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Introduction 10
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The United Nations Conference on Trade and Development or (UNCTAD) adopted for the first 12
time guidelines on consumer protection in 1985. The guideline was later expanded by the 13
Economic and Social Council in resolution 1999/7 of 26 July 1999 to include a new section on 14
sustainable consumption. It was then revised and adopted by the General Assembly in 15
resolution 70/186 of 22 December 2015 with major amendments and expansion especially 16
addressing concerns related to e-commerce and financial literacy. (link) 17
The new United Nations Guidelines on Consumer Protection or UNGCP on consumer protection 18
are a major advancement in international recognition and protection of consumer rights The 19
UNGCP is targeted at member states and impose duties on both members and businesses. 20
Member states are required to adopt standards and implement them in a manner compatible 21
to local conditions. Businesses are required to comply with UNGCP standards and national laws. 22
Among the key principles of the UNGCP is freedom to form consumer and other 23
relevant groups or organizations and the opportunity of such organizations to present their 24
views in decision affecting them. 25
Priorities for consumer protection in a country can be determined by member states taking inot 26
account economic, social, environmental conditions and guidelines set out below and relevant 27
international agreements. 28
The UNGCP also strongly encourages Member States to work with consumer organizations and 29
businesses to promote compliance with best practices in consumer protection and fair trade for 30
example in addressing misleading environmental claims and information and marketing tactics. . 31
Member states should engage consumer organizations and business to help develop marketing 32
codes, publicity for these codes and monitor adverse business or trade practices. 33
How do consumer groups or organizations become engaged in consumer protection in their 34
respective country? 35
Who or what are consumer organizations and what is expected of them by the various 36
stakeholders? 37
Reference to consumer associations in the UNGCP is made as consumer organizations and 38
consumer groups. Member states are encouraged to work in collaboration with them and other 39
stakeholders in: 40
i. Monitoring fraudulent business practices 41
ii. Monitoring claims – example environmental claims 42
iii. Monitoring marketing and developing marketing codes 43
iv. Strengthening understanding among consumers on dispute avoidance and dispute 44
resolution 45
v. Involvement in general consumer education and information programmes 46
vi. Undertaking education and information programmes 47
Facilitating cooperation with the aim of strengthening capacity in sustainable 48
consumption 49
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Figure 1 Stakeholders in consumer protection and competition 51
52
However in countries where consumer groups are weak and have limited voice in formulating 53
consumer policies and to represent consumer voice, there is a need to strengthen these groups 54
with various capacity building initiatives. In many regions capacity building initiatives for 55
consumer associations are part of a regional network programme on consumer protection and 56
competition – such as in the European Union and the ASEAN Committee on Consumer 57
Protection. A regional capacity building or support network is essential especially in addressing 58
consumer protection needs specific to the region and to strengthen representation of regional 59
interest at the international forum. It is highly recommended to establish such network in the 60
MENA region if one does not exist already. 61
The development of a guideline for consumer associations in the MENA region will further 62
support such a network. 63
64
About the Guidelines for Consumer Associations 65
One of the eight objectives of the UNGCP is to facilitate development of independent 66
consumer groups. Independent consumer groups in the MENA region may range from full fledge 67
consumer associations with sustainable forms of resources and activities to ones which are new 68
or run by a group of volunteers with limited resources. 69
70
Consumer protection and competition and other agencies with consumer protection roles to provide or maintain adequate infrastructure to develop, implement and monitor consumer protection policies
Policy
Laws and Enforcement
Standards, Compliance and
Quality Infrastructure
Consumer Education
Dispute Resolution and
Corrective Action
International and Regional
Cooperation
Businesses and Traders; Research Institutes; Media etc
Compliance with laws & standards
Ethical and Fair trading / business
practices
Policy advise
Consumer Information /
Education
Consumer groups / organizatons
Represent consumer
interest
Altternative dispute
resolution
Consumer education
Market feedback
Policy advise
4
The objective of a supporting guideline for consumer associations (consumer organizations, civil 71
societies) in the MENA region is to: 72
• Improve understanding about their roles as consumer associations; 73
• Setting up consumer associations; and 74
• Facilitate engagement with consumer protection agencies and other stakeholders in 75
their respective country. 76
It is developed to provide understanding about nature of consumer associations their place in 77
society and the needs they serve in the society. 78
The guideline is also useful to government agencies and businesses to help advance 79
collaboration with consumer groups in their country to strengthen consumer education efforts, 80
develop code of good practice to ensure adequate consumer protection and take measures 81
regarding misleading environmental claims or information in advertising and other marketing 82
activities – for example. 83
This guideline includes: 84
A. Consumer Associations: brief history, relevance 85
B. Reference to consumer associations in the UN Guidelines on Consumer Protection 86
C. Consumer Business / Operating model 87
D. Collaboration with stakeholders in consumer protection especially consumer protection 88
agencies. 89
a. Strategies for consumer advocacy based on consumer issues: unfair business 90
practices, anti-competitive behavior, unsafe products/services 91
E. Support: references, case studies, international and regional collaboration, researches. 92
The guideline is arranged as follows: 93
- Key points 94
- Texts, excerpts and research outcomes from authoritative documents and academic 95
papers etc 96
- Examples; notes; infographics and reflection 97
98
Consumer Associations Operating Ecosystem 99
Consumers are a dispersed group that lacks expertise and resources and is unlikely to be heard 100
by regulators. Consumers in conflict areas and countries emerging from conflicts are disoriented 101
and inadequately represented by a fragmented set of civil society organizations with limited 102
resources and expertise. 103
Consumer associations are very much part of a larger ecosystem of consumer protection 104
infrastructure and systems. A functional and effective consumer association makes significant 105
and positive impact on the lives of consumers in the country and the region. Their effectiveness 106
and the way they operate depend very much on national conditions such as consumer 107
protection laws, culture and availability of local knowledge, researches and resources. 108
5
At an organisation level, the operation of the consumer association is influenced by its statutes, 109
available resources, local laws and work of other consumer or civil society organisations in the 110
country – for example. 111
112
113
Figure 2: Consumer Organizations Operating Environment 114
115
It may work with national research institutes (universities) or industry sector organisations on 116
technical assistance or research. The strength of industry associations can sometimes overwhelm 117
consumers’ voice. 118
Consumer associations will need to find means to strengthen consumer representation by 119
collaborating for example with research institutes. 120
The extent of the governments’ involvement in regional economic forums such as ASEAN, GCC 121
and SADC, multi-lateral and bilateral trade agreements influences types of products and 122
services most available to consumers in a country and extent of consumer protection issues and 123
policies. 124
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Box 1 : African Consumer Protection Network - example of regional forum 126
127
International organisations such as the WHO, World Bank and UNCTAD offer a wealth of support 128
to developing countries and least developing countries to address issues related to policies, 129
infrastructure development, economic development and education in order to sustain 130
economic growth of a country. 131
Several international networks and organisations also provide capacity building opportunities for 132
civil society organisations (CSO) which include consumer associations. For example in 2009/2010 133
a UNIDO project in Bangladesh included capacity building programme for the Consumer 134
Association of Bangladesh (CAB). 135
At the local and national levels, consumer associations usually educate consumers, investigate 136
problems, monitor compliance with standards and advocate changes on behalf of the 137
consumers. Regional and international organizations provide a forum for sharing experiences, 138
permit multiplier effects and can mobilize international campaigns. When appropriate they can 139
also advocate the consumer interest in the international arena1. 140
In the era of internet of things, the shared economy and millennial consumption trends the roles 141
and responsibilities of consumer associations need to be redefined. This is discussed at the end of 142
this guideline and describes briefly what consumer organisations can anticipate in the near and 143
not so near future. 144
Choosing the appropriate representation for a consumer can be challenging. Given the 145
complexity of modern society and the specialization that has occurred, citizens' groups are an 146
effective means of integrating consumers’ interest into product safety policies for example. They 147
provide a contact point of people with ties to the community and are able to develop the 148
expertise for more effective consumer participation2. 149
150
1 Food, Nutrition and Agriculture - 08/09 - Consumer Participation in Food Control (FAO - FPND - FAO, 1993) 2 Food, Nutrition and Agriculture - 8/9 - Consumer participation in food control
The African Consumer Protection Dialogue (the 'African Dialogue') is an effort on behalf of African
governments, NGOs, and the U.S. Federal Trade Commission to create informal opportunities to
interface with each other, the U.S., and the rest of the world on consumer protection issues. Each
month, African Dialogue teleconferences serve as the main forum for feedback and
communication between participants. Recently, consumer agencies and NGOs from over 20
African countries have participated, including Egypt, Morocco, Tanzania, Uganda, Benin, South
Africa, Nigeria, Ghana, Liberia, Kenya, Mauritius, Senegal, Cote d'Ivoire, Zambia, Angola,
Mozambique, Tunisia, and others.
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Abbreviations: 151
152
ACCP ASEAN Committee on Consumer Protection 153 ASCOMA Association des consommateurs du Mali 154 ASEAN Association of Southeast Asian Nations 155
AusAID Australian Agency for International Development 156 BIS Bureau of Indian Standard 157 BMELV Tunisian Federal Ministry of Food, Agriculture and Consumer Protection 158 CAB Consumer Association of Bangladesh 159 CASE Consumers Association of Singapore 160 CCC Forum Consumer and Community Communication Forum 161
CI Consumers International 162 COIC Community Opinion Investigation Committee 163 CSO Civil society organisations 164 EAP East Asia Pacific 165 ECON Electricity Consumers’ Network (Karnataka, India) 166 FAO United Nations' Food and Agriculture Organization 167
FIAS Fiji Institute of Applied Studies 168 FLE Financial Literacy Education 169 GCC Gulf Cooperation Council 170 GDP gross domestic product 171 ICPEN International Consumer Protection and Enforcement Network 172
ICRT Consumer Research and Testing 173 IEC International Electrotechnical Commission 174 IOCU International Organization of Consumers Union 175 IoT Internet of things 176 ISO COPOLCO ISO's Committee on Consumer Policy 177 ISO International Organization for Standardization 178
ITU International Telecommunication Union 179 JWSRB Jakarta Water Supply Regulatory Body 180 KERC Karnataka, India Electricity Regulation Commission 181 MENA Middle East and North Africa 182 MRA Mutual Recognition Agreement 183 NGO non-governmental organization 184
OAS Organization of American States 185 ODC Organisation for Defense of Consumers 186 OECD Organisation for Economic Co-operation and Development 187 PNG Papua New Guinea 188 RACE Réseau associatif des consommateurs de l’énergie (Association of Energy 189 Consumers in Cameroon) 190
RSPO Roundtable for sustainable palm oil 191 SADC Southern African Development Community 192 SOE State Owned Enterprises 193 UN ECE United Nations Economic Commission for Europe 194 UNCTAD United Nations Conference on Trade and Development 195
UNGCP United Nations Guidelines for Consumer Protection 196 WCC Water Supply Customer Advisory Committees 197 WHO World Health Organization 198 WM Weights and Measures 199 WTO World Trade Organization 200
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List of Tables, Figures and Boxes 201
202
List of Tables 203
Table 1 : Example of consumer health and safety scandals (1930s to 2000s) ....................................................... 11 204
Table 2 : Various forms of Consumer Representation ................................................................................................ 19 205
Table 3: Key considerations for the development of operating model of consumer associations ................... 27 206
Table 4: Collaboration Approach Snapshot based on possible objectives .......................................................... 49 207
Table 5 : Methods and approaches collaboration with consumer protection agencies according to 208
consumer interests ............................................................................................................................................................ 50 209
Table 6 : Summary Checklist for Consumer Associations on Effective Collaboration Between Consumer 210
Associations and Consumer Protection and Competition Agencies ..................................................................... 53 211
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List of Figures 213
Figure 1 Stakeholders in consumer protection and competition .............................................................................. 3 214
Figure 2: Consumer Organizations Operating Environment ....................................................................................... 5 215
Figure 3 : Fake News about Parasite in Bottled Drinking Water ................................................................................ 13 216
Figure 4 : Fake News about Fruits from Thailand Contaminated by HIV Blood ..................................................... 13 217
Figure 5: EU recalls sweatshirt for girls due to strangulation hazard which maybe not eb an immediate threat 218
or high risk to children in the MENA region................................................................................................................... 14 219
Figure 6 : this recall may apply to those who own recreational water crafts. May only cover small number of 220
consumers. ......................................................................................................................................................................... 14 221
Figure 7 : this kind of product is used by large group of consumers and maybe relevant to consumers in 222
most countries ................................................................................................................................................................... 14 223
Figure 8 : World Bank - Options for Consumer Representation in the East Asia Pacific (EAP) Region............... 18 224
Figure 9 : GDP (current US$) – for MENA region (Source: World Bank national accounts data, and OECD 225
National Accounts data files) ......................................................................................................................................... 23 226
Figure 10 : GDP per capita growth (annual %) - for MENA region (Source: World Bank national accounts 227
data, and OECD National Accounts data files) ......................................................................................................... 24 228
Figure 11 : Outline of Consumer Association Operating Model ............................................................................... 28 229
Figure 12: Sources of funding for various consumer associations ............................................................................ 38 230
Figure 13 : Getting Consumer inputs (WB report on Consumer Representation and Regulations) .................. 44 231
Figure 14 : Consumer Outreach (WB report on Consumer Representation and Regulations) ........................... 45 232
Figure 15 : Example of Comparative Testing and Advisory Magazine (from CHOICE, Australia - left; and 233
VOICE, India - right) .......................................................................................................................................................... 46 234
235
List of Boxes 236
Box 1 : African Consumer Protection Network - example of regional forum .......................................................... 6 237
Box 2 : Mali - mechanism for regular consultation between government and consumer association ........... 14 238
Box 3 : Example of Consumer Representation in Papua New Guinea, Senegal and India............................... 18 239
Box 4 : Consumer Legal Action Fund of Hong Kong ................................................................................................. 31 240
Box 5 : Consumer Associations in Volatile Economic Countries .............................................................................. 33 241
Box 6 : Indonesia (water): The Jakarta Model for Consumer Representation ...................................................... 41 242
Box 7 : Food Safety in MENA Region ............................................................................................................................ 48 243
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Table of Content 245
246
Introduction ..................................................................................................................................................................... 2 247 Abbreviations: ..................................................................................................................................................................... 7 248 List of Tables, Figures and Boxes ....................................................................................................................................... 8 249 1. Why Consumer Protection? .................................................................................................................................... 10 250 1.1. Who is a consumer and why protect a consumer? ..................................................................................... 10 251 2. Consumer Associations and Movements ............................................................................................................ 15 252 2.1. What Are Consumer Associations? .................................................................................................................. 15 253 2.1.1. Brief History ....................................................................................................................................................... 16 254 2.2. Why Consumer Associations? ........................................................................................................................... 16 255 2.3. Consumer Representation vs Consumer Association ................................................................................... 17 256 2.4. International Cooperation and Networks on Consumer Protection ......................................................... 19 257 2.4.1. OECD CCP ....................................................................................................................................................... 20 258 2.4.2. International Consumer Protection Enforcement Network (ICPEN) ...................................................... 20 259 2.4.3. European Union Consumer Protection Cooperation Nework (CPC) ................................................... 20 260 2.4.4. Global Privacy Enforcement Network or GPEN ........................................................................................ 21 261 2.4.5. UN Conference on Trade and Development (UNCTAD) ........................................................................ 21 262 2.4.6. Consumers International (CI) ....................................................................................................................... 22 263 3. Consumer Associations Operating Model ........................................................................................................... 23 264 3.1. General Pre-requisites (for Consumer Associations) ..................................................................................... 24 265 3.2. Consumer Association Operating /Business Model ...................................................................................... 26 266 3.2.1. Developing an Operation Model for Consumer Associations ............................................................... 28 267 3.3. Basic Outline of an Operating Model ............................................................................................................. 29 268 3.3.1. Funding ............................................................................................................................................................. 30 269 3.3.1.1. Government grants ........................................................................................................................................ 30 270 3.3.1.2. Services to relevant government agencies .............................................................................................. 32 271 3.3.1.3. Testing and Publication ................................................................................................................................. 32 272 3.3.1.4. Membership Fees ........................................................................................................................................... 33 273 3.3.1.5. Social enterprise ............................................................................................................................................. 34 274 3.3.1.6. Assessment and certification (social standards) ...................................................................................... 35 275 3.3.1.7. Philanthropy ..................................................................................................................................................... 36 276 3.3.1.8. Development and International Grants ..................................................................................................... 37 277 4. Collaborations Between Consumer Associations and Competition and Consumer Protection Institutions278 39 279 4.1. Pre-requisites for Effective Collaboration........................................................................................................ 39 280 4.1.1. Laws and infrastructure related to consumer protection ....................................................................... 39 281 4.1.2. Policy calling for participation of consumer representatives ................................................................. 41 282 4.1.3. System to collect consumer feedback, questions and complaints ...................................................... 42 283 4.1.4. Laws or policies governing establishment of consumer groups, associations .................................... 42 284 4.2. Modes and Approaches for Collaborations .................................................................................................. 43 285 4.2.1. Policy Advisory ................................................................................................................................................ 43 286 4.2.2. Consumer Awareness and Education ........................................................................................................ 44 287 4.3. Resource Barriers: ................................................................................................................................................ 46 288 4.3.1. Funding: ............................................................................................................................................................ 46 289 4.3.2. Human / Staff: ................................................................................................................................................. 47 290 4.3.3. Equipment / Materials: .................................................................................................................................. 47 291 5. Recent Development .............................................................................................................................................. 54 292 6. Conclusion ................................................................................................................................................................. 56 293 References: ........................................................................................................................................................................ 57 294 295
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1. Why Consumer Protection? 297
Consumer protection are related to activities by governments to intervene in business to 298
consumer relationship to address issues related to unfair advantage businesses tend to have 299
over consumers in the relationship. These advantages usually are in terms of product and service 300
knowledge and also resources they have at their disposal. Consumers have difficulty 301
understanding functions of ingredients (preservatives and food additives), active ingredients in 302
medicine, automotive parts, finance and banking services (features, stock market, currency 303
market, insurance premiums and interest calculations etc), data protection (cyber-security), dye 304
in paints or even moving parts of a watch. Airline companies forming international coalition are 305
too big to deal with for a consumer who lost his or her baggage and wanting compensation. 306
A typical consumer is often constrained by lack of scientific knowledge and information about 307
safety and quality criteria and also risk assessment. Risk assessment forms decision making 308
process in determining what is safe and not safe under any regulations. 309
Government consumer protection interventions correct market failures and equalize rights of 310
consumers with traders and ensure that products and services meet basic safety, environmental 311
and performance requirements. It also ensures that people have access to basic goods (food, 312
water, sanitation and energy). 313
Addressing issues related to competition also improves operating conditions for smaller 314
businesses and increases opportunities for growth. 315
1.1. Who is a consumer and why protect a consumer? 316
317
The UNGCP provides a general description of a consumer: 318
“A natural person, regardless of nationality, acting primarily for personal, family and 319
household purposes.” 320
Consumers need protection based on the notion that they will not know and read sales 321
contracts or terms and conditions in small prints (especially) and what it means or even imply. 322
Key points:
1.
2.
11
A Draft Consumer Protection Act
of Egypt updates the definition
of ‘consumer’ to include small
traders and artisans, whose
capital does not exceed five
thousand Egyptian pounds.
Even if they do read sales and purchase agreements can a consumer request the sales and 323
purchase agreement for a house or car be amended before making the purchase or getting a 324
loan? 325
The absence of organized voice or institutions for consumers poses limitation in protection of their 326
interests in terms of acquiring products or services. The MENA region has seen growth and 327
numbers of consumer groups and organisations. Their formation range from highly organized to 328
fragmented. Some consumer associations which have 329
sufficient resources publish education and information 330
materials, have regional offices to receive consumer 331
complaints, carry out seminars or even conduct 332
comparative testing. Others may only represent consumer 333
interests in managing complaints received. 334
In contrast industry groups big or small have more resources 335
and thus have unfair advantage over an individual (private) 336
customer. They allocate resources and time to engage with 337
government agencies to understand product or services regulations in a country while others 338
seek not to engage regulatory agencies to keep cost of compliance down. 339
Table 1 : Example of consumer health and safety scandals (1930s to 2000s) 340
History of consumer health and safety scandals
1930s Lash Lure Killing Mascara – used aniline dye, which was used for tinting leather and clothes. Highly toxic substance with paraphenylenediamine. Caused infection ulcers and scars, permanent blindness
Elixir Sulfanilamide Incident. Sulfanilamide, was used safely in tablet form to treat streptococcal infections. Increase in demand lead to change in formulation where sulfanilamide dissolved in diethylene glycol and was distributed in liquid form without toxicity testing. Caused kidney failure: stoppage of urine, severe abdominal pain, nausea, vomiting, stupor, and convulsions and death
1950s Morning sickness drugs - Released in the late 1950s, thalidomide was found to ease the effects of morning sickness - but withdrawn in 1962. Across 46 countries, over 10,000 children were born with defects like phocomelia. (discovered that it was capable of interfering with fetus development and cause birth defects.) Mercury poisoning in fish in Japan, contaminated by industrial discharge: Minamata disease. Moroccan oil poisoning disaster: several thousand people in Meknes suffer flaccid paralysis caused by deliberate contamination of cooking oil with jet engine lubricating oil
1960s Mass poisoning resulting from rice bran oil contaminated with polychlorinated biphenyls in Kyūshū, Japan – Yushu Disease. United States - defective Chevrolet engine mounts that could set off a potentially deadly chain reaction. Engine mount used on 1965 to 1969 full-size Chevys could potentially collapse at speed, torquing the engine out of position and placing stress on the throttle body linkage, causing unintended acceleration.
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Box 1 : Definition of Consumer in
Egyptian Consumer Law
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History of consumer health and safety scandals
1970s Iraq 100 to 400 died of mercury poisoning by eating seeds intended for planting and treated with mercury as a fungicide. Afghanistan: widespread poisoning (an estimated 7800 people affected with hepatic veno-occlusive disease (liver damage) and about 1600 deaths) was attributed to wheat contaminated with weed seeds known as charmac that contain pyrrolizidine alkaloids. US – Ford Pinto. In a rear-end collision, the fuel filler neck could separate and puncture the fuel tank, spraying fuel into the passenger compartment and igniting. As many as 900 people died as a result of the car’s flaw.
1980s Spain - Thousands permanently damaged by eating industrial colza oil denatured with aniline and sold as olive oil possibly from tomatoes contaminated with insecticide. Beech-Nut Nutrition Corporation in the United States sold artificially flavored sugar water as apple juice and was fined more than US 2 million. Milk contaminated by dioxin - Belgium
1990s India - edible mustard oil adulterated with Argemone mexicana seed oil. Caused epidemic dropsy in thousands. Argemone mexicana seed oil contains the toxic alkaloids sanguinarine and dihydrosanguinarine. Over 60 deaths. Germany and the Netherlands - meat and milk found with elevated dioxin concentrations. Afghanistan, - estimated 400 cases of liver damage and over 100 deaths due to pyrrolizidine poisoning. Source unknown. Firestone tires on Ford Explorer - responsibility of up to 100 deaths worldwide, the tire company initially recalled 6.5 million tires.
2000s The Saudi Consumer Protection Association announced a ban on the entry of fresh strawberries due to the excess use of pesticide residues that exceed international maximum limits (2017-07-08). A methanol-tainted batch of illegal alcohol killed 143 people in India in December 2011, affecting mainly manual workers in the eastern province of Sangrampur. Baby milk scandal, in China. 300,000 babies affected, 51,900 hospitalizations and 6 infant deaths. Halal Lamb Burgers contained samples of porcine DNA, affected schools 19 schools in Leicester, UK Toy safety recalls – over 900 million toys recalled due to various safety risks to children – limits of lead (Pb) exceeded, physical characteristics posing harm to children. 2016, at least 33 people, including five children, died in Punjab, Pakistan after eating a purposely poisoned laddu, a baked confection. Testing of the confectioneries revealed they were laced with the highly toxic insecticide chlorfenapyr. Toyota unintended acceleration - Toyota admitted that it misled the public, and recalled 9.3 million vehicles worldwide. Takata airbag recall, which involved 10 of the world’s biggest automakers and it’s estimated that as many as 30 million cars could have the dangerous airbags worldwide.
13
Consumer protection and competition agencies are also challenged by advantage industry 342
and businesses have in terms of product and service knowledge. The rapid technological 343
advancement and short product life-cycle (mobile phones and tech-gadgets especially) poses 344
regulatory challenges to authorities and consumer associations. 345
Due to different conditions for products along the supply chain, it is difficult to ensure zero-risk for 346
products or services. That is why consumers need access to systems which readily capture safety 347
incidents and information about consumer detriments. Without such system or facilities 348
consumers tend to rely on social media news. 349
Consumer associations have the potential to mend this information gap and influence policy 350
makers to improve consumer safety laws and policies. 351
Many fake news have caused 352
unnecessary concerns among 353
consumers and business about 354
safety of the products they have 355
purchased or produced – 356
respectively. For example: HIV 357
blood contamination of fruits from 358
Thailand and glass pieces in Nestle 359
baby food and parasite in bottled 360
drinking water. 361
362
Some consumer organizations in developing countries usually rely upon information from 363
industrialized countries but often these may not apply to local or national situation. This happens 364
when local resources and researches on local conditions are often difficult to access or not 365
available. For example consumer associations in MENA region may want to know the list of 366
unsafe products recalled from the market. There is no centralized site or facilities to seek such 367
information. The next option is to see if any of the more developed countries in the MENA region 368
have such facilities and if none, more global database can be consulted such as the EU RAPEX 369
or the Australian www.productsafety.gov.au. 370
371
Figure 3 : Fake News about Parasite in Bottled Drinking Water
Figure 4 : Fake News about Fruits from Thailand Contaminated by HIV Blood
14
Figure 5: EU recalls sweatshirt for girls due to strangulation hazard which maybe not eb an immediate threat or high risk to children in the MENA region.
Figure 6 : this recall may apply to those who own recreational water crafts. May only cover small number of consumers.
Figure 7 : this kind of product is used by large group of consumers and maybe relevant to consumers in most countries
The Association des consommateurs du Mali (ASCOMA) conducted a country review and consumer
survey on access to water and electricity in Mali. The findings and recommendations were presented
to government in June 2003. The government however made no commitment and took no action.
ASCOMA therefore organised a press conference to inform the public about their findings and also
participated in several radio and TV dialogues in French and the local language to speak about the
problems of consumer access in the utility sector. The government took note and reconvened another
meeting with ASCOMA and other stakeholders at which ASCOMA recommendations were debated,
refined and accepted. A mechanism for regular consultation between ASCOMA, the regulator and
the utility company was also established.
EU Recall News (RAPEX) : 372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
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Active participation and involvement by consumers and access to objective and adequate 389
information enhances consumer confidence in the national consumer protection system. 390
Among the first elements to include in the consumer protection and competition policies is to 391
have an open and transparent consumer involvement and participation in decision making 392
process. This facilitates further collaboration between associations and agencies in the interests 393
of consumers in the country. 394
Box 2 : Mali - mechanism for regular consultation between government and consumer association
15
2. Consumer Associations and Movements 395
396
Nike sweatshops came under media spotlight for unsatisfactory working conditions and 397
substandard pay for workers mainly in developing countries. The campaign against Nike 398
impacted its bottom line and it doing things in a much more open and transparent way3. 399
In 2010 Greenpeace highlighted that Kit Kats uses palm oil from sources which were destroying 400
the rainforests and habitats of orangutans. Using massive social media campaign, Greenpeace 401
made Kit Kat to cut all ties with the company that was providing the palm oil. Kit Kat later 402
pledged to use only roundtable for sustainable palm oil (RSPO) certified ingredients. Inditex, the 403
owner of Zara clothing stores, eliminated fur from more than 1,000 stores. Seaworld ended its 404
orca breeding programs4. 405
The above are examples of how collective consumer movement (in the form of national 406
association or international organizations) can compel corporations to improve ethical business 407
practices. Consumer associations can also influence consumer friendly policies in uncompetitive 408
market environment in utilities services such as water and sanitation services. 409
410
2.1. What Are Consumer Associations? 411
Generally consumer associations are non-government or civil society organizations representing 412
citizens or group of citizens’ interests in terms of protecting these citizens’ rights to goods and 413
services under an ethical trading environment. They are usually non-profit making and are free 414
from government or business influence but maybe fully or partially financed by the government 415
or any other agencies. 416
The consumer movement and organized consumer movement in the form of consumer 417
association is not a recent phenomenon. 418
419
420
3 The Nike Controversy By Matt Wilsey, Scott Lichtig https://web.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html 4 Greenpeace, Nestlé in battle over Kit Kat viral ; By Paul Armstrong, CNN March 20, 2010 -
http://edition.cnn.com/2010/WORLD/asiapcf/03/19/indonesia.rainforests.orangutan.nestle/index.html
Key points:
1.
2.
16
2.1.1.Brief History 421
Collective action by citizens in the interest of access to basic needs such as food and water 422
dates back even to the Egyptian civilization. The French revolution was sparked by citizens who 423
grew impatient with lack of access to basic needs and livelihood whilst being imposed with 424
taxes by the monarchy at that time. Earliest organized consumer movements have taken root in 425
India in the late 1950s in the form of the Indian Association of Consumers. 426
The global consumer movement picked up momentum in the second half of the twentieth 427
century – especially the 1960s. Their beginning can be attributed to growth and influence of 428
organisations in the United States and Europe (post World War II) who were engaged in 429
consumer product testing and advocacy activities respectively. They tested similar product 430
range from different brands and published these results periodically. In 2012 there were eight 431
such associations in the US with annual revenues in excess of US$ 2 million. Examples of these 432
publications are the Consumer Report (US), Choisir? (France) and Test (Germany). The US 433
Consumers Union had revenues of US$ 250 million and three others had budgets in excess of 434
US$ 8 million. The more affluent consumers at that time purchased or subscribe these magazines 435
or publication to help them make informed purchasing decisions5. 436
About the same time organized consumer movement began to take root in Southeast Asia: 437
Consumers’ Federated Groups of the Philippines – 1963, Selangor Consumers’ Association -1965, 438
Consumers’ Association of Penang - 1969, Consumer Association of Singapore -1971and 439
Indonesian Consumers’ Organization – 1973. 440
Several of the United States and European organizations came together to form the 441
International Organization of Consumers Union or IOCU which is the predecessor of the current 442
Consumers International or CI. With the momentum for organized consumer movement picking 443
up in Southeast Asia, IOCU set up its first regional office for the Asia-Pacific area in Penang, 444
Malaysia. Its first regional director was Dato’ Dr.Anwar Fazal from Malaysia. 445
446
2.2. Why Consumer Associations? 447
Consumer associations as one form of civil society help governments and businesses maintain 448 higher level of transparency and accountability in offering consumers products and services. A 449 legitimate consumer organization can improve governance process pertaining to market 450 activities. They are the voice of consumers in the governance process, representing the 451 consumer’s interest by improving balance of power between consumers and businesses to be 452
more equal6. They are for example: 453
• analyst and advocates, 454
• educators, 455
• monitors, 456
• risk managers, and 457
• information providers 458
5 http://consumersunion.org/about/ 6 Role of Consumer Associations in the Governance of E-commerce Consumer Protection; Journal of Internet
Commerce, 12:1–25, 2013; HUONG HA and SUE L. T. MCGREGOR
17
The need for collective and organized consumer movement mostly in the form of consumer 459
associations or organisations is based on: 460
• the need for an independent actor which is apolitical and non-profit to represent 461
consumer voice and anticipate impact of a given issue on consumer well-being; 462
• the need to represent views of under-represented group of consumers namely those who 463
are illiterate, in rural and remote areas and disadvantaged; and 464
• the need to improve bargaining power of the under-represented group of consumers; 465
Among the major roles of Consumer Associations are: 466
• Monitor the compliance with regulation and guidelines; 467
• Provide a platform and activities for dispute resolution. 468
• Cooperate with other stakeholders to educate consumers on how to manage risks in 469
purchasing. 470
• Cooperate with other stakeholders to identify offending businesses and work with 471
relevant enforcement agencies. 472
• Research and surveys of consumer views and expectations 473
• Advocate policies relating to consumer protection and competition (campaigns, 474
education, community meetings etc). 475
• Publish relevant information about consumer protection to make the public aware of 476
current and new issues and how to avoid being cheated 477
Besides legal and political challenges in the country where they operate consumer associations 478
often face financial challenges to sustain their work. Typical sources of funding for consumer 479
associations are donations, subscription, cooperatives and state sponsorships. Another example 480
is the public service cooperatives which were established in rural Bangladesh, Philippines and Sri 481
Lanka. 482
Funding for consumer associations thus can come from many sources depending on country 483
situation and organisations’ principles: 484
2.3. Consumer Representation vs Consumer Association 485
486
Many government agencies define consumer representation as an act on behalf of consumers 487
by individual or organization who/which voices consumer perspectives and takes part in the 488
decision-making process on behalf of consumers. 489
Government and private sector associations (including international organization) often outline 490
characteristics of those representing consumer interests as those with large membership and at 491
least significant geographical representation. 492
18
493
Box 3 : Example of Consumer Representation in Papua New Guinea, Senegal and India 494
495
Smaller and new associations often have representation challenges. A consumer representative 496
need not be a consumer association. It can be an individual – for example: 497
• a retired professor who wants to advance healthcare for the rural poor; 498
• a university student who assists women in the community to better manage their 499
finances; or 500
• head of community engaging with local authorities for price monitoring of basic goods 501
in his community. 502
A consumer association can in most cases represent consumer interests. 503
Donor or grant agencies such as the USAID often emphasize strength of representation in order 504
to offer grants as this lends credibility to the work of the associations and due diligence by donor 505
or grant agencies. The credibility of the whole organization is at stake when a consumer 506
association is called upon to represent the consumer interest. 507
508
509
510
511
512
513
514
515
516
• Papua New Guinea, the Chamber of Commerce appoints consumer representatives to the
utility board of PNG Waterboard; as a result, consumer representatives may risk to be
perceived by public opinion more as an advocate of vested interests of industrial customers
than as representatives of the whole consumer constituency (Asian Development Bank 2002).
• The Association de Defense des Usagers de l’Eau Senegal, sit on the water regulatory council
and on the board of the national water holding company.
• Electricity Consumers’ Network (ECON) (Karnataka—India) – the Karnataka, India Electricity
Regulation Commission (KERC) constituted ECON to develop consumer network in the state to
ensure effective consumer participation in the electricity regulations process. Nine consumer
advocacy organisations (NGOs) were brought together by ECON to network amongst
themselves and with technical and research organisations of the commission.
Figure 8 : World Bank - Options for Consumer Representation in the East Asia Pacific (EAP) Region
19
Table 2 : Various forms of Consumer Representation 517
Mechanism for Consumer
Representation
Pros Cons
In-house consumer affairs
bureau
• Easy access to reliable information on
the regulatory process.
• Synergies between consumer
representation and regulatory
functions-- in-house consumer affairs
bureaus are well placed to solicit
consumer information that can be
used to inform the representative
function.
• Limited scope of action to challenge
regulatory decisions due to lack of
independence from the regulatory
agency itself.
Board representation
(by Consumer
Associations, Civil
Societies)
• Powerful channel of information for
consumer groups (if there is no duty
of confidentiality).
• Very fluid exchange of views between
consumers and regulators, if
consumer input becomes an integral
part of the decision-making process.
• Inadequacy of representation, if the
board members in charge of consumer
representation are captured by special
interest groups and/or they are not
fully accountable to the consumer
constituency.
• Too many conflicting interests within
the regulatory body may result in
stalemate of the regulatory process.
External advisory body • Capacity to challenge regulatory
decisions, due to the body’s
independence from the regulatory
agency itself.
• Inadequacy of representation, if the
advisory body is captured by the most
influential consumer groups.
518
2.4. International Cooperation and Networks on Consumer Protection 519
520
There various international cooperation on consumer protection tools and instruments 521
some more used than others. Some provide support for emerging consumer 522
associations in developing countries but more support for consumer protection and 523
competition authorities (which often includes fostering better relationship with local 524
consumer associations). Due to unique demographic and political situation in the 525
Middle East and North Africa and cultural needs consumer associations and consumer 526
protection and competition auntorities in the MENA region should come together as 527
cohesive network to advance consumer interests in the region. A strong network could 528
also represent a strong voice for MENA region consumers at international fora and help 529
facilitate trade and prevent dumping of sub-standard goods or services. 530
20
2.4.1. OECD CCP 531
532
The Committee on Consumer Policy (CCP) was established at the OECD in 1969. It 533
brings together senior consumer policy and enforcement officials from OECD 534
governments, along with experts from civil society, trade unions and the business (link). 535
The CCP’s bi-annual meetings are supplemented by ad hoc meetings and public 536
workshops. Non-member economies are also involved in various Committee activities. 537
The OECD’s Consumer Policy Toolkit is a practical guide that is designed to aid 538
policy makers in using a systematic approach to identify and evaluate consumer 539
problems and to develop, implement and review effective consumer policies so 540
that consumers can play their role in ensuring a dynamic economy. It focuses on 541
policies for which consumer authorities are typically responsible. This does not 542
include competition issues, which are addressed in a related OECD report (Competition 543
Assessment Toolkit). 544
The OECD's Competition Assessment Toolkit helps governments to eliminate barriers to 545
competition by providing a method for identifying unnecessary restraints on market 546
activities and developing alternative, less restrictive measures that still achieve 547
government policy objectives. There are currently three (3) country case studies from 548
Romania, Mexico and Greece. 549
2.4.2. International Consumer Protection Enforcement Network (ICPEN) 550
551
The International Consumer Protection Enforcement Network (ICPEN) is a membership 552
organisation consisting of consumer protection law enforcement authorities from across 553
the globe. ICPEN provides a forum for developing and maintaining regular contact 554
between consumer protection agencies and focusing on consumer protection 555
concerns. By encouraging cooperation between agencies ICPEN aims to enable its 556
members to have a greater impact with their consumer laws and regulations. The 557
Network operates under a rotating presidency, currently held by Turkey's Ministry of 558
Trade and Customs, Directorate General for Consumer Protection and Market 559
Surveillance, for a period of twelve months. On 1 July 2018, the presidency will transfer 560
to the Zambia Competition and Consumer Protection Commission. 561
2.4.3. European Union Consumer Protection Cooperation Nework (CPC) 562
563
The European Union Consumer Protection Cooperation Nework (CPC) is the grouping 564
of national authorities responsible for the enforcement of consumer protection laws 565
21
across the European Union (EU), Iceland and Norway assist each other in exchanging 566
information and investigating possible breaches of consumer law to protect the 567
collective interest of consumers. The legal basis for the Network is Regulation 2006/2004 568
on cooperation between national authorities responsible for the enforcement of 569
consumer protection laws (the Regulation on Consumer Protection Cooperation). 570
2.4.4. Global Privacy Enforcement Network or GPEN 571
572
In the age of internet of things and e-commerce / e-trade, consumption and consumer 573
protection has sbecome borderless increasing challenges to consumer protection and 574
competition authorities. The Global Privacy Enforcement Network or GPEN was formed 575
in June 2007, when OECD governments adopted a Recommendation on Cross-border 576
Cooperation in the Enforcement of Laws Protecting Privacy. The Recommendation 577
called for member countries to foster the establishment of an informal network of 578
Privacy Enforcement Authorities. It further specified a number of tasks for the network: 579
• Discuss the practical aspects of privacy law enforcement co-operation; 580
• Share best practices in addressing cross-border challenges; 581
• Work to develop shared enforcement priorities; and 582
• Support joint enforcement initiatives and awareness campaigns. 583
In the summer of 2008, privacy authorities began to exchange experiences and discuss 584
the practical aspects of enforcement cooperation via a Web utility. 585
2.4.5. UN Conference on Trade and Development (UNCTAD) 586
587
Of couse the UNCTAD's overall objective of its programmes is to promote inclusive and 588
sustainable development through international trade. 589
It offers analysis and advice and seeks to build consensus, strengthen capacity and 590
promote partnerships for trade policy, trade negotiations, trade in goods and services, 591
competition law and consumer protection, and managing issues arising at the 592
intersection of trade, the environment and climate change 593
The objective of UNCTAD's work on competition and consumer policies is to ensure that 594
partner countries enjoy the benefits of increased competition, open and contestable 595
markets, private sector investment in key sectors and ultimately that consumers achieve 596
improved welfare. The Intergovernmental Group of Experts (IGE) on Consumer 597
Protection Law and Policy is a standing body established under the United Nations 598
Guidelines for Consumer Protection (UNGCP) that meets annually to monitor the 599
22
application and implementation of the guidelines, provide a forum for consultations, 600
produce research and studies, provide technical assistance, undertake voluntary peer 601
reviews, and periodically update the guidelines. 602
2.4.6. Consumers International (CI) 603
604
Consumers International, formerly known as the International Organisation of 605
Consumers Unions (IOCU), was started in 1960 by a group of five consumer 606
organisations from the US, Western Europe and Australia. Consumers International is a 607
world confederation of consumer rights groups. CI’s Board and Council are made up of 608
senior executives from its member organisations. The Board of Trustees is appointed from 609
the Council. The Council is an advisory body to the Board of Trustees and is elected by 610
voting member organisations at the General Assembly that takes place every four to 611
five years. Middle East and North Africa region members among others include: 612
1. Association Atlas Sais, Morocco 613
2. Consumer Protection Association Libya 614
3. The Consumer Protection Agency, Ministry of Trade and Industry – Egypt 615
4. National Society For Consumer Protection (NSCP) – Jordan 616
5. Yemen Association for Consumer Protection (YACP) - Yemen 617
6. Consumer Protection Association, Saudi Arabia 618
7. Jamyat Almoustahlk – Loubnan, Lebanon 619
23
3. Consumer Associations Operating Model 620
621
The MENA region has experienced significant economic growth followed by improvements in 622
society in terms of increased access to education, jobs, finance and so on. This puts more 623
disposable income in the hands of the growing middle class. Small and medium businesses have 624
become more competitive and larger businesses within a country and from outside have begun 625
investing. 626
Consumers in emerging economies have access a wide range of goods and services never 627
before possible. International trade rules calls for minimization of trade barriers and freer trade 628
further improving consumers’ access to a variety of goods and services. 629
630
631
Figure 9 : GDP (current US$) – for MENA region (Source: World Bank national accounts data, and OECD National Accounts data files) 632
633
Key points:
1.
2.
24
But this region is also one of the most volatile in terms of conflicts and this affected steady 634
growth in GDP – which is currently in decline due to these conflicts. This situation poses 635
challenges in terms of establishing strong consumer protection and competition agencies and 636
associations. 637
638
639
Figure 10 : GDP per capita growth (annual %) - for MENA region (Source: World Bank national accounts data, and OECD National Accounts data files) 640
Consumers are also increasingly subjected to risky and fraudulent business and trading practices 641
especially if consumer protection and competition laws do not follow suit with rate of economic 642
growth and development. 643
Consumer associations’ capacity and influence in the MENA countries more or less follows the 644
economic development in a country. Consumers in the United Arab Emirates maybe better 645
protected than those in Yemen. Consumer issues also vary according to level of development. 646
Consumers in the UAE may be concerned with privacy and personal data protection whilst 647
those in Yemen maybe dealing with problems of access to clean and safe drinking water supply. 648
The MENA region is also culturally distinct from the west and eastern regions of the world. Laws, 649
daily live and work are based largely on religious belief system. The difference between life in 650
the village and life in the city sometimes is great, which could be narrowed in the age of the 651
internet of things and advancement in telecommunication. 652
3.1. General Pre-requisites (for Consumer Associations) 653
654
In order to establish relevance for a consumer association to its stakeholders (consumers, 655
government, businesses, donors, partners etc) a number of points need to be taken into 656
account when acting in a representative capacity: 657
25
Legitimacy in the context of consumer association may refer to the recognition by consumers 658
that a consumer association or organization genuinely represents their rights and interests. 659
Legitimacy can be characterized by components such as participation, fairness and 660
accountability. Ensuring legitimacy strengthens the views and voice of the stakeholders they 661
represent. This applies to all sorts of community and consumer interests representation such as 662
cooperatives and networks. 663
Consultation is an essential feature of true and effective representation. The absence of a 664
significant membership and established consultation mechanisms can compromise their 665
representative role. Can consumer organizations with limited membership truly claim to 666
represent the consumer interest? Can consumer associations really be more successful in setting 667
priorities, identifying regulatory targets and implementing strategies than public agencies? 668
Many strive to be representative of the consumer interest. In order to do so, a broad 669
membership base and consultation mechanisms with the membership could help. 670
Small organizations will have difficulty in securing a representative role when starting out, 671
especially when articulating a specific issue, which may have developed rapidly, for example in 672
response to a public health emergency. Groups that are critical of, or distrusted by, Government 673
agencies often have difficulty in gaining access to information and in being included in the 674
consultation process. Such exclusion narrows the policy making process and denies the 675
expression of a diversity of views. 676
In order to be effective in their work consumer associations need to develop the necessary 677
capacity: skills, qualification, financial resources and local knowledge of how things get done 678
(culture, demography). Basic tools such as satellite phone, a mobile phone to facilitate 679
communication and information exchange are very useful in rural and remote areas or while in 680
the field. An institutional backing such as village community bodies, religious bodies and local 681
government will go a long way in educating consumers of their rights. 682
A clear understanding of the power of consumer protection laws in the country is also useful. For 683
example in Malaysia the Consumer Protection Act 1999 is a supplementary piece of legislation. 684
There are over 30 regulations under different ministries with consumer protection elements such 685
as the Ministry of Health, Ministry of Transport, Ministry of Energy Water and Green Technology 686
and Ministry of Agriculture and Agro-based Industries in Malaysia. By appreciating the role and 687
powers of the different laws related to consumer protection and the agencies, consumer 688
associations are more effective in advocating for better consumer protection with the right 689
agency. In Algeria, institutional framework for consumer protection depends on the services of 690
the relevant Ministries. The Ministry of Commerce (Algerian Center for Control of Quality and 691
Packaging), Ministry of Interior, Ministry of Justice, Ministry of Health and the Ministry of Industry to 692
name a few. 693
Consumer associations with limited resources to undertake research or have limited access to 694
information should not be taken to mean that consumers cannot form associations until such 695
resources are available. Many movements stemmed with limited financial and human resources. 696
Such as the work of MAMA ’86, the association of Ukrainian women protesting against the lack 697
of transparency of information after the Chernobyl disaster in 1988 and their concerns for safety 698
of the water supply. 699
26
In Tunisia, the consumer organization
has developed a tripartite relationship
between itself, the ministry in charge of
water, and the water utility company.
This alliance has developed a
consumer education program and
methodology to educate consumers
on such issues as water wastage -
which is of primary importance in
Tunisia as it is a desert country.
It is worth noting that such movements often arise in response to single issues and associations 700
cannot be expected to cope immediately with the full breadth of the consumer horizon, a 701
scope which even the best resourced organizations have difficulty in covering. 702
In 2006-2007, the Association of Energy Consumers in Cameroon, Réseau associatif des 703
consommateurs de l’énergie (RACE), protested against the lack of access to electricity supply 704
despite reassurances that were given when a concession was granted to supply power to the 705
aluminum smelting industry. 706
3.2. Consumer Association Operating /Business Model 707
708
The nature and structure of the consumer associations has a bearing on the capacity of these 709
associations to influence consumer protection policies, implementation and enforcement. Issues 710
dealt with by consumer associations are influenced by a country’s level of development, 711
education, security and access to basic infrastructures. 712
There is no internationally accepted definition of 713
consumer associations or organisations. However as with 714
all forms of establishment – government or non-715
government the principles of legitimacy, capacity and 716
power applies. 717
Countries like India characterize consumer associations 718
in the relevant laws. In Malaysia consumer associations 719
are treated as non-government organisations and are 720
governed by the Registrar of Societies Act 1966 721
The consumer associations should review their roles and 722
responsibilities in order to stay relevant to their stakeholders (consumers, government agencies 723
and businesses). 724
Structured organisation with systematic and professional approach increases trust in the 725
consumer associations by consumers and other stakeholders. 726
727
Box 2: Tunisia's tripartite alliance for consumer education
27
Table 3: Key considerations for the development of operating model of consumer associations 728
Considerations How ?
Identify issues of immediate interests to consumers
• Interview members of community • Complaints records • Media reports • Incident reports eg: hospitals • Are there other community based organisations or individuals in
the community or country addressing similar issues. Small or new consumer associations benefit from coalition in terms of outreach, human resources and financial resources.
Stakeholder analysis • Who are those affected negatively by the issues and can they seek redress or easily resolve any disputes resulting from the issues they face?
• Who contribute or perpetuate the issues • Who has the control over the issues (directly and indirectly). • How to engage with each stakeholder.
Approach and structure • Collaborate with existing networks or associations or establish new one or expand scope
• Stakeholder engagement methods: forum, workshop, focus group, interviews, surveys, consultation etc.
• Documentation, record keeping and reporting needs • Communication and visibility – press conference, publication,
collaterals (flyers, brochures) talks, announcements, community/ village forums etc
• The Organisation for Defense of Consumers or the ODC in Tunisia has several regional offices and organizes campaigns such as: boycotting red meat and publications (car rights, installment purchase etc)
Relevant laws and regulations
• Laws governing establishment of consumer association • Government policies on engaging with consumer associations (or
civil / community based organization) • Laws, policies and strategies related to the specific consumer
issues – redress, fair trade practices, dispute resolution,
Resources • Access to issue experts : ex-industry personnel, researchers, university researchers,
• Human resource needs – qualifications, skills, experience etc • Equipment and space • Funding – government, grants, membership subscription, sales etc • There are also incidents beyond your control which might hamper
your efforts to address consumer issues in your area or country – political climate, non-inclusive policies by neighbouring countries or trading nations and so on. (NOTE: proposal writing skills will be useful to access grants from foundations
like the Emirates Foundation and international grants such as the UN
Environmental Programme 10 Year Framework Programme Trust Funds.
etc).
729
730
28
The Malaysian Association of
Standards Users started with one
employee in 2005 and board
members who did not draw any
form of allowance or income from
the association. Membership
collection was less than RM 1000.00
barely enough to cover utilities and
rental, much less salary. Today it has
secured grants from various sources
to allow it to operate to serve
interests of consumers in terms for
product safety.
3.2.1. Developing an Operation Model for Consumer Associations 731
732
General operating model of consumer associations is converting technical, public (market) and 733
policy inputs into socio-economic outputs which is needed by beneficiaries (customers). 734
735
736
737
738
739
740
741
742
This section provides general guidance for an effective operation of a consumer association. 743
Every consumer association is unique. In general an effective operating model is determined by 744
the following factors: 745
• Governance, system 746
o governance system need to ensure that the 747
consumer association is independent, transparent 748
and accountable in its operation. 749
o usually a board or council oversees the operations 750
and financials of a consumer association. The 751
board or council operate at a strategic level, 752
providing directions and high level planning. 753
o the board or council consists of panels who are 754
independent of the consumers associations day to 755
day operations and does not draw salary or 756
income from the consumer association and are 757
apolitical. 758
759
Inputs:
•Policy
•Market issues (public/consumers)
•Technical
Consumer Associations
Socia-Economic Outputs:
•Policies
•Campaigns
•Education programme
•Advocacy
Inputs:
•Funding
Figure 11 : Outline of Consumer Association Operating Model
Box 3 : Malaysia - example of consumer association with challenges on membership collection
29
• Human resource and infrastructure 760
o people who work for consumer associations are usually driven by passion to contribute 761
to society or their community. Young people in urban areas engage in volunteerism or 762
seek internship at consumer associations. Those who start a consumer association may 763
have done so in their spare time and work without salary until such time the consumer 764
associations secure grants from either government agencies, donors or development 765
organisations. 766
o As the organization grows top management of the association needs to invest time 767
and resources in capacity building, strategic planning and sound management 768
practices to encourage the right people to work with the association. A consumer 769
association like many non-profit and community based organisation is not really a 770
dream job for graduates or people with technical background like engineers and 771
scientists. People with competition and consumer law background may find the work 772
of consumer association to their liking. 773
• Income and expenditure (financial) 774
o income should be able to cover operating costs of the association. 775
o independently audited accounts and financial statement is important aspect of 776
good governance and is often requested by potential donors. 777
3.3. Basic Outline of an Operating Model 778
779
The following outline is not exhaustive and needs to be tailored to the needs of the consumer 780
association. 781
• Background to the consumer association 782
o Structure 783 o Governance 784
• Key Issues 785 • Stakeholder analysis 786 • Association goals related to key Issues 787 • Approaches and Considerations 788
o Key activities 789 • Resource Requirements: 790
o Human 791 o Methods 792 o Materials and Equipment 793
• Risk analysis and mitigation 794
• Budget and fund raising 795 • Visibility and communication 796 • Monitoring and evaluation and continuous improvement 797
o Documentation , record keeping and reporting 798 799
800
30
Besides legal and political challenges in the country where they operate consumer associations 801
often face financial challenges to sustain their work. Typical sources of funding for consumer 802
associations are donations, subscription, cooperatives and state sponsorships. Another example 803
is the public service cooperatives which were established in rural Bangladesh, Philippines and Sri 804
Lanka. 805
Funding for consumer associations thus can come from many sources depending on country 806
situation and organisations’ principles: 807
3.3.1.Funding 808
There are several funding model for consumer associations. Among them being: 809
1. Government grants 810
2. Services to relevant government agencies: eg. research, campaign outreach 811
3. Testing and publication subscription 812
4. Membership fees 813
5. Social enterprise 814
6. Assessment and certification (social standards) 815
7. Philanthropy and Business – consumer association collaboration 816
8. Development grants 817
3.3.1.1. Government grants 818
819
The Consumer Welfare Fund of India has been set up by the Department of Revenue and, is 820
being operated by the Ministry of Consumer Affairs, Food & Public Distribution, Department of 821
Consumer Affairs. The Consumer Welfare Fund Rules were framed and notified in the Gazette of 822
India in 1992. The Fund was setup with the objective of providing financial assistance to promote 823
and protect the welfare of the consumer, create consumer awareness and strengthen 824
consumer movement in the country, particularly in rural areas. Under the Consumer Welfare 825
Fund Rules, any agency/organisation engaged in consumer welfare activities for a period of 826
three years and registered under the Companies Act, 1956 or any other law for the time being in 827
force, village/mandal/Samiti-level cooperatives of consumers, industries State Government etc 828
are eligible for seeking financial assistance from the Fund. 829
The Voluntary Organisations Project Scheme is an initiative which falls under and is managed the 830
Ministry for Social Dialogue, Consumer Affairs and Civil Liberties (MSDC), and is administered on 831
its behalf by the Malta Council for the Voluntary Sector (MCVS). The Voluntary Organisations 832
Project Scheme is an allocated fund of €700,000.00. The call for applications is issued by the 833
Ministry for Social Dialogue, Consumer Affairs and Civil Liberties under the Voluntary 834
Organisations Projects Scheme herein referred to as VOPS. 835
836
31
The Hong Kong Consumer Council is the Trustee of the Consumer Legal Action Fund through a Declaration of Trust
executed in November, 1994. The Fund was established with a Government grant of $10 million, a further sum of
$10 million was granted by the Government to the Fund in May 2010. The Fund aims to give easier consumer
access to legal remedies by providing financial support and legal assistance for the benefit of consumers,
particularly, groups with similar grievances in cases involving significant public interest and injustice.
The guidelines for the VOPS are published on the Malta Council for the Voluntary Sector website 837
www.maltacvs.org and the New Funding Portal www.vofunding.org.mt. The guidelines constitute 838
an integral part of the call for proposals. 839
840
841
842
843
844
845
846
847
848
The Voluntary Organisations Project Scheme (VOPS) is designed to assist applicants looking for 849
funding on projects that can make a real difference to their local communities. 850
The Citizens Advice of United Kingdom is a registered charity in the UK. It is a national charity with 851
307 local Citizens Advice members which are all individual charities in their own right and 852
together make up the Citizens Advice service. It provides free, and independent advice to help 853
people overcome their problems, represent citizens’ voice through policy advocacy and 854
campaigns. Citizens Advice Bureaux was established in 1939 throughout the UK to address social 855
disorganization during the great depression. 856
In the 1970s, consumer protection becomes its priority and a development grant from the 857
Government was given to the national charity, the National Association of Citizens Advice 858
Bureaux (NACAB), to extend the network. In 2002, NACAB (Citizens Advice predecessor) 859
receives a £20 million grant from the Government's Capital Modernisation Fund to provide IT 860
infrastructure to roll out e-government services to Citizens Advice service clients. In 2003 NACAB 861
changes its name to Citizens Advice. 862
863
In addition to corporate giving, fund raising and volunteerism, Citizens Advice UK receives core 864
funding from the Department for Business Innovation and Skills (BIS). 865
Figure 2 : Economic value of Citizens Service to UK (source: 2015/2016 annual report)
Box 4 : Consumer Legal Action Fund of Hong Kong
32
3.3.1.2. Services to relevant government agencies 866
867
This is a form of Non-government organization contracting services by the state or government. 868
Government retains its role as funder but transfers its task as provider to a variety of independent 869
providers in the third sector (which includes private, profit-making businesses and community 870
and voluntary not-for-profit organisations) and state agencies. Services often remain free at the 871
point of delivery and usually no money changes hands between the beneficiaries (e.g. pupils, 872
marginalized communities, consumers, patients, people with impairment) and the service 873
provider (NGOs, community based organization, hospitals, disability support services). The funder 874
(i.e the government paying the provider for the services delivered. 875
In South Africa the government issues tender for service provision which consumer association, 876
other non-profits and businesses alike can bid for. This system requires qualified organization or 877
‘non state actors’ to be registered in their database. 878
In Malaysia the Federation of Malaysian Consumers Association or FOMCA submits proposal to 879
the Ministry of Domestic Trade, Cooperatives and Consumerism to provide services related to 880
consumer research, campaigns or awareness programmes. 881
In Pakistan there is lack of physical, financial, social and geographical access to the health care 882
facilities, poor distribution of resources among various regions of the country, unavailability of 883
health care providers at the facilities and poor quality of services at government health facilities. 884
Working with community based organisations (such ass consumer associations) represents a 885
more attractive incentive like transfer of technical knowledge between partners. A public 886
private partnership in the District Rahim Yar Khan Project is where basic health units have been 887
contracted-in to the Punjab Rural Support Program, a community based organization (non-profit, 888
non-government). The partnership improved human resource management and made the 889
health care providers available to the community at basic health facilities, i.e. Basic Health Units 890
and Rural Health Centers. 891
3.3.1.3. Testing and Publication 892
The success of this funding model in the US quickly spread to Europe. The US consumer testing 893
associations provided the initial financial support to the United Kingdom Consumers Associations 894
in the 1950s for product testing and publication of the magazine. This magazine called Which? 895
reached one million subscription at its peak. Similar success was seen in Belgium, Germany and 896
Denmark. These operating model was run based on commercial methods but with non-profit 897
principles. In countries like Norway and Austria and Sweden the testing and publication was 898
supported with some government subsidies. 899
As testing is inherently expensive it make sense to pool resources to carry out testing on products 900
which are globally available – electrical goods, packaged / processed food and cosmetics. 901
Large consumer testing organisations came together in 1990s and formed the International 902
Consumer Research and Testing or ICRT - a global consortium of 35 consumer organizations in 903
33 countries dedicated to carrying out joint research and testing in the consumer interest. ICRT 904
33
In the transitional economies of Central and Eastern Europe, the expense involved in testing and the more volatile
conditions have made it very difficult to establish and sustain product testing magazines on a stable basis, even in
large markets such as the Russian Federation. Consumer associations in this region have often drawn their historic
legitimacy from local ‘clubs,’ sometimes based around home economics associations, giving the associations a
direct contact with the general public which preceded the arrival of the market economy. The same link with local
associations is to be found in the Chinese Consumers Association, where by 2010, over 3,250 consumer associations
at county level, plus 156,000 local associations, accepted some 12.5 million consumer complaints.
runs more than 50 large joint tests and numerous smaller joint tests each year and can reduce 905
significantly the costs to smaller organizations as a result of resource pooling.. [link] 906
907
Consumer organisations in Thailand and Indonesia are members of ICRT and often carry out joint 908
testing to manage cost of testing for products marketed in Thailand and Indonesia respectively. 909
There are vast differences between the ways consumer associations operate, often depending 910
on the economic status of the country. In economies where consumers are well-educated and 911
have higher per capita income, comparative testing and providing credible information to 912
consumers has been the main role of many consumer organizations. Millions of consumers 913
subscribe to their magazines and are willing to pay for the information and advice in the 914
magazine about products and services. 915
In developing countries, consumer associations provide more basic needs services and may be 916
involved at the local level in educating and outreach to consumers regarding their rights and 917
also representing consumer interests at the national policy development. 918
A key factor to ensure the credibility of consumer associations is independence, both from 919
businesses and political causes. The financial viability of consumer organizations may pose 920
difficulties when it comes to holding on to their independent status. 921
3.3.1.4. Membership Fees 922
923
Consumer associations also generate income through is membership fees. Smaller consumer 924
associations scattered over large geographical areas can come together to form a coalition or 925
federation. The smaller consumer associations presumably pay membership fees and appoint 926
council members who will represent their association’s interests in the coalition or federation. A 927
coalition of consumer association of this kind provides a stronger platform for consumer voice to 928
be heard at a national level and get the attention of the relevant government agencies or 929
policy makers. 930
One of the challenges in this type of income generation is the difficulties faced by secretaries 931
and treasurer to collect the membership fees on a regular basis. Often membership fees do not 932
form a major income portion for consumer associations especially in least developed or 933
developing countries where the members they represent are poor and not able to make ends 934
meet. 935
Box 5 : Consumer Associations in Volatile Economic Countries
34
Access to safe drinking water is critical to the livelihood of the individual and the development of an entire community. According to the World Water Development Report, 89 percent of the world’s population now has access to safe drinking water. The aim of the Safe Water Enterprises project is to establish a sustainable supply of clean drinking water in these remote regions. Like our other projects in the working area of Development Cooperation, Safe Water Enterprises combines technical solutions with an entrepreneurial approach to increase quality of life in a sustainable way.
Barefoot Power
Barefoot Power is a global for profit enterprise that designs, manufactures and distributes Solar Lighting System and small home appliances to families and business in Africa, India, Asia, Central Americas, Papua New Guinea and rest of the world.
Barefoot Power focuses on an extensive range of quality solar products offerings in the off-grid market, installation package, after sale services and maintenance program, together with diverse and supported distribution strategies. By making quality energy products accessible to communities through partnership with micro-finance banks, various distribution channels, non-government organizations, and local retail shops, Barefoot Power will distribute to the eradication of energy underserved communities.
3.3.1.5. Social enterprise 936
937
The Social Enterprise Alliance (SEA) defines 938
social enterprise as organization that applies 939
commercial strategies to maximize 940
improvements in human and environmental 941
well-being—this may include maximizing 942
social impact alongside profits for external 943
shareholders. 944
Consumer associations have increasingly 945
sought such strategies to meet their 946
sustainability needs and the needs of 947
consumer and environmental well-being. 948
However consumer associations need to 949
determine if there is a market for their 950
products or services. The most popular social enterprise model was introduced by a banker from 951
Bangladesh, Mohammad Yunus. The enterprise was called Grameen Bank. It provides credit to 952
the poor in rural Bangladesh, without any collateral who would otherwise denied any credit by 953
conventional banking system. 954
Consumer associations can engage with SE such as Barefoot Power to enable consumers in 955
small, rural or poor communities to have access to affordable off grid lighting solutions. The 956
revenues can then be used to support awareness, education or advocacy programmes. 957
Tunisia’s first consumer co-operative Tunisie Coop was established in 2015 after its president 958
Naoufel Haddad visited a Japanese federation of consumer co-operatives, Seikatsu Club. 959
Agriculture continues to play an important role in Tunisia’s economy, accounting for over 12% of 960
the GDP and employing almost a quarter of the labour force. While the organic market 961
continues to grow, domestic demand for organic products is not high. Tunisie Coop aims to 962
encourage consumers to buy more local quality products, developing “an agriculture of 963
proximity” by working with producers based within 60km of each other. 964
965
Box 4 : Social Enterprise Model by Safe Water Enterprises project
Box 5 : Social Enterprise model for consumers’ access to lighting
35
South Africa Heart Mark
The Heart Mark logo takes the guess work out of choosing food products and consumers do not need to read complicated food labels. Although price, quality and taste will always be factors influencing what you buy, so too is making sure you choose the healthier option among all the products on the shelf.
Heart Mark works with food manufacturers to make foods healthier. This means you don’t have to be a nutrition expert or spend hours reading labels – just look out for the Heart Mark, and keep making healthier choices part of your life.
The Heart Mark is not a diet. It’s a standard – a guaranteed way to buy food lower in salt, lower in sugar, lower in saturated fats, and higher in fibre. This makes it the best choice for you and your family and the smartest way to keep a healthy and balanced diet. Remember, eating healthy goes hand in hand with exercise and also the way in which we cook our food.
3.3.1.6. Assessment and certification (social standards) 966
967
Consumer associations like the Consumer Association of 968
Singapore (CASE) have developed accreditation services 969
used by businesses to show compliance with fair trading 970
and consumer protection requirements. This accreditation 971
scheme is called Case Trust. It was an accreditation 972
scheme targeting the service and retail industry. 973
CaseTrust’s standards are developed and managed in an 974
unbiased manner. Representatives from STB, SPRING 975
Singapore, IDA, NATAS, and CASE volunteers are all 976
members of the CaseTrust Advisory Council, giving the 977
Secretariat in sights and directions forward. A shop which 978
displays the CaseTrust Logo signifies fairness and honesty in 979
its dealings with consumers. 980
The Heart Mark endorsement programme by the Heart 981
and Stroke Foundation South Africa (HFSA) is part of its 982
ongoing efforts to reduce the number of deaths in South 983
Africa from preventable heart disease. 984
The Consumer Recommends endorsement programme 985
enables New Zealand consumers to recognize Consumer 986
recommended products, helping them make informed 987
decisions. 988
The brand mark is available to manufacturers, distributors and service providers to use in 989
advertising and promotion. It can only be used for those products and services that have been 990
awarded Consumer Recommends status, subject to meeting license conditions. 991
The Consumer Recommends brand mark may be used directly alongside the endorsed product. 992
Manufacturers, distributors and service providers whose products have been awarded 993
Consumer Recommends status are eligible to purchase a non-exclusive license to use the brand 994
mark in their advertising and promotion. License renewals are considered on a case-by-case 995
basis. 996
The GS1 in Hong Kong runs a Consumer Caring Scheme to recognize local enterprises which 997
demonstrate excellence in consumer care through effective use of technology and practice of 998
consumer value-related strategies with ultimate goal to lift industry's overall capabilities in 999
delivering consumer product and service. 1000
Consumer associations can replicate such schemes but has risk of being perceived as biased 1001
towards certain businesses. Consumer associations which run such schemes need to be 1002
transparent in terms of how the scheme is developed and managed independently. 1003
Box 6 : Assessment and certification - South Africa's Heart Mark
36
MouCo Cheese Company and consumer education We here at MouCo Cheese Company are most passionate about bringing a high-quality product to your table, but we also like to give back to the community that's helped us grow. Since 2001, we've been a fixture in the vibrant artisanal food world of Northern Colorado, and we believe that local and independently owned businesses are a vital part of any thriving community—especially this unique place that we call home.
As such, we like to get involved in supporting local non-profits in Fort Collins and elsewhere in Northern Colorado, especially those that work to promote community advocacy and consumer education. Of course, we're particularly enthusiastic about
supporting food causes and local food banks.
3.3.1.7. Philanthropy 1004
1005
Corporate philanthropy is a major part of 1006
Corporate Social Responsibility (CSR) programme 1007
of many businesses. 1008
Corporate funding can be a long-term 1009
commitment to certain causes and the charities 1010
connected to them, or it can be ad hoc, project 1011
based and market driven such as improving 1012
vehicle safety or food safety. 1013
The Pearl Initiative established out of the business 1014
community in the UAE unites business with civil 1015
society to assess how sustainable development 1016
can be progressed in the region through better 1017
governance. 1018
The Open Society Foundation and non-government organisation received USD 50,000 from the 1019
Coca Cola Foundation to run a programme in Ukraine on raising consumer / public awareness 1020
on waste management and responsibilities, changing behavioral patterns, improve recycling 1021
and reduce illegal waste dumping in Ukraine. 1022
1023
1024
1025
1026
1027
1028
1029
1030
1031
1032
Consumer association collaboration with businesses to address consumer issues by gathering 1033
consumer inputs, conducting research, outreach and at the same time improve public image of 1034
businesses. SOEs can work together with consumer associations to address sustainable 1035
consumption and product safety issues. 1036
Box 7 : Philantrophy - MouCo Cheese company and consumer education
Box 8 : Philantrophy - Corporate giving Etihad Foundation
37
3.3.1.8. Development and International Grants 1037
1038
Consumer associations can also access grants offered by international grant making or 1039
development organisations such as PTB, GIZ, DANIDA, SIDA and so on. Australian Aid (AusAid) 1040
provides grants to the ASEAN Committee on Consumer Protection through its ASEAN-Australia 1041
Development Cooperation Program (AADCP) Phase II. This is a long-term (2008-19), AU$57 million 1042
program that supports ASEAN‘s goal of establishing an ASEAN Economic Community by 2015 1043
and the post-2015 vision. 1044
The Anne Fransen Fund’s mission is to advance the position of consumers in developing 1045
economies through building consumer organisations and funding campaigning projects. The 1046
fund itself is made up of contributions from individual members of the Dutch consumer body. 1047
Each year, grants of up to €10,000 are awarded to Consumers International members to carry 1048
out projects linked to one of the eight basic consumer rights. Consumer associations who are 1049
member of Consumers International qualify to apply for the Anne Fransen Fund. Smaller 1050
consumer associations are usually preferred to receive funding from this fund. 1051
Larger more established consumer associations can often apply for grants from the European 1052
Union, GIZ and SIDA provided they meet organizational requirements which are usually quite 1053
strict. GIZ is a German based provider of international cooperation services for sustainable 1054
development and international education work. GIZ works with businesses, civil society actors 1055
and research institutions, fostering successful interaction between development policy and 1056
other policy fields and areas of activity. The German Federal Ministry for Economic Cooperation 1057
and Development (BMZ) is GIZ’s main commissioning party. 1058
Sida is a government agency working on behalf of the Swedish parliament and government, 1059
with the mission to reduce poverty in the world. Through our work and in cooperation with others, 1060
we contribute to implementing Sweden’s Policy for Global Development (PGU). SIDA 1061
implements the Swedish development policy that aims to enable people living in poverty to 1062
improve their lives. SIDA carries out enhanced development cooperation with a total of 36 1063
countries in Africa, Asia, Europe and Latin America. SIDA has funded several capacity building 1064
progamme with the International Organisation for Standardization or ISO on national quality 1065
infrastructure and international standards development. One of the key projects of SIDA in this 1066
area is the promotion of the ISO 26000:2010 Guidance on Social Responsibility standard in the 1067
MENA region. Among the core principles of the ISO 26000:2010 is consumer issues. 1068
In Jordan seminars/workshops on best international practices of consumer protection within the 1069
framework of Jordan's consumer protection draft law were organized with the support of USAID 1070
Program 1071
38
Examples:
1. CASE – Singapore 2015 ; Income:
• Grants/Sponsorship - 26.6%
• Investment Income - 30.8%
• Other gains and tax deduction - 42.6%
2. Consumer Council of Fiji – Annual Statement 2013 ; Income:
• Grant from Government of Fiji – 96%
• Other grants – 4%
3. Consumer Energy Alliance, Australia - 2016 Annual Report; Income / Revenue
• Members and Operational Services - 90%
• Energy Day - 10%
4. Consumer Council Hong Kong – 2016 Income:
• Government subvention - 85% • Non-recurrent projects subvention - 10.4% • Sales of CHOICE Magazine - 1.9%
• Others - 3.2% 5. Consumer Report – US 2016 Financial Report – Income / Revenue
• Subscriptions, newsstand, and other sales - 86.6%
• Contribution - 11.6%
• Others - 1.8%
Consumer associations should diversify their funding sources to remain financially sound and 1072
sustain their consumer protection activities and not risk their independence and integrity. Many 1073
consumer associations in developed countries have a reasonably strong financial footing in the 1074
sales of their magazines. This is believed to improve resiliency of the consumer associations in 1075
time of financial crisis. In developing countries however, this is not the case. 1076
1077
1078
1079
1080
1081
1082
1083
1084
1085
1086
Consumer associations in developing countries often do not have a large subscription base to 1087
depend on for magazine subscription. The bulk of their funding is frequently from external 1088
sources and they are therefore vulnerable to restrictions applied by donor agencies (which may 1089
include their own Governments) to focus on particular issues in particular areas or not to do so. 1090
In most countries there is formal or dedicated government support for consumer organisations. 1091
Financing from either industry or Government poses problems of independence. Some publicly 1092
funded consumer bodies have managed to maintain a high profile and maintain autonomy in 1093
policy making. 1094
1095
Figure 12: Sources of funding for various consumer associations
39
4. Collaborations Between Consumer Associations and Competition and 1096
Consumer Protection Institutions 1097
4.1. Pre-requisites for Effective Collaboration 1098
In order to facilitate collaboration, certain pre-conditions need to exist: 1099
i. Laws and infrastructure related to consumer protection 1100
a. Leading consumer agencies 1101
b. Other agencies with consumer protection roles 1102
ii. Policy calling for participation of consumer representatives 1103
iii. System to collect consumer feedback, questions and complaints 1104
iv. Laws or policies governing establishment of consumer groups, associations 1105
4.1.1. Laws and infrastructure related to consumer protection 1106
1107
The MENA region countries as with many countries generally have one leading consumer affairs 1108
or consumer protection agency with several sectoral consumer protection roles by other 1109
agencies. Therefore there is no one-stop solution provider for consumer issues. In such cases 1110
there is tendency for these agencies to work in silos (on their own) with limited integrated 1111
approach to consumer protection. This leaves many gray areas where existing laws and policies 1112
does not provide guidance on consumer protection. 1113
Consumer associations who want to improve and strengthen consumer protection in the region 1114
should reflect on the existing national situation such as the legal system and infrastructure on 1115
consumer protection. 1116
1117
Key points:
1.
2.
40
Sometimes the sectoral agencies are driven by commercial interests rather than consumer 1118
protection interests. For example the agriculture ministry is driven by commercialization and 1119
protection of smaller farmers to market products or export them rather than ensuring that 1120
produces are safe for consumer consumption. Such is the case with food commodities like 1121
coffee, cocoa and oil palm. Counseling consumers or seeking consumer associations’ feedback 1122
is limited and not their priority. Thus limited resources or none are allocated for this purpose by 1123
these agencies. 1124
Based on the UNGCP, consumer protection and competition agencies should look at the 1125
following elements of consumer protection: (A detailed description can be obtained from the 1126
UNGCP and the UNCGP Manual) 1127
Policy and supporting activities: 1128
a. Availability of policies to govern businesses and enforcement agencies 1129
i) Policies to promote fair competition including for state owned enterprises and 1130
provisions for consumers t make informed purchasing, use and disposal decisions 1131
b. Adoption of measures to safeguard safety of products for intended use and foreseeable 1132
use 1133
c. Availability and access to redress mechanism with legal advice and representation for 1134
consumers 1135
d. Availability of standards development and related activities to support assurance of 1136
product and services quality and safety. That these are aligned with international 1137
practices guided by WTO agreement. 1138
e. Access to basic goods and services (including utilities) 1139
f. Access to consumer education through appropriate channels, language and platforms 1140
g. Availability of policies and support initiatives to promote sustainable consumption, 1141
eliminating or minimizing use of harmful substances and materials and pollution 1142
prevention. 1143
h. Availability of policies or initiatives to protect consumers in electronic commerce, 1144
protection of privacy and personal data 1145
i. Access to and promotion of fair financial services and availability of policies to protect 1146
consumers from unfair advantage of the finance and banking sector businesses. 1147
j. Availability of measures to protect consumers in specific area: food, water, 1148
pharmaceutical, energy, utility and tourism (based on international best practices and 1149
standards) 1150
k. Access to knowledge, technical cooperation and capacity building 1151
l. All engagements and collaborations are guided by mutually agree terms and conditions 1152
or reference. 1153
m. Determine available resources to support the different mode of collaborations (Note: 1154
some consumer associations have to travel great distance to government administrative 1155
centers to attend or take part in meetings. This often results in limited consumer 1156
participation in policy meetings as they have limited funding and time). 1157
1158
41
Consumer protection agencies should be part of (at least) a regional level information 1159
exchange, forum or network on consumer protection such as: the ASEAN Committee on 1160
Consumer Protection or ACCP or the Annual African Consumer Protection Dialogue 1161
Conference or Organization of American States (OAS) Consumer Safety and Health Network. 1162
4.1.2. Policy calling for participation of consumer representatives 1163
1164
An open environment for policy decisions (especially technical ones) should be fostered by the 1165
consumer protection authorities. 1166
Compliance policies are not necessarily meant to be popular, but to ensure their effectiveness 1167
they should be supported from various sectors. 1168
Consumer protection policies and laws should encourage multi-stakeholder engagement. 1169
Without it consumer representatives or associations will face difficulties in collaborating with 1170
consumer protection and competition agencies. 1171
Once the foundation of consumer protection (laws) are in place a statutory provision for an 1172
advisory or coordinating committee to advise on matters arising from the administration of 1173
these laws should be established. This body should determine policy matters, and various 1174
ministries, industries, consumers, NGOs and academia should be represented. Ideally the 1175
advisory committee should report to the minister concerned and in most cases these reports 1176
should be published. 1177
1178
In Jakarta, consumer involvement was initiated soon after the Jakarta Water Supply Regulatory Body
(JWSRB) was established in November 2001. In January 2002, the JWSRB facilitated a stakeholder meeting
that led to the establishment of the Consumer and Community Communication Forum (CCC Forum)
which aimed to synergize the efforts of all water stakeholders in enhancing reliability of water supply in
Jakarta. Since then, the Forum has become a valuable platform for information-sharing among water
stakeholders, including the JWSRB, community and consumer representatives, NGOs, government
officials, PAM JAYA (the local government-owned service provider), and water operators. In parallel, the
JWSRB established an in-house consumer bureau, the Community Opinion Investigation Committee
(COIC), tasked with the responsibility of facilitating the functioning of the Forum, administering consumer
satisfaction surveys and soliciting input from all stakeholders.
In addition, in March 2003, the JWSRB facilitated the establishment of Water Supply Customer Advisory
Committees (WCCs) in five municipalities of the Jakarta province. WCCs are NGO-type non-statutory
organizations with the mandate to voice consumer interests. WCCs’ responsibilities include: (i) monitor
level of service; (ii) raise consumer complaints on service quality; (iii) facilitate communication between
consumers and water utilities on service improvement; (iv) promoting access for the poor. The JWSRB
retains responsibility for disseminating the information received from the WCCs and the CCCF through
the media.
Box 6 : Indonesia (water): The Jakarta Model for Consumer Representation
42
Where an advisory committee does not exist, industry and consumer views should be ensured 1179
through regulations. Before a major policy change, prescription or amendment of product or 1180
services standards are made, the industry and consumers have the opportunity to comment and 1181
provide additional data on the subject matter. This arrangement optimizes resource utilization 1182
and better satisfies consumer concerns as well as industry needs. Thus compliance improves and 1183
consumer protection and satisfaction are enhanced. 1184
1185
4.1.3. System to collect consumer feedback, questions and complaints 1186
If consumer protection law exists there should be mechanisms in place to gather consumer 1187
complaints related to products or services. A toll free line, hot line, online complaints gathering 1188
system or a dispute resolution division are examples that such systems exist. 1189
1190
4.1.4. Laws or policies governing establishment of consumer groups, 1191
associations 1192
The national consumer associations should be established according to national laws and 1193
regulations or part of a formal committee (or council) in order to have legitimacy in its set up 1194
and work. Activities of consumer associations should promote and protect consumer rights, 1195
provide education and benefit consumers as a whole. 1196
Care should be taken to ensure that the association is not an industry organization in disguise or 1197
a professional organization (e.g. an organization of doctors or lawyers). If it is not possible to 1198
accommodate all the groups into the process easily, then each group should be invited to 1199
choose a representative whom it feels can best represent the diverse interests. 1200
In the case of Algeria there are about 50 consumer associations registered with Ministry of 1201
Commerce. They range from representing consumers in the health sector to environment and 1202
sustainable consumption. Thus choosing the right consumer representatives according to the 1203
issue is important to ensure successful outcomes in the interests of consumers in the relevant 1204
sector. 1205
The consumer associations could strengthen their scientific expertise through association with 1206
institutes (universities and research houses) specializing in environment, consumer laws, food 1207
safety/science, energy, climate change and sustainable consumption etc. 1208
1209
1210
43
4.2. Modes and Approaches for Collaborations 1211
1212
Consumer associations should establish purpose or objectives of its collaboration with consumer 1213
protection and competition agencies or those with similar roles. Typically the objectives would 1214
be: 1215
• increase understanding of the likely impact of consumer laws and policies on consumers; 1216
• increase understanding of legal requirements; 1217
• bring consumers’ concerns to the attention of policy makers 1218
• determine credibility of labeling, quality or certification marks and claims; 1219
• to provide inputs to any policy making decisions or implementation 1220
• develop content for consumer information or education materials and programmes 1221
• settle disputes / manage grievances (complaints from consumers) 1222
Following are approaches to collaboration according to levels of engagement: 1223
1224
4.2.1. Policy Advisory 1225
Consumer associations can use the following approaches (based on expertise, availability of 1226
credible data and resources) to record their positions in relation to policies and decision making: 1227
- Position papers, working papers or memorandum (these can be distributed to all relevant 1228
ministries – where there exists multiple laws for a particular consumer product or service 1229
sector) 1230
- Focus group discussions and reports 1231
- Multi-stakeholder workshops and reports – if the product or services category involves 1232
more than one regulator 1233
- Survey and reports 1234
- Analysis of complaints received for a particular consumer product or service sector (if the 1235
association handles consumer complaints) 1236
The role of consumers associations is particularly vital for proper risk management. The problem 1237
and its proposed solution should be thoroughly examined. Objective presentation and discussion 1238
of the facts with regard to (but not limited to): 1239
- industry and trade practices, 1240
- potential hazards to consumers, 1241
- risk assessment, 1242
- socio-cultural issues 1243
- environmental issues and 1244
- economic impact 1245
provide balance representation of a situation and guides policy decision making better. 1246
1247
44
4.2.2. Consumer Awareness and Education 1248
1249
Consumers benefit from wider dissemination of information in an appropriate form on subjects 1250
such as product safety incidences, accident reports and poisonings; incidence of food, 1251
cosmetic or medicine adulterations, counterfeit products, and the resultant economic losses, 1252
privacy and personal data protection, labeling and health hazards from street food vending etc. 1253
1254
Figure 13 : Getting Consumer inputs (WB report on Consumer Representation and Regulations) 1255
Consumer protection agencies and sectoral agencies 1256
with consumer protection roles should expand and 1257
strengthen their communication network. The network 1258
should include consumers and use all current forums 1259
within the agency or outside for proper dissemination 1260
of information relating to problems or issues related to 1261
consumer products or services and educating and 1262
empowering consumers. 1263
Flexible and informal approach is mostly used to reach 1264
out to the poor or rural consumers. Consumer 1265
associations in collaboration with the relevant agencies 1266
can tailor their awareness campaigns according to 1267
whether the poor are located in rural or urban areas. 1268
1269
NGOs work together with Consumer
Protection Agency of Egypt, in
partnership with the Global
Environment Facility GEFUNDP Energy
Efficiency Project to raise public
awareness of sustainable energy and
misleading advertisements of
disqualified led lamps.
Box 9 : Egyptian NGO collaboration on Energy Efficiency project
45
Consumer associations in collaboration with the relevant agencies usually apply the following 1270
approaches (often in combination and at varying degree) for expected outcome: 1271
- Public outreach – talks, mini workshops, nationwide young consumer education 1272
(annual) programmes; competitions; community level projects 1273
- Social Media campaign 1274
- Publications – infomercials, brief flyers, handbooks, guides, school curriculum 1275
- Briefing paper – newsletters on consumer issues 1276
- Testing and test reports 1277
- Media or press conferences 1278
- Surveys and polling 1279
Content for the publications and scope of survey if needed can be determined in consultation 1280
with the relevant agencies or experts to ensure that it provides accurate and unbiased 1281
information to the agency and for consumers to make informed choice. 1282
1283
Figure 14 : Consumer Outreach (WB report on Consumer Representation and Regulations) 1284
1285
1286
46
4.3. Challenges: 1287
4.3.1. Funding: 1288
Major consumer groups in the industrialized world have used testing of products and magazines 1289
as their income source. Consumers in these economies usually pay to subscribe the magazine. 1290
However, it may not always be possible for groups to generate sufficient income, especially if 1291
they are representing the poorer sections of society. 1292
To carry out activities in collaboration with other stakeholders or on its own, consumer 1293
associations often face constraints due to funding. This constraint is perennial with both 1294
government and non-government organisations. 1295
1296
1297
1298
1299
1300
1301
1302
1303
1304
1305
1306
1307
1308
Under limited funding resources consumer associations or representatives should resort to 1309
analytical and writing skills. Desktop researches are helpful if national data or information is 1310
readily available or at least reported by the media. 1311
The national consumer association should seek to be part of a regional or international network 1312
of consumer associations or civil society groups such as Consumers International or NGO 1313
Alliance for Road Safety or International Water Association etc. These alliances could in several 1314
cases present opportunities to apply for project funding, access to expertise who often offer 1315
valuable advice on a specific subject matter and access to essential capacity building 1316
opportunities. 1317
1318
Figure 15 : Example of Comparative Testing and Advisory Magazine (from CHOICE, Australia - left; and VOICE, India - right)
47
Social gatherings such as religious places, markets or community halls can be used to gather 1319
information necessary for a report on specific consumer issues – such as cost of living, water 1320
quality, road conditions and access to healthcare or issues related with bank hidden charges. 1321
The same gatherings can be used to deliver short messages about new consumer issues and 1322
laws or guidance to safe food preparation and purchase or where do consumers send their 1323
complaints or voice their grievances. 1324
1325
4.3.2. Human / Staff: 1326
To address challenges associated with limited human resources especially for technical issues – 1327
the consumer associations can engage assistance of universities or professional associations for 1328
‘pro bono’ services – for example with lawyers and doctors. 1329
Consumer associations should work with their national consumer protection and competition 1330
authorities to access capacity building programmes organized by the UNCTAD MENA 1331
Programme Regional Training Centres for Competition Law and Policy based in Tunis, Tunisia. The 1332
Regional Training Centre was launched in November 2016 and provides training, courses and 1333
support information exchange in Arabic and French. 1334
1335
4.3.3. Equipment / Materials: 1336
When printing and communication equipment are limited and not accessible there are low 1337
cost technologies which can deliver relatively effective results. Satellite phones and community 1338
centres, ‘runners’ and loudspeakers at bazaars and marketplaces could get messages out to 1339
general public or gather feedbacks and concerns. 1340
Over time, trust can be built if all parties work together and truly listen and if the consumer's 1341
concerns are incorporated into solutions. As long as there are differing opinions, there will be 1342
potential for conflicting messages. Differences and debates are necessary and unavoidable. 1343
In terms of language and literacy, a variety of modes of communication must be used, tailored 1344
to the community. Even in highly literate societies, there is a need to recognize that the 1345
language of the specialist is not easily understandable to a wide range of people. 1346
Availability of information in the language of the community and of minorities living in the 1347
community is important. Use of graphics (in low literacy communities) has worked well for 1348
organisations such as the WHO and the UN in communicating prevention measures for diseases 1349
such as the Guinea Worm Disease in Africa. 1350
1351
48
1352
Box 7 : Food Safety in MENA Region 1353
1354
Consumer protection agencies and local authorities support could be sought to provide 1355
assistance in terms of venue, food and beverages and resources persons (expertise). 1356
1357
CASE STUDY: Food Safety
The MENA region has experienced several efforts to modernize food safety policies and laws. Due to rapid urban
development and changes in food consumption and lifestyle, there are safety risks associated with such growth.
MENA region is also the largest food importer in the world and demand is increasing as many are lifted out of
poverty and a burgeoning middle class. Many have cultivated consuming food outside their homes supporting
growth of food services industry i.e restaurants, cafes and street food. Challenges in safety of food consumed have
also increased and are varied. For example many in the agencies in the MENA region are under capacity to
respond to food safety scandals such as the melamine scare and XXXXX. The food safety agency in Malaysia was
slow to respond to the melamine contamination of infant formula. After the consumer organization intervened, the
hotlines were opened 24/7 and received thousands of queries from worried parents and mothers.
Inspection of restaurants and the criteria applied may not be standardized across the region or cities. Or the same
standards may not be applied for locally produced foods as in imported food. Consumer organizations can
address these shortcomings by:
1. Applying ICT and apps to engage consumers to provide reviews of the restaurants they visit.
2. Develop and incident or complaint site preferably online
3. Work with regional or local government to set up kiosk to enable consumers to report food safety incidents.
4. Use local gathering venues such as mosques, madrasahs and bazaars to spread awareness about food
safety, cattle and livestock related diseases (such as brucellosis and salmonellosis), safe food preparation,
food borne diseases and its burden on health and cost of living.
Share articles and best practices in the Middle East Food Magazine – for example
49
Table 4: Collaboration Approach Snapshot based on possible objectives 1358
Association Name Programme / Project:
Date:
Objectives of Collaboration Possible Mode Content , Materials
Human Resources Cost and Funding
Pre-requisite (for effectiveness)
increase understanding of
the likely impact of consumer laws and policies
on consumers;
Conventional
correspondence
draft copy of
policy or laws, regulations;
comments and positions
knowledge of the
policies and laws and technical
implications (if any);
travel, tokens
(for experts, part-timers,
volunteers etc), utilities,
Sources – already
provided by agencies;
part of larger project
funding or operational
grants , donations
laws or policy call for
consumer representation
and agencies implement this.
If possible –
travel
allowances
which will go a
long way.
Meetings, focus groups,
workshops and consultations
could be group of
multi-disciplinary consumer
representatives - need not be
fulltime staff.
bring consumers’ concerns to the attention of policy
makers
Focus group, interview
survey
Policy paper, survey report,
complaints or incidence
analysis report
Survey, volunteers, social researchers
travel, tokens (for experts,
part-timers, volunteers
etc), utilities, Sources –
already provided by
agencies; part of larger
project funding or
operational grants ,
donations
increase understanding of
legal requirements;
Collaterals – brochures,
flyers Workshops
Importance of
these requirements
and risk of non-compliance
Legal background
experts and volunteers / staff for
dissemination. Media personnel.
Similar to
above
determine credibility of labeling, quality or
certification marks and claims;
Market surveillance, consumer complaints
Surveillance report,
complaints analysis report
knowledge of the policies and laws
on labeling requirements
Similar to above
to provide inputs to any
policy making decisions or implementation
Meetings, focus groups,
workshops and consultations
draft copy of
policy or laws, regulations;
comments and positions
knowledge of the
policies and laws and technical
implications
Similar to
above
develop content for
consumer information or education materials and
programmes
focus groups, workshops
and consultations
easy to
understand by target group
with appropriate graphics and
format
knowledge of the
policies, laws and technical
implications, knowledge of adult
learning principles.
Similar to
above
settle disputes / manage
grievances (complaints from consumers)
community centre,
forums, interviews, survey, complaints centre /
hotline/online
complaints
analysis report
knowledge of the
policies, laws, some customer service
experience / skills
Similar to
above
1359
50
Consumer organisations can assist or cooperate with consumer protection and competition 1360
agencies in advancing consumers’ economic interests via several methods and approaches as 1361
outlined in the following table: 1362
Table 5 : Methods and approaches collaboration with consumer protection agencies according to 1363 consumer interests 1364
Consumer Interests
Collaboration and Partnership approaches
Responsibilities and Roles
Consumer Organisation
Government Agencies
Traders
Informed choice
Consumer associations which provide dispute resolution services can feedback or report to the relevant agencies on the extent of problems associated with lack of or limited information to consumers to make informed choice: for example absence of expiry date, absence or illegible registration or approval number on cosmetic or pharmaceutical products and language used in the assembly and instruction manual cannot be understood.
Provide complaints handling (alternative dispute resolution - ADR) services. Help consumers identify what is correct information and differentiating these from inaccurate or false information.
- Can also have specific or general dispute resolution facility, online complaints handling;
- Laws related to minimum requirements for labeling and other consumer product and services labeling information.
- Funding for the operation of the ADR by consumer associations
- Assist in education and awareness materials content development
- Platform to exchange information and analysis of the complaints received as guidance for the review of consumer protection policies and laws.
- Ensure that information provided are easily understood and accurate / impartial.
- Claims made on products and services are guided by laws of the country and international best practices
- Assist in education and awareness materials content development
1365
51
Consumer Interests
Collaboration and Partnership approaches
Responsibilities and Roles
Consumer Organisation
Government Agencies
Traders
Quality and Standards
Consultations with consumer associations on new area of standards development, review and publication of standards. Consultations on weights and measures, unit pricing and non-compliance.
Get involved in national, regional and international standards development. Based on consumer behavior and expectations – raise issues of concerned to the relevant agencies and traders (trade / industry sector associations) Educate consumers / general public about the role of certification marks and testing etc. Seek to link with international standards organisations such as the UN ECE, ISO, IEC and Codex through the relevant National standard bodies and representatives.
Based on good standardization practices – government agencies MUST make provisions to engage and involve consumer organisations in standards development at national level and if resources permit at regional and international level. Government agencies can engage consumer organizations to obtain information about how consumers interpret labels and test marks, safety incidents and performance of products and services. Assist in education and awareness materials content development
- Assist in education and awareness materials content development
1366
52
Consumer Interests
Collaboration and Partnership approaches
Responsibilities and Roles
Consumer Organisation
Government Agencies
Traders
Complaints handling and Dispute resolution
Establish consumer complaints facilities – affordable and accessible Studies on consumers’ expectations and dissatisfaction in products and services
Establish consumer complaints facilities – affordable and accessible Initiate studies on consumer needs contingent upon availability of resources.
Ensure that there are effective, responsive, affordable and easily accessible complains handling system or dispute resolution facility.
Weights and Measures (WM)
Market surveillance and complaints from consumers are forms of feedback to the relevant government agencies on the effectiveness of the weights and measures act in the country. WM laws should also keep pace with latest technology developments such as standard measurement for broadband speed and unit pricing for call time and mobile data.
Consumer organisations channel WM related complaints to the relevant authorities and provide updates on anticipate impact of latest technologies which include or introduce new forms of commercial measurement systems.
Ensure availability and efficiency of WM verification (calibration) facilities – physical, chemical etc) Clear packaging and labeling laws and policies governing business to business and business to consumers commercial measurement systems. Assist in education and awareness materials content development
Consultation with officials on the market issues related to WM. Need to review existing WM policies and laws.
1367
1368
53
Table 6 : Summary Checklist for Consumer Associations on Effective Collaboration Between Consumer 1369 Associations and Consumer Protection and Competition Agencies 1370
Logical Steps Descriptions Status
Pre-conditions - Understand consumer issues in your area / community
o basic needs, product / services safety, information, choice, redress, environment and health, consumer education, complaints / grievance procedure
o who are your networks : researches, media, local community leaders, student bodies, village heads etc?
- Consumer protection laws and policies in your country
o any avenue for participation?
o channels of communication?
o redress and complaints handling mechanism?
- Understand the UNGCP
Determine objective of collaboration
- increase understanding of consumer laws and policies;
- increase understanding of legal requirements;
- bring consumers’ concerns to the attention of policy makers
- determine credibility of labeling, quality or certification marks, compliance and claims;
- to provide inputs to any policy making decisions or implementation
- develop content and approach for consumer information or education materials and programmes
- settle disputes / manage grievances (complaints from consumers)
Develop / determine approach / mode
- research, test or survey report
- focus group , consultations, workshops
- meeting
- press conference or media release
- outreach (public) – talks, mini workshops, nationwide young consumer education (annual) programmes; competitions; community level projects
- social media campaign
- publications – infomercials, brief flyers, handbooks, guides, school curriculum
- briefing papers
- newsletters on consumer issues
Determine resource requirements
- human resources
- funding
- materials and equipment
Determine effectiveness and improve where needed
- did you meet the objectives of the collaboration and the actions?
1371
54
5. Recent Development 1372
1373
The era on high speed internet, everything internet, social media and collaborative or shared 1374
economy, have increased role of individuals driving changes without consumer associations’ 1375
involvement. Dave Caroll the Canadian musician’s 2009 song on YouTube about how United 1376
Airlines broke his guitar and didn’t want to pay for it resulted in the airline’s stock taking a plunge. 1377
Small consumer groups can gather widespread consumer interest groups to support each other 1378
in their efforts to lobby for better corporate behavior or international recognition for consumer 1379
voice. The internet has increased the speed, convenience, and propensity for such coalition 1380
building. 1381
Young consumers who are highly tech savvy can create videos or images that go viral and 1382
compel business or even governments to improve services. They compare companies’ actions 1383
against their promises and share stories of their own experiences - positive or negative. The 1384
connected world has enabled individual opinions to be shared at unprecedented scale and 1385
speed. 1386
Fake news poses an increasing challenge growing from an irritant to a business. Consumers, 1387
consumer associations, businesses and governments spend increasing amount of resources 1388
(money and time) to manage or response to such news when these can be spent on more 1389
pressing matters. 1390
Driverless cars, internet access to rural communities, using drones and spy toys are posing new 1391
risks to consumers physically and in terms of personal data protection, privacy and security. On 1392
the other end of the spectrum large populations of the world still do not have access to basic 1393
needs such as clean water, sanitation, safe food and healthcare. 1394
There are many research and policy studies undertaken to respond to these changing times and 1395
new demands. Consumer associations should review its approaches to ensure that they are still 1396
relevant and versatile to accommodate new technologies and manage new risks. There are 1397
platforms where consumer associations can interact with other consumer associations (large or 1398
small) and other stakeholders such as businesses to better understand impact of latest 1399
technologies, gadgets and way of doing business or new ways to solve old problems. 1400
In the era of shared economy, collaborative consumer protection is perhaps the approach to 1401
ensure that consumers are protected both online and offline. 1402
The UN Sustainable Development Goals or SDGs addresses various consumer protection issues 1403
among them being: 1404
• Road safety 1405
• Safe mobility 1406
• Sanitation and clean water 1407
• Access to energy (renewable) 1408
• Sustainable consumption and production 1409
• Waste management 1410
55
Consumer associations and consumer protection agencies need to review their roles in line with 1411
evolving consumer and community needs. There are new and innovative low cost technologies 1412
and solutions to age old problems. The Clean Cookstove initiatives is one of them. [Non 1413
Connected Sewer System] 1414
1415
1416
1417
1418
56
6. Conclusion 1419
[to further expand] 1420
Consumers are a dispersed group that lacks expertise and resources and is unlikely to be heard 1421
by regulators. Consumers in conflict areas and countries emerging from conflicts are disoriented 1422
and inadequately represented by a fragmented set of civil society organizations with limited 1423
resources and expertise. 1424
Collective consumer movement (in the form of national association or international 1425
organizations) can compel corporations to improve ethical business practices. Consumer 1426
associations can also influence consumer friendly policies in uncompetitive market environment 1427
in utilities services such as water and sanitation services. 1428
Consumer associations are very much part of a larger ecosystem of consumer protection 1429
infrastructure and systems. A functional and effective consumer association makes significant 1430
and positive impact on the lives of consumers in the country and the region. Their effectiveness 1431
and the way they operate depend very much on national conditions such as consumer 1432
protection laws, culture and availability of local knowledge, researches and availability of 1433
resources. 1434
In most countries there is formal government support for consumer organisations and some form 1435
of dedicated government funding for major consumer associations. Financing from either 1436
industry or government could pose problems related to independence. Some publicly funded 1437
consumer bodies have managed to maintain a high profile and maintain autonomy in policy 1438
making. Consumer associations need to use a combination of fund raising initiatives and 1439
methods to be able to continue serve consumers’ interests. 1440
Consumer associations should be supported by governments at least at the initial stages of their 1441
establishment and have in place strategies to diversify sources of funding in order for the 1442
associations to be sustainable. Consumer associations should ensure that the governance 1443
mechanisms in place enhance the association’s transparency and accountability to those it 1444
represents. 1445
The role of an independent consumer association is still indispensable when it comes to 1446
consumer protection especially in developing countries. They give voice to the voiceless and 1447
ensure that the balance of power in business to consumer relationship is not skewed to business 1448
interests. Government agencies should at least ensure that policies call for and support 1449
consumer participation and involvement in policy development and implementation. 1450
The multi-stakeholder collaborative approach in the era of internet of things (IoT) could 1451
contribute to improved consumer protection on and off-line and support consumer education 1452
and awareness efforts by consumer associations. 1453
Consumer associations and consumer protection and competition authorities need to 1454
collaborate to save on precious resources and implement consumer protection policies 1455
effectively and efficiently. 1456
57
References: 1457
1458
1459
1460
Regional Consumer Networks or Forums 1461
1462
