A digital world that is all of ours…

On World Consumer Rights Day, Consumers International Director General Amanda Long delivered a speech at the G20 Consumer Summit in Berlin - 'Building a Digital World Consumers Can Trust'.

The prize if we can build a digital world that everyone can trust, and where no one is left behind is clear to see.

In Africa, 1 million hand pumps supply 200 million rural water users.  A third of these hand pumps are estimated to be broken at any one time. In Kyuso, Kenya sensors that could detect and report faults quickly led to a 10 fold reduction in problems. Ninety eight per cent of pumps in the area are fully functioning. But that’s not all, sensors also monitor demand which they can link to fairer payments, and usage data can help plan better services. 

In Europe, it is estimated that 10 million people live with dementia. In the UK, doctors are trialling the use of IoT technology to help them pick up signs of changes in behaviour for patients with dementia. Sensors attached to kettles, fridges and even beds can give vital early clues as to how someone is doing – are they making tea as usual? Are they eating food from the fridge? Picking up and acting on these signs can help people stay well and reduce hospital admissions.

These types of stories are why it is so important to work together so we can make full use of the potential of digital technology and achieve these kind of results for everyone. 

It starts with getting more people online. This will bring many benefits for consumers: more choice, convenience and lower prices; an easier say in how services are run; lower barriers to entry for small businesses thus increasing choice. 

For those with access already, there is still much to gain – such as making the most of the potential of digital to expand opportunities for education, entrepreneurship, creation, healthier environments, healthier lifestyles, smoother transport and more efficient energy distribution. But none of this can happen without trust. 

We need trust for a better digital world 

This is the theme of this year’s World Consumer Rights Day and topic of the G20 Consumer Digital Summit that we are co-hosting with vzbv and BMJV as part of the German presidency of the G20 is ‘building a digital world consumers can trust’

But is this accurate? Do we need to improve confidence and build trust to maintain progress on digital? Doesn’t high uptake and enthusiasm for digital technology suggest that people are largely satisfied? Can’t we just carry on the way we have been, fixing problems as we go along? 

Carrying on as we are is of course an option, we could all convince ourselves that mass uptake and satisfaction with service quality is the same as satisfaction with business models, corporate practice and ethics. But that would be to ignore some clear signals coming from consumers about what the digital world can feel like at the receiving end: 

• 60 per cent of mobile users worry about the privacy and security implications of a world of connected IoT devices. [1]
• 71 per cent of people worldwide believe brands with access to their personal data are using it unethically. [2]   
• And in that same survey, that concerns about privacy are consistent across age, gender, country and personality. 

Not properly understanding and addressing these signals would be missing a trick, it would miss the point that despite the enthusiasm and appreciation of what digital interconnectivity can do, it brings both positives and negatives; and, most importantly, it would miss an opportunity to make the system more inclusive and comfortable for everyone.

Paradox of connectivity

The beauty of so much that digital has given us is that it is all connected. The downside of so much that digital is that it is all connected. It’s a paradox of connectivity.

So when everyday things like payments or returning goods mess up, or updates slow down a device, or when uncanny decisions are made about us based on our likes, habits or opinions, when promises about privacy policies feel empty, when it feels impossible to keep your children safe from harm online – all of these things erode our faith in the other amazing things that we do with digital. 

Perhaps part of the problem is that we too often describe the digital world only in terms of numbers – how fast it is, how many connections there are or how much it could grow. 
But we need to also start thinking not just about how much we could grow, but how we can grow, and what we want to grow towards. We can remain inspired and impressed by the speed and innovation of digital technology, but also keep focused on what we as a world want to achieve through digital innovation?

What do we want to achieve through digital innovation?

Answering this question requires listening to the voices of people everywhere - people as consumers, citizens and as representatives of future generations.  

And trust needs to be more than what we call ‘transactional trust’, I.e the nuts and bolts of a transaction between a business and consumer (or consumers and consumers). 

If tech is going to go deeper into people’s lives, it’s no longer enough to say it will bring convenience, or save money. It has to offer more than that, more than just a transaction. Instead, it is way beyond time to think more roundly about consumers and their trust in the whole experience and try to understand what the combined effect of this fast, expansive, powerful and all-seeing digital technology is on people and their communities, their lives and their idea of the future. What does ‘whole experience trust’ look like to people? 

This type of reflection might be regarded as ‘stifling innovation’ or progress, but it’s the opposite - it’s the definition of progress. To progress means to bring people along on the journey, to pay attention to the impact on people, so that we do not leave anyone behind.   Otherwise we risk similar problems of that other current example of the boundary breaking, cross border, disruptive force - globalisation.  Where impact on some ordinary citizens has not been as understood or considered as necessary and some people have ended up feeling left behind and have lost faith in institutions and leaders.  

So who do we trust to build a better digital world?  

It’s up to all of us - consumers should trust their instincts and articulate what kind of digital world they want for themselves and their children.  Businesses should trust their relationships with people and make a stand to behave more responsibly and respond to people’s concerns – to stand out from the crowd.  Governments should trust their citizens to be able to recognise what is fair and right online and find ways to help them get it. 

No single entity can reassure trust.  And in any case, trust in business, government, media and NGOs is in decline in part because people feel these institutions can’t protect them from the negative effects of globalization and technological change.  

We need to face up to some of the complex and big issues of access, ownership, tracking, competition and to work with the fact that we are in flux – and that we don’t have all the answers but that but that we have a better chance of finding them if we work together. 

The recommendations presented at the summit on 15th March are the first time that the role of demand side trust in driving growth in digital has been thought about, and acknowledged on such a major stage. However, they are just the starting point of something bigger. We want to achieve these recommendations and much more beyond in partnership with others, in line with Consumers Internationals’ new commitment to ‘come together for change’.

Only then can we build the #BetterDigitalWorld that we all deserve.

References

1. Mobile Ecosystem Forum, 2016. 

2. Edelman Trust Barometer: Global Report, 2016.

Consumers and the Internet of Things: one connection too many?

Liz Coll, Head of Digital Advocacy at Consumers International, takes a look at recent trends in the global uptake of connected devices and considers what these trends can tell us about consumer attitudes towards the Internet of Things.  

Last year our report on ‘Connection and Protection in the digital age’ explored the impact of the rapidly expanding trend of the Internet of Things (IoT) – with more and more everyday objects connecting to the internet. As with any ‘next big thing’ topic, the figures looked astounding with some commentators predicting 50 billion IoT devices to be connected by 2020.

New reports in 2017 have not been quite so bold with their predictions. According to analyst firm Gartner, the total number of IoT devices deployed by 2020 is more likely to be just over 20 billion. As with any forecast about the future of the digital economy, there are no certainties – but this drop feels significant. Could it be that consumer attitudes and concerns about connected devices are, at least partly, behind these more reserved predictions in 2017?

Our 2016 report suggested that security concerns and the invasive nature of connected technology would potentially hold back consumer engagement in this next deeper, more personal phase of digital technology. The focus of our work with G20 governments to help ‘Build a Digital World Consumers can Trust’ makes the case that unless consumers can trust digital technology, they won’t readily accept it into their everyday lives.  Getting trust right is therefore a key part of creating a vibrant demand side for the market.

So does it look like this is the case for the consumer market for IoT devices? A report released by Deloitte in 2016 points to an uneven uptake of consumer IoT devices in more developed economies. Connected entertainment devices such as games consoles and smart TVs have maintained a steady growth but sales of Fitbit devices failed to meet expectations.

Some research indicates that this limited take off is because of a failure to meet people’s needs, both in terms of pricing and also the difficulty of use and maintenance. As shown in the MEF Global Consumer Survey from April 2016, the levels of privacy and security were also problematic for consumers, with 62% and 52% of those surveyed reporting these as the biggest concerns, respectively.

Another example of the noticeable consumer resistance to connected devices has been the move by some Fitbit users to turn off the smart elements of their devices off only months after purchasing the products. With novelty seemingly wearing off so quickly, does this mean that penetration of IoT devices won’t happen as all those excited articles predicted?

In reality, it is hard to prove or predict that people won’t buy internet of things products because of a lack of trust. As privacy and technology expert Gilad Rosner somewhat ominously predicted that business momentum will mean that “The Internet of Things will happily march along with lousy privacy and security, and we will be the poorer for it”. 

Connected technology seems to be one of those things that creeps into products – an alarm clock on a smart phone that suddenly wants to become a ‘sleep tool’ to help you enjoy a restful night. An insurance provider that offers a subsidised fitness trackers, for as long as you keep active.

But with high profile internet of things problems such as the #Toyfail and the development of devices such as fertility trackers collecting and analysing sensitive information about one of the most private aspects of people’s lives, perhaps people will start to demand technology that is not just helpful but safe, ethical and human-centered.

How can consumer organisations play a leading role by working with businesses to ensure that connected devices can be safer, less invasive and prioritise consumer interests? Our member Consumer Reports’ new digital standard initiative is an excellent example of how the global consumer movement can evaluate and test the safety of digital products and services, empowering consumers to make informed choices about whether they want to invest in IoT devices. This week, Maria Rerecich of Consumer Reports will speak at an SXSW event that considers how a consumer organisation can include privacy, security, and data practices in its testing protocols.

As consumer organisations continue to monitor ongoing developments in the connected world, it’s vital that the global consumer movement advocates for businesses to build security and privacy in at the design stage. It’s not just the right thing to do but could be a smart business move as consumers look for products they’re sure they can trust  – for your child’s next birthday would you buy a smart toy classed as ‘espionage equipment’?

We are co-hosting the G20 Consumer Summit in Berlin on WCRD this week which will provide an excellent opportunity to engage in a dialogue with governments, business leaders and key stakeholders about the most pressing concerns that consumers face and how to work together to create a better digital world.

Will the Ending Childhood Obesity (ECHO) report make a difference for consumers?

Justin Macmullan, Consumers International’s Head of Advocacy discusses the recent report by the Commission for Ending Childhood Obesity, endorsed by the World Health Assembly last week, and outlines what it means for consumers.

Helping consumers to choose healthy diets is a major challenge when, in many countries, the marketing of food, the food choices available and the prices of different foods all appear designed to promote an unhealthy diet high in calories, fat, sugar and salt.

With 70 million young children predicted to be overweight or obese by 2025 this is a major public health issue and one that Consumers International (CI) and our Members have campaigned on for many years, most recently for World Consumer Rights Day 2015. 

At this year’s World Health Assembly, governments and civil society had the opportunity to consider the World Health Organisation’s (WHO) latest initiative in this area, the Ending Childhood Obesity (ECHO) report  which was a personal initiative of Dr Margaret Chan the Director General of the WHO.

The report, which was developed by an appointed commission, delivered more than 30 recommendations across six areas including promoting intake of healthy foods; promoting physical activity; preconception and pregnancy care; early childhood diet and physical activity; health, nutrition and physical activity for school children; and weight management..

What’s in the report?

First of all, as the list of topics shows, this is a report about tackling obesity rather than diet-related disease. Therefore, for example, it includes recommendations on increasing physical activity as this helps to reduce obesity, but not on salt reduction as this is not directly related to obesity.

Looking specifically at the recommendations related to healthy diets, the report includes many of the issues CI and our Members have campaigned on including restricting marketing of unhealthy food to children, improved nutritional information including front of pack labelling, improving the availability of healthy food in public institutions, improving nutrition information in schools, introducing taxes of sugar sweetened beverages, promoting breast feeding. There are gaps – notably in relation to the impact of trade and investment agreements on the ability of governments to take action – but there is also much to welcome.

Another possible criticism is that it offers little that is new but, although this might be true, it does have the benefit of bringing these proposals and recommendations together in one place to create a comprehensive package, stating the proposals clearly and adding the logo of the WHO on the cover, which gives the whole exercise political status and weight.

Will it make a difference?

The challenge is what will happen next. Following a resolution agreed at this year’s World Health Assembly, the WHO is now charged with developing an implementation plan to support the report’s recommendations. If this is going to be effective it must deal with some of the issues that have frustrated previous initiatives in this area. 

CI’s Recommendations for a Global Convention to Protect and Promote Healthy Diets seeks to address these challenges by moving the discussion on from ad hoc initiatives to an international legal framework that would support action on a comprehensive set of policies at the national level. The ECHO report doesn’t include that recommendation, but their implementation plan does have the potential to go some way towards it.

To do that, the key area of accountability must be addressed. The Director General of the WHO, Dr Margaret Chan, on whose initiative this report was developed, has often used the phrase, ‘what gets counted gets done’ in relation to increasing accountability and delivering results. We hope the same maxim will apply to this important area of work.

A proposal to create a monitoring system as part of the implementation plan could signal genuine progress, but only if it is sufficiently strong, transparent and well publicised and monitors the quality and implementation of policies as well as results. Only this way can governments be held to account for their actions and a clear picture emerge of successes and challenges in implementation.

Read the statement on the ECHO that CI and 9 other NGOs gave at the WHA last week.

Consumers International launches bid for UN recognition of World Consumer Rights Day

This week at the UNCTAD Roundtable on the ‘UNGCP International

Framework for the Protection of Consumers’ I was delighted to announce that Consumers International is calling for World Consumer Rights Day to be formally recognised by the UN as an international day within the UN calendar.

World Consumer Rights Day (WCRD) is a fantastic annual celebration that unites consumers around the world. Now is the time for the UN to recognise this day formally and in doing so deliver even more to raise awareness of consumer rights.

For the last 33 years, consumer organisations around the world have joined together on March 15 to mark World Consumer Rights Day; a day that plays a vital role in raising awareness of consumer rights around the globe. The event is regularly marked in more than 90 countries around the world and a wide mix of consumers, consumer organisations, government consumer agencies and international organisations take part.

Formally recognising World Consumer Rights Day as an International Day as already exists for women, the environment, health, children, amongst many others, could help this important annual moment play an even more powerful role in raising awareness of consumer rights and highlighting inadequate consumer protection.

Given the historic adoption of the revised UN Guidelines for Consumer Protection that was achieved at the end of 2015, which recognised important new protections for consumers, there is now an urgent need to raise awareness of these protections for consumers around the globe.  UN recognition of World Consumer Rights Day can play a crucial part in this. At a time when Consumers International has unprecedented engagement from Consumer Protection Agencies around the world, we have an excellent opportunity to campaign for UN recognition for the most important day in the global consumer rights calendar.

World Consumer Rights Day

It is a truly international event. Previous themes for the day have included campaigns on basic rights, safe food, GMOs, trade, public utilities, healthy diets, financial services, phone rights, energy. The day is used to raise awareness of existing rights and shine a light on areas where there is inadequate consumer protection in place. Celebrated by the majority of countries around the world activities marking the day have included media stunts, public meetings, marches, social media campaigns and the publication of test results, surveys and opinion pieces.

The date itself was chosen to commemorate a Special Message to the US Congress made by President John F Kennedy in 1962 in which he formally addressed the issue of consumer rights. He was the first world leader to do so.

A global challenge

Despite this global celebration, we all know that many consumers still face real challenges in their everyday lives, from a lack of access or poor quality goods and services, as well as unfair practices. There is much more to be done to raise awareness of consumer rights amongst consumers, governments and business.

As President John F Kennedy said in his message to the US Congress in 1962,

'Consumers by definition, include us all. They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group... whose views are often not heard.'

UN recognition for WCRD would be another step towards meeting the challenge that President Kennedy set out more than 50 years ago.

Official UN recognition

Official UN recognition can help to put consumer rights on the map of even more organisations, governments, companies and media outlets. It can help to raise awareness by engaging more people, in more activities, in more countries.

For our Members we expect it will make it more possible for them to get coverage of their activities and secure the participation of senior figures from government or business. It will also help to introduce consumer rights to new groups and help them realise the contribution that consumer rights can make to fairer and stronger economies, poverty reduction, improved health and safety and many other issues that affect people today.  At this time of promoting the UN Sustainable Development Goals there is further justification for the need for UN recognition.

Achieving UN recognition requires the support of Member states at the UN General Assembly. But, with the adoption of the revised UN Guidelines for Consumer Protection – and the urgent need to raise awareness of these protections, alongside the promotion of the UN Sustainable development Goals and the quality of our engagement with national Consumer Protection Agencies, we feel we are in the best possible place to put World Consumer Rights Day on the UN map.

We are asking CI Members to contact their Regional Networker for more information on how to get involved.

WCRD 2014: The unfair practice of mobile phone locking

In our latest WCRD 2014 blog, Conchy Martin Rey, Director for International Relations of Spanish CI Member CECU, explains why mobile phone locking is unfair.

In 2011, the sixth edition of the Study in Consumer Market Indicators of the EU reported that telecommunications was the second largest recipient of consumer complaints.

The large amount of consumer complaints prompted the European Commission to introduce measures to reduce barriers and extra costs to consumers.

One of the problems mobile consumers face is the locking of mobile phones.

This issue is causing problems in many European countries and also in Latin America.

Although some public administrations in different countries have introduced legislation or specific regulations to solve the problem that consumers face, there are many countries which rely on the “good behaviour”, “codes of ethics” or “good practices” of the operators. Other countries do not really address consumer issues and concerns.

Locking mobiles

When a consumer signs a contract that provides for a new phone, they are required to stay with that company for a certain time to amortise the cost of the phone.

During this period, if the consumers change telecommunications provider, they  will require a code to unlock the phone to be able to use it with the new provider.

During the process of getting the code,  the consumers are unable to use the phone even if the contract has expired and the mobile phone is the sole property of the consumers.

Locking of mobile phones continues even if the contract has already lapsed, so that if they decide to change to a new provider, their phones becomes unserviceable.

In Spain, after pressure from consumer associations and claimants, some operators offered to stop this practice but some of them are introducing an extra charge to unlock the phone.

Third parties also offer to unlock phones – but again this is an extra expense. It’s also possible to unlock phones using the internet but this software does not work on every phone.

The unblocking service is also provided at different prices, ranging from 2 to 12 Euros.

Introducing a locking code in the phone and charging a fee to unlock it, infringes the rights of the consumers.

When we entered “unlock mobile phone” into Google, it showed 1.3m entries in Spanish and 77.7m entries in English, which proves the interest of consumers on this issue.

It is in this light that Confederación de Consumidores y Usuarios (CECU) wishes to raise awareness of consumers about their right to unlock their mobile phones, free from extra costs and other forms of inconvenience.

CECU believes that there is a lack of knowledge among consumers on this issue.

With support from CI, CECU intends to further investigate these particular concerns of mobile consumers through gathering first hand information.

A short survey, designed with the objective to find out the range of consumers affected by the issue and the paths they took to solve the problem, will be distributed to consumers.

Most of the surveys would be done online to cover several countries in Europe and Latin America. Also, a number of surveys would be done in person within Spain.

The main objective of this project is to make the issue public and relevant to consumers and regulators, whilst promoting changes that impede the use of this or any other technical restriction by telecom operators.

The report that will be produced from the project will be the final evidence that we will disseminate widely among consumers, operators and the public administrations in charge of consumer affairs and telecommunications; promoting a change that will put an end to this practice and to the inconveniences and costs related to it.

Five scandals which prove we need better consumer justice

CI’s Digital Editor Vik Iyer looks back on five scandals which prove the need for improvements in global consumer protection as we mark World Consumers Rights Day 2013.
 

 iPhone5

 

There’s nothing like the glitz and glamour of an iPhone launch – the consequent media coverage makes you wonder if Apple actually need to advertise. For many loyal consumers though, iPhone 5 had a sting in its tail — Lightning —a new connector which effectively rendered millions of Apple accessories obsolete. As Stephen Russell of Anec, the European standardisation body, argued on our blog last year, the prospect of a universal connector for all mobiles seems a long way off.

Horsemeat

Supermarket giant Tesco was among a group of major retailers who discovered horsemeat in beef products on its shelves. In addition to providing a lot of bad jokes on social media, the story has hit consumer confidence hard. Swedish retailer Ikea has become embroiled in a similar scandal whilst other horsemeat contamination examples were found in France, Norway, Austria, Switzerland and Germany. The supermarket supply chain once again finds itself in the spotlight, with many wondering if consumers really benefit in a consolidated industry with only a few players.

Coca Cola

 

The Western media has been largely silent as Coca Cola continues to sell drinks which contain potentially cancer-causing toxins throughout parts of the developing world. Coke agreed to mend its ways in the US, and CI members are continuing the fight to get things changed in other countries, including in Kenya.

Money

The astonishing collapse of banks across the Western world coincided with growing scandals over the misselling of financial products. Banks and governments promise reform but there is still plenty of evidence that not much has changed. The Libor scandal  showed that massive global banks were prepared to rig interest rates and cause yet more consumer detriment. It seems consumer activism in this area will be vital.

Digital

Millions of us use social media. But an increasing number are starting to wonder if by using these free services, we’ve made ourselves the product. We’re worried about our privacy too, with recent worldwide issues at Hotmail only underlining how easy our virtual information can be accessed. Consumers who buy digital products are also being hit by questionable practices, such as being prevented from selling unwanted items second hand or being attacked by viruses so that they cannot copy CDs.

Read CI’s State of Consumer Protection survey or check out our infographic.

Lack of protection for consumers in a changing world

CI Director General Helen McCallum on CI’s unique global survey of consumer protection.


Today, 15 March, is World Consumer Rights Day. To mark it, we are releasing the findings of a remarkable survey, arguably one of a kind.

We asked 70 consumer groups in 58 nations to tell us about the state of consumer protection in their country.

The results, highlighted in the infographic above, have been fascinating.

While the findings reveal a concerning lack of government attention around some of today’s most pressing consumer rights issues; in many countries we also found existing legislation to be ineffective and under-enforced.

Barely half (52%) of the countries surveyed have a national policy to protect consumers. Even where specific legislation does exist, it by no means guarantees consumer justice. For instance, while 91% of governments fine companies that violate consumer laws, only 55% order financial compensation to consumers.

The survey also indicates a lack of government action on contemporary consumer concerns, such as e-commerce, environmental impact and corporate behaviour.

For instance, less than a third of governments (29%) have 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.

Barely half (52%) require companies to disclose energy consumption of home appliances; leaving consumers unaware of the environmental impact of the goods they buy.

Less than half (47%) use incentive measures – such as tax breaks, exemptions, and labelling schemes – to encourage consumer goods companies to be ethical and socially responsible.

The study also indicated a lack of commitment to consumer education, with only two in five governments indicating its inclusion within national school curricula and just 38% monitoring awareness of consumer rights within their borders. This comes despite consumer education and awareness being cited by many governments as a major tenet of effective consumer protection.

This survey paints the picture of a job half done. While progress has been made in many areas, there is still an unacceptable lack of consumer protection in others – both in the developed and developing world.

It shows that modern consumer concerns - such as digital rights, environmental impact, and corporate responsibility - are not being adequately addressed by governments. And where even the most basic consumer protection laws do exist, they are not being effectively enforced.

This is why, together with our member organisations and supporters, we are demanding better laws, effective policy and tougher enforcement, alongside an update to the UN Guidelines of Consumer Protection so that they truly reflect the legitimate needs of consumers across the world.

Such moves should be the least consumers can expect.

One month to go until World Consumer Rights Day!

CI’s Director General Helen McCallum explains why the time is right for Consumer Justice Now!
 
It’s one month until 15 March - World Consumer Rights Day (WCRD) – when hundreds of organisations and their supporters join together with CI to celebrate and campaign for better consumer rights. This year’s theme could hardly be more universal – we’re calling for Consumer Justice Now! across the world.

Even to the most dedicated consumer rights activist, this may seem like an insurmountable demand. But we actually find ourselves at a crossroad in the history of consumer protection – as governments around the world begin the process of agreeing changes to the UN Guidelines on Consumer Protection (UNGCP).

This is a huge undertaking that only happens every 15 years or so. The negotiations will have to tackle issues like financial consumer protection, online privacy, and energy – issues that were barely a consideration when the UNGCP was last revised in 1997.

That’s why we’re calling for Consumer Justice Now! for WCRD 2013. It’s why we will soon be releasing the findings of our global survey of consumer protection legislation.

And it’s why we have made a commitment to work on Consumer Justice and Protection until 2015 – helping our members understand and advocate for effective consumer laws, while demanding changes at the international level.

This will include being right at the heart of the UNGCP negotiations, making sure the voice of consumers and consumer organisations are heard and acted upon.

Over the next few weeks, CI and consumer rights groups around the world will be kicking off plenty of activities, analysis and awareness-raising about consumer justice and protection.

We also want to share your experiences of poor consumer laws and their impact – you can do so by sending us your stories of consumer abuse and we’ll feature them on our new WCRD map.

Read this blog in Spanish. 

Read this blog in French. 

Region’s consumer advocates lead the way on consumer protection

CI’s Head of Asia Pacific and the Middle East Indrani Thuraisingham reports on the opening of the new Middle East hub office, CI’s involvement with the UNGCP, and more.

CI and its members are beginning the process of providing input to the United Nations Committee for Trade and Development (UNCTAD) for the revision of the UN Guidelines for Consumer Protection (UNGCP).

We are calling on UNCTAD to amend the Guidelines rather than develop a completely new document as we believe there is much in the existing document that is still valuable and that they have served well as the reference point for consumer protection since 1985.

Among our requests, is that the Guidelines are brought up-to-date in light of new developments in technology and business practices and new consumer concerns.

World Consumer Rights Day is just around the corner and this year’s theme - ‘Consumer Justice Now!’ - reflects the importance CI is placing on its global Consumer Justice and Protection programme (coordinated from our office here in Malaysia).

CI has developed a member survey to map consumer protection measures across the globe.

The results of the survey are being used, along with the outcomes from a consultation meeting of CI members and experts in February 2013, to inform UNCTAD of our recommendations and suggested amendments to the Guidelines. If you are a CI member, and have not completed your survey, please do so as it is vital that we have input from all of our members.

Still on the subject of UNCTAD, there is exciting news to report from CI member Hong Kong Consumer Council (HKCC). Connie Lau, former CEO of HKCC, is going to chair UNCTAD’s First International Advisory Group of Experts on Consumer Protection in July 2013.

Connie is a staunch advocate for strengthened consumer protection across the world for consumer welfare and justice. It will indeed be exciting times. 

Finally, I am delighted to say that CI’s hub office for the Middle East in Muscat, Oman has become functional. Recruitment of staff to coordinate CI’s work in the Middle East region is finalized and staff are set to begin work.

I’d like to express my deepest appreciation to the Oman Public Authority on Consumer Protection Oman for its support through the cooperation programme signed on 2 October with CI in New York.

I am confident that, with the establishment of the Middle East office, CI will be able to expand its membership and have a strong voice from the Middle East for better consumer protection.

I am looking forward to these landmark activities scheduled to take place next year and would like to wish everyone a merry Christmas and a happy New Year!

CI’s new survey will help to advance consumer protection where it matters most

With the UN Guidelines on Consumer Protection (UNGCP) scheduled for revision in 2014, next year looks set to be a crucial one for the consumer movement, writes our Director General Helen McCallum.

A new project to map the state of consumer protection around the world will help CI and its members to spur decision-makers into action – both internationally and at the national level. 

The UN Guidelines were a key achievement for the global consumer movement when they were established in 1985. They have since become a key international reference point for consumer groups and governments around the world.

However, the world is a very different place today and modernising the UNGCP is vital if they are to remain relevant to consumers in the 21st Century. For quite some time, CI has been closely involved in these discussions with UNCTAD, the UN agency leading the revisions.

That’s why CI has launched a major new survey of its members in order to assess the level of protection currently afforded to consumers around the world.

We aim to build a comprehensive picture which will not only provide vital evidence to aid CI’s engagement with international institutions, but crucially will also support CI members directly in their efforts to strengthen consumer protection in their own countries.

Surveys are extremely useful for CI as they allow us to demonstrate that an issue is affecting consumers in
many countries and thus requires a global response.

We go to great lengths to ensure that they are also valuable to our members.

For example, CI members often tell us that being able to compare the situations between their country and regional neighbours has been an extremely effective strategy to employ when lobbying their governments.

The results of this survey will allow members to identify examples of good practice in consumer protection in similar countries and demonstrate to their governments what is possible in a comparable national context.

It might also help highlight any areas where progress has been made, granting consumer rights advocates the opportunity to congratulate their government and hopefully encourage them to do more. 

And, of course, the results will support members on World Consumer Rights Day 2013 as they draw attention to the most urgent consumer protection issues in their country as part of next year’s theme: “Consumer Justice Now!”

Why surveys create consumer rights successes

By taking part in global surveys, CI members are committing precious time and resources, something that we are acutely aware of.

These exercises are vital to our work, ensuring that CI’s policy and programmes truly reflect the priorities of our membership and the concerns of consumers everywhere.

Recent surveys have, for example, helped us to better understand the business models our members operate and to identify strategic areas to focus our efforts to build strong consumer organisations.

Perhaps most importantly, they have played a key role in many of our greatest recent successes.

To take just one recent example, information provided by members about the problems faced by consumers in financial services was instrumental in enabling CI to convince the G20 to take action on the issue.

As a direct result of this, international standards and guidelines are being developed that can be used to advance financial consumer protection at the national level - where it really matters.

Similarly, the reason it is so important to ensure that the UNGCP are fit for the modern age is that they will act as a highly effective instrument to encourage national governments to pass laws and implement policies that strengthen consumer protection.

CI’s members are its ‘eyes and ears on the ground’, and without their experience and insight we would simply not be able to fulfil our mission to champion consumer rights internationally.

I would like to thank our members in advance for their help. We really couldn’t do it without you!

4 problems with (and 5 answers to) financial consumer protection in Kenya

Michael Okumu from CI member organisation YEN, Kenya, advises consumers to educate themselves about a bank’s products and services before they sign up.

Ignorance is truly a fatal disease that increases consumers’ vulnerability. Uneducated consumers buy products and services that do not meet their expectations and then quietly, or never, complain.

On 15 March, the world celebrated World Consumer Rights Day, a day dedicated to highlighting the importance of consumers exercising their rights and responsibilities.

In Kenya, consumer protection is still non-existent with very few mechanisms of redress and a pervasive lack of knowledge of one’s rights as a consumer. This can be compounded by gaps in service delivery by dishonest service providers.

And banks are no exception. Often, consumers don’t get the best deal from a bank and do not respond effectively when this happens.

Here are some of the biggest problems for financial consumers in Africa:

1. Accessibility

Accessibility is a real problem in Africa as consumers often have to travel long distances from rural areas to get a specific service. The introduction of deposit-taking shops has eased the problem slightly but they do not address all the issues relating to accessibility.

2. Lack of ATMs

ATMs are not available everywhere, denying people access to their money and causing consumers to have to pay additional fees for drawing money from ATMs other than those their bank provides. Banks need to be more innovative to provide affordable services for all, everywhere.

3. Hidden fees

Hidden fees are another problem. Taking out loans or enjoying certain services requires close scrutiny by consumers because, in the long run, the high interest rates add up and many consumers are unaware of this at the onset.

4. Low interest

Low interest on savings is another problem still. Some consumers will question whether it is worth saving in a bank if the interest rates are so minimal. Mobile phone services provide an alternative to saving money in a bank as there are no ledger fees, account opening fees, balance statement fees, etc, but there is also no interest.

Consumers need to empower themselves by seeking information and education on their rights and responsibilities. Consumers International is helping consumer groups in East Africa educate consumers about financial services and products with its financial education counselling handbook.

Here are some tips on how to protect yourself:

1. Court your bank

When choosing a bank, consumers need to have a ‘courtship’ period. Gathering background information about a bank is very important because it gives you an idea about the bank’s character in terms of stability, reputation, social responsibility and potential. All of these are key for consumers not only to make good choices but to protect themselves from any eventualities.

2. Evaluate offers closely

Consumers need to keenly evaluate exciting offers and take them up only if they suit them. Consulting with friends or financial advisors would be an added advantage in ensuring that you pick the best financial product or service.

3. Avoid banks you aren’t sure about

It is also prudent to avoid adversely-named banks that could have evaded taxes or banks with a high turnover of staff as this could signal board wrangles, theft or mistreated staff.

4. Avoid downsizing banks

Also avoid banks that could be reducing their networks. They often do not warn their customers that they are doing this.

5. Ask about the complaints desk

A good bank should have a receptive complaints desk with an elaborate mechanism of redress that is accessible and responsive.

Consumers in Kenya should exercise their rights, keeping in mind that the new constitution provides protection as we wait for the Consumer Protection Bill to be passed which will further harness consumer rights and responsibilities.

And remember—if your bank only looks good in the advertising, then look for an alternative rather than ending up in a relationship that doesn’t work.

Breaking ground in the fight for consumer rights in Asia Pacific and Middle East

Following the success of World Consumer Rights Day, Indrani Thuraisingham, Head of CI Office for Asia Pacific and the Middle East, explains why it’s an exciting time for the region.

 
 

World Consumer Rights Day (WCRD) is a great opportunity to see the strength of our members in the Asia Pacific and Middle East region. This year, WCRD focused on consumer choice in financial services. Members from more than 23 countries in our region participated in events to mark the occasion.

Even the newly-formed, one-month-old consumer organisation in Afghanistan, the Consumer Rights and Services Organization (CRSO), (who is in the process of applying for CI membership) joined in by having the first-ever WCRD celebration in their country.

I travelled to Bangladesh to celebrate WCRD with the Consumers Association of Bangladesh, a CI member. There are more than seven million Bangladeshis working overseas and these workers often face high charges of between 5% and 20% every time they send money home.

We are working on this issue as part of our Global Money Transfers project.

In Bangladesh, if you want a copy of your bank statement urgently, you would need to pay USD10 for it. If you’re willing to wait up to five days, then you would need to pay only USD3. All this for your own bank account statement!

Our Consumers for Fair Financial Services campaign fighting for this to be something everyone should be entitled to for free.

The following day I was in India where I was one of the guests of honour at CI member Consumers Association of India’s 10^th anniversary international conference on the theme, ‘Is the consumer really the king?’ Here I talked about the need for consumer organisations to use Facebook and other social media tools to raise awareness on consumer rights and responsibilities.

Come and ‘like’ CI’s Facebook page and see how we are using social media to raise awareness of consumer issues around the globe.

The CI regional meeting for Asia Pacific and the Middle East

Our office for Asia Pacific and the Middle East hosted the regional members’ meeting and conference: ‘Consumers in the Information Society: Access, Fairness and Representation’ in Kuala Lumpur. Fifty-one participants representing 37 organisations from 20 countries attended this meeting.

In-depth discussions were held on CI’s new strategic direction for the next four years and the five priority programmes that CI will focus on: financial services, food, consumers in the digital age, sustainable consumption, and consumer protection and legislation. In addition, our new strategy has a renewed focus on organisational empowerment; where CI helps members to help themselves.

Member organisations were reminded to be in continuous communication with CI on their activities in relation to CI’s priority programmes as well as emerging issues and concerns. This gives us the strength as a unified voice to collectively bring changes in terms of policy as well as corporations’ behaviour and practices.

One of these areas was taken up at the conference by CI's Director General Helen McCallum, who delivered a speech on emerging ICT technologies. The speech considered the networks we use to communicate (such as the Internet); the devices we use to do so (such as smartphones and computers); and the rules that regulate content passing through these devices and networks (such as intellectual property rights and privacy law). All of these are major issues for consumers in our region.

This office will work towards building a CI brand that is synonymous with consumer rights and protection. We will encourage and ensure all members from the region belong to at least one priority programme that is relevant to their work.

It’s an exciting time. We will form partnerships with relevant stakeholders to achieve our objective of bringing change, and look for strategic members to further strengthen our presence as the sole global consumer voice championing consumer rights.

We do this work because CI belongs to its member organisations; organisations that are fighting for consumer rights across the Asia Pacific and Middle East region.