At the time of this post, the case was clearly entering into the realm of being criminal: with the homes of executives of La Polar being raided; with an investigation beginning by the Public Prosecutor of Santiago; and with certain suspicions of misinformation and fraud.

This case has been with that of Enron, where the incentive of bonds for purchase were also used. The monthly "profits" of La Polar have been inflated at the cost of fraudulently adding to the debt of consumers and taking them as "income" for the company.

How we found out
The case exploded when the National Consumer Service (Sernac) realised that complaints against La Polar increased abnormally every day. This led the government agency raising a class action against the company, to which five thousand consumers have already rallied.

At the same time, a minor shareholder of the commercial store had asked a group of lawyers to investigate the company's financial situation, which uncovered only the tip of the iceberg of deceit and fraud to consumers and the stock exchange where shares were traded.

Questions
Today, analysts are asking: if a minor shareholder suspected something was wrong, how is it possible that the irregularities were ignored by the board of La Polar? And where was the investigation by regulating bodies?

The answer to the latter question is that there is NO regulation of store credit cards in Chile, even though they outnumber bank credit cards (58% vs. 42%).

Added to this last point is the lack of timely control by the Superintendent of Values and Insurance (which had just reported the case to the Public Prosecutor) and possibly by other bodies.

The company offers...compensation?
The chairman of La Polar, Heriberto Urzúa, said it will remove all charges to defaulting customers, interest rate penalties, fines and registration with Dicom from 21 June. The "compensation" that would be offered to consumers would cut their “debt” according to the haste with which they pay ...

Naturally Sernac considers this proposal absolutely inadequate and the class action will go ahead.

Several key issues have now surfaced:
- The lack of regulation of store credit cards in the first place (again, the market's inability to self-regulate)
- The lack of information about the debt that each consumer has with all stores (consolidated debt)
- The high interest rates on credit cards, and the maximum conventional rate to be paid if there is a delay. A rate over 30% (currently over 40%) should not be payable, according to several economists. This would mean it would not be consumers who are "risky", but rather the high interest rates.
- The way that many unscrupulous retail companies encourage consumer debt by granting credit facilities in order to profit from the debts of the thousands who can’t afford to pay it back.

If decision makers are not able to see the reality of the Chilean financial retail market after this scandal, the promotion of companies that are completely dehumanised and outside the law will continue, with huge costs for consumers and society as a whole.

Consumer rights have been tested in this extreme example where the Consumers International campaign for stable, fair and competitive financial services is realised to its full meaning.

Original source in Spanish

Finally, consumers are being heard on financial protection: Robin Simpson

2011-06-08T22:26:00.000+08:00

CI’s senior policy adviser, Robin Simpson, reflects on the growing influence of the consumer movement within the global debate on financial services.

Robin Simpson at CI World Congress 2011

CI must be doing something right. On Thursday 9 June we are invited to the Gilded Gallery of the Banque de France in Paris to present our views on measures for consumer protection in financial services as set out in our 2011 World Consumer Rights Day publication:

Safe, Fair and competitive markets in financial services: recommendations for the G20 on the enhancement of consumer protection in Financial Services.

The invitation came from the Comite Consultatif du secteur financier, the independent consultative committee on financial services which brings together industry and consumers (64 members in all) under the same roof on an equal basis. Our French members UFC-Que Choisir and Confederation Consommation, Logement et Cadre de Vie both sit on this committee and have argued with some success for reforms such as improved disclosure of terms of credit agreements and bank charges, fairer charging systems. Our colleagues from BEUC (Bureau Europeen des Unions de Consommateurs) will be taking part, so with our French members in the room too we will not be a lone voice for once.

Why us, why now? During 2011 France has the presidency of the G20 which made a commitment to strengthen consumer protection in FS at the 2010 summit in Seoul. The French have taken this commitment seriously and Mme Christine Lagarde the Minister of Finance (and now candidate to take over as head of the IMF) sent a filmed message of support to CI’s World Congress in Hong Kong just last month.

Thanks to the support of our expert members, CI got off to flying start in putting forward our views early in the year to the OECD and the Financial Stability Board, the two bodies who are jointly charged with preparing the programme of reform.

The first draft of ‘high level principles’ has already been prepared by OECD and we have commented on that welcoming the work so far but highlighting key gaps in relation to tackling the increasing complexity of many financial products, the need to tackle the causes of consumer over indebtedness and the promotion of competition. As the OECD will also be present in the meeting we can comment again! Thanks to the good offices of our French members, we have received the invitation to meet the French presidency and now the consultative committee too.

We have already presented evidence to the joint task force of the OECD and FSB, and to the Consumer Policy Committee of the OECD. And the staff of the OECD and FSB were exposed to the consumer movement in all its glory in Hong Kong when they came to take evidence direct from members in two sessions, the first a closed session of the CI members organisations that contributed to the policy paper and the other, an open meeting, very well attended.

However, despite these efforts by the secretariats of these international organisations, there is a serious issue regarding the process at national level. A dangerous vacuum has become apparent among the national jurisdictions that make up the G20.

The financial regulators know little about consumer protection; we know that because they have told us so. And the consumer protection agencies are kept away from financial services by their Treasuries and central banks; we know that because they have told us so as well. It was, therefore, not surprising when, at the Consumer Policy Committee of the OECD, not a single national consumer protection agency raised a question on this issue of financial financial consumer protection...

So who is speaking for consumers in these international discussions? Well us and BEUC for a start, but we need allies in government. We intend to raise this issue at the Paris meeting on Thursday. So far the French presidency shows every sign of listening.

CI World Congress Video: Niall Dunne 'Empowering people through the communications revolution'

2011-06-03T23:06:00.002+08:00

Niall Dunne speaks to delegates from across the globe at Consumers International World Congress 2011 in Hong Kong. Dunne talks about 'activating the masses' and refers to Martin Luther King, Obama and Chavez. In the video, Dunne also names other periods in time as "mega trends", such as the Renaissance, the Englightenment, Space Race and Information Age. He cites the 'communications revolution' as the next mega trend and why it will be different from previous mega trends. More CI World Congress videos.

Video: ISO 26000, COPOLCO and corporate social responsibility, interview with Sadie Homer

2011-05-24T19:23:00.000+08:00

In a video interview, Sadie Homer explains ISO 26000, COPOLCO and why corporate social responsibility is important to both companies and consumers.

Delegate interviews - CI World Congress 2011

2011-05-10T17:04:00.002+08:00

Delegates at CI World Congress 2011 gave their views on the Hong Kong event and their expectations for the future.

Video interview: Anwar Fazal at CI World Congress 2011

2011-05-10T16:10:00.004+08:00

Former President of CI Anwar Fazal delivered a rousing speech at the CI World Congress 2011. Here, he talks about the values the consumer movement should be focusing on.

Consumers International World Congress - Day 4 roundup and election results

2011-05-06T21:44:00.000+08:00

New CI President, Jim Guest

US consumer rights chief Jim Guest was elected as President of Consumers International (CI) at the General Assembly meeting of Consumers International World Congress in Hong Kong. He replaces outgoing President Samuel Ochieng.

Mr Guest called on the global consumer movement “not to take 'no' for an answer” as he outlined his campaigning vision. He accepted the presidency after an uncontested election.

You can find Jim Guest's biography as well as the complete list of elected CI Council members here.

The General Assembly meeting and the election of a new Council and President concluded the 19th CI World Congress, which was held in Hong Kong for a second time. More than 700 delegates representing 60 countries took part in a lively debate that reaffirmed the need to empower consumers, as the theme of the Congress indicated.

On his first address as CI President, Jim Guest quoted Martin Luther King, saying, "injustice anywhere is a threat to justice everywhere."

Outlining his intentions, Mr Guest said: “Consumers International must play to its strengths: its diversity, its passion and its persistence. CI is in the campaigning business for the long haul, and needs to be the kind of organisation that does not take 'no' for an answer."

He went on to say that the balance of economic power in the world was too weighted against consumers in relation to corporations, and it was CI's job to fight for the balance to be shifted.

Jim Guest, who will serve a four-year term, is also the CEO of Consumers Union of United States, publisher of Consumer Reports and previously the Vice President of CI. He is joined on the CI Council by the heads of 13 other national consumer organisations, also elected at the CI World Congress General Assembly.

This includes Shirish Deshpande, head of Indian member Mumbai Grahak Panchayat (MGP), for the first time, along with representatives from Africa, Asia Pacific, Europe and Latin America.

Mr Guest concluded by thanking the Hong Kong Consumer Council for hosting a successful CI World Congress 2011.

More highlights from CI World Congress

Summaries

Food sessions (3a, 5 and 6a)

Session 9c - Empowering advocacy: Communicating consumer rights

Session 11c - Empowering legislation: a guide to consumer protection law

Session 12 - Consumer rights: past, present and future

More videos

Luke Upchurch, Head of Media and External Affairs, Consumers International

Jonathon Hanks, Academic, University of Cape Town

Rehan Saiyed, Director, Storm Design, New Zealand

Delegates' views

Daily roundups

CI World Congress - Day 1 roundup

CI World Congress - Day 2 roundup

CI World Congress - Day 3 roundup

Summaries: Food sessions (3a, 5 and 6a)

2011-05-06T18:31:00.002+08:00

Summaries by Anna Glayzer

Sub-plenary session 3a: National campaigning on junk food marketing included presentations from Anna Glayzer of Consumers International on two new CI resources for campaigning against food marketing aimed at children. The session also heard presentations from Bart Combée about the national work on food marketing of Consumentenbond, Netherlands and Dr Vokyung Song of Consumers Korea, South Korea.

Plenary session 5: Safe and nutritious food for all was chaired by food policy expert Jean Halloran from Consumers Union, USA. The session heard presentations from Jørgen Schlundt, Deputy Director of the National Food Institute in Denmark; Alan Jope, Head of the Chinese division of Unilever; and Alejandro Calvillo, Director of CI member El Poder del Consumidor (Consumer Power), Mexico. The speakers looked at how major global issues in food safety and nutrition will affect 21st century consumers. A lively Q&A session followed, including discussion on the issue of genetically modified food.

Immediately following the food plenary session, Sub-plenary session 6a was an Interactive workshop on food safety with input from Jean Halloran, Indrani Thuraisingham and Jørgen Schlundt. The session provided a chance for members to have a say in how and where we focus our energies. Discussions touched on CI’s international campaigning work with Codex Alimentarius, and how project work can be used to strengthen national food safety systems.

Delegates' views - CI World Congress 2011

2011-05-06T17:14:00.001+08:00

As the 19th CI World Congress in Hong Kong drew to a close, delegates spoke about the problems consumers are facing in their countries.

You can watch the video here

Video interview: Rehan Saiyed at CI World Congress 2011

2011-05-06T17:05:00.002+08:00

Rehan Saiyed of Storm Design, New Zealand, explains the philosophy behind the logo of the CI World Congress, which he designed.

Summary: Session 12 - Consumer rights: past, present, and future

2011-05-06T15:19:00.002+08:00

A summary by Anna Glayzer of:

Session 12 (Plenary) Consumer rights: past, present, and future

Thursday 5 May 2011 - 4pm - 5.30pm
Anwar Fazal, civil society leader and former CI President
Gerd Leonhard, CEO, The Futures Agency

In the final plenary session former CI president Anwar Fazal gave an inspiring 45 minute speech charting the history of the consumer movement and setting out his vision for an ideal consumer movement based on an "Intergalactic Commission." He stressed the importance of strengthening the movement by developing new leaders and building extensive networks. Futurist Gerd Leonhard picked up the theme of networks in his speech on how new communication technologies and social media will transform the way markets and consumers operate. He urged consumer groups to stay ahead by making the most of social media, viral concepts, and sharing information.

Summary: Session 9c - Empowering advocacy: Communicating consumer rights

2011-05-06T15:00:00.001+08:00

A summary by Pat Onoapoi of:

Session 9c - Empowering advocacy: Communicating consumer rights

Thursday 3 May 2011, 11.30am-12.30pm
Luke Upchurch, Head of Communications and External Affairs, Consumers International
Rehan Saiyed, Director, Storm Design, New Zealand

Communication is a key part of the work of consumer organisations. The session was on how powerful communications tools can be. There is now a blurring of the boundaries between grassroots action and global advocacy as well as between consumers and producers and this is due to communication tools which are pamphlets, campaign films, publications, social media etc. The power of social media lies in the number of people using it so we need to be using it as consumer organisations. See www.carrotmob.org for examples of how consumer activists are using social media tools to effect change and to make a real impact. By joining them consumer organisations will get a profile and can then start a campaign. Carrotmob are giving over their technology to effect change.

Storm Design (New Zeeland) also gave a presentation on the design of the Congress logo. According to them, the criteria for good graphic identity are: the form and concept should work very well with product/service it’s designed for, should be pragmatic, simple, bold and distinctive.

The design brief and elements for the Congress logo included Yin Yan (represents consumer rights), dragon dance( reflects energy of the congress) Hong Kong, future consumers, circle.

Questions and comments from members:

· Has a cost/benefit analysis been carried out on using social media?

· The whole concept of Carrotmob is offensive and promotes corruption

· People who want to subvert the system also use social media so consumer organisations should use it carefully

· One of the best communicators is Chaz Davies of creative defiance. Consumer organisations can learn from this model. Chaz could provide mentoring in communication graphics

· ‘The story of stuff’ puts consumer issues into graphics. Consumer organisations should map out creative people and work with them

Video interview: Luke Upchurch at CI World Congress 2011

2011-05-06T12:44:00.001+08:00

Luke Upchurch, Head of Media and External Affairs, Consumers International.

Summary: session 11c - Empowering legislation: a guide to consumer protection law

2011-05-06T10:39:00.001+08:00

A summary by Robin Simpson of:

Session 11c: Empowering legislation: a guide to developing consumer protection law

Thursday, 5 May, 2011, 2.30pm - 3.30pm
Indrani Thuraisingham, Antonino Serra Cambaceres and Robert Michel, Consumers International
Chaired by Robin Brown (Australia)

The presentation of CI’s work on CP legislation showed three contrasting methods of work on what the chair Robin Brown described as the daily reality, the hard grind, of CP as opposed to the more high flown notions in circulation during the Congress. A common theme was how CI’s thinking had evolved from the ‘model law’ approach that was prevalent during the 1990s, towards a more targeted and varied approach.

Antonino Sera Cambacerres from the CI Latin America/Caribbean office described a five country study on over-indebtedness Brazil, Chile, Uruguay, Argentina and Peru which culminated in proposals for personal bankruptcy legislation to develop four year plans for realistic management of household’s debts, with scope for Alternative Dispute Resolution. Such legislation is under active consideration in several countries including some outside the project area such as the Dominican Republic, and already exists in countries as varied as France and Colombia. The research was funded by the Avina Foundation.

Indrani Thuraisingham from the CI office for Asia/Pacific explained how proposals for CP legislation in her region had developed a checklist approach explicitly drawing upon the UN guidelines for benchmarking draft legislation rather than upon using model legislation as a template. This approach had been used in the ten ASEAN countries and under a project funded by UNIDO in Bangladesh and was currently being used in training for preparation of legislation in Laos, Myanmar and Cambodia that were only now replacing their ‘antiquated’ legislation based on weights and measures and price controls.

Robert Michel from the CI Africa office described the new “Guide to developing CP law” , released for the Congress emerging from a project funded by the Open Society Initiative for Southern Africa, in Malawi, Mozambique and Zambia. As in Latin America, CI in Africa had evolved a model law during the ‘90s but the ‘template’ approach was being replaced by a checklist drawn up by the author Jami Solli in the light of conditions in Africa. An all embracing single model law for CP needed to be replaced by one which took into account the development of sectoral legislation and regulatory institutions in recent years. The important thing was not whether a single CP law included all aspects of consumer needs but whether all consumer needs were taken into account in the general body or legislation.

Video interview: Jonathon Hanks at CI World Congress 2011

2011-05-06T01:19:00.000+08:00

Jonathon Hanks, Academic, University of Cape Town.

Consumers International World Congress - Day 3 roundup

2011-05-05T23:56:00.000+08:00

Consumers can be empowered, and consumer organisations can make sure this happens through sharing and networking, speakers at the 19th Consumers International World Congress in Hong Kong said. The programme of the Congress finished on Thursday evening, and on Friday the global consumer body will hold its General Assembly and Council elections.

In his closing remarks, CI President Samuel Ochieng, emphasised "our ability to shape our future," ending the event on a positive note. Acting Director General, Helen McCallum, showed, in her remarks, the real excitement of the last few days.

Earlier, CI Vice President, James Guest, who is also President and CEO, Consumers Union of United States, delivered a keynote address on one of the key themes of the Congress: "The fight for fair financial services - a battle our movement must win".

Guest had this message for delegates and consumers around the world: "If you're wondering whether you, as an individual or through your organisation, can really make a difference in a David versus Goliath battle against the power of special interests, you already know the answer — yes, you can. The banking lobbyists are rich and powerful, and they spend a lot of money trying to buy influence. But there is one important asset that they lack and we have: people power. In the end, although it will be a hard and difficult fight, I believe that people power - mobilised by the over 220 members of CI - will eventually win.

"That’s because our cause and our stories and our passion are real. We fight for change, not because we are well-heeled lobbyists paid to do so, but because we care about our lives and the lives of our children, our neighbours, our countrymen, and citizens of the world - today and tomorrow, for this generation and the next."

Other highlights:

In a video message to the CI World Congress, French Finance Minister Christine Lagarde, that currently holds the presidency of the G20, said that the "G20 called for action on behalf of consumers, and with OECD I am working to protect consumers of financial services". She expressed the view that "consumers should be participants in the process of ensuring their own security," and admitted that "at the time of the crisis we did not focus enough on consumers in the first instance". Christine Lagarde said she remained "interested in the proposals developed for consumer protection and involvement following a successful CI Congress".

Gerd Leonhard, CEO of The Futures Agency, attracted a lot of interest with his views. Consumer organisations must network to have greater impact, they must share and publish; this is how you engage and enable others, he suggested. The difference between MTV and YouTube is the difference between 'the network' and networked, he said.

"'When five billion people are on the internet within a few years, the power of the consumer will be greater than ever," Gerd predicted.

We use social media/mobile phones to 'review' services, and corporations are paying attention, he added and noted that with broadband culture "everything known to man will be copied".

Former CI President Anwar Fazal delivered a rousing speech, which resulted in a standing ovation from the audience. He said that "in a world of big power, big media... networking is the new democracy".

Fazal added: ''CI is a force for social justice, we can do it, we must and we will!' He warned consumer organisations to "train new people or you will have no future," and noted that we "must not allow modernity to replace fundamental human connections".

On the subject of copyright and access to knowledge, David Hammerstein, TACD IP adviser, said: "We are not against copyright, we are for a more direct relation between artists and consumers".

CI's Dr Jeremy Malcolm added: "We want to support authors but not outdated regulation". He also argued that "unbalanced copyright and IP laws hurt consumers not pirates".

We aim to have A2K included in UN guidelines on consumer protection, Malcolm said.

Go to www.a2knetwork.org to comment on draft UN guidelines for A2K.

Sunil Abraham, Executive Director, Centre for Internet & Society, argued that fake mobile phone innovators in China are not pirates but "enablers of connectivity in the developing world".

Sue Rutledge, Coordinator for Global Program on Consumer Protection and Financial Literacy, World Bank, thanked Consumers International and HKCC for tackling the issue of financial services. She said that "all financial services providers should enable consumer redress," and that she "would like to see consumer ogranisations play an active role in protecting consumer financial protection".

Interviews

A number of speakers at CI World Congress have been interviewed by young TV journalists from Hong Kong City University involved in covering the event. Check the following videos:

Samuel Ochieng, President, Consumers International

Helen McCallum, Acting Director General of Consumers International

James Guest, CI Vice President - President and CEO, Consumers Union of United States

Connie Lau, Chief Executive, Hong Kong Consumer Council

Sue Rutledge, Coordinator for Global Program on Consumer Protection and Financial Literacy, World Bank

Niall Dunne, Former Managing Director Saatchi & Saatchi Sustainability

Guido Adriaenssens, Chief Executive, International Consumer Research & Testing (ICRT), Belgium

You can also watch:

CI World Congress gala dinner

Day 3 - Morning sessions highlights

Video interview: Helen McCallum at CI World Congress 2011

2011-05-05T20:42:00.002+08:00

Helen McCallum, Acting Director General of Consumers International.

Radio interview: Gerd Leonhard, CEO Futures Agency

2011-05-05T18:15:00.000+08:00

Gerd Leonhard, CEO Futures Agency, spoke to the HK Today programme of RTHK on Thursday, ahead of his presentation at the CI World Congress.

Leonhard told the programme what consumers have to watch out for in this digital world.

Listen to the interview here

Radio interview: CI Vice President James Guest

2011-05-05T17:45:00.002+08:00

Consumers International Vice President James Guest, who is also President and CEO, Consumers Union of the United States, spoke to the HK Today programme of RTHK on Thursday.

Guest explained why the theme of his speech to the CI World Congress, "The Fight for Fair Financial Services - A Battle Our Movement Must Win", is so important.

Listen to the interview here

In the media: CI President Samuel Ochieng

2011-05-05T17:05:00.001+08:00

Setting regulations to ensure fair financial services has become a global challenge, according to Consumers International president Samuel Ochieng.

In an interview with Hong Kong's daily The Standard, Ochieng said the recent fiasco over Lehman Brothers structured products is an example of why governments should strengthen regulations in the industry.

In Pictures: sessions 7 and 8 - CI World Congress 2011

2011-05-05T16:44:00.001+08:00

5 May 2011, CI World Congress 2011
Session 7 (Plenary) Keynote address: The fight for fair financial services: a battle our movement must win
James Guest, President, Consumers Union of the United States; Vice President, Consumers International

and Session 8 (Plenary) Towards fair financial markets
Sue Rutledge, Coordinator for Global Program on Consumer Protection and Financial Literacy, World Bank
H C Yang, Chair, Chinese Consumers Association
Bart Combée, President, Consumentenbond, The Netherlands
Chair: Thami Bolani, President, National Consumer Forum (NCF), South Africa

Radio interview: CI's Luke Upchurch and Sadie Homer and HK Democratic Party's Fred Li on consumer protection

2011-05-05T16:18:00.001+08:00

In an interview with RTHK's Backchat, Consumers International's Luke Upchurch and Sadie Homer, and Hong Kong Democratic Party's legislator Fred Li talked about consumer rights and consumer protection.

Listen to the interview here

Video message: Christine Lagarde to CI World Congress 2011

2011-05-05T10:05:00.000+08:00

Christine Lagarde, Minister of Economic Affairs, Finances and Industry of France.

Video interview: Samuel Ochieng at CI World Congress 2011

2011-05-05T09:53:00.000+08:00

Samuel Ochieng, President, Consumers International.

Video interview: Niall Dunne at CI World Congress 2011

2011-05-05T09:28:00.000+08:00

Former Managing Director, Saatchi & Saatchi Sustainability

Connie Lau's message to Congress

2011-05-05T09:07:00.001+08:00

It has been a very fruitful day. The Congress was officially opened by the Chief Executive of Hong Kong SAR, followed by an inspiring keynote speech delivered by Ms Connie Hadegaard, the European Commissioner for Climate Action.

A wide veriety of issues were also discussed in the afternoon including corporate social responsibility and junk food generation.

Consumers International World Congress - Day 2 roundup

2011-05-04T22:04:00.000+08:00

Over 700 delegates from more than 60 countries have taken part in Day 2 of CI's World Congress in Hong Kong. At the official opening ceremony, HKCC Chairman Anthony Cheung, Chief Executive Hon Donald Tsang of HK SAR, CI President Samuel Ochieng and keynote speaker Connie Hedegaard, EU Commisioner for Climate Action, welcomed the delegates, and outlined the issues on the agenda of the global consumer activists' gathering.

HKCC Chairman Anthony Cheung opened proceedings asserting the greater than ever need for a consumer movement in the light of "the explosion of consumer issues". Current crises were both economic, such as the financial crisis and its linked policies such as quantitative easing, and environmental such as the current radiation crisis in the region. Prof Cheung welcomed the presence of the largest ever delegation from mainland China, over 200, at a World Congress, referring to China as both the largest factory and the largest consumer market in the world in the fastest growing economic region.

Chief Executive Hon Donald Tsang of HK SAR asserted HK’s commitment to the free flow of information, and the role of NGOs and the free media. HK as a major economic and tourist hub received 36 million visitors per year - far greater than its population of seven million. It was now the world’s top location for luxury brands, underpinned by advanced consumer protection legislation. HK participated fully in supra-national ‘framework’ organisations such as APEC and WTO.

Samuel Ochieng, President of Consumers International, drew the attention of Congress to CI’s recent successes putting consumer protection in financial services at the heart of the G20 agenda, strengthening the WHO’s work on marketing of junk food to children and successfully contributing to the recent completion of the ISO standard on corporate social responsibility. Consumer organisations needed to adapt to the new digital world in which Twitter had as many adherents as the population of Brazil, and Facebook as many as the US. Mr Ochieng's full speech is available here.

Connie Hedegaard, EU Commisioner for Climate Action delivered the keynote address: Empowering consumers in the green economy. She called on consumers to take action on climate change. "We are threatening the planet with our patterns of consumption," she said, adding: "Business as usual is no longer an option. Full transcript of keynote speech is available here.

Video coverage

CI has teamed up with City Univeristy of Hong Kong to get young TV journalists involved in covering the World Congress (video below). The students will report on consumer rights issues. Headed by CTV Deputy Chief Producer, Lu Ma, the team filmed and edited the Opening Ceremony of Consumers International World Congress 2011 in Hong Kong. Click on the label Congress Video for more videos. Photos are also available here.

Session 2: Sustainable Consumption

The distinguished panel that Rasmus Kjeldahl chaired gave the audience ideas to shape what tomorrow's consumers need to have to ensure that the future is not only a word but something real.

Niall Dunne, former Saatchi & Saatchi Sustainability Director, broke the ice and put some good ideas about how little acts and small actions can trigger massive changes. He stressed that networks, as we know them nowadays, are a tool that along with technology and widespread knowledge can achieve those changes that we deserve. He also mentioned that we need to use corporations because they are the world’s greatest problem solvers.

Helio Mattar, from Akatu Institute in Brazil, put a frame on what sustainable consumption should and must be, and he repeated that consumers as individuals have the power they need to be taken into account, but this power needs to be articulated in a collective way. He believes that no company can claim they will be sustainable, because they never will be… it is a long process. Check Helio's presentation here

Premila Kumar, from the Consumer Council of Fiji presented the audience with facts about what is happening in her country because of the irrational use of resources. Fiji, for example, contributes only less than 0.1% of the carbon emission of the world but is suffering dramatic problems because of the emissions that were produced all over the world. She mentioned that these are examples of global problems that need global solutions, and that the Asia Pacific region has to find responses.

Session 3b: An introduction to sustainable consumption in Asia Pacific

Richard Welford's overall message was that Asia has made huge advancements in sustainable production but has not made much progress in pursuing sustainable consumption.

Richard, founder and chairman of CSR Asia, elaborated on the fact that corporate social responsibility (CSR) is not about public relations. It is about what companies do with their profits, how they choose what and where to invest and how this impacts on the communities.

On sustainable consumption, Richard said that we look at production as the principal contributing factor to climate change but have failed to realise that the bulk of energy consumption is not utilised during production of products and services but during the consumption phase. There is a need therefore for education and empowerment of consumers to know this. But (at this point) they need companies to make this happen.

Session 4: Consumer rights and corporate responsibility

This proved to be a fascinating session. While the first speaker, Diana Tsui talked about the drastic fall in the trust in business and thus the resulting growing interest by consumers in companies’ CSR, the next speaker, Jonathon Hanks, an academic from South Africa, questioned the CSR commitment by big companies.

Hanks doubted that consumers still had any trust in business and thus said that consumers are not sufficiently interested in CSR. As CSR is not at the core of a business, it cannot sufficiently deliver sustainable development. What was needed he said was a new concept of shared values and despite the mistrust in big companies, they were in fact able to solve problems as long as they understood that their own, long-term values were at risk. The way forward for consumer groups really was not to support green consumerism as it had failed but rather less consumption.

The third speaker, Guido Adriaenssens talked about research projects into companies’ CSR, and mentioned that three types of companies can usually be found: the no responders (about 10%), the so-called collaborators, who often have good sounding policies on paper but very little on the ground to show for, and the third group, the so-called positive group of companies that engages with the researchers, allows plant visits and even acts on certain research recommendations.

Full text of keynote address from Connie Hedegaard

2011-05-04T17:58:00.000+08:00

Full transcript of keynote speech at CI World Congress in Hong Kong from EU Commissioner for Climate Action, Connie Hedegaard: Empowering consumers in the green economy

Consumers reap benefits of the social web

2011-05-04T17:54:00.000+08:00

The phenomenal growth of social networking combined with continuing technological advances, like mobile internet connectivity, has brought new opportunities across the social spectrum – and consumers are one of the biggest winners.

It seems relevant then that this is one of the reoccurring topics of discussion at the Consumers International World Congress being held in Hong Kong, which I’m currently attending as a CHOICE representative.

Get the full story on the CHOICE AUSTRALIA blog

Summary: session 4 - Consumer Rights and Corporate Responsibility

2011-05-04T17:21:00.002+08:00

Robert Michel provides his observations:

Hanks doubted that consumers still had any trust in business and thus said that consumers are not sufficiently interested in CSR. As CSR is not at the core of a business, CSR cannot sufficiently deliver sustainable development. What was needed he said as a new concept of shared values and despite the mistrust in big companies, they were in fact able to solve problems as long as they understood that their own, long-term values were at risk. The way forward for COs really was not to support green consumerism as it had failed but rather less consumption.

The third speaker, Guido Adriaenssens talked about research projects into companies’ CSR and mentioned that three types of companies can usually be found: the no responders (about 10%), the so-called collaborators, who often have good sounding policies on paper but very little on the ground to show for and the third group, the so-called positive group of companies that engages with the researchers, allows plant visits and even acts on certain research recommendations.

Summary: session 3b - An introduction to sustainable consumption in Asia Pacific

2011-05-04T16:56:00.000+08:00

A summary by Arlene de Vera of:

Session 3b: An introduction to sustainable consumption in Asia Pacific

Wednesday, May 4, 2011, 1:30 – 2:30 PM

Speaker: Richard Welford

Overall message: Asia has made huge advancements in sustainable production but has not made much progress to pursue sustainable consumption.

In the Asia Pacific region, as elsewhere in the world, we have advanced so much in dealing with sustainable production. This is something that companies have started to act on. However, we have not progressed that much in terms of sustainable consumption. Richard cited a few examples of good corporate responsibility efforts by multinationals in the region:

1. Marks and Spencer have launched a businesswide eco-plan which they call their Plan A. For them there is no plan B because the only option they’ve got is to go by Plan A which is the only sustainable way to progress. They target the following:

- They will not send waste to the landfill

- Extend social responsibility sourcing

- Help customer and employees live healthier lives

2. Cathay Pacific is also very concerned with climate change

- They ensure that when they fly, it is under optimum fuel efficiency, optimum weight, and not much energy is lost due to traffic control.

- They were one of the first airlines that implemented a carbon offset project wherein passengers as a way to do carbon offset may donate some money to fund community projects. Only one percent of passengers, however, is willing to do their share.

Richard elaborated on the fact that corporate social responsibility is not about public relations. It goes beyond photo opportunities during launching of tree planting activities or turn-over of donations to community projects. It is about what companies do with their profits, how do they choose what and where to invest and how this impacts on the communities, how do this think about their social responsibility vis-à-vis the company bottomline. It is as much about looking after the environment and how their operations impact on climate change, and integrating the concept in the supply chain by ensuring that they don’t do forced labor, they don’t rig consumers nor make unfair deals with their suppliers.

On sustainable consumption, Richard said that it remains a challenge that consumers and consumer organisations have eluded to pursue. We look at production as the principal contributing factor to climate change but failed to realize that bulk of energy consumption is not utilized during production of products and services but during the consumption phase.

There is a need therefore for education and empowerment for consumers to know this and see how their consumption patterns and lifestyle make a difference in the whole gamut of sustainable consumption and production. But (at this point) they need companies to make this happen. Businesses can contribute by improving their marketing tools and integrating sustainable consumption in their messages and to promote sustainable consumption as a way of life.

Listen to HKCC Chairman's interview to Radio Television Hong Kong

2011-05-04T16:51:00.000+08:00

A day before the official opening of the 19th Consumers International World Congress, the Chairman of Hong Kong Consumer Council (HKCC), Professor Anthony Cheung, was interviewed by Radio 3 of Radio Television Hong Kong.

Presenter Mike Weeks noted that it's the second time the event has been held in Hong Kong - the first was back in 1991, and that the issues to be discussed include consumer rights and corporate responsibility, fair financial markets and consumer rights in the digital world.

Professor Cheung told Radio 3 that "the conference is held very close to the mainland of China, which is emerging as the largest consumer market, we have the largest ever delegation from mainland China to a CI World Congress, and in fact the expected turnout of this confrerence is the largest - over 700 delegates from over 60 countries and jurisdictions".

You can listen to the interview here

Summary: Session 2 plenary - Sustainable Consumption

2011-05-04T16:28:00.000+08:00

A summary by Antonino Serra of session:

11.30am - 12.30pm
Convention hall B+C
Session 2 (Plenary) Sustainable consumption - time for action
Helio Mattar, Founder, Akatu Institute for Conscious Consumption, Brazil
Premila Kumar, CEO, Consumer Council, Fiji
Niall Dunne, former Managing Director, Saatchi & Saatchi Sustainability
Chair: Rasmus Kjeldahl, Executive Director, Danish Consumer Council

A thin line between living and surviving

One can argue that there were tons of litres of ink used to write about Sustainable Consumption since the issue became an issue, especially since Rio 92. But the second plenary of this CI’s 19^th World Congress that addressed SC showed that words and concepts can be re-thought and can pass through new lenses.

The distinguished panel that Rasmus Kjeldahl chaired this morning gave the audience their best ideas to shape what tomorrow's consumers need to have to ensure that the future is not only a word but something real.

Niall Dunne, former Saatchi & Saatchi Sustainability Director, broke the ice and put some good ideas about how little acts and small actions can trigger massive changes. He quoted people like Gandhi, Kennedy and Martin Luther King on dreams and the possibility of women and men acting as agents of change and innovation. He stressed that networks, as we know them nowadays are a tool that along with technology and widespread knowledge can achieve those changes that we deserve. He also mentioned that we need to use corporations because they are the world’s greatest problem solvers.

Helio Mattar, from Akatu Institute in Brazil, put a frame on what SC should and must be, and he repeated that consumers as individuals have the power they need to be taken into account, but this power needs to be articulated in a collective way. He believes that no company can claim they will be sustainable, because they never will be… it is a long process.

Check Helio's presentation here

Premila Kumar, from the Consumer Council of Fiji presented the audience with facts about what is happening in her country because of the irrational use of resources and the lousy way we are dealing with the environment. Fiji, for example, contributes only less than 0.1 % of the carbon emission of the world but is suffering dramatic problems because of these emissions that were produced all over the world. She mentioned that these are examples of global problems that need global solutions, and that the Asia Pacific region has to find responses, given that, for example, 576 million people are hungry in an area that gathers 3,9 billion inhabitants, more than the 50 % of the world’s population.

It was clear after the plenary that SC is not only a serious affair but it is a matter of great concern, where the line between live and survive is thinner than ever.

Summary: Opening Ceremony, CI World Congress 2011

2011-05-04T15:21:00.000+08:00

A summary of the speeches made at this morning's Opening Ceremony to Consumers International World Congress 2011. By Robin Simpson.

HKCC Chairman Anthony Cheung opened proceedings asserting the greater than ever need for a consumer movement as in the light of “the explosion of consumer issues”. Current crises were both economic, such as the financial crisis and its linked policies such as quantitative easing, and environmental such as the current radiation crisis in the region. HKCC was proud to have contributed since the last World Congress in HK 20 years ago and he welcomed the new legislative package on competition and trade descriptions, and the continued support of the SAR. He welcomed the presence of the largest ever delegation from mainland China, over 200, at a World Congress, referring to China as both the largest factory and the largest consumer market in the world in the fastest growing economic region. In all, the Congress welcomed over 700 delegates from over 60 jurisdictions.

Chief Executive Hon Donald Tsang of HK SAR asserted HK’s commitment to the free flow of information, and the role of NGOs and the free media. HK as a major economic and tourist hub received 36 million visitors per year far greater than its population of seven million. It was now the world’s top location for luxury brands, underpinned by advanced consumer protection legislation. HK participated fully in supra-national ‘framework’ organisations such as APEC, WTO.

Samuel Ochieng, president of Consumers International, drew the attention of Congress to CI’s recent successes putting CP in financial services at the heart of the G20 agenda, strengthening the WHO’s work on marketing of junk food to children and successfully contributing to the recent completion of the ISO standard on corporate social responsibility. COs needed to adapt to the new digital world in which Twitter had as many adherent as the population of Brazil, and Facebook as many as the US. Mr Ochieng's full speech is available here.

Connie Hedegaard, EU Commisioner for Climate Action

Keynote address: Empowering consumers in the green economy

Climate change has arrived: The Commissioner delivered a rousing call to action by consumers on climate change. Governments could set targets and standards but only consumers had the “power of the purse” to implement climate policies at purchasing level. Two startling facts to start: 2010 was the hottest year on record, and also the year with the most precipitation.

The world’s population was approaching 9 billion within her children’s lifetime while it was below 2 billion when her grandmother was born. These trends had consequences for the world’s resources, for example: each day we cut and burn 24,000 football pitches of forest, and today’s fishing fleet accounted for seven times the catch of the global fleet in 1950. Extreme weather events were already happening, as witnessed recently in Pakistan, Russia, Australia. Climate scientists were forecasting a 4 degree rise in temperature by the end of the century.

Rising demand: There would be one billion new members of the ‘middle class’ by 2050 and on current trends, we would need 2.5 ‘new planets’ by 2050 in resource terms. The terms ‘rich’ and ‘poor’ no longer applied to countries but to populations within countries. Nearly half the world’s middle class consumers were now in developing countries with 240 million in China and 120 million in India. This year we are paying 40% more for food than we did last year.

Household consumption has a huge impact, 70% of GHG emissions come from households, 40% from buildings alone in the EU. Meat needs 10 times more energy than locally sourced vegetables, and EU households throw away 25% of their food purchases. The average plastic bag is used for only five minutes but takes 500 years to decompose.

Green growth model: We need to embrace the green growth model, major reductions in emissions were cost effective so that even climate change sceptics should be able to accept the economic case for them. “There is no cheaper energy than the energy we don’t use”. Environmental industries were creating jobs, for example, investment in renewables was creating 3-5 times more jobs per dollar than fossil fuels. The EU now had 3-4 million jobs in ‘environmental industries, China is now the world’s top producer of solar panels and accounts for 40% of the global total of investment in clean technology.

We need to decouple rising emissions from economic growth. In the EU in recent years, emissions have fallen while growth has taken place. Regulation plays a part: in the EU new car emissions have fallen 25% since 2006 following new regulations. It is hard for consumers to not be confused by the plethora of labelling, but accurate labelling can help. Class A fridge/freezer labels introduced in 1995 only covered two per cent of output then, but this has risen to over 90% now. Consumers who bought a grade A fridge in 1995 would have saved over 1,000 euros by now. Environmental labelling and information needs to smarten up to new media allowing for search facilities online, smart metering can help consumers monitor their own consumption.

The final hurdle is that we must persuade consumers to systematically buy sustainably, that it is “cool to use less”. “We are threatening the planet with our patterns of consumption” “Business as usual is no longer an option”.

Video: Opening Ceremony of CI World Congress

2011-05-04T12:52:00.000+08:00

Consumers International has teamed up with City Univeristy of Hong Kong to get young TV journalists involved in covering the CI World Congress (video below). The students will report on consumer rights issues. Headed by CTV Deputy Chief Producer, Lu Ma, the team filmed and edited the Opening Ceremony of Consumers International World Congress 2011 in Hong Kong. Click on the label Congress Video for more videos. Photos are also available here.

Consumers International President's speech

2011-05-04T12:24:00.000+08:00

On 4 May, at the Opening Ceremony of the Consumers International World Congress in Hong Kong, the President of Consumers International, Samuel Ochieng, welcomed delegates and called on organisations to empower consumers of tomorrow

Mr Ochieng highlighted the surge in the volume of information that modern consumers are subjected to and called on consumer organisations to empower individual consumers, not just the organisations behind them.

"And we have also seen remarkable rises in the use of digital technology and social media tools. In terms of population, Twitter is almost as big as Brazil, whilst Facebook users out-number the population of the united states. Astonishingly; according to Google CEO Eric Schmidt, we create and consumer as much information every two days as we did from the dawn of civilization up until 2003," said Mr Ochieng to a large hall of delegates from organisations around the world.

"Congress: our role as consumer rights groups must always be to advance consumer protection and demand governments provide the necessary regulation to allow this to happen. But we must also work with individual consumers to help them understand and demand their rights."

Mr Ochieng also noted the impact of the financial crisis and recent natural distasters. He invited attendees to meet and discuss new ways to help empower the world's consumers.

Read his full speech on the Consumers International website.

In pictures: Opening Ceremony of CI World Congress

2011-05-04T11:35:00.001+08:00

Video also available here.

Samuel Ochieng, President of Consumers International, presented a speech to delegates from around the world.

Video: World Congress Day 1 - Registration and cocktail

2011-05-04T09:04:00.000+08:00

Consumers International has teamed up with City Univeristy of Hong Kong to get young TV journalists involved in covering the CI World Congress (video below). The students will report on consumer rights issues. Headed by CTV Deputy Chief Producer, Lu Ma, the team filmed and edited Day 1 of CI World Congress, covering registration and the cocktail reception.

Consumers International World Congress - Day 1 roundup

2011-05-03T23:26:00.000+08:00

Consumer leaders from more than 60 countries have gathered in Hong Kong to address the global challenge of financial consumer protection.

Day 1 of Congress was all about Fringe Events. You can find here photos of delegates from around the globe, who arrived in Hong Kong and took part in the sessions.

Hong Kong Consumer Council (HKCC) CEO, Connie Lau, has welcomed delegates to the CI World Congress, noting that "this is a moment not only to foster cultural understanding and partnership, it also presents a great opportunity for exploring ways to protect and empower consumer rights".

In other highlights:

As one of the hosts of Consumers International World Congress 2011, the Hong Kong Consumer Council has been busy with preparatory tasks, ranging from working out conference themes, to selecting souvenirs for participants. Finding suitable souvenirs for the conference delegates wasn't easy, reports Hong Kong newspaper The Standard.

After visiting many social enterprises, HKCC Chief Executive Connie Lau finally decided upon a workshop for the mentally handicapped and its picture frames and magnetic gifts - miniature replicas of popular local snacks, such as a kai mei bun, French toast and egg tarts. Each gift is inexpensive but is handmade and unique. Even the sesame seeds on each kai mei bun are different.

Not enough 'brain power' spent on consumers during financial crisis - French Finance Minister and chair of the G20 finance ministers in 2011, Christine Lagarde to tell CI World Congress.

In a video address to the Congress, Christine Lagarde will say:

"It is my personal belief that on the occasion of the [financial] crisis we didn't spend a lot of time, nor a lot of brain power on consumers", going on to say, "consumers were the victims on many occasions and in many instances".

Madame Lagarde will add: "It is only fair that consumers are part of the process of rebuilding trust and rebuilding regulation and making sure that the same situation does not happen again."

The message from Madame Lagarde will be followed by a keynote address from James Guest, Vice President of CI and CEO of Consumers Union in the United States. Highlighting the impact of financial abuses in the US, India, Egypt, Spain and Bosnia, James Guest will talk about the significance of the CI campaign on financial services.

Rob Steele, Secretary-General of the International Organization for Standardization (ISO) has sent a welcome message to CI World Congress delegates.

Steele introduces COPOLCO, ISO and the work with Consumers International.

Academic Jonathon Hanks told CI ahead of his presentation on Wednesday that he would hope "delegates would leave with a heightened sense of the fundamentally important role that consumer bodies can play in addressing sustainability challenges, an appreciation of the responsibility that they have in doing so, and some practical ideas on actions that they can take to deliver on this responsibility."

Congress is a great opportunity for exploring ways to protect and empower consumers

2011-05-03T20:01:00.000+08:00

Dignatories, Hong Kong Consumer Council and Consumers International Council toast the opening of World Congress

Hong Kong Consumer Council CEO, Connie Lau, has welcomed delegates to the CI World Congress.

As we gather to welcome members of Consumers International and friends from across the globe, I want to thank you all for joining us at this wonderful event.

This is the second time that Hong Kong has hosted the CI World Congress. We are honoured to have you here at this great meeting, with representatives from more than 100 countries, and with the largest number of participants ever from China.

This is a moment not only to foster cultural understanding and partnership, it also presents a great opportunity for exploring ways to protect and empower consumer rights. In the next three days, we will talk about sustainable consumption and the green economy; consumer protection in financial services; food safety and nutrition; as well as intellectual property .

These topics on the agenda are some of the most complex challenges that will be faced by consumers in the 21st century. In our increasingly interconnected world, I believe that no countries will be left untouched by these issues.

So let us dedicate ourselves to writing the next chapter in the history of consumer right and protection, and we shall carry forward the goals with a broader vision and more proactive approach.

Once again, I wish to express our warm welcome and cordial greetings to all our distinguished guests, and I hope you will enjoy your stay in Hong Kong!

Jonathon Hanks interview: Consumer bodies ‘fundamentally important’ in addressing sustainability challenges

2011-05-03T17:23:00.000+08:00

Consumers Intrernational caught up with academic Jonathon Hanks ahead of his presentation at CI World Congress on Wednesday. Jonathon is Managing Director of Incite Sustainability, an advocacy group and consultancy that helps companies do better by making sustainability part of their business. He lectures on sustainability strategy at the UCT Graduate School of Business, and recently chaired an international negotiating process involving experts from 90 countries that developed a global standard on social responsibility (ISO 26000).

The University of Cape Town academic's presentation will focus on "reviewing the rights and responsibilities of consumers in effecting a transition to a more sustainable society, noting in particular the nature of their interface with the business community and the role of social responsibility initiatives".

Sustainability and consumers

Hanks believes that "consumers have an important dual role to play, on the one hand by encouraging more sustainable production practices and greater accountability within the business sector, and on the other hand by promoting more sustainable consumption patterns amongst consumers themselves".

He regards having empowered consumers as "critical" in delivering effectively on both roles: "We need consumers (and consumer bodies) who: i) have an informed understanding of the nature of the societal challenges that we face and of the role that they can play in addressing these challenges, ii) have the capacity to engage effectively and credibly with businesses and policy-makers, and iii) have the ability to inform and influence marketers, advertisers and other consumers more generally. All of these require consumer empowerment in some form."

Networking and practical solutions

Taking part in CI World Congress is important to Jonathon: "I'm very much looking forward to participating in this event, with two key objectives in mind: understanding the current thinking within the consumer movement of the role that consumers can play (and are playing) in addressing global societal challenges; meeting and engaging with some of the participating consumer activists, particularly those from developing countries, with the aim of identifying collaborative approaches to meeting our shared agenda of promoting sustainable production and consumption practices."

With regards to his region, he hopes to "identify some practical opportunities for engaging South African consumer bodies with the aim of further promoting corporate accountability and responsibility".

The Congress can prove useful in a practical sense for all consumer groups, according to Jonathon: “I would hope delegates would leave with a heightened sense of the fundamentally important role that consumer bodies can play in addressing sustainability challenges, an appreciation of the responsibility that they have in doing so, and some practical ideas on actions that they can take to deliver on this responsibility.”

See the full list of speakers at Consumers International World Congress

See the full Consumers International World Congress Programme

ISO Secretary-General video for CI World Congress

2011-05-03T17:09:00.000+08:00

Rob Steele, Secretary-General of the International Organization for Standardization (ISO) has sent a welcome message to CI World Congress delegates.

Steele introduces COPOLCO, ISO and the work with Consumers International.

'Social Responsibility is... changing the way the industry in many countries think and act.'

Congress souvenir bag: even small purchases can have a big impact

2011-05-03T16:38:00.000+08:00

Hong Kong newspaper The Standard has interviewed Connie Lau and revealed how even minor purchases require careful consideration when it comes to consumer reponsibility.

Connie Lau at a Fringe Event

As one of the hosts of Consumers International World Congress 2011, the Hong Kong Consumer Council (HKCC) has been busy with preparatory tasks, ranging from working out conference themes, to selecting souvenirs for participants. Finding suitable souvenirs for the conference delegates wasn't easy, reports The Standard.

After visiting many social enterprises, HKCC Chief Executive Connie Lau finally decided upon a workshop for the mentally handicapped and its picture frames and magnetic gifts - miniature replicas of popular local snacks, such as a kai mei bun, French toast and egg tarts.Each gift is inexpensive but is handmade and unique. Even the sesame seeds on each kai mei bun is different.

The Standard emphasises the thorough consideration behind what might seem like a relatively minor purchasing decision.

Read the full article about Connie Lau and Consumers International World Congress 2011 here.

In pictures: Registration and Fringe events at CI World Congress

2011-05-03T11:56:00.001+08:00

The photos below are of delegates from around the globe, who have begun to arrive and register for Consumers International World Congress 2011. Fringe events have begun to take place, allowing for a more focused, unique look at a wide range of topics from financial services to standards, pharmaceutical products and fair trade.

Sunil Abraham interview: Congress a ‘milestone’ in consumer movement across developing countries

2011-04-30T17:33:00.000+08:00

A social entrepreneur and free software advocate, Sunil Abraham is also Director of Policy at the Centre for Internet and Society based in Bangalore, India. He will be speaking about “Consumer rights in the digital world: privacy, access, and activism” at CI World Congress.

In an interview with Consumers International, he said: “My presentation will focus on privacy, access and activism in the digital world. For privacy, I will aim to demonstrate how the patent and copyright law and their practices such as Open Standards, Free/Open Source Software and Peer To Peer empower consumers to configure their privacy settings based upon how they feel they should inhabit the global attention economy. Proprietary software, closed standards and centralised architectures undermine privacy by design. The latest example of that being Apple spying on the iPhone users.

Pervasive technologies

“On access, I will examine various networked pervasive technologies especially mobile phones, MP3 players and VCD players. There are thousands of patents in every layer of mobile technologies. The average Blackberry sells for USD300 and the average Blackcherry retails for USD50. The new Spice Popkorn phone features an inbuilt projector. How can the patent system be configured to promote more such innovation at the bottom of the pyramid.”

Abraham is passionate about access to knowledge: “Increasingly, large corporations and governments are undermining A2K - copyright law has been used to muzzle artists, reporters, minorities and citizens. Network neutrality is being used by incumbents to keep out new competition, and by the powerful to censor unpopular speech.”

Information and participation

The solution to the above problems is consumer empowerment, the theme of this year’s CI World Congress, Sunil believes: “In the areas of internet governance, privacy, IPR and A2K we need more consumer participation in the policy formulation process. At the moment, only the rights-holders or rent-seekers are represented at these fora at the national, regional and international levels. The users of the internet and intellectual property, or rent-payers, also need to be fully informed of the various developments, and must participate by providing substantial input; otherwise their interests will be compromised.”

The plethora of delegates from various consumer backgrounds at CI World Congress can prove very useful to Sunil Abraham and his organisation: “I hope to learn more about other areas of consumer activism so that I can advance the research agenda at the Centre for Internet and Society. I am keen to understand how the digital world reshapes traditional consumer rights campaigns, both in terms of substance and in terms of strategy.”

Recruitment drive

He also feels that other consumer activists will be able to benefit from his presence too: “I hope the Congress will be yet another important milestone in the building of a vibrant consumer movement across developing countries especially those in the Asia-Pacific. I hope they are able to recruit more digital natives into their fold. There are many lessons for consumers from the online phenomenon such as commons-based peer production methodologies and philosophies.

“With regard to my presentation, I hope to be able to convince interested delegates that a homogeneous global regime is undesirable. A regime based on ideological positions or considerations may also be infeasible. In collaboration with legal and technical experts, the consumers of the world must design and implement ‘Intellectual Property’ or ‘Access to Knowledge’ laws that will be viewed as just within particular context and therefore largely complied with.”

See the full Consumers International World Congress Programme

See the full list of speakers at Consumers International World Congress

Jørgen Schlundt interview: Consumer groups key in food production policy change

2011-04-28T18:26:00.000+08:00

Jørgen Schlundt, Deputy Director at the National Food Institute, Danish Technical University, will speak at CI World Congress about the responsibilities and opportunities consumer organisations will have in relation to the new conceptual framework being introduced all over the world for food safety: The Risk Analysis framework.

See the full Consumers International World Congress Programme

A passionate advocate for consumer rights, Jørgen spoke to Consumers International about the theme of his forthcoming presentation: “Consumer organisations are considered important partners (stakeholders) in defining the food safety policies and solutions. This is a significant departure from the previous roles for consumers within old-time food safety systems. The consumer was then often considered one of the problems, and not part of the solution. A typical old-time statement would for instance be that “most foodborne diseases could be avoided if consumers did the right thing in the kitchen!

“While there is a clear need to improve consumer behaviour through consumer education (eg via the WHO ‘Five keys to safer food’), it is clearly wrong to suggest that the responsibility for safe food is with the consumer: This is a joint responsibility that lies primarily with the producer. The crucial new role of consumers as stakeholders also in defining policies should open up a whole new playing field for consumer organisations, influencing food production and food safety systems to continuously improve.”

Making a difference

The renowned food expert urges consumer organisations to take up responsibility for the empowerment of consumers in this area: “When defining food production and food safety policies was only with authorities and food industries, the outcome has often been a decline in both safety and quality of the food we eat. In fact, most major changes in food safety systems stem from food scandals (BSE in Europe and E coli in USA), ie only when consumers were made aware of the problems through reports of disease and death linked to food. In future systems, relevant data - on food and disease - will be made available in a more transparent manner, and consumers will be at the table when decisions are made. But this will only make a difference if consumer organisations are ready to take up this responsibility.”

Food, a global issue

Schlundt believes that his contribution to CI Congress can ultimately be of benefit to consumers: “I hope to increase awareness of the potential to improve the safety and nutritional quality of our food – and I do say ‘our food’ because no country in this day and age relies only on home-grown food. Food production is now truly global, and therefore consumer action in support of better food cannot only be local, it has to at some stage go global. At the same time, I hope to increase the general knowledge of some of the simple solutions we already know exist, but simply have not been implemented in most countries because of lack of consumer ‘push’.”

These simple solutions, according to Jørgen Schlundt, are: “The need for consumers to be involved in changing food production policy; the potential to produce safer food by simple changes; the significant reduction in foodborne disease burden that can be achieved through changes in food production and food control; the benefit of sharing experience between countries and between consumers of data, solutions and results; the opportunity of sharing knowledge of food safety and nutrition with all consumers - everyone has to eat.”

See the full list of speakers at CI World Congress

Gerd Leonhard interview: Embrace user empowerment or fail

2011-04-27T21:43:00.000+08:00

Gerd Leonhard, the well-known media futurist and CEO of The Futures Agency, took the time to talk to CI just before heading to Hong Kong for the CI World Congress.

At the world’s biggest consumer activists’ gathering, he will be speaking about “consumer empowerment in a networked society: opportunities, challenges and future scenarios,” and he gave us a taster:

“Basically, the entire world is becoming networked via mobile devices, social media, video, and location-based offerings. The 'other three billion' are coming online at a blinding pace, and with connectivity comes not just a rise in GDP, but also a drastic rise in empowerment. Connected people behave differently, communicate differently, buy differently, learn differently and 'vote with a click' on their device.

Learning process

“Content companies, governments, businesses of all sizes and sectors, technology platforms, media companies and entertainment providers must adapt to this rapid change: participate or be participated. Engage or… whither. But then again, 'the people formerly known as consumers' must also start to understand the new responsibilities that come with new powers - and we are still very early in this learning process. As Marshall McLuhan said, the global village is not about peace, harmony and quiet, but about deep involvement and discussion.”

See the full list of speakers at Consumers International World Congress

Those who don’t go with the flow will fail, according to Leonhard: “I will talk about why all businesses (and organisations or governments) that don't embrace and facilitate user empowerment will fail (with very exceptions). Closed systems are nearly impossible in a networked society as they are parasitic (mostly), and eventually just get pushed out as 'damage'.”

Inspiring Congress

Gerd Leonhard will not be in Hong Kong just to give his insights; he hopes to get something out of this unique event for himself too: “I hope to learn from all of them and expand my horizon, see some inspiring speakers and personalities, connect.”

As for the delegates themselves, he thinks that his presentation, and the event more generally, will help them “get inspiration, encouragement and some key foresights that will make them take action; releasing some viruses, really”.

See the full Consumers International World Congress Programme

Congress video: Niall Dunne on the role of consumers and business for sustainability

2011-04-26T19:34:00.000+08:00

Niall Dunne, former Managing Director of Saatchi and Saatchi Sustainability, video interview.

With only one week till Consumers International World Congress, Niall Dunne speaks in this video interview on the vital evolution of consumerism and the role that brands and business can plan in utilising sustainability and transparency to change society.

Niall Dunne will be speaking at CI World Congress at the Session 2 Plenary titled Sustainable consumption - time for action along with other notable speakers at CI World Congress from the world's consumers organisations. See the full programme here.

CI World Congress Fringe events: consumer issues beyond the main programme

2011-04-21T23:53:00.000+08:00

Jez Fredenburg of the CI Policy Unit talks about the Fringe programme at Consumers International World Congress in Hong Kong on 3 May 2011.

Want to get more involved at the CI World Congress this year? Head to a Fringe event on 3 May where this year’s Fringe events programme promises an exciting range of pertinent issues and topics all presented by those who are at the forefront of the consumer movement, plus high profile guests from the likes of UNCTAD and WHO.

What is the Fringe programme?

The Fringe gives members and CI partners a chance to discuss issues that go beyond the main programme.

Fringe events are less formal and provide an opportunity to play a more participatory role - for example, some events are focused work sessions. In addition the sessions are longer and try to encourage members from different regions and other stakeholders to contribute more.

Sessions will be covering issues as diverse as pharmaceutical policies, financial services, and fair trade in Asia, amongst others. There is also an impressive list of speakers - Anwar Fazal, a renowned activist, will speak on pharmaceutical policy, while Ms Norma McCormick , the ISO Chair will speak on product safety. Officials from WHO, OECD, UNCTAD, and the Financial Stability Board will also be sharing their expertise.

Indrani Thuraisingham, Head of CI Office for Asia Pacific and the Middle East, who has been organising the Fringe, said:

“There is no particular theme for this year, but as always, there will be policy debates that address the emerging consumer-rights issues, introduction of innovative strategies, and initiatives to achieve significant impacts for consumers in general.”

Expect to bump into business leaders, intergovernmental organizations, policy-makers, funding partners, academics, civil society groups, media professionals, and other CI members.

Any particular sessions to look out for?
Now obviously this depends on what issues in the consumer movement get you excited, curious, or just plain angry- but here are two sessions to look out for:

Access to Knowledge (9.30am-1.30pm and 2.30pm-5.30pm)

If you want to have a voice in shaping the UN Guidelines for Consumer Protection in our new digital world, then head to the Access to Knowledge sessions. Dr. Jeremy Malcom, CI’s Project Coordinator for the A2K project, and author of Access to Knowledge - A Guide for Everyone, will be presenting with world experts including Hassan Qaqaya, Head of Competition Law and Consumer Policies programmes at UNCTAD.

This impressive list of speakers will be discussing an urgent matter - consumers in today's digital world face a whole range of issues that were unheard of when the United Nations Guidelines for Consumer Protection were last revised. So in the second session Jeremy will be asking for input to a draft text to be proposed as the basis for the next round of revisions. To have Hassan Qaqaya there will be a huge opportunity, since it is UNCTAD that is responsible for administering the UN Guidelines.

If this isn’t your area of expertise, then don’t worry - Jeremy will be holding a ‘background’ session where you can find out about why this area is important and what the latest developments are.

Making fair trade the easy choice (2.30pm- 5.30pm)

Come along to this session and expect to be met with questions such as- how do you make fair trade the easy choice for consumers? How can it be mainstreamed in Asia where appreciation of fair trade is low? And what role do supermarkets have in all of this?

Of special interest will be the CI Supermarket Project, presented by Tom McGrath, Campaigns Officer, which has been running in six European countries to raise awareness about how supermarket policies and practices impact on farmers and suppliers in developing countries. This project drew global interest from a collaborative film on the Costa-Rican pineapple industry.

A great line up of stakeholders have been invited to give delegates a complete picture about what is happening in the market and to discuss consumption trends, challenges, current efforts and needed actions.

For a full list of events and speakers, check out the Fringe Programme.

Earthquake crisis and consumer organisations in Japan

2011-03-21T18:57:00.000+08:00

Michelle Tan, Vice-Chair of NCOS Japan, reports on the situation of Consumers International member organisations in the crisis and gives a local perspective.

Our members who are mainly in the Tokyo area are all fine, but their daily lives are being disrupted due to the power cuts and panic buying of certain items such as rice and toilet paper.

Ms Anan of the Shodanren has let me know that everyone at her organisation is fine too. One of the office staff was in the disaster area at the time of the earthquake/tsunami, but thankfully he made it back to Tokyo.

I live in Kobe which is over 800 kms from the disaster area. We are almost completely unaffected by what is happening in the north-east.

Consumer Law News Network is based in Osaka, which is near Kobe and so, like me, they are mainly unaffected.

I am unaware of the situation with Nishoren (Consumers Union of Japan).

The foreign media's reporting of the nuclear crisis is quite different from that here. I am Australian but I am not planning to leave despite what foreign governments (including my own) are saying to their nationals.

The Japanese have their experts (including academics, former public officials etc) here and they are on TV every day giving us their honest opinions about the situation here. I don't think we are in the great information vacuum that the foreign press makes us out to be.

Of course, the situation is dire, and the outcome could go either way. But the experts I have heard speaking on TV here have not given up hope yet, and I still believe that the with the combined efforts of Tokyo Electric Co, the defence forces and police/fire departments, the nuclear situation can be brought under control. In the last few days, the situation with the reactors seems to have stabilised to some degree, which is welcome news.

Disaster relief and fund raising are very important areas in which NGOs/NPOs can help with in so many ways. Some NGOs seem to have been able to start helping out in the shelters already, but they have been doing it very tough. One problem is that the victims are spread out over such a large area this time (unlike previous earthquakes) and with infrastructure, such as roads, destroyed/badly damaged and other logistical problems it has been very difficult to get food, medicine and other essential supplies to where it is needed urgently. In the last few days the situation has improved somewhat in this respect.

Unfortunately, in the foreign media's coverage of the disaster the plight of the victims in shelters, many of whom are elderly seems to have been overshadowed by the radiation threat. For many people, simply staying alive is the main issue, and they haven't even begun to think about the long-term possible effects of radiation.

Elderly victims are falling ill and some have died in the shelter because they could not get access to their own or any other medication. Children are also becoming ill. Influenza is spreading in some of the shelters. The enormity of this crisis is almost beyond comprehension for most of us.

Japanese people are very appreciative of the support from around the world, but it really is only the beginning of a very long struggle back to normality for many people. I'm sure ongoing concern will be much appreciated.

A vision for consumer empowerment

2011-03-17T00:19:00.000+08:00

The 15 March 2011 saw consumer groups across the globe celebrating World Consumer Rights Day. To mark this inspiring occasion, former CI President, Professor Anwar Fazal, gives a fascinating account of what consumer action means to him.

Professor Fazal will be addressing the theme of consumer empowerment as a keynote speaker at CI's World Congress, 3-6 May in Hong Kong.

Some 3,500 years ago, the Hittites of Anatolia, which is now in Turkey, had a consumer code relating to food matters. This code had two principles:

'Thou shall not POISON thy neighbour’s fat' – i.e. food should be safe and wholesome.

'Thou shall not BEWITCH thy neighbour’s fat' – i.e. that there should be no cheating or misleading.

These two principles apply as much today as they did then.

The consumer movement is today a world-wide movement, a movement that is active in every continent and in countries in all stages of development. It is a movement that is concerned not only with fair prices and better quality of goods, but also with a whole range of public interest issues that bear on the consumer interest, an interest we all share because we are all consumers. It is not just about choice but also about needs and justice.

The earliest United Nations involvement is by Mr. M. Ganji, Special Rapporteur of the UN Commission on Human Rights who aptly stated in his 1975 report that “People must know and assert their rights as consumers, if they are to get the maximum benefit from the development process.”

The movement further attracted the attention of the United Nations through a resolution of the Economic and Social Council adopted in August, 1977, which stated that the “benefits of development measures aimed at raising the standard of living and improving the quality of life of the people of the world would be enhanced if they were accompanied by adequate measures for the protection of individual consumers.”

On 9 April 1986, 25 years ago, the United Nations General Assembly adopted the “Guidelines for Consumer Protection” by consensus through General Assembly resolution 39/248.

The International Organisation of Consumer Unions (IOCU) (now called Consumers International), played a pivotal role and this paper expounds on a strategy framework that involved 'rights' and 'responsibilities'.

The ‘Rights’ Approach

The systematic elaboration of the rights of consumers was first inspired by the US President John F. Kennedy’s historic message to the US Congress on March 15, 1962. In that message, the US President had defined four basic rights of consumers – the right to safety, choice, information and to be heard.

In 1974, the newly established IOCU Regional Office for Asia and the Pacific received a small seed grant of US$500 from the United Nations Educational, Scientific & Cultural Organisation (UNESCO) to develop consumer education materials. As the first and newly appointed Regional Director, I felt the need for a 'rights' approach and decided to do a series of posters on consumer rights as my flagship for my advocacy work.

I had noted that already by that time, two more consumer rights had become accepted among consumers especially as a result of advocacy in Europe – that of right to consumer education and consumer redress.

Further, with the historic 1972 Stockholm World Consumer Congress held after the historic United Nations World Conference on the Environment, IOCU had become increasingly concerned with ‘Green’ issues and I added “the right to a healthy environment” as the seventh right.

The eighth right, that of ‘having consumer basic needs met’ was enunciated in one of my first major speeches as the newly elected President of IOCU on January 2, 1979 at the opening of the pioneering first international workshop on “Consumer Education through Radio” held at the Asia-Pacific Institute of Broadcasting (AIBD) and funded by the government of New Zealand through the efforts of Consumers Institute, New Zealand. The idea behind this right came to me from the ‘basic needs’ approach that was then being promoted by the International Labour Organisation (ILO).

The first time the eight rights were altogether accepted as a whole at an IOCU international meeting was at the Association on South East Asean Nations (ASEAN) consumer protection seminar held in Quezon City (the Philippines) from 1-4 October 1980 where the ASEAN Consumer Protection Declaration and Programme of Action was adopted.

In 1982, as President of IOCU, I felt the 'rights' approach needed greater popular mobilization efforts and proposed that 15 March be adopted as World Consumer Rights Day; this is now an annual global celebration. From then onwards, these eight rights, which are listed and elaborated below, have been adopted as the CI Charter of Consumer Rights:

1. Basic Needs: The right to basic goods and services which guarantee survival: adequate food, clothing, shelter, health care, education and sanitation.

2. Safety: The right to be protected against the marketing of goods or the provisions of services that are hazardous to health and life.

3. Information: The right to be protected against dishonest or misleading advertising or labeling. And the right to be given the facts and information needed to make an informed choice.

4. Choice: The right to choose products and services at competitive prices with an assurance of satisfactory quality.

5. Representation: The right to express consumer interests in the making and execution of government policy.

6. Redress: The right to be compensated for misrepresentation, shoddy goods or unsatisfactory services.

7. Consumer Education: The right to acquire the knowledge and skills necessary to be an informed consumer.

8. Healthy Environment: The right to live and work in an environment which is neither threatening nor dangerous and which permits a life of dignity and well-being.

The 'Responsibilities' Approach

Our experience is that we cannot rely on business to take adequate measures. We cannot also rely entirely on governments, who have various pressures on them. The first task is for consumers to be individually strong and effective because self protection is the ultimate protection. We must, through our own competence and vigilance, initiate action for the protection of consumers. We cannot assume that others will do it for us.

It was useful to have a frame of reference for consumer action and in this connection I launched the following five principles (inspired and suggested as “four cardinal principles” by Prof. Heiko Steffens of Berlin at the 9^th IOCU Congress, held in London in 1978), which now provide a framework for a holistic strategy for the consumer movement:

CRITICAL AWARENESS – our citizens must be awakened to be more questioning about the quality of goods and services.

INVOLVEMENT OR ACTION – our citizens must assert themselves and act to ensure that they get a fair deal.

SOCIAL RESPONSIBILITY – our citizens must act with social responsibility, with concern and sensitivity to the impact of their actions on other citizens, in particular, in relation to disadvantaged groups in the community and in relation to the economic and social realties prevailing.

ECOLOGICAL RESPONSIBILITY – there must be a heightened sensitivity that consumer decisions impact the physical environment, which should only be developed in a manner that promotes harmony and conservation and we must fight against the degradation of this most critical factor in improving the real quality of life for the present and the future.

SOLIDARITY – the best and most effective action is through cooperative efforts through the formation of citizens groups who together can have the strength and influence to ensure that adequate attention is given to the consumer interest.

The realization/internalization of the above principles, both “rights” and “responsibilities”, or what we may call the CHARTER for CONSUMER ACTION will not be an easy one. It will require commitment, integrity, hard work and consistent, competent and creative vigilance.

It will require also the synergetic cooperation of governments, socially responsible businesses, academics and media as we must never forget that all of us are consumers!

Professor Anwar Fazal is the Director of the Right Livelihood College, Universiti Sains Malaysia. He was President of the International Organisation of Consumers Unions (now called Consumers International) from 1978-1984. He is a recipient of the Right Livelihood Award, popularly called the “Alternative Nobel Prize.”

Financial service providers must go back to their roots

2011-03-14T23:54:00.000+08:00

Consumers International's Jami Solli argues the world needs a return to client-centred financial services if consumers are to ever get a fair deal.

As consumer groups gather to campaign for fair financial services on World Consumer Rights Day, it’s worth remembering that banks have not always been seen as the bad guys

Community financial institutions, such as member owned cooperatives, thrift societies, and savings & credit associations flourished in Europe in the late 18^th and early 19^th centuries. Examples include the Raiffeisen rural credit associations in the 1860’s in Germany; the Irish loan funds of the 1720’s through the 1820’s; and the thriving Mondregone cooperative in Spain, founded in the 1800’s by a Catholic priest which still exists today. These institutions grew through organic growth; they reinvested savings aggregated from the primarily agricultural communities, and issued credits to farmers as well as non farm businesses.

Savings were prioritized, and the intermediation of the communities’ savings were critical to the survival of these financial institutions. Ultimately, a financial institution’s longevity was inextricably bound to the long range success of the small enterprises and households that they served. Thus, there was a strong incentive for financial institutions not only to know their clients, but also to understand their clients’ business models and cycles, including financial services needs.

Those days are gone.

Ironically, in the hyper FATF era (Financial Action Task Force) of anti money laundering measures and protecting against the financing of terrorism, bankers are unlikely to actually know their clients by name or to have any face to face contact with customers. In fact, banks seem to prefer that clients use automated tellers and internet banking, rather than human bank tellers so as to keep operational costs to a minimum.

Commercial banking has morphed into a system of maximizing client charges for things like not maintaining a minimum balance, receiving a balance statement and frequenting a human teller, not to mention the high penalties for overdrafts etc. All the while, banks are engaging in speculative investment behavior whereby they are no longer interested in investing in people or brick and mortar small and medium businesses, but are afflicted by the Gold Rush phenomena of every dot.com, alternative energy, real estate and other sector bubbles destined to burst.

However, burst bubbles do not cause banking losses, thanks to governments which cushion the impact of bank losses with funds (a very recent example is the US Troubled Assets Relief Program). Thus, thanks to governments, the risk of speculative banking has been eliminated, and this new, lucrative banking business model has become the norm. Savings, and the intermediation of community deposits are virtually unheard of, and interest paid on savings accounts even less so.

In fact, in our era financial institutions would probably prefer that their clients stay out of banks entirely, and dedicate themselves solely to the art of buying on credit, paying only the minimum balance please.

And, wrongly, governments are actively encouraging the consumption-on-credit growth model versus savings, organic growth and responsible investing.

Per government, the consumer has a patriotic duty to spend, and in fact to over spend; sacrificing himself if necessary to the flames of over indebtedness so that the almighty economy will recover. Ultimately, by spending, the consumer will save his own job; or so the logic goes.

Or, so the logic went anyway. Rising levels of unemployment in the USA and throughout Europe, and the growing abyss between the very rich and the poor in many developing countries indicate that charging the consumer to spend more is not actually solving our collective economic woes, but it is aggravating them. Over indebtedness is at an all time high thanks to the plethora of consumer lending from non bank financial institutions (lending at 30% APR and up); credit card lending: the pay day lenders; the rent to own companies; and the variety of ‘have it today, pay tomorrow’ entities.

All these get cash now companies are not at all interested in establishing a fiduciary relationship with customers as were the Raiffheisens and credit cooperatives of the 18^th and 19^th centuries. They are simply parasites living off the host for as long as that is possible.

Thus, if we the consumers would like to change the credit-drunk-no-interest incentives economy into at new economy built on respect and partnership with the consumer, then the time is now to close our electronic wallets; put down our credit card(s), log off Amazon.com and reflect before one-click purchasing.

Do we really need a new Mac computer financed by Barclays’ new Apple loan product (and paid for over the next 3 years)? Is it a good idea to pay for my Spring vacation and related apparel with my Visa or MasterCard so that I can amortize the costs throughout the year? Do I really need a new car this year just because there is a 0% down offer, or a cash for clunkers programme?

As my father is famous for saying to my somewhat shopaholic mother heading off to the department store sales: if you do not buy anything, then it is a 100% discount.

So, fellow consumers, the time has come for us to edify our governments that upon much reflection about the importance of our role in the global economy, we believe that savings products must be prioritized as well as incentivized.

Further, we the consumers also request that our governments should cease with the bail outs and government aid for all non-performing financial institutions (after all this is our, consumer tax dollars, euro, yen and rupee at issue).

Non-performing financial institutions are those that do nothing to aid the consumer, the community or economic growth, but rather are institutions which:

1) Make no effort to know their clients: knowing your clients can be accomplished by conducting a simple interview and constructing a household (or business) budget together to assess the clients’ actual financial situation, and jointly making a determination as to whether the financial services being offered are suitable for the clients’ needs (this is different and more intensive than merely assessing the client’s repayment capacity);

2) Puts its own profit-generating interests before the best interests of its clients, often applying disproportionately high fees for the relatively small value of the services provided, as opposed to acting as a fiduciary or business partner of the client;

3) Does not invest in the community in which it operates, avoiding in particular to do its part to invest in disadvantaged geographical areas and marginalized populations; and

4) Does not pay an adequate interest rate on savings deposits, such that the customer loses money in a savings account (because inflation rises more rapidly than the interest rate paid); and

5) Engages in speculative business practices and loses money; takes government bail out money, and then does not change its bad behavior (ie non performing recidivists).

It is time for government do its part to force non-performing financial institutions to evolve into performing institutions that treat clients and communities as partners in economic growth, like the Raiffeissens of long ago.

It is also time for consumers to do our part: to start saving more and demanding quality savings products and incentives from financial institutions.

It is also time for the consumer organisations globally to mobilise; to share information on non-performing financial institutions with consumers, as well as to report on those institutions which do offer high quality service to the consumer.

And, if there are not enough high performing institutions in existence, nothing is standing in the way of consumer organisations from establishing community owned cooperatives, thrifts and savings & credit associations.

Sometimes, there is nothing wrong with reinventing the wheel; or the bank.

Jami Solli is a senior consultant working on consumer protection and financial inclusion for Consumers International. A lawyer by training, Jami specialises in microfinance and law from a developing country perspective.

Millennium Consumption Goals: a real and meaningful target for Rio+20?

2011-03-03T22:39:00.000+08:00

Bjarne Pedersen, Director of Operations at CI, talks about Millenium Consumption Goals (MCG) and if they can help achieve concrete change towards sustainable lifestyles.

The idea of Millennium Consumption Goals (MCG), as put forward by Prof Mohan Munasinghe, provides a compelling narrative for the consumer movement. This is especially the case if we can arrive at a set of succinct, transformative goals that are broad, yet tangible, and prioritise action and resource allocation.

Crucially for Consumers International and our national member organisations, MCG could provide an attractive vision for empowering consumers in terms of sustainable lifestyles: a key goal of our movement’s work on sustainability.

Unsustainable patterns of consumption in the developed world are having serious economic, environmental and social impacts worldwide. As consumers it is difficult to know what to do.

On a daily basis, we are bombarded with messages about consumption – consume less, consume differently and most often ‘consume more’: consume more to improve your well-being, consume differently to help the world’s poor, and – in the face of this international financial crisis – just consume to save the economy.

In this context it is no wonder that for years consumer organisations have struggled to frame sustainable consumption (SC) and, more importantly, take concrete measures leading to more sustainable lifestyles. More often than not, despite good intentions, SC has been seen as a slightly elitist concept focusing on a limited consumer segment (willing and able to pay more) and with a bias towards ‘green’ issues.

Within the last few years some stakeholders in sustainability, including the consumer movement, have moved the agenda forward, driving a conceptualisation of SC around ‘ethical consumption’ in an attempt to open up SC to mainstream consumer segments. This also helps broaden the SC concept beyond ‘green’ issues.

However, in my opinion, we still have some way to go – the growth of ‘ethical’ consumption still remains a ‘niche’ solution to the mainstream problem of unsustainable consumption. The narrative it provides does not offer a wide enough vision of what sustainable lifestyles should look like, nor does it articulate the transformative principles and policies that should guide us towards more equal, fair and sustainable consumption.

In this respect I suggest the work of the Green Economy Coalition on ‘roadmapping’ and leverage policies could be of value. The level of detail being developed by the GEC would be a crucial element in building MCG into agents for meaningful change.

The need for meaningful change cannot be emphasised enough. Individualising MCG, in my experience, will not be enough. One more message to consumers about taking ‘action’ will simply drown in the obesity of information out there already - a lot of it telling the consumer to consume less/different/more to help climate change/conservation/biodiversity/wildlife/workers/development/the economy/local community and so on.

Perhaps most importantly – such ‘individualisation’ generally only ‘preaches to the converted’ and reaches the narrow consumer segment that are already taking action to the extent they can and are able to.

Of course the consumer movement believes in consumer information, education and empowerment, but we also know this cannot stand alone. What is often missing are sound (consumer protection) policies and principles that create the enabling environment for consumers to take action that matters. The MCG could fulfill this badly needed, international framework agreement to provide vision and direction – and most importantly create, in the long term, the transformative enabling environment we need to move towards more sustainable lifestyles.

Erik Assadourian from the Worldwatch Institute has made some initial good suggestions for MCG relating to obesity, working week, wealth distribution, reduction in transport and health care for all. Energy consumption and waste would seem like logical additions – and so would a more ‘soft’ goal around values, cultures and education. Finally, as has already been suggested, a fair and stable banking system would greatly contribute to achieving MCG by creating a more transparent, accountable marketplace.

The Rio+20 summit would be an ideal platform for developing MCG at an international level. It would make the summit far more relevant to the broader consumer movement than at present, where consumption and consumer protection issues are seen more as footnotes than drivers for badly needed change. And of course MCG could provide consumer organisations across the developed world with the much needed impetus to drive forward – with other stakeholders – a transformative change towards sustainable and equitable lifestyles.

If we get the MCG right as a framework in itself, then the real challenge of achieving them can begin. Realising the Millennium Consumption Goals will require a change to the international economy as profound and all-encompassing as the process of globalisation they would seek to remedy.

Bjarne Pedersen will attend the second preparatory negotiations for Rio+20 7-8 March 2011 in New York at the United Nations, pushing the case for more discussion about what the MCG could achieve.

The consumer movement have a long history of involvement in sustainable consumption and production – from the UN CSD process to programmes across the world on consumer awareness, education and empowerment. We base our work on the 8 consumer rights.

Code of Conduct for banks in the Caribbean

2011-02-28T23:55:00.000+08:00

Antonino Serra writes on strengthening the consumer movement in three countries of the English-speaking Caribbean: Barbados, Jamaica and Trinidad and Tobago.

A group of experts have begun working on the development of a Code of Conduct for banks in English-speaking Caribbean countries. The idea was strongly supported during a seminar on consumer protection and financial services in Barbados in September 2010.

The work consists of reaching a consensus among consumer groups, the associations of banks and government agencies in a set of basic principles governing relations between consumers and institutions that provide them with financial services.

Starting point
The text of the Code will work as a letter of commitment that the banks undertake to abide by. Though the Code will not be mandatory, it is believed to be a very good first step in establishing the criteria and obligations that, in the future, will be reflected in legal texts.

Of the three countries, Jamaica has taken the lead. There already exists a first draft that is being developed by the banking association, CI, the consumer protection agencies and the consultant hired to carry out this task. The other two countries will begin their work in the coming days, and it is believed that the Jamaica draft will be used as a template for the other countries.

It is expected that the text of the Code will be completed in April.

Another tool: organisation websites
The project is also funding the design and implementation of websites for consumer organisations that have not had them, and improving those that already do. In each case, the advice of Internet design experts is being developed, with each one trying to reflect the style and vision of the organisation.

In the same vein, the project will involve the development of a website for the Caribbean Consumer Council (CCC), which brings together consumer associations and government agencies on consumer protection in the Caribbean countries.

The site will function as a portal of news and updates on what happens in each country, and is also intended as a reference point on the history of the consumer movement in the Caribbean, and a tool for those who are working in the region. The launch of these sites is expected in the first half of 2011.

Translation from Consumers International blog in Spanish.

Katsuko Nomura: a lifetime building the consumer movement

2011-02-04T22:49:00.000+08:00

Last year a leading figure of the consumer movement passed away. Katsuko Nomura built consumer rights in Japan at a time when such an idea was foreign, leading to a Nobel Peace prize nomination. Read and watch two other prominent voices from the global consumer movement talk about her contribution.

Anwar Fazal:

Anwar Fazal will be speaking about more milestones in the consumer movement at ConsumersInternational World Congress 2011 in Hong Kong in May.

Ralph Nader:

Katsuko Nomura - a builder of consumer, labour, cooperative and women’s rights groups for over 55 years in Japan - passed away this month at the age of 99. She was one of the most remarkable civic leaders anywhere in the world. With her range of activities, she could be called a world citizen.

Born in 1910 in Kyoto, she lost her husband and many relatives and friends during World War II. Mrs Nomura witnessed crises everywhere, but she also saw vast opportunities for building a just and democratic society. This was no small feat in a male-dominated society under US military occupation.

She started her dynamic career building consumer cooperatives - a banding together that then was critical for families facing drastic shortages of life’s necessities. She took her experience and legislative success with the Cooperative League of Japan to become a founder of the Japan Housewives’ Association whose mass boycotts and marches challenged Japanese companies accustomed to very little government regulation.

She became a strong voice, especially for women, in the General Council of Trade Unions of Japan and helped found the Consumers’ Union of Japan, which she directed for over a decade.

All these formal associations cannot do credit to watching her in action. Well into her eighties, she aroused audiences of younger Japanese activists and prodded them to raise expectations for themselves as change-agents. She was often the toughest person at any gathering.

Neither US food exports to Japan of dubious safety, nor the injustices inflicted on less developed countries by Japanese multinationals escaped her pointed criticism and agendas for action. In 2005 she was nominated as one of ‘1000 women’ for the Nobel Peace Prize.

May her legacy be a source of self-renewing energy for many seekers of justice in this tormented world of ours. For she was the essence of resilient self-renewal.

Fears over industry influence in proposed new WHO global health forum

2011-02-04T00:38:00.000+08:00

Dr Lida Lhotska (Regional Coordinator for the International Baby Food Action Network) has been campaigning on infant and young child nutrition for 20 years.

From 17-25 January 2011 I attended the annual World Health Organization (WHO) Executive Board (EB) meeting in Geneva on behalf of Consumers International (CI) with three other members of IBFAN’s staff, Rebecca Norton, Nahed Ismail and Patti Rundall.

We submitted statements calling for principles contained in the Global Strategy on Infant and Young Child Feeding to be observed as we were concerned about the potential expansion of the role of the baby food industry into the policy setting sphere with a new implementation plan on infant and young child nutrition being developed by WHO.

It was with concern that we read in the report to the EB on future financing of the WHO by that organisation’s Director General (DG), Dr Margaret Chan, of the proposal for a new Global Health Forum. The proposal was repeated in Dr Chan’s PowerPoint presentation given during a debate on future funding. The new forum is designed to bring together Member States, global health funds, development banks, partnerships, non-governmental organisations, civil society organisations, and the private sector to address issues critical to global health.

The DG said that the idea for the forum had come from member states and from civil society. I find it hard to imagine that the private sector was not a very strong advocate for the idea. As a campaigner on infant and young child nutrition, I am all too aware of the dangers of allowing the private sector a hand in shaping policy. The potential for conflicts of interest is vast and self-evident.

In many countries, the food industry is keen to fund education, specifically seeking out children, teenage girls and young mothers. While some governments may welcome such assistance, they should be reminded that there is no such thing as a free lunch. ‘Education’ is all too often used by industry as a subtle and pervasive form of marketing to build trust and to promote fortified foods and supplements as well as foods high in sugar, salt and fat to children.

An interesting example comes from Russia, where Nestlé is pushing chocolate. The company’s ‘Programme about Correct Nutrition - working notebook for school children’ has been used in thousands of schools in Russia. Among other images it shows a mother telling her child that eating chocolate rather than a sandwich before an exam will help her manage the difficult exercises. So what exactly is this Nestlé message about? - the more chocolate you eat the cleverer you will be?Since few governments have legislation to control health and nutrition claims, the door is left wide open for these market-led strategies leading to dependence on unnecessary products and undermining of sustainable local healthy feeding practices and skills.The Global Health Forum is due to have its first trial run as a one-day meeting linked to the WHO NCD meeting in April in Moscow. A concrete proposal will be submitted to the World Health Assembly in 2011 and if approved, the mechanism could go forward for 2012. We will be watching the process very closely.

Joost Martens video at Davos explains G20 and sustainable consumption

2011-02-03T19:56:00.000+08:00

Joost Martens (Director General, Consumers International) interviewed by Hub Culture at the 2011 Annual Meeting of the World Economic Forum (WEF) in Davos.

Martens gives a run down of the G20 Fair Financial Services campaign and of sustainable consumption for consumers.

World Economic Forum in Davos: hopes and fears

2011-01-29T00:11:00.000+08:00

Joost Martens (Director General, Consumers International) writes from the 2011 Annual Meeting of the World Economic Forum (WEF) in Davos.

I joined about 2500 other people - leaders from government, business and civil society - for a few days in this Swiss village in the Alps. Being here you realise that Davos is about meeting people. Meeting people in many formal and informal settings, I attended big plenary sessions where heads of state like President Sarkozy talk about their view of the world. But also panel discussions with ministers and CEOs, workshop style meetings, lunch sessions, dinner meetings, nightcaps and much more.

Multiple meetings take place at the same time. Some people say that a big issue for many WEF participants is not knowing whether they should not be in another more interesting meeting that may be ongoing somewhere else. And of course, with so many government and industry leaders around, many of the meetings they have are not listed in the official programme.

Networking

Davos is about networking. It would take months of trying to get appointments with many of the people who are there, and then you may not even succeed. In Davos you approach them informally and talk for a moment or have a coffee together. For example, I confirmed with a keynote speaker for the Consumers International World Congress her participation in Hong Kong in May. I also talked about consumer protection in financial services and how the French G20 presidency will be putting it on the G20 agenda. I made arrangements for a ministerial meeting for one of our regional directors. And I talked with the secretary general of ISO about the synergies between ISO standards and the work of CI.

Consumers

Of course the contents of the meetings matters. Because there is hope and expectation that what is presented and discussed here, will impact positively upon the state of the world (the WEF slogan is ‘Committed to improving the state of the world’). The consumer interest is present under many headings. To name a few: The International Financial System: Back on Track?; The New Reality of Consumer Power; The New Reality of Climate Change.; Young Consumers: Young People versus Old Models.; Rewiring the Responsible Enterprise.; and The New Reality of a Sustainable Lifestyle.

I have tried to bring in CI’s experience and knowledge into the main issues that concern consumers and are relevant to consumer organisations. This was possible in relation to our work on the financial sector, where we ask for less complexity of the services that are on the market. Also on empowering consumers, where it is not about giving more and more information to consumers. We ask from governments and industry to make sure that what is on the shelves is not ‘toxic’, but safe and sustainable.

Food prices

An issue that scares most, in what I heard and picked up, is the risk around rising commodity prices, especially food. This can have future consequences on access to food for poor consumers, which is a dark perspective.

Technology hope

On the other hand, a clear sign of hope came from talking about the incredible power and possibilities of communications, of mobile technologies and digital applications. I attended a session on ‘digital convergence’ that gave a sense of what is around the corner of possibilities for mobile phone use - in different ways for consumers from developed economies and from emerging and developing economies.

So there are both signs of concern and signs of hope from the meetings in the Alps.

G20 magic: Norma Garcia of Consumers Union campaigns with CI London

2011-01-26T23:47:00.000+08:00

Norma Garcia (Consumers Union of US Inc) reveals what it feels like to achieve success as part of the G20 Campaign for fair financial services.

Norma Garcia, second from left, in London with CI staff and members

After working on financial services issues for Consumers Union for over 18 years, I was delighted to accept the special assignment of a lifetime to join CI’s team in London to lend a hand to the G20 Campaign on Financial Services. With passport in hand and an open mind, I traveled from San Francisco to London for the first time ever. When I arrived in Paddington Station from Heathrow Airport, I was struck by the incredibly familiar Gothic architecture of the station which made me believe that this was the place from which Harry Potter and friends departed to the legendary Hogwarts. I searched in vain for the sign that read, 'Platform 9- ¾', looking for that gateway to the magical. Though it was nowhere to be found, I do believe the experience I had at CI in London was charmed nonetheless.

First, the staff at CI London was very warm and welcoming and the Campaign team is second to none. Added to this, the CI members were very excited about the campaign and were ready to use their energy to get the G20 to incorporate consumers into their agenda. In some ways, it was incomprehensible that the G20 had not already done this, yet this void created a huge opportunity for CI members to lobby the G20 on this very important issue.

Reaching out to CI members around the globe on multiple time zones was exciting and a bit surreal. From my communications with CI members involved in the Campaign, it was both exciting and impressive to see them fully engaged in their activities to promote the Campaign. It was also very clear that this process was ongoing -24/7 - around the globe, and that the momentum being created was unstoppable.

And then, after several weeks of heavy campaigning, there was the result. I remember walking into the CI building that Friday morning, when Joost (Director General at CI) approached me with a big smile saying, 'Did you hear the news? We got it! The G20 Communiqué includes much of our ask!' Of course, there is nothing better than spreading good news so we got right on it and started sending out communiqués to the members and the media regarding the great results.

Now, back at my office in San Francisco, I remember this experience with great fondness. Although 'Platform 9 ¾' was nowhere in sight during my four weeks in London, I feel like I found a perfect '10' in all respects. The people, the work, the results, none of it could have been better.

Looking ahead, as CI members, there is much work to do in the next few months and beyond to keep the momentum going towards an ultimate success. I look forward to continuing our work together and for now, with much gratitude for this chance to work with you, I say thank you, obrigado, terima kasih, gracias, danke, merci, dziękuję and arigato!

How socially responsible are Belgium's biggest supermarkets?

2010-12-17T06:04:00.000+08:00

Christian Rousseau is the Project Coordinator for Test Achats’ Supermarket Project. Here he gives an insight into his team’s continued dialogue with the three biggest supermarkets in Belgium.

Since the publication of the retailer survey in April 2010, Test Achats has engaged in dialogue with the three leading supermarkets in Belgium, which represent over 70% of the country’s groceries market. The goal has been to stimulate change inspired by our 10 point recommendations, and to address more specifically the priorities for each supermarket.

Eventually the supermarkets took the results of the retailer survey quite seriously - the ranking of supermarkets in the report and our benchmark for this being an implicit driver (eg Lidl was included in the top 4, how so?!). We found that goodwill and openness to ethical concerns is generally present in the mind of spokespersons, but discussions also revealed a lack of insight into specific food chains like pineapples (read more in French). Consumers and retailers are however, not on an equal footing - we are still facing good intentions from supermarkets, but not enough proven facts and actions. Taking responsibility for the full supply-chain remains a sensitive point.

Here is a snapshot of our findings:
Colruyt is the most active in the social responsibility field, although a discrete player (no green-wash addict!). The supermarket has made significant achievements since 2009 when our campaign began, including developing a new purchasing charter with full supply-chain commitments. It is also mainstreaming its own line of ethically labelled products and embedding sustainability in the private label product specifications. The management is also involved in capacity building and support for small scale food suppliers in developing countries.

Delhaize was at first rather, err, unenthusiastic about the survey results and the 'unbalanced' picture regarding supermarket power. However the company has now moved a step further and answered each of our ten action points. Significant achievements since 2009 include the supermarket signing up to a BSCI-based retailer code of conduct for social compliance; providing training for all its buyers; moving towards responsible sourcing of its fish; and a greater focus on fair-trade on the shop shelves.

Carrefour Belgium is willing to move forwards but seems impeded by the inertia of the wider mother company. Its social agenda is lagging behind the environmental one. There has been no significant achievement since 2009.

I’d like to leave you with these thoughts....
Food supply chains are clearly challenging by their complexity. It is therefore the task of all stakeholders to collaborate about the prioritisation of social issues. Local European suppliers of food, too, deserve the attention of both retailers and consumers. They are often the supermarkets’ main business partners, especially for basic products like milk, fruit and vegetables and they must not be forgotten.

Test-Achats will definitely have to update its baseline survey to hold supermarkets to account in the coming years, and hopefully achieve further progress. The case of local producers should also be included in the wider picture.

In the meantime our awareness-raising campaign is running, with the practical help of a responsible shopping guide – the first of its kind for Test Achats and for Belgium. So let’s go shopping…but shop differently!

Guidance on ethical consumption for Spanish speakers

2010-12-02T22:51:00.000+08:00

Amaya Apesteguía is the Ethical Consumption Project Officer at OCU. Here she gives an insight into their recent multi-stakeholder meeting on social responsibility in supply chains, and mentions important OCU publications on the matter.

On 28 October 2010 we organized a multi-stakeholder meeting at the OCU offices in Madrid, to discuss directly with Supermarkets and NGOs (such as Oxfam and IDEAS) about the main challenges and initiatives to achieve social responsibility in the whole food supply chain, including in developing countries which produce for Spanish consumers. The meeting resulted in a very interesting dialogue between the various stakeholders, in which the important role of consumers pressurising supermarkets for responsible practices was highlighted.

Over the last six months, we have developed many activities to increase consumer awareness about food retailers’ social responsibility. We have published two articles in our main consumer's magazine OCU-Compra Maestra, about food retailers social responsibility policies, and about the CI case study on pineapple working conditions in Costa Rica.

To help consumers through the sometimes confusing array of ethical choices and decisions, we have produced a small brochure with practical guidance on how to be a responsible consumer when buying in supermarkets.

Interns speak up at the OECD meeting on industry-led regulation

2010-11-24T01:04:00.000+08:00

Ane (left) and Ileana (right)

Ileana Søndergaard and Ane Hagtvedt, interns at Consumers International, have their say at the OECD.

As Public Health Nutrition and Food Policy students yet to hand in their bachelor theses, getting an invitation to attend an OECD meeting in Paris is a big thing. Having worked at Consumers International (CI) this autumn researching countries’ regulation of the marketing of food to children, we got the chance to get a taste of how the organisations, the industry and the governments that we write about in our papers act in ‘real life’.

The project at CI gave us the chance to see how a number of organisations function and how they collaborate with each other. However, the OECD is one of those organisations that you as a student, hear about, read about and reference. Period. You never really imagine that you yourself will ever have anything to do with them – at least not for a few more years.

Therefore, it was a great opportunity for us to be able to attend the Committee on Consumer Policy's meeting on industry-led regulation. Here we got to witness a range of different stakeholders presenting differing interests and see those stakeholders both clash and collaborate with each other.

What surprised us most about the experience was that nothing that was said at the meeting really surprised us. The various stakeholders took their expected stands, including industry, with their 'there are no bad foods – only bad diets' argument, and that self-regulation indeed is feasible in the case of marketing to children.

After hearing this and after having been attentive and alert, but quiet, we just had to say something – this was a discussion we didn’t want to miss without putting in our two cents, too. Of course, after hearing everyone else deliver their statements and opinions in the most diplomatic of ways, we knew we had to be at least as humble as our fellow more experienced participants.

With a bit of hidden nervousness and hearts beating a bit faster than usual, we said what we thought was lacking in the debate: the codes that industry offer tend to be rather vague and confuse rather than send a much needed clear message. We also gave some examples of cases where there is a great need for improvement.

We finished speaking. And this is what we found the most interesting: we felt like we had been heard. The OECD is apparently not as ‘heavy’ and stiff as we had originally envisioned. Yes, their reports can be ‘weighty’ at times – we will admit that. But in reality it is an organisation a lot more fluid, flexible and transparent than one would think.

The fact that the committee is represented by participants from very different backgrounds – both in terms of nationality and profession is a great benefit. This, along with the admirable work done by many of the committee representatives, leaves us with a sense that things are in fact moving in the right direction.

Financial consumer protection: a ray of light in the G20 gloom?

2010-11-19T18:40:00.000+08:00

CI's Robin Simpson gives a blow by blow account of the G20 commitment to financial consumer protection.

While the world’s press and the financial markets were raining on the G20's parade, we poor toilers at Consumers International (CI) were enjoying a moment of satisfaction at the outcome. Lobbying by our members in the G20 countries seems to have paid off.

Efforts involved meetings with heads of governments (VZVB in Germany), finance ministers (CLCV in France, and CHOICE in Australia) and relevant officials and ‘Sherpas’ (the term of art for those officials who prepare the ground and do the ‘heavy lifting’ for the summiteers).

Together with our members we were also able to build up a significant media presence in key areas. The Financial Times, The Daily Mail (both UK), Huffington Post (US), Times of India and The Canberra Times (Australian) to name but a few.

So what do we have to show for these efforts? Para 11 of the summit leaders main declaration states: “..we have agreed to..enhance consumer protection..”. Note the wording, this is not an appeal to others to enhance consumer protection, this is a commitment by the heads of governments of the G20 to take this action themselves.

This paragraph also includes a range of other commitments, many of which we have argued for in our evidence to the UN NGO consultation chaired by Joseph Stiglitz and elsewhere. So the G20 governments have also agreed to: “work further on macro-prudential policy frameworks” and to “strengthen regulation and oversight of shadow banking”, particularly significant in the context of the activities of ‘non-bank’ (and therefore not regulated as banks) financial institutions. These bodies also contributed to the financial crisis, or as Paul Krugman calls it: “the non-bank banking crisis”.

There is commitment to integrating the “perspective of emerging economies in financial regulatory reforms... improving ‘market integrity” and improving governance of the IMF. Para 12 also commits to prioritising action on “exclusion from financial services” and a Financial Inclusion Action Plan, “to expand opportunities for poor households and SMEs”. This latter coupling of domestic consumers with SMEs is significant as discourse on financial inclusion in developing countries has tended to overlook or even faintly disapprove of developing new mechanisms for household consumer credit, leaving the way open for undesirable forms of credit to predominate. Commitments are also made on “green growth”, social safety nets and infrastructure development.

Para 41 of the text of the full Seoul Summit Document addresses “enhancing consumer protection” in slightly more detail. The Financial Stability Board (FSB) is asked to work with the OECD and “other international organisations” (that had better mean Consumers International!) “to explore and report back by the next summit” (so all leave cancelled next year!!), “on options to advance consumer finance protection through informed choice that includes disclosure, transparency and education; protection from fraud, abuse and errors; and recourse and advocacy”. (us again)

Realistically, as summit statements are frequently so vague, this is almost as good as we could have expected. Almost, for there are two disappointments in terms of what is not there.

Firstly there is no mention of the development of the institutional framework that CI wants to see so that dangerous practices in one market are signalled to regulators around the globe to prevent ‘contagion’. But, there is nothing there to argue against such a development and we intend to press for it.

Secondly, there is no explicit reference to competition, which is of great concern to our member organisations following the bank mergers that have taken place under recent financial emergencies (some of which resembled shotgun weddings). But there is reference in para 9 of the Action Plan to ‘too big to fail problems’, and to ensuring ‘a level playing field’. CI intends to press on these issues to ensure that bank shareholders accept full responsibility for their actions and not be shielded by the threat of being ‘too big to fail’.

The action now moves on to the French presidency of the G20 and we are already in contact through our members in France, with the G20 team there. We are already pushing for fulfilment of the commitments described above, and you can join us by sending a letter to the French Presidency.

Our members are working strenuously, and with increasing success on the issues mentioned above and we have much of that experience to bring to the table. This is all the more important as the G20 commitments seem to apply at a national as well as an international level, and are not confined to the G20 member states but have global application. If we were in the FSB’s place we would want to involve us. Let us hope they feel the same way.

Now for the hard part.

Toying with children’s health

2010-11-06T00:47:00.000+08:00

Anna Glayzer, Food and Nutrition Programme Officer, says the ban on 'Happy Meal' toys with junk food is a small but important move.

On Tuesday, the San Francisco Board of Supervisors gave preliminary approval to banning the giving away of toys with Happy Meals and similar fast food meals aimed at kids. The final vote is due next week, and though the mayor is threatening to veto the measure, the majority obtained in the vote means that the board can overturn the mayor’s veto. If passed, the measure will come into effect in December 2011.

In fact, McDonald’s and the like have not actually been banned from giving away toys per se, it’s more that, if they do give away toys, it must be with meals that meet a set of minimum nutritional standards equivalent to the type of nutrient profiling model we have seen in legislation dealing with junk food marketing in other parts of the world.

Meals that allow toys
In order to merit a toy, a meal must contain less than 600 calories, have less than 1.6g of salt and from which less than 35 calories are derived from fat (less than 10 from saturated fat) unless that fat comes from nuts, seeds, eggs or low fat cheese. Furthermore, any meal accompanied by a toy must contain at least half a cup of fruit and at least three quarters of a cup of vegetables or, if it is a breakfast meal, at least half a cup of fruit or vegetables.

Naturally the move has drawn complaints from fast food restaurants (with McDonald’s leading the fight) and cries of ‘nanny state’, and, ‘leave the parenting to the parents’ from some sections of the public.

Food marketing works
As a food campaigner at CI and elsewhere I have heard these arguments numerous times. The point about marketing to children is this: It works. If it didn’t work, quite simply, companies would not spend the money that they do on doing it. In 2006 in the US, 10 fast food chains spent $360 million on the purchase of toys to give away with children’s meals. Last year, McDonald’s spent $1.97 billion on advertising. That is just one company.

To put it in perspective, the World Health Organization’s entire annual budget for the promotion of health and development, and the prevention of risk factors for health conditions associated with use of tobacco, alcohol, drugs and other psychoactive substances, unhealthy diets, physical inactivity and unsafe sex is $0.16 billion. That is a lot of risk factors.

Children are the most credulous consumers, and the messages they receive about diet and nutrition come overwhelmingly from companies that sell high fat, salt and sugar foods, and whose sole purpose is to sell more. They have a highly developed and increasingly sophisticated set of tools with which to do this, effectively bypassing parents and other dietary influences. Any move that counters this imbalance in any small way is to be welcomed. What do you think? Leave your comments below.

Fried and Tested
Read CI's report on the marketing of fast food to children Fried and Tested.