Is it possible to set a standard for innovation?

CI’s Luke Upchurch attended ISO COPOLCO to see how its participants are setting new standards in consumer protection.

 

As always, I was mightily impressed with the organisation and efficiency of the international standards community as it met for its annual gathering on consumer issues – ISO COPOLCO. Compared to some of the grander global forums I’ve participated in, these guys are always fully briefed, committed and focused on the job of advancing the protection of consumers through standards for products and services – quietly conducting this crucial work in the interests of consumers worldwide.

Consumers International has long been involved in COPOLCO (it stands for COsumer POLicy COmmittee), advocating for new global standards on social responsibility, customer satisfaction, second-hand goods, and the safety of household products. We’re currently leading the development of a new standard for improving energy service provision for consumers. Standards is a vital area of our work and a constant priority for our Members and Supporters.

This year’s gathering in Malta in late May looked at the impact of innovation on consumer protection and the role standards should play. Almost 20 CI Member groups joined over 60 national standard body representatives to consider issues from social media to nanotechnology.  

It could almost be considered an oxymoron: Standard innovation. As Norma McCormick, chair of ISO COPOLCO pointed out; by their nature “innovations are fast, and standards are slow”. Finding consensus on a standard can take years, by which time the innovation it set out to tackle is several generations down the line.

From the outside this could appear to be a major hindrance, but speak to those with knowledge of the standards process and many see the slow pace as an advantage. The lengthy deliberations mean all stakeholders – regardless of resources or time constraints – have a chance to comment. It means unworkable suggestions are ironed out, and mistakes and longer-term trends in the new innovations can be dealt with. Invariably it means that standards work; they enjoy strong backing from stakeholders, and stand the test of time.

The role of standards (or lack of them) within the digital age came up time and again at the meeting. For instance, as our recent research shows two thirds of countries have no mechanisms in place to resolve e-commerce disputes out of court; meaning victims of online shopping malpractice may be forced to seek redress through expensive court settlements.

But the digital issue that drew the most attention was the role standards need to play in online feedback and user reviews. As the UK’s Consumer Futures puts it:

“the growth in feedback and review services is one of the most empowering developments for consumers in the past decade.”

Their work, which is featured in the CI Resource Zone, has also shown that 88% of UK consumers check user-reviews before making a purchase.

How do we make sure that online feedback is trusted, fair and balanced? How can we retain consumer confidence? Well, internationally agreed standards for submission, verification, and authenticity would be a major step in that direction – something the French standards body, AFNOR, is pioneering with its work on second-party verification (pdf).

Standards may be slow, and they may live a life outside the spotlight, but ISO COPLOCO once again demonstrate why they are vital to long-term, sustainable consumer protection; and why standards bodies and consumer groups must continue to work closely together.

 

Crowd sourcing and consumer rights — a powerful combination

Julianna Smith, Policy Advocate for Consumer Focus in the UK, looks at the possibilities of crowd-sourced maps for the consumer movement.

Last year a web map appeared that displayed real time reports of people in India who were experiencing a power cut. It came about after Twitter users – fed up with the unreliable power supply during the summer – began a discussion with the hashtag #powercutindia. 

They used it to report details such as the location and duration of the power outage and whether it was planned or not. Given the high response rate, some of the tweeters took the initiative to feed the tweets into an infographic that collected and mapped this information, thereby highlighting the need for investment.

The map has since expanded to include many other methods of reporting and has helped to develop a better understanding of electricity demand by exposing areas where there is a need for investment in power production and distribution. 

The map creators also aimed to use the map to draw more attention to the rural areas of India which they say have been previously neglected in public discussions. This type of interactive map is often referred to as a ‘crowd-sourced map’.
The power cuts in India map is one of many examples that demonstrate how crowd sourcing supports empowerment and helps consumer representatives better understand and respond to emerging issues. 

 Other recent examples include the London Borough of Hackney’s Citizens Advice Bureau’s housing benefit map showing the effects of the changes in legislation to housing benefits and BBC’s 3G mobile data network crowd-sourcing map which challenges the availability rates that had originally been suggested. 

A new world of opportunity

Further exploration of cases like these can be found in our new report Putting problems on the map . 

It illustrates how data collected in this manner can complement and enhance traditional forms of intelligence gathering.

Interactive maps offer the opportunity for consumers to report their experiences. The geographical element means these maps can work as powerful visibility tools. Common features, such as the clusters of ‘flagged’ reports and the ability to filter reports according to the map’s key (for example, by company), mean that displaying data in this way paints clear pictures of emerging problems or hubs of activity.

This type of tool also produces real-time data. Not only can this result in a powerful early warning system, but it visualises the changes in consumer sentiment and the prevalence of an issue over time. 

Generated data can also be stored and re-used for further analysis. For instance, other data sets can be plotted on the same map in the form of additional layers as a way of investigating possible correlations. Maptube is a good example of a tool designed for this process.

With these online maps, organisations can communicate among themselves as well as directly with consumers to capture information on the specifics of a consumer issue – be it a roll-out, a collective buying initiative or customer service related issues. 

For example, bodies such as Trading Standards could use this type of tool to help address interregional problems and determine how to co-ordinate responses in each of the affected regions. This is valuable as many issues surrounding consumer detriment spread across local authority boundaries.

For other users, this service would function as a valuable tool to raise awareness of matters affecting their local area. Importantly, all of this can be achieved through user-friendly services that in some instances are more straightforward, convenient and powerful than conventional channels.

Since several of our own policy areas would benefit from mapped consumer-contributed data, we are in the process of trialling this technology with the hope of using it in future projects. Issues we have in mind include: collaborative buying of renewable technologies, community or area-based roll-outs of new policy initiatives and mis-selling.

There appear to be many advantages to consumer crowd-sourced maps. They can amplify consumer voices and present the opportunity for co-operation between consumers and the various bodies that work on their behalf. 

The intelligence that these maps capture can help bring greater transparency and scrutiny to provider performances; and can support consumers in collaborating on peer-led responses. In doing so, they form part of wider trends in the new and powerful forms of consumer empowerment initiatives that are driven by social technologies.

Build your own map

If you are interested in setting up your own map, you can go to Crowdmap.  Crowdmap is designed and built by the people behind Ushahidi, a platform that was originally built to crowd-source crisis information. 

Crowdmap allows you to set up your own map of Ushahidi without having to install it on your own web server. It is fast, free and easy to use; you sign up, choose a location and start plotting reports, information and other data right away.

mySociety , an organisation whose mission is to help people become more powerful in the civic and democratic parts of their lives through digital means, are also helping those in other countries to set up new web applications. They have developed free and open-source software for individuals and organisations who want to build copies of the sites they build.

FixMyStreet and MapIt are now available for people around the world to use, making it easier than ever to reuse code and set up new sites that help people fix things that matter to them.

Global economic crisis deniers?

CI’s Jeremy Malcolm reports from the United Nations Conference on Trade and Development where the world’s leading industrialised economies are attempting to re-write history.

The financial crisis that struck in 2008 ushered in the first contraction in the global economy since the 1930s. Its effects spread very rapidly and widely. The world’s poorest economies were not spared. Despite the policy efforts of leading economies, both developed and developing, the global economy remains fragile.
 
None of the above seems very controversial, does it?  The paragraph could well have been taken from Wikipedia or from a report in a respected newspaper or magazine.
 
As a matter of fact, it is an almost exact quotation from the draft negotiating text for the 13th Quadrennial Conference of the United Nations Conference on Trade and Development (UNCTAD) in Doha, Qatar this week.
 
Yet UN members can't agree on it. In fact, shockingly, the world's leading industrialised economies want to erase each and every reference to the global economic and financial crisis from the text - as if making believe that it never happened.
 
The same rich countries are also refusing to agree to include references to:

• Energy price volatility and access to renewable energy;
• Access to medicine at affordable prices;
• Environmentally-compatible patterns of production and consumption that safeguard the biosphere;
• Adequate regulation and supervision of financial markets; and
• That foreign investors should comply with the domestic legislative framework of host countries, such as consumer protection law.

Perhaps even worse, they are seeking to restrict UNCTAD, with its unique development perspective, from dealing with these issues, claiming that such issues should instead be reserved for the pro-globalisation organs such as the World Bank, the International Monetary Fund and the Organisation for Economic Co-operation and Development.
 
This prompted an unprecedented open letter of protest from 49 former UNCTAD staff members earlier this month, and has created an atmosphere of high tension in the intergovernmental negotiations which are ongoing this week.
 
In partnership with other civil society groups from around the world, CI is in Doha to fight back against this shameful intransigence of the world's rich economies.
 
We are doing this in two ways: first, by talking to the delegates themselves, and pointing out how their denial of the world's food, energy, climate, financial and development crises is a slap in the face of the world's most disadvantaged consumers.
 
Second, resigned to the fact that the intergovernmental text may end up as a weak compromise, civil society groups including CI have drafted their own Civil Society Declaration and are presenting it this week.
 
In that declaration, CI confronts head-on the issues that are too difficult for governments to face. The declaration includes the following paragraph on the topic of consumer protection (for which UNCTAD is the lead agency within the UN system):
 
UNCTAD should promote consumer rights as part of its mandate over competition and consumer protection issues. Consumers have rights to the satisfaction of basic needs, to safety, to choice, to redress, to information, to consumer education, to representation, and to a healthy environment. It should lead the revision of the United Nations Guidelines for Consumer Protection in light of recent trends including the increased exposure of consumers to new products and marketing strategies, increased cross-border commerce in consumer products, and technological changes that affect consumers. 

UNCTAD and CI have a long record of working together to advance the rights of consumers, and this will continue despite the attacks from rich countries that UNCTAD is currently enduring.

 

Its mission to maximise the trade, investment and development opportunities of poor countries fits in well with CI's mission to advance the rights of consumers worldwide. In particular, we will be participating in an UNCTAD meeting to discuss the revision of the UN Guidelines for Consumer Protection this July.

 

To find out the ultimate outcome of the negotiations in Doha, or for more information on CI's work at UNCTAD, you can follow CI delegate Jeremy Malcolm's private Twitter account, @qirtaiba, or email him at jeremy@ciroap.org.

Climate change and energy: A consumer issue

Ruth Golding writes:

'CI has been working on issues around climate change and energy for years. Sustainable energy, access to basic services like energy and water, confusing or misleading green claims– these have long been big issues for consumers around the world. But our members have told us we need to do more, so we’re upping our game and making climate change and energy a top line issue.

Today CI kicks off its new focus on climate change and energy with the launch of a new dedicated section on the English and Spanish websites. As well as information about the work CI is doing and plans to come, the pages have some really useful links and resources (check out our climate change and energy glossary and our links to publications our members have produced).

The launch of the web pages marks the beginning of a three year period of concentrated work in this area for CI. But it also comes as a result of a ground swell of work in the consumer movement, disparate projects and programmes within CI and not least some really interesting consultations with our members and experts in the field.

The consultations have also given us the chance to find out more about some of the innovative and important work our members around the world are doing on climate change and energy. To find out for yourself, have a look on our website.

Responses from our members told us that climate change and energy is their number one priority and 60% of respondents were planning to do work themselves in this area in the next two years. So what makes this such a key issue for consumers?

Consumers are concerned about climate change and about its effects. Consumption patterns are at the very heart of climate and energy issues. Millions of consumers around the world are experiencing the traumatic effects of climate change now, particularly in the global south, while at the same time unsustainable levels and patterns of consumption continue (despite progress), and particularly so in the global north.

The contribution of the consumer movement is absolutely key to discussions on climate change. We need to make sure consumers voices are heard and consumer interests are recognised and acted on. Too often we hear rhetoric from governments, businesses and in the press using so called “consumer demands” as an excuse not to act on climate change. We read that improvements can’t be made because consumers don’t want change.

In fact at CI we know all the evidence points to the opposite conclusion: Consumers want change, they don’t want to suffer the effects of climate change now or in the future and they want to make good consumption choices. But they want to be given the tools and guidance to do this. CI and our members are here to set the record straight.'

Caribbean bridges: the recipe for a better future

CI’s Antonino Serra Cambaceres writes from Jolly Harbour, Antigua and Barbuda, where the 7th Caribbean Consumer Conference reflected the need for enhanced networking and cooperation:

‘If something must be confirmed at the end of the 7th Caribbean Consumer Conference that was recently held in Antigua and Barbuda, it is that the consumer movement in the Caribbean is alive...and kicking.

Gathered together under the motto: “The resilience of the consumer movement amidst the food, energy and financial crises – building partnerships for cooperation”, consumer advocates and government officials used the three-day discussion forum to try and find a firm footing within their own realities and the map of the current world crises.

With Grenada, the only absentee, representatives of consumer agencies and associations of all Caricom states discussed how the various crises are affecting consumer welfare. It was argued that under the revised treaty of Chaguaramas – the cornerstone of the Caribbean Community – consumer protection must be one of the main issues that governments must enforce adequately and that all bilateral or regional agreements within the Caricom must assess how consumer rights can be effectively included in any political or trade negotiations.

Consumers International (CI) was present at the conference. We delivered a presentation about consumers and the financial crisis and emphasised that consumers must not be blamed for the crisis, and that regulation must be a tool that govenments should use to to drive markets to more secure paths, now that we know that Adam Smith’s “invisible hands” of markets are nothing but invisible. This presentation, alongside with Philip McClauren’s – past president of the Caribbean Consumer Council (CCC) – led to many serious discussions which all came to the same conclusion that more networking and more common work is the key for the coming times.

CI’s second presentation focused on the future of the consumer movement in this part of the world. While we encouraged the idea and the urgent need for more coordinated work between the Caribbean nations, we also launched the new Caribbean project funded by the Interamerican Development Bank (IDB) that will be implemented in the next three years in Jamaica, Barbados and Trinidad & Tobago.

This presented the ideal opportunity to introduce Candice Rowena Ramessar, the newly appointed project coordinator. Candice did a solid presentation of the main project aims and objectives, as well as activities. Side meetings presented a window of time with our partners in this project, as well as with the CCC, and we started to find ways for the wider participation of other countries, as well as the means of interaction we will be likely to develop.

In the end, the idea of bridges that link countries and then within these countries organisations, gained momentum. The general feeling amongst the conference participants was that all efforts can be boosted if the work is performed in teams, and that this is the best recipe for facing the hard times that will remain for a while in this shocked world of ours.’

Working towards a global energy charter

Robin Simpson, Senior Policy Adviser at CI, gives an insight into the development of the CI Global Energy Charter:

“Indoor air pollution from biomass causes more premature deaths each year than malaria – World Energy Outlook 2006 Focus on clean cooking fuels, International Energy Agency 2007

While the world is rightly concerned about atmospheric emissions, there are approaching two billion people without access to energy services. In developing countries only about two thirds of the population are connected to electricity and in some countries the coverage is far lower, less than half in South Asia, less than a quarter in sub-Saharan Africa.

Of the rural population, worldwide, about half are not connected. Furthermore, in countries with relatively high rates of connection, notably the Former Soviet Union, there are frequent interruptions of supply.

Individual consumers and entire economies pay a high price for lack of access in terms of family incomes and health among other social and economic losses. So does their environment too, due for example, to deforestation caused by foraging for fuel, reported by our members in countries as different as Senegal, Dominican Republic and Macedonia. Huge amounts of time are lost in such foraging, while non-networked fuels such as kerosene, cost much more, for example five times the equivalent electricity bill in rural India, where two thirds of the population use kerosene.

As the quotation above demonstrates, lack of access leads to serious health risks, with current premature deaths from indoor air pollution (leading to smoke inhalation particularly by mothers and children) running at 1.3million a year.

The 2.5 billion people that use fuel wood, charcoal and agricultural waste including animal dung as fuel is projected to rise to 2.6billion by 2015 and 2.7billion by 2030 a little under one third of the world’s population.

The absence of service to poor consumers does them harm while also doing harm to the environment. But extending alternative services should be done in as sustainable a manner as possible. It is our view that a consumer energy charter will help towards that goal.
A CI member survey last year showed clear support for an energy charter and this will be launched in November 2008 following two rounds of consultation with members.

While the initial impetus towards a charter came from our members in Europe, notably Energywatch UK (now part of Consumer Focus after the merger with the National Consumer Council), the Charter is careful to take account of the non-served populations and to emphasise for example the rights of consumers to be informed about extensions to networks or to be served equitably, for example avoiding inequalities in hours of service which so often penalise the poor.

The Charter sets out principles covering the following aspects of energy service:

• Access - development of network services and ensuring continuity


• Sustainability and promotion of sustainable alternatives and energy efficiency


• Choice and flexibility - development of off-grid systems; choice of payment methods


• Fairness - equitable distribution of supply, fair price formulae


• Customer care and support - protection through consumer contracts


• Mediation and redress - complaint and dispute resolution systems


• Special assistance - targeted help for poor consumers


• Governance and consumer influence - representation and regulation.

We aim to persuade governments and service providers to adopt the charter. But we do not stop there. We also want consumers to accept their responsibilities to consume prudently and contribute to the running of the services."

New CI Director General outlines the challenges facing the global consumer movement

A message from the new Consumers International Director General, Joost Martens, upon his arrival at CI:

"Whether it’s food prices or the financial crisis, social responsibility or corporate accountability, consumer rights are at the very heart of the big issues shaping the world’s future. Arguably, there has never been a more important time to fight for our universal consumer rights, like the right to product safety, a sustainable future, access to basic services, and the right to be fully informed about the products and services we purchase.

"Consumers International and its member organisations must continue to hold governments and corporations to account, and ensure that the consumer voice is put at the heart of decision-making. This means pushing for greater consumer protection as the economic downturn takes hold. It means taking corporations to task over the unjust and avoidable rise in food prices in many parts of the world. It means demanding sustainable access to essential services as the world’s resources face intolerable strain.

"These are fundamental consumer concerns, and many of our member organisations are working tirelessly on these at the national level. Through our international campaigning and advocacy work, CI is also fighting for fair and sustainable consumption, corporate transparency and responsibility, and access to essential services such as energy.

"I look forward to continuing this vital work, and further advancing the role and reach of the global consumer movement."

Outrage over rising electricity charges

Consumers in Cameroon are reacting with frustration to rising electricity bills. RACE (Energy Consumer Associations Network) recently wrote to the Minister for Energy and Water Resources to complain about recent changes to electricity tariff structures.

Low level consumers of electricity in Cameroon pay lower rates. According to the electricity regulatory body 10% of consumes belong to this category. However, research by RACE puts this figure more likely at 45%.

RACE is wary that rising electricity bills are benefiting the main electricity company in Cameroon, AES-Sonel, at the expense of poorer consumers.

They point out that AES -Sonel is posting record profits at a time when consumers continue to face power cuts, extortionate connection charges and complex billing systems.

RACE also criticises the regulator for taking a unilateral decision to change prices and failing to consult key stakeholders, including consumer organisations.

Tough times ahead

On Sunday (15 June 2008), the government of Malawi, through the Malawi Energy Regulatory Authority (MERA) announced a price adjustment for petrol, diesel and paraffin averaging at 25%.

Now, two days after this fuel increase, the country’s minibus operators have announced a 12% fare hike, which will come into effect today.

Representatives of the minibus owners have been meeting since Monday to discuss the new fares following the government's decision to raise the fuel pump price.

The meeting drew together representatives of Minibus Owners Association of Malawi (MOAM), the Consumers Association of Malawi (CAMA) and Passengers Welfare Association of Malawi (PAWA).

Initially, according to Andrew Ussi, acting Executive Director of CAMA, the minibus owners wanted to raise the fares by 25% but after heated debate they lowered it to 15%.

"But still we felt 15% was still on the higher side and we pleaded with them to lower it further," said Ussi. He also felt that 12% was still too much for most Malawians.

Petrol is now selling at K251.20 up by K50.30 from K200.90 per litre while diesel has been increased to K234.50 from K187.50.

Paraffin, the main source of energy for poor Malawians, has gone up by K33.10. It is now selling at K165.30 from K132.20.

Don’t blame the fridge! Will the real energy guzzlers please step forward...

A new study by CHOICE, CI’s member organisation in Australia, found that videogame consoles, such as the X-box and Sony's Playstation 3, and plasma flat-screen TVs are major electricity guzzlers, even when left on stand-by.

They can use up to five times more energy than a medium-sized refrigerator.

CHOICE found that a Sony PS3, switched on but not in use, could cost almost $250 a year in electricity bills, whereas a fridge would cost less than $50 a year.

According to the study Sony Corp's Playstation 3, closely followed by Microsoft's Xbox 360 and plasma television sets, consumed the most power out of a list of 16 electronic devices tested, including laptops, stereo systems and DVD players.

The power hungry plasma TV set was found to consume over four times more power than a traditional analogue set. The average desktop computer was third on the list.

CHOICE spokesman, Christopher Zinn said he hoped the results of the study would be eye-opening for the public.

"While we hope no one actually leaves their games console on for a whole year 24/7, the figures are indicative of just how much electricity these small devices can chew their way through," Mr Zinn said.

The report advised consumers to switch off their electronic devices at the source, rather than just from the remote control, which puts them on power-consuming stand-by mode. "This saves on money, not to mention carbon emissions," it added.

Have a read.

Consumers bear brunt of 'power' struggle

Beleaguered South African consumers and businesses have been suffering crippling electricity power cuts in the last year, despite a report published in 2006 that warned of threats to the country’s electricity supply.

To add insult to injury, Eskom (the state-owned energy supplier/provider) announced its intentions to raise electricity prices by 60%.

Last week, the National Consumer Forum (NCF) of South Africa made a submission to the hearings held by the National Energy Regulator of South Africa (Nersa) into Eskom's request for electricity price increases.

As part of their submission NCF argues that Eskom’s proposed 60% price hike will deny consumers their rights to affordable electricity – a mainstay of the South African Government’s efforts to alleviate poverty and raise quality of life.

In 1994, only 34% of South Africans had electricity in their homes. Eskom, under instruction of the South African Government has spent the last 15 years making electricity available to all sectors of society/the poor and today three quarters of the country’s population enjoys the benefits of electricity.

This intended price increase will have completely the opposite effect! Making electricity, once again, an unaffordable commodity for large parts of South African society and a staggering number of consumers who have only just recently discovered the joys of flicking a light switch.

NCF's Consumer Fair bi-monthly newspaper is a good place to start if you would like some more information about this issue, especially Edition 12, January - February 2008.

DECO launches new sustainable consumption campaign with carbon brigades

Save power, DECO’s (Portuguese Association for Consumer Protection) new sustainable consumption campaign, was launched at the Museum of Electricity in Lisbon on 7 May 2008.
The campaign deploys carbon brigades to encourage consumers to protect the environment through tips on how to save energy at home and at work.

‘Change is easy and costs nothing!’ is the motto of the carbon brigades – teams of young people trained on environmental issues with the clear campaign mission to undertake 650 actions of education and awareness raising throughout the country.
The youth brigades will distribute teaching materials, such as:

• CDs with interactive games and cards to school children
• posters with practical advice
• guides with energy saving tips.

DECO aims to demonstrate that consumers can save electricity and reduce their emission of greenhouse gases, especially carbon dioxide, without giving up the good life.