Gov’ts failing to protect consumers – Survey

A survey of consumer protection legislation conducted by Consumers International (CI) in 58 countries has revealed lack of government attention for some of today’s most pressing consumer rights issues.

The survey, published Friday, is part of consumer movement’s demands for the revision of the UN Guidelines on Consumer Protection. The results of the survey, collected by 70 of CI’s national member organisations, revealed that barely half (52 percent) of the countries surveyed have a national policy to protect consumers.

Even where specific legislation does exist, it by no means guarantees consumer justice. For instance, while 91 percent of governments fine companies that violate consumer laws, only 55 percent order financial compensation to consumers.

Helen McCallum, Director General of CI said: “This global consumer protection survey is a unique piece of work. It is the first-ever comprehensive attempt to highlight the gaps in consumer protection around the world, and should be crucial reading for anyone concerned about consumer legislation and the state of consumer rights.”

The survey also indicates a lack of government action on contemporary consumer concerns such as e-commerce, environmental impact and corporate behaviour: Less than a third of governments (29 percent) have mechanisms in place to resolve e-commerce disputes out of court, meaning victims of online shopping malpractice may be forced to seek redress through expensive court settlements.

Barely half (52 percent) require companies to disclose energy consumption of home appliances, leaving consumers unaware of the environmental impact of the goods they buy. Less than half (47 percent) use incentive measures – such as tax breaks, exemptions and labeling schemes to encourage consumer goods companies to be ethical and socially responsible.

The study also indicated a lack of commitment to consumer education, with only 38 percent indicating its inclusion within national school curricula and only two in five governments monitoring awareness of consumer rights within their borders.

Helen McCallum said, “This survey shows that modern consumer concerns – such as digital rights, environmental impact, and corporate responsibility – are not being adequately addressed by governments. And to address this, we want to see better laws, effective policy and tougher enforcement, alongside an update to the UN Guidelines of Consumer Protection so that they truly reflect the legitimate needs of consumers across the world.”