Latest info of the last 30 days

Key activities:

Presenting on the ethical trade fact finding process coordinated by CI

Experts are predicting that consumers in the United States will be facing even higher bank fees and tougher account requirements. In its February 2012 issue, Consumer Reports magazine takes an in-depth look at the personal finance landscape and gives consumers the low-down on where to put their money.

Public dissatisfaction with banks in the US has never been higher. Whether it's the sub-prime lending that tanked the economy and forced millions into foreclosure, government bailouts or huge bonuses -  the list of complaints is seemingly endless.

Bank fees - the only way is up

Under pressure from a still weak economy, interest rates at lows and a decline in profits from their investment operations, many large banks are looking to make up the shortfall by hiking up the fees charged on consumer products and services.

Consumer Reports recently forced Bank of America into a much-publicised climb down over a proposal to charge consumers a $5 monthly fee for using a debit card. But despite this victory, the trend for fees is upwards - TD Bank recently began charging $15 for incoming domestic transfers, for example, and Chase has imposed a $12 fee for current accounts which had hitherto been free.

On top of fee increases, experts are also predicting that banks will continue to find new ways to generate more revenue from consumer banking.

Is bigger always better?

The financial services market has until now been dominated by 'behemoth' banks, who have unsurprisingly argued that their size delivers cost savings and efficiency that is passed on to consumers. But when Consumer Reports looked at the figures a different story emerged.

In fact, their research found that credit unions tend to have lower fees than mega-banks. This may largely be because - taking all expenses into account - it costs a large bank $350-$450 to maintain a current account, compared to $175-$240 for a community or co-operative bank.

Consumer Reports advises consumers to check whether their bank is planning to introduce new fees or tougher account requirements, and if so to consider their options.

In 2010, the Move Your Money campaign was very successful in encouraging four million US consumers to switch from 'Wall Street to Main Street' in protest at the irresponsible behaviour of the big banks. But the decision need not be purely political or morally motivated - as Consumer Reports has shown, moving to community banks also saves consumers money!

Consumer Reports has also produced a helpful step-by-step guide for consumers wishing to make the leap.

Find out more about bank fees reform

Consumers Union, the advocacy arm of Consumer Reports, has been at the forefront of civil society efforts to ensure that consumer-friendly financial reform in the US with its Defend your Dollars campaign. The organisation has also played a leading role in CI's global Consumers for Fair Financial Services campaign.

 

On 15 March 2012, World Consumer Rights Day, the global consumer movement will be calling for ' real choice in financial services '. On the day, CI members in many parts of the world will be encouraging consumers to hold banks to account and shop around for a better deal.

Keep an eye on the WCRD Activitiy Map to see what is being planned in your country.

The Minister of Industry, Investment and Commerce of Jamaica has endorsed several key elements of a draft banking code for the Caribbean, following long term discussions with Consumers International. The final code would be a groundbreaking win for consumers, bringing greater clarity and plain language to banking fees, contract terms and service standards.

The Honourable Anthony Hylton has invited all stakeholders to work together to develop a progressive code, which would embody international best practices and be acceptable to the banking sector and consumers alike.

Catalyst for a new banking code

Addressing a consultation on the draft banking code at the Courtleigh Hotel in Kingston, on 19 January 2012, the Minister reflected on the 2010 Consumer Affairs Commission (CAC) survey of bank charges and observed that the findings provided the "catalyst for the development of the proposed banking code."

Financial services in the Caribbean

The development of the code is part of the 'Promotion of Consumer Protection in the Caribbean' project, funded by the Inter-American Development Bank (IDB), which involves Jamaica, Barbados and Trinidad and Tobago. It is a key step in the ongoing work on financial services in the Caribbean region by Consumers International.

Regional Project Coordinator, Consumer International, Candice Ramessar, emphasised that the draft code is not an attempt to coerce the banking sector, but rather to encourage them to adopt practices and principles that are in the best interest of the banks as well as their customers.

The code

The draft code contains 11 key commitments, which include providing clarity on:

• non-discriminatory access
• service standards
• product information
• credit information
• variation in fees and charges
• provisions for elderly
• disabled and pregnant consumers,
• and dispute resolution.

Highlights of the code

Among the key commitments of the draft code is a requirement that banks should display service standards at their branches and on their websites, as well as make copies available on request.

Terms and conditions of contracts should be fair and should set out both parties' rights and responsibilities in plain and simple language, while legal and technical terms should only be used if necessary.

The code also states that banks will provide notification of changes in fees and charges at least 60 days before they are to take effect. ATMs are to display all fees associated with each transaction prior to the completion of the transactions.

Key activities:

Coordinating the Workshop
Meeting with the Barabdos team and implementing specific project activities.

Altroconsumo of Italy and other Italian consumer organisations have helped negotiate an agreement for compensation for the passengers of the shipwrecked Costa Concordia, regardless of nationality.

Consumer rights victory

Consumers International member Altroconsumo and other Italian consumer organisations met with the cruise ship operator, Costa Crociere, and successfully negotiated an agreement for victims of the Costa Concordia shipwreck, which includes:

• Compensation of 11,000 Euros per person as compensation for patrimonial, and non-patrimonial loss, including damage to baggage and personal belongings, and damage for ruined holidays
• A full refund for the cruise and all related expenses, including port taxes
• A refund for air and bus tickets included in the cruise ship expenses
• A full refund for unexpected trips back home
• A refund for medical expenses, and
• A refund for expenses incurred while onboard the cruise ship.

The agreement fine print

Altroconsumo finds the agreement adequate and notes that it applies to passengers of any age, including children, even if they were non-paying guests.

The Italian consumer organisation does point out, however, that the agreement does not cover the families of victims and wounded passengers who received medical treatment at the scene. For these people, the indemnity coverage will be calculated on a case-by-case basis depending on the seriousness of the damage suffered.

The compensation will be credited to passengers within seven days of their acceptance of Costa Crociere's proposal.

What else Costa Crociere is doing

Altrconsumo says Costa Crociere will:

• return all personal belongings and valuables stored in cabin safes, wherever possible
• provide all passengers with specific psychological assistance, and
• cancel any cruise ship reservations made before the shipwreck, without penalty, if cancelled by 7 February, 2012.

More information

In Italy, call 848505050. Or email rimborsiconcordia@costa.it

Our DfID-funded project is already showing fantastic results

Consumers International is pioneering free financial education counselling for poor communities in East Africa with a mix of photocopied materials and youtube.

The initiative, which has helped set up financial counselling services in slum and rural communities in Kenya and Tanzania, has already seen a 125 per cent rise in the number of people sticking to budgets and a 50 per cent fall in those skipping loan repayments.

The project is focused around a free-to-use financial counsellor's handbook, designed to be printed-out and photocopied by consumer groups wanting to set up counselling services.

As an introduction to the project, CI has produced a short film explaining how to use the handbook effectively.

Launched on youtube, the aim of the film is to demonstrate the ease with which financial counselling can get off the ground, the legacy of the project within the community, and the remarkable results of this straight-forward approach.

 

 

Download the Counsellor's Handbook
Blog - Small scale financial education making a big difference
See the project results data
More on the project's background

• Print-outs and online video guide help consumer groups deliver financial counselling in poor communities
• Simple approach is producing remarkable results in East Africa

 

Consumers International (CI) [1] is pioneering free financial counselling for poor communities in East Africa with a mix of photocopied materials and youtube.

The initiative, which has helped set up financial education counselling services in slum and rural communities in Kenya and Tanzania, has already seen a 125 per cent rise in the number of people sticking to budgets and a 50 per cent fall in those skipping loan repayments [2].

The project is focused around a free-to-use financial counsellor's handbook [3], designed to be printed-out and photocopied by both advocates and community volunteers.

Supported by the UK Department for International Development (DfID) [4], and developed for CI by financial education experts Microfinance Opportunities [5], the handbook provides practical advice in a way that non-experts can understand and convey.

The approach seeks to embed financial education within the community by training counsellors from scratch. While these counsellors are by no means financial experts, the accessible design and structure of the handbook means that, with a little training, they are now providing free, impartial financial advice within rural and slum communities.

While the handbook is full of easy-to-understand sections on savings, budgeting and debt management, at 249 pages, it can appear daunting at first. So CI has produced a short film [6] explaining how to use the handbook effectively. Launched on youtube and promoted via CI's 48 member organisations in Africa, the aim of the film is to convince other financial education advocates across the continent to get involved.

Luke Upchurch, Head of Communications at Consumers International:

"After seeing the success of the handbook in Kenya and Tanzania, we asked consumer groups around Africa to tell us what would be the most effective way of getting them involved in the project. They all liked the idea of a how-to guide on youtube, which is not surprising, as consumer organisations in Africa are very active on the internet".

The human impact of financial education

Accompanying the impressive figures from the evaluation of the project, the film explores the impact of the CI project on individuals in Korogocho, a large slum community in Nairobi, Kenya.

Jane Kimaru, a Korogocho resident, explains how it has helped her manage her money. "The education has taught me I need to ask questions before I take a loan; it has removed fear from my heart… Now I can sit with my family and decide if the loan I take will be a benefit or not."

Jacinta Wangechi, another resident, spoke of the sense of empowerment gained from the counselling. "I have learnt I have rights as a borrower. I won't be oppressed again. Understanding the interest rates of different banks means I won't burden my family with expensive loans."

Luke Upchurch, from Consumers International: "People from slum communities like Jane and Jacinta, are often neglected as consumers of financial services. The big banks and financial providers have little concern for the rights of consumers in these deprived areas.

"But, as our film shows, managing personal finances and knowing how to engage with financial services are fundamental consumer rights that can play a major role in alleviating poverty and improving living standards."

More reaction to CI's financial education project

Alyna Wyatt, Financial Education Fund: "This project has taken financial education into the heart of the communities.  It is building awareness about money management and, most importantly, sharing knowledge and skills so that vulnerable and often exploited populations can make informed decisions about the financial products and services they choose."

Monique Cohen, Founder-President, Microfinance Opportunities (MFO): "MFO is excited by the success we've seen from this collaboration. Low income households are welcoming financial education, recognising its benefits and seeking financial education in-person from counsellors . The project is demonstrating that multimedia financial education, including video, can stimulate changes in financial behavior among low income households."

-ends-

View the film

http://youtu.be/9DbJVjjp4F0

View the trailer

http://youtu.be/k_zFtzoH6so

 

Notes to Editors

---

[1] Consumers International (CI) is the world federation of consumer groups that, working together with its members, serves as the only independent and authoritative global voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international movement to help protect and empower consumers everywhere.

CI is a not-for-profit company limited by guarantee and registered in the UK (company no. 4337865). We are also a registered UK charity (no. 1122155).

[2] Against a baseline survey conducted within Nairobi's Korogocho slum; interviews with 250 people who have received FE through the project show a 39% rise in those who say they are saving; a 125% rise in the number of people sticking to budgets; and a 50% fall in those admitting to sometimes skipping loan repayments. Further details and data: http://bit.ly/wuwviw

[3] Financial Education Counselling: Counsellor's Handbook (3.6MB pdf): http://bit.ly/yxKba0

[4] The creation of the handbook and the pilot stage of the project was supported by the Financial Education Fund (FEF). FEF is funded by the UK Department for International Development (DfID).

[5] Microfinance Opportunities is an NGO that develops ideas and solutions that help the financial community better serve the low-income consumer. http://microfinanceopportunities.org/

[6] Know your money: how to provide financial education in Africa: http://youtu.be/9DbJVjjp4F0

 

Press contacts

London: Luke Upchurch

lupchurch@consint.org +44 20 7226 6663

 

Don't let your money languish in traditional savings accounts with large banks. This is the message to consumers from Test-Achats (TA), CI's member in Belgium.

TA has recently run simulations which show that these accounts, which hold deposits totalling tens of billions of Euros, earn savers as much as 50% less interest than the most generous offers available in the market. Many consumers are losing out on hundreds of Euros a year by not switching to better deals. TA is calling for an overhaul of savings accounts to promote competition and provide more choice for consumers.

Rewarding loyalty or trapping customers in bad deals?

The government, in consultation with the major banks, introduced the 'loyalty premium' in 2009. In this system, consumers who open a savings account receive a basic interest rate plus an additional loyalty rate if they leave the money in the account for at least 12 months.The basic rate is usually relatively low, and savers are therefore reluctant to withdraw their funds for fear of losing the loyalty premium.

But TA believes this practice is effectively a scam that locks consumers in, preventing them from shopping around for better deals. The major banks - which account for 70% of all consumer savings in Belgium - are left in the comfortable position of not worrying about losing their customers and therefore not fighting to keep them. But stifling competition in this way means consumers have less choice and many are stuck in bad deals.

Moreover, TA argue that this system has failed in achieving its stated aim to promote stability in the financial system, as the threat of losing premiums did not stop consumers moving their money out of Dexia when it was recently threatened with collapse.

Deceptive pricing

Another part of the problem is the tariff structure of savings accounts, which are far from transparent according to TA. It would be illegal for a shop to charge consumers a different price at the checkout to the one on the price tag. But this is precisely what can happen with savings accounts if the saver removes their money too early and loses their loyalty premium. And 'early' in this case can mean over a year after making the deposit.

Simplify savings accounts and improve information to consumers

TA insists that the government must act to simplify savings accounts in order to ensure proper competition and real choice for savers. And over 80,000 consumers who signed a TA petition are in agreement.

TA is calling for one unconditional interest rate to be offered on savings accounts, which would include the base rate and loyalty premium. In the meantime, they are calling on banks to inform consumers when their deposit 'anniversary' has been reached and it is safe to move their money without forfeiting the loyalty premium.

TA is also demanding that banks provide better and clearer information to savers. A standardised document would be a good first step.

Helping consumers find the best deal

To help get consumers switching, TA has launched a new online calculator that lets savers choose the most suitable account for them. This tool allows users to specify the amount and frequency of deposits they wish to make, and works out which provider is offering the best deal to match their circumstances.

A number of factors are taken into account, including the method for calculating interest, any applicable guarantees, terms and conditions and any changes in interest according to the amount being deposited.

Key activities:

Project planning & coordination.

In less than two months the global consumer movement will be celebrating World Consumer Rights Day (WCRD) 2012. This year's theme will be Our money, our rights: campaigning for real choice in financial services.

We have produced an exciting range of materials for consumer groups and financial services campaigners to use.

 

What's choice got to do with it?

The right to choose is one of the fundamental consumer rights that underpin the work of Consumers International (CI) and its member organisations around the world. But consumers are too often denied this right when it comes to financial services.

CI believes consumers face too many barriers when trying to find a better deal, and financial service providers are not competing for their business.

 

What does competition in financial services really mean?

As well as shedding light on the key issues, the below briefing also outlines a number of steps that can be taken to promote effective competition in financial services markets, ensuring real choice and better deals for consumers.

• WCRD 2012 - briefing on competition in financial services (English - pdf)

• WCRD 2012 - briefing on competition in financial services (French - pdf)

• WCRD 2012 - briefing on competition in financial services (Spanish - pdf)

 

Special investigation - why consumers are losing out in the $483 billion money transfer market

As part of our campaign for greater competition in financial services, we have taken a closer look at the complex issue of international remittances - a system that is costing consumers up to 20% of the money they send in charges.

You can find out more in our global money transfers section.

 

A global map of consumer rights activity

CI is mapping member activity for WCRD 2012 in different countries as it unfolds.  Visit the financial services activity map to see how consumer organisations are calling for real choice in financial services around the world.

 

A guide to campaigning for fairer financial services

Stuffed with practical advice and useful tips, CI members and anyone else campaigning for fair financial services can look to this resource for inspiration when planning WCRD activities.

• WCRD 2012 Member Action Guide (English - pdf)

• WCRD 2012 Member Action Guide (French - pdf)

• WCRD 2012 Member Action Guide (Spanish - pdf)

 

Italian consumer organisations have come together to help passengers of the shipwrecked Costa Concordia wishing to pursue their right to redress.

CI member Altroconsumo has placed a sample redress letter on its website in English, French and Italian, and launched a media campaign to raise awareness of the assistance consumer organisations are able to offer.

Altroconsumo, together with other consumer groups across Italy, have formed a national shipwreck committee, the Comitato Naufraghi, to address the impact on passengers and their rights as consumers. The committee is holding direct negotiations with US-based Carnival Group, the owners of the stricken ship.

Key activities:

Evaluating progress of CDC and ASPEC wrt original project objectives and priorities.

The UK government has confirmed it will implement a ban against excessive card surcharges following a surcharge 'super complaint' by CI member Which?.

Which? submitted a super complaint to the Office of Fair Trading (OFT) in March 2011, asking the regulator to investigate excessive credit and debit card surcharges.

Over 50,000 consumers supported the campaign, either by signing the Which? pledge or emailing UK ministers to implement a ban on excessive card surcharges.

Which? executive director, Richard Lloyd, welcomed the plans as a victory for consumers saying: 'This announcement goes further than the Office of Fair Trading's proposals, finally putting an end to these unfair and excessive charges.'

Read more on this on the Which? website.

As of January 2012, mortgage providers in Australia will have to hand over a key facts sheet to prospective clients that clearly outlines the financial details and long-term consequences of the loan.

For consumers who don't have the time or expertise to sort through the fine print, one of the biggest financial decisions they have to make will be that much better informed, says Australian consumer organisation CHOICE.

Better Banking campaign

The fight for plain English and full disclosure on financial products has been a big part of CHOICE's  Better Banking campaign, which it says is far from over. But there have been some wins. One of the most recent is a step toward clarity for those who want to buy a home but don't speak the same language as the financial services industry.

Key facts

Under the new rules, a standardised one-page summary will spell out the term of the loan, the frequency of repayments, the interest rate, and the total amount that will be paid out if the loan goes to term, including all fees. Consumers will be able to tell at a glance, for instance, that their AUD$300,000, 30-year loan at 7.16% will cost them $742, 019, or $2.43 for every dollar borrowed once you fees are factored in.

The form will also have to make clear whether the loan will be based on a variable rate and include an estimate on increased costs in the case of a 1% rate rise.

 

The government's take

Assistant Treasurer and Minister for Financial Services, Bill Shorten, told CHOICE the initiative will have widespread benefits: "If we make banking more straightforward for people, by giving them simple and easy-to-understand information, we give bank customers the tools to work out what's going on for themselves. Smart people will make smart decisions in their own self-interest, which is good for them and the community."

Not the only way

But not everyone thinks that the Australian government is making things clearer. Australian Bankers Association chief executive, Steven Münchenberg, told us home loan calculators on banks' websites can give people a better idea of what they're signing up for than the standardised form.

"Competition for home loans is already fierce in the financial services marketplace. The jury is out as to whether this fact sheet will increase competition and simplify comparisons or will simply confuse customers," says Mr Münchenberg.

Mortgage & Finance Association of Australia (MFAA) CEO, Phil Naylor, said the main responsibility to provide key fact sheets "is with the lender, as the sheets describe the products they provide".

Nevertheless, Naylor supports the idea on the grounds that, for the brokers who make up most of MFAA's membership, it will serve "as a means of better informing consumers as to the products available and their appropriateness to the consumer's circumstances".

According to the Australian Bureau of Statistics, housing loans as of September 2011 stood at $14,644 billion. The average was $284,400.

New proposals to be put to the G20 for improving financial consumer protection do not go far enough, Consumers International believes.

The draft international principles on financial consumer protection, drawn up by the Organisation for Economic Cooperation and Development (OECD) and now out for public consultation, were requested by G20 finance ministers.  This follows Consumers International's call to the G20 for international action to enhance consumer protection in financial services as part of the Consumers for Fair Financial Services campaign.

However, the current draft principles raise serious concerns for the consumer movement:

• Overall the draft does not demonstrate the commitment needed to address consumers' concerns about financial consumer protection. Too often the principles are undermined by language such as 'voluntary', 'non binding' and 'as appropriate.'
  
  
• CI is very concerned that the draft does not recommend that consumers' assets such as bank deposits should be guaranteed. Deposit guarantee schemes are a protection for all actors, not only consumers. Systemic stability is also protected by such guarantees, which dissuade consumers from making panic withdrawals from their banks.
  
  
• There should be a clear reference to the right of regulatory authorities to require that products have to conform to certain standards in order to be released onto the market, or to continue to be marketed.

• Finally, CI urges governments to support the development of an international organisation for promoting financial consumer protection. The existing international network of financial consumer protection organisations, FinCoNet, should be given the political support and resources to play a more effective role at the global level.

As part of the public consultation CI member organisations around the world are writing to their finance ministers and directly to the OECD with this response, as well as submitting examples from their own country of the consequences of failures in financial consumer protection.

Members of the public can also comment directly on the proposals. Details of how to do this can be found on the OECD's public consultation page.

Find CI's summary response below, and, together with other position papers, on the Resources page in the Consumers For Fair Financial Services section.

The Open Society Initiative of Southern Africa (OSISA) has been funding Consumers International (CI) projects for some time now, so it was only natural that Helen McCallum, Acting Director General, and Bjarne Pedersen, Director of Operations, met with OSISA while in South Africa.

The discussions centered on the green economy and how CI and consumer organisations in Southern Africa could provide an entry point to reaching the poor, marginalised and rural consumers throughout Southern Africa.

In the photo, from left: Robert Michel, Head of Office for Africa, Consumers International; OSISA's Masego Madzwamuse, Economic Justice Programme Manager and Deprose Muchena, Deputy Director; Helen McCallum; Bjarne Pedersen.

Other key activities on the visit 23-28 July 2011

Interviewing for the Africa Member Services Officer.
Looking for a suitable office space for CI Africa.
Meeting with NCF South Africa.

 

• Twenty year struggle within global food safety body ends with 'consumer rights milestone'
• Move clears way for greater monitoring of the effects of GM organisms

Consumers International (CI)i and its member organisations celebrated victory today as regulators from more than 100 countries agreed on long overdue guidance on the labelling of genetically modified (GM) food.

The Codex Alimentarius Commissionⁱⁱ, made up of the world's food safety regulatory agencies, has been labouring for two decades to come up with consensus guidance on this topic.

In a striking reversal of their previous position, on Tuesday, during the annual Codex summit in Geneva, the US delegation dropped its opposition to the GM labelling guidance document, allowing it to move forward and become an official Codex text.

The new Codex agreement means that any country wishing to adopt GM food labelling will no longer face the threat of a legal challenge from the World Trade Organization (WTO). This is because national measures based on Codex guidance or standards cannot be challenged as a barrier to trade.

This will have immediate implications for consumers. Edita Vilcapoma of the Peruvian consumer group ASPEC, representing Consumers International at the Codex meeting in Geneva, said:

"Peru's recent introduction of GM food labelling faced the threat of a legal challenge from the WTO. This new Codex agreement now means that this threat has gone and the consumer right to be informed has been secured. This is major victory for the global consumer movement."

The agreement also recognises the enormous health monitoring benefits of giving consumers transparent information about the presence of GM foods. Consumers International's lead delegate at Codex, and a senior scientist at Consumers Union of the United States, Dr Michael Hansen, stated:

"We are particularly pleased that the new guidance recognises that GM labelling is justified as a tool for post market monitoring. This is one of the key reasons we want all GM foods to be required to be labelled - so that if consumers eat modified foods, they will be able to know and report to regulators if they have an allergic or other adverse reaction."

The labelling milestone is particularly welcomed by CI member organisations in Africa, who have been fighting on behalf of their consumers for the right to be informed about GM food. Samuel Ochieng, President Emeritus of Consumers International and CEO of the Kenyan Consumer Information Network said:

"While the agreement falls short of the consumer movement's long-held demand for endorsement of mandatory GM food labelling, this is still a significant milestone for consumer rights. We congratulate Codex on agreeing on this guidance, which has been sought by consumers and regulators in African countries for nearly twenty years. This guidance is extremely good news for the worlds' consumers who want to know what is in the foods on their plates".

--

Note to Editors

i Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere. For more information, visit www.consumersinternational.org

ii The Codex Alimentarius Commission was created in 1963 by FAO and WHO to develop food standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO Food Standards Programme: http://www.codexalimentarius.net/web/index_en.jsp

The European Consumers' Organisation (BEUC) and Consumers International are deeply dismayed that the G8 group of political leaders' preparatory meeting dedicated to internet issues ('e-G8 Forum', May 24-25 in Paris) will be "organised and financed by industry"¹ in view of the full Summit meeting May 26-27. Debate will centre on the burning issues of the future of the internet, how they should be managed and who should do so.

However, the Forum raises serious concerns due to a complete absence of consumer representatives and participation limited to industry, rights holders and entrepreneurs.

Recent developments such as the controversial conclusion of the Anti-Counterfeiting Trade Agreement (ACTA), the debate on both sides of the Atlantic on Net Neutrality² and now the imbalanced agenda of the e-G8, add to growing criticism of the exclusion of civil society from such key debates.

Helen McCallum, Director General of Consumers International commented:

"To deliberate and decide behind closed doors on such fundamental digital issues prompts serious concerns of legitimacy, process and indeed, whose interests are being served. The voice of users and civil society has been relegated to the spectator's gallery, while the internet's big businesses are encouraged to redraw the maps. All eyes will be on a possible, subtle shift in 'ownership' of the internet, something which should interest us all.

Monique Goyens, Director General of the European Consumers' Organisation (BEUC) said:

"Cornerstone policies on digital issues are currently being settled at national, European and global level. Consumers' interests should be at the forefront, of these deliberations, not an afterthought.

"With the electronic explosion in personal information collected, stored, bought and sold, the risks to privacy have multiplied. Indeed, our basic notions of what is privacy are being redefined by the internet. These huge questions need to be carefully and comprehensively answered, but here the G8 only seems willing to act as cheerleader for commercial interests."

 

ENDS

 

¹ http://www.eg8forum.com/communique_EN.html

² i.e. an open internet whereby traffic and content is not unduly 'managed', prioritised or charged for higher bandwidth services such as audiovisual streaming, film and torrents.

 

Civil society has reacted with dismay and disappointment as the 19^th session of the UN Conference on Sustainable Development ended without agreement in New York in the early hours of 14 May.

CI was heavily involved in the negotiations at CSD-19, as member states came together for one of the final UN discussions on sustainability before the Rio+20 Earth Summit in June 2012.

CSD-19 was a crucial meeting for the future of sustainable development, with member states, civil society organizations and related UN agencies working on the issues of transport, chemicals, waste management, mining and - of great interest to the consumer movement - the 10 year framework of programmes on sustainable consumption and production.

Unfortunately, at the very end of these negotiations (Friday 13^th), with many of the thematic policy recommendations already agreed - the policy text for the 10-year framework of programmes among them- member states were not able to achieve a final consensus regarding a particular issue and this policy cycle ended with no substantive results.

This lack of consensus among governments and the consequent failure of CSD 19 becomes a complicated precedent for the negotiations of the Rio+20 earth summit and it certainly represents a bad sign for civil society organisations working for many years on this issue - CI among them - because it generates a significant gap in the process towards the achievement of the required global, regional and national policies, measures and actions to address the current patterns of production and consumption in a more sustainable manner.

For a detailed analysis of CSD-19, and the possible implications of its failure, download the IISD's Earth Negotiations Bulletin.

Not enough 'brain power' spent on consumers during financial crisis - French Finance Minister, Christine Lagarde tells CI World Congress. 

Minister Lagard addresses consumer leaders from more than 60 countries gathered in Hong Kong to consider the global challenge of financial consumer protection.

In a video address to the Consumers International (CI) World Congress in Hong Kong, Christine Lagarde French Minister of Economic Affairs and chair of the G20 finance ministers in 2011 said:

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

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

Follow all the news on Consumers International World Congress here.

'Not enough brain power' spent on consumers during financial crisis - French Finance Minister, Christine Lagarde to tell consumer world congress

• Consumer leaders from more than 60 countries gather in Hong Kong to address the global challenge of financial consumer protection.
• Vice President of Consumers International calls for new rules to reign in 'abusive' system.
• Representatives from the Financial Stability Board, the OECD, and the World Bank join discussions on financial services

In a video address to the Consumers International (CI) World Congress in Hong Kong, Christine Lagarde French Minister of Economic Affairs and chair of the G20 finance ministers in 2011 will say:

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

 

The message comes as consumer organisations from around the world meet in Hong Kong to debate the state protection for financial consumers.

 

Financial consumer protection is currently the focus of an unprecedented level of international attention. Following requests from the G20 leaders, the OECD, the Financial Stability Board and the World Bank are all in the process of developing international proposals on the issue.  All three organisations will be represented at the CI World Congress to hear the views of consumer organisations.

 

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

 

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

 

James Guest will say:

"The financial services system has become abusive and needs to be reined in. Consumers need protection, and so does the global financial system. It needs to be protected from itself; from the greed and irresponsible behaviour that over several years has pushed the global financial system to the brink of collapse."

 

Consumers International has recently released a set of recommendations calling on the G20 to take action on financial consumer protection. The recommendations cover consumer protection for financial transactions, the structure and functions of national financial consumer protection agencies, redress systems, the promotion of competition in the sector, and the safety of consumers' deposits and investments. The recommendations call for an international organisation to be established to support national bodies and review implementation.

 

As well as financial services, other issues on the CI World Congress agenda will include sustainable consumption, corporate responsibility, consumer access to safe and nutritious food, and consumer rights in the digital world.

 

CI President Samuel Ochieng said on the eve of World Congress:

"The 19th Consumers International World Congress is about exploring ways in which we can empower consumers around the issues that really matter in the 21st Century - sustainability, corporate responsibility, safe and nutritious food, access to knowledge in the digital world, and a fair financial system that puts consumers first, not last."

 

Chairman of the Hong Kong Consumer Council Professor Anthony Cheung complimented CI for adopting a most fitting theme for this congress 'Empowering Tomorrow's Consumers' He said:

"Tomorrow's consumers are bound to be confronted by new unprecedented issues arising from a changing world. Their consumer welfare is something that we must focus our attention on as a matter of urgency and priority."

 

 

-ends-

Media accrediation for CI World Congress can be applied for here:

www.consumersinternational.org/congress/media

Notes to Editors:

• Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere.
• The Hong Kong Consumer Council (HKCC) is an independent statutory body committing itself as the trusted voice for consumer betterment towards safe and sustainable consumption in a fair and just market. Joined Consumers International (CI) in 1976, HKCC became CI Council Member in 1978 and has been the Executive Member since 1994.
• Consumers International's recommendations to the G20 on 'Safe, fair and competitive markets in financial services' can be found at /our-work/financial-services/key-projects/g20-campaign
• Consumers International's 19^th World Congress takes place at the Hong Kong Conference and Exhibition Centre, 3-6 May. Day 1 is dedicated to fringe event with Day 2 & 3 taken up with the official programme. Day 4 is the CI General Assembly. All details are at www.consumersinternational.org/congress
• The CI World Congress occurs every four to five years. It includes the General Assembly where CI's President, Executive and Council are voted in.
• The last Congress took place n Sydney in 2007. The CI World Congress was previously held in Hong Kong in 1991. The co-hosts for the event are CI's Hong Kong member, The Consumer Council.

 

In an open letter released today, the heads of consumer organisations in eighteen G20 countries called on their finance ministers to ensure that the rapid increase in international attention given to financial consumer protection leads to 'a comprehensive solution and tangible benefits for consumers.'

With G20 finance ministers meeting this weekend in Washington, the letter calls for G20 finance ministers to use their influence to ensure the opportunity presented by so much international attention is not squandered.

The letter notes that in just six months the issue has been forced on to the agenda for G20 leaders' and G20 finance ministers. At the same time the World Bank is consulting on a new set of guidelines on the issue, and more than fifty government financial consumer protection agencies are meeting in May to discuss strengthening future collaboration.

The consumer organisations are all members of Consumers International (CI), and have helped develop our set of recommendations for global action on financial services.

Safe, fair and competitive markets in financial services. Recommendations to the G20 on options to enhance consumer protection in financial services, cover consumer protection for financial transactions, the structure and functions of national financial consumer protection agencies, redress systems, the promotion of competition in the sector, and the safety of consumers' deposits and investments. The recommendations also call for an international organisation to be established to support national bodies and review implementation.

Consumer organisations from around the world will be meeting in Hong Kong from 3-5 May for the CI World Congress with financial consumer protection high on the agenda. Speakers include the director of the World Bank's global programme on consumer protection and financial literacy and consumer organisations in the United States, China, the Netherlands, South Africa and Malaysia.

Full list of signatories:

Samuel Ocheing
President, Consumers International

James A. Guest
President & CEO, Consumers Union of United States, Inc.
UNITED STATES

Beatriz Garcia Buitrago
President, Consumidores Argentinos
ARGENTINA

Nick Stace
Chief Executive, Choice
AUSTRALIA

Lisa Gunn
Executive Co-ordinator, Instituto Brasileiro de Defesa do Consumidor
BRAZIL

Michael Janigan
Executive Director, Public Interest Advocacy Center
CANADA

Monique Goyens
Director General, BEUC The European Consumers Organisation
EUROPEAN UNION

Alain Bazot
President, UFC-QUE Choisir?
FRANCE

Gerd Billen
Executive Director,  Verbraucherzentrale Bundesverband
GERMANY

Connie Lau
Chief Executive, Consumer Council of Hong Kong
HONG KONG, CHINA

Pradeep S Mehta
Secretary General, CUTS International
INDIA

Sudaryatmo, SH
Chairman, Yayasan Lembaga Konsumen
INDONESIA

Luisa Crisigiovanni
Director, Altroconsumo
ITALY

Alejandro Calvillo Unna
Executive Director, El Poder del Consumidor
MEXICO

Mr Dmitriy Yanin
Director of the Confederation of Consumer Associations of Russia
RUSSIA

Thami Bolani
Chairman, National Consumer Forum
SOUTH AFRICA

Jaiok, Kim
President, Consumers Korea
SOUTH KOREA

Ali ÇETİN
Vice-President, Tüketici Dernekleri Federasyonu
TURKEY

Peter Vicary-Smith
Chief Executive, Which?
UNITED KINGDOM

 

 

• Final preparations for consumer movement's global gathering in Hong Kong
• Hong Kong Chief Executive Donald Tsang to open proceedings
• Sustainable consumption and fair financial services top the agenda

 

European Union Commissioner for Climate Action, Connie Hedegaard, will deliver the opening keynote address to the Consumer ­­­International (CI) 19^th World Congress in Hong Kong, 3-6 May, it has been announced.

With under a month to go until the event, Commissioner Hedegaard joins an illustrious list of internationally renowned speakers who will be addressing the world's consumer movement at the Hong Kong Conference and Exhibition Centre (HKCEC).

Other leading speakers include Alan Jope, Chairman, Unilever Greater China; Sue Rutledge, Director, Consumer Protection, World Bank; Anwar Fazal, civil society leader and former CI President; James Guest, President, Consumers Union of the United States; and Gerd Leonhard, CEO, The Futures Agency.

The CI World Congress, which will be officially opened by Donald Tsang, Chief Executive of the Hong Kong Special Administrative Region, will be attended by leaders of consumer organisations from over 100 countries, together with representatives from industry, governments, inter-governmental bodies, and civil society. It is being co-hosted by CI member organisation, the Hong Kong Consumer Council.

Commissioner Hedegaard will address the role of consumers in the green economy, a key issue area in light of the overall Congress theme of 'Empowering Tomorrow's Consumers'. Other consumer issues that will feature in sessions across the four-day event include: financial services, corporate social responsibility, food safety, and consumer rights in the digital age.

Consumers International Director General, Joost Martens said:

"We are delighted to have Commissioner Hedegaard address the CI World Congress on an issue that is vital to the future of consumption patterns across the globe. Our event is about looking at ways in which consumer groups can help tackle the major challenges facing the world, and give them the tools to empower individual consumers to make a positive difference.

 

"Alongside the green economy and issues of sustainable consumption, we have an impressive array of world experts exploring issues of global importance to consumers; such as fair financial services, corporate responsibility and access to knowledge in the digital world."  

 

Hong Kong Consumer Council Chairman, Professor Anthony Cheung said:

"Hong Kong is strategically positioned to hold this World Congress in Asia, which has witnessed some of the fastest growing economies as well as the rampant inflation affecting large populations of consumers.

 

"We are honoured to have the Congress held in Hong Kong and to have the opportunity to co-host this single most important world assembly of consumer leaders and advocates at a crucial juncture of time. Fresh ideas and new action are urgently called for to tackle the many pressing issues facing consumers worldwide."

-ends-

 

 

Media accrediation for CI World Congress can be applied for here:

www.consumersinternational.org/congress/media

 

 

Notes to Editors:

 

• Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere.
• The Hong Kong Consumer Council (HKCC) is an independent statutory body committing itself as the trusted voice for consumer betterment towards safe and sustainable consumption in a fair and just market. Joined Consumers International (CI) in 1976, HKCC became CI Council Member in 1978 and has been the Executive Member since 1994.
• Consumers International's 19^th World Congress takes place at the Hong Kong Conference and Exhibition Centre, 3-6 May. Day 1 is dedicated to fringe event with Day 2 & 3 taken up with the official programme. Day 4 is the CI General Assembly. All details are at www.consumersinternational.org/congress
• The CI World Congress occurs every four to five years. It includes the General Assembly where CI's President, Executive and Council are voted in.
• The last Congress took place n Sydney in 2007. The CI World Congress was previously held in Hong Kong in 1991. The co-hosts for the event are CI's Hong Kong member, The Consumer Council.
• Full list of confirmed chairs and speakers:

Alan Jope, Chairman, Unilever in China

Alejandro Calvillo, Executive Director, El Poder del Consumidor (Mexico)

Anna Glayzer, Programme Officer (Food safety and Nutrition), Consumers International

Anthony Cheung, Chairman, Hong Kong Consumer Council

Anwar Fazal, civil-society leader and former CI President

Bart Combée, President, Consumentenbond

Connie Hedegaard, European Commissioner for Climate Action, EU Commission

David Hammerstein, intellectual property advisor, Transatlantic Consumer Dialogue, and former Spanish MEP

Diana Tsui, CSR Director, KPMG

Gerd Billen, Executive Director, The Federation of German Consumer Organisations (vzbv)

Gerd Leonhard, The Futures Agency

Guido Adriaenssens, Chief Executive Officer, International Consumer Research and Testing (ICRT)

H C Yang, Vice President and Secretary General, China Consumers' Association

Hassan Qaqaya, Chief, Capacity Building and Technical Assistance Section, Competition Law and Policy and Consumer Protection Section, UNCTAD

Helio Mattar, Founder, Akatu Institute for Conscious Consumption (Brazil)

Indrani Thuraisingham, Head of CI Office for Asia Pacific and the Middle East, Consumers International

Jaiok Kim, President, Consumers Korea

James Guest, CEO, Consumers Union of United States

Jami Solli, specialist on financial services in consumer protection law

Jan Gustav Strandenaes, Senior Adviser, The Northern Alliance for Sustainability (ANPED)

Jean Halloran, Consumers Union of United States

Jens Henriksson, International Officer, Swedish Consumers' Association

Jeremy Malcolm, Access to Knowledge Programme Coordinator, Consumers International

Jonathon Hanks, University of Cape Town

Jørgen Schlundt, Deputy Director, National Food Institute, Denmark

Justin Macmullan, Head of Campaigns, Consumers International

Lisa Gunn, Executive Director, Brazilian Institute for Consumer Defence (IDEC)

Luke Upchurch, Head of Communications, Consumers International

Niall Dunne, former Director, Saatchi & Saatchi Sustainability

Norma McCormick, Chair, ISO Committee on Consumer Policy (COPOLCO)

Peter Kell, Chair, Australian Competition and Consumer Commission (ACCC)

Premila Kumar, Chief Executive, Consumer Council of Fiji

Rasmus Kjeldahl, Executive Director, Danish Consumer Council

Ratna Devi, Deputy Secretary General, Federation of Malaysian Consumers Associations (FOMCA)

Rehan Saiyed, Storm Corporate Design Limited

Richard Henry Kimera, Chief Executive, Consent, Uganda

Robert Welford, Chairman, CSR Asia

Robin Simpson, Senior Policy Advisor, Consumers International

Samuel Ochieng, President, CIN Kenya and Consumers International

Stefan Larenas R, President, Organisation of Consumers and Users of Chile (ODECU)

Sue Rutledge, Director of Consumer Protection, World Bank

Sunil Abraham, Executive Director, Centre for Internet and Society, India

Thami Bolani, Chairman, National Consumer Forum (South Africa)

 

 

 

 

 

Costa Rican NGO National Front of Sectors Affected by the Pineapple Industry (FRENASAPP), called for a moratorium on further expansion of pineapple production in a public statement released yesterday.

Referring to CI's investigative film about the pineapple trade, FRENASAPP said it based its demand on a "series of stories circulating in Europe and the campaign in the European market against the commercialisation of pineapples in Costa Rica, initiated by the prestigious NGO Consumers International [as well as] a series of unpunished damages by pineapple companies".

The communiqué notes that intensive pineapple production has led to numerous environmental impacts including pollution of groundwater and surface water, draining of wetlands, destruction of forests, sedimentation of rivers, soil erosion, and infestations.

Workers rights violations

FRENASAPP's communiqué stresses "the serious violation of rights of workers," including the right to occupational health, to work in decent conditions, and to earn a living wage.

Environmental consequences violate human rights, "since the right to life is based on fundamental necessities such as the right to health and a healthy environment, to water, to food, and to adequate housing- all of which are being violated".

Furthermore, the communiqué states that "pineapple industry activity essentially benefits transnational companies and their national partners, deepens external dependency, promotes land concentration and undermines food sovereignty… at the expense of decent living communities, particularly the rural poor".

 

FRENASAPP is formed of local groups and communities affected by the pineapple producing regions of Brunca, the Atlantic Huetar and Huetar Norte. The group also has the support of organisations such as Forum Emaus Cedarena Ditsö, environmentalist groups, Asadas Association, development associations and several NGOs and civil society organisations.

World's consumer organisations sign open letter to G20 calling for financial protection for "real people"

Consumers International (CI)[i], which represents 220 consumer organisations in 115 countries, urgently wants to see the needs of everyday consumers of financial services pushed to the top of the agenda at this week's G20 summit.  Consumer organisations from 30 countries, including the G20 countries, have signed an open letter pressing the summit attendees to ensure that the worldwide financial crisis is never repeated.

Justin Macmullan, CI's head of campaigns explains: "Many G20 members have sought to increase financial stability through the development of stress tests, improved independence of credit rating agencies and requirements to increase capital ratios.  And yet, as a group, the G20 has done nothing to address consumer financial protection which - as exemplified by US sub-prime mortgages - was a key catalyst for the financial crisis.

"The interconnected nature of global banking means that people around the world will live with the consequences of this for years to come.  And yet, each year the global economy creates up to 150 million new consumers of financial services, many of whom are in countries where consumer protection and financial literacy are woefully inadequate.

CI urgently wants to see the establishment of an Experts Group on Consumer Financial Protection which would help to ensure that consumers from both developed and developing nations have access to stable, fair and competitive financial services.

CI members around the world have been lobbying their own governments as well as the South Korean government to make sure that the interests of "real people" are not overlooked for the interests of big business.

Justin Macmullan concluded: "The time has come for the G20 world leaders to make a real commitment to protecting their citizens from abusive financial services industry practices which are not in the best interests of the consumer.

"International co-operation on financial consumer protection has the potential to deliver substantial savings for individual governments.  This can be achieved through the co-ordination of research, the development of standards and guidelines, the sharing of best practice and the avoidance of costly crises."

-ends-

Notes to Editors:

[1] Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere.

Our member organisations have extensive experience of working in financial consumer services including the testing of financial products and services, the provision of financial education and information to consumers, as well as consumer representation and advocacy.

CI wants the Experts Group on Consumer Financial Protection to create and recommend adoption by national governments of minimum standards relating to:

• Fair contract terms and charges for financial products and services
• Information design and disclosure on financial products
• The governance and functions of national financial consumer protection bodies.

It should also make recommendations for:

• The promotion of effective competition in markets for financial consumer services
• The development of a permanent organisation for international standard setting and co-ordination with regard to financial consumer protection.

 

---

CI urgently wants to see the needs of everyday consumers of financial services pushed to the top of the agenda at this week's G20 summit.  Consumer organisations from 30 countries, including the G20 countries, have signed an open letter pressing the summit attendees to ensure that the worldwide financial crisis is never repeated. The letter below has also been translated into French.

Dear Sir,

As world leaders gather for tomorrow's G20 summit, Consumers International, which represents 220 consumer organisations in 115 countries, is urgently calling for the needs of everyday consumers of financial services to be pushed to the top of the agenda.

Poor financial consumer protection - as exemplified by US sub-prime mortgages - was a key catalyst for the financial crisis. The interconnected nature of global banking then spread the crisis rapidly from country to country, threatening livelihoods, savings and social stability. People around the world will live with the consequences for years to come.

For many consumer organisations the financial crisis highlighted what is an ongoing emergency in financial services. Consumers International's members in large and small, rich and poor countries are dealing with complaints about financial products and services every day.  And each year the global economy creates up to 150 million new consumers of financial services, many of whom are in countries where consumer protection and financial literacy are woefully inadequate.

Last month, the G20 finance ministers and central bank governors issued a statement detailing the progress they have made in finding 'policies conducive to reducing excessive imbalances and maintaining current account imbalances at sustainable levels'.  This is, of course, important but once again there is barely a mention of the consumer - a crucial element that remains conspicuous by its absence from these international discussions.

The global nature of banking means that countries around the world are now facing the same challenges - it is common sense that they work together to develop solutions. We need a commitment from the most powerful nations in the world to protect "real people" from abusive financial services industry practices.

CI urgently wants to see the establishment of an Experts Group on Consumer Financial Protection which would report to the G20 summit in 2011.  This would be a first step to ensuring that consumers from both developed and developing nations have access to stable, fair and competitive financial services.

Getting this right is not only vital to consumers, but also to the ongoing stability of the world economy.

Yours faithfully,

Samuel Ochieng, President, Consumers International and Chief Executive, CIN, KENYA

James A Guest, Vice President, Consumers International and President and CEO, Consumers Union of U.S. Inc, U.S

Consumer organisations in G20 countries

Ricardo Nasio, President, PROCONSUMER, ARGENTINA

Beatriz Garcia Buitrago, President, Consumidores Argentinos, ARGENTINA

Nick Stace, Chief Executive, Choice, AUSTRALIA

Lisa Gunn, Executive Co-ordinator, IDEC, BRAZIL

Maria Ines Dolc, Institutional Coordinator, Proteste, BRAZIL

Michel Arnold, Executive Director, Option Consommateurs, CANADA

John Lawford, Counsel, PIAC, CANADA

Connie Lau, Chief Executive, Hong Kong Consumer Council, CHINA

Monique Goyens, Director General, BEUC - The European Consumers Organisation, EUROPEAN UNION

Reine-Claude Mader, President, CLCV, FRANCE

Alain Bazot, President, UFC-QUE Choisir?, FRANCE

Gerd Billen, President, Federation of German Consumer Organisations, GERMANY

Pradeep S Mehta, CUTS International, INDIA

Nirmala Desikan, Trustee, Consumers Association of INDIA

Sudaryatmo, SH, Charirman, Yayasan Lembarga Konsumen, INDONESIA

Luisa Crisigiovanni, Director of Altroconsuomo, ITALY

Maite Cortes Garcia Lozano, Colectivo Ecologista Jalisco, MEXICO

Alejandro Calvillo Unna, Executive Director, El Poder del Consumidor, MEXICO

Petr Shelisch, Chairman of the Consumers Union of RUSSIA

Mr Dmitriy Yanin, Director of the Confederation of Consumer Associations of RUSSIA

Dr. Mohammad A. Al Hamad, Chairman of the Executive Board, President of the Consumer Protection Association, SAUDI ARABIA

Thami Bolani, Chairman, National Consumer Forum, SOUTH AFRICA

Jaiok Kim, President, Consumers Korea, SOUTH KOREA

Ali Cetin, President, Federation of Consumer Organisations, TURKEY

Peter Vicary-Smith, Chief Executive, Which? UK

Non-G20 countries invited to attend the summit

John Kapito, Executive Director, Consumers Association of MALAWI

Francisco Sanchez Legran, President, FACUA - Consumers in Action, SPAIN

Jose Maria Mugica Flores, Director General, OCU, SPAIN

Ana Isabel Ceballo Sierra, President, Asociación General de Consumidores, ASGECO Confederación, SPAIN

Do Gia Phan, Vice President, Vietnam Standard and Consumers Association, VIETNAM

Response to the communiqué from G20 finance ministers and central bank governors

As G20 finance ministers issue a statement detailing the progress they have made in finding 'policies conducive to reducing excessive imbalances and maintaining current account imbalances at sustainable levels', Consumers International (CI)[i] is urgently calling for G20 leaders to remember the needs of the everyday consumers of financial services.

Justin Macmullan, CI's head of campaigns, explains: "The communiqué from G20 finance ministers and central bank governors acknowledges the high interdependence among G20 countries in the global financial system.  It also notes that 'uncoordinated responses will lead to worse outcomes for everyone' and yet there is barely a mention of a unified approach to the needs of the real people who consume financial services on a daily basis.

"Each year, the global economy creates up to 150 million new consumers of financial services, most of whom are in countries where consumer protection and financial literacy are still in their infancy.

"The communiqué mentions the need for global co-operation to address financial inclusion, but does not make a commitment to protect citizens from abusive financial services industry practices.

"CI, together with our 220 member organisations,  urgently want to see the establishment of an Experts Group on Consumer Financial Protection which would help to ensure that consumers everywhere have access to stable, fair and competitive financial services."

-ends-

Notes to Editors

CI wants the Experts Group on Consumer Financial Protection to create and recommend adoption by national governments of minimum standards relating to:

• Fair contract terms and charges for financial products and services
• Information design and disclosure on financial products
• The governance and functions of national financial consumer protection bodies.

It should also make recommendations for:

• The promotion of effective competition in markets for financial consumer services
• The development of a permanent organisation for international standard setting and co-ordination with regard to financial consumer protection.

 

---

[i] Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere.

 

Our member organisations have extensive experience of working in financial consumer services including the testing of financial products and services, the provision of financial education and information to consumers, as well as consumer representation and advocacy.

 

For more information, visit www.consumersinternational.org

 

 

Consumers International (CI)[i], is calling on G20 finance ministers, who meet in South Korea, Friday 22 October, and world leaders, who meet on 11 November, to make a real commitment to protecting their citizens from financial services industry practices which are not in the best interest of the consumer.

CI urgently wants to see the establishment of an Experts Group on Consumer Financial Protection which would help to ensure that consumers from both developed and developing nations have access to stable, fair and competitive financial services.

Justin Macmullan, Head of Campaigns at CI said: "Consumers have had to put up with abusive practices from the financial services industry for too long and the global recession is making matters worse.  Each year, the global economy creates up to 150 million new consumers of financial services, most of whom are in countries where consumer protection and financial literacy are still in their infancy.

"At the G20 summit in Pittsburgh in 2009, world leaders made a commitment to 'protect consumers, depositors and investors against abusive practices and promote high quality standards'.  Now it is time for them to turn their words in to action.  Getting this right is not only vital to consumers, but also to the ongoing stability of the world economy."

CI wants the Experts Group on Consumer Financial Protection to create and recommend adoption by national governments of minimum standards relating to:

• Fair contract terms and charges for financial products and services
• Information design and disclosure on financial products
• The governance and functions of national financial consumer protection bodies.

 

It should also make recommendations for:

• The promotion of effective competition in markets for financial consumer services
• The development of a permanent organisation for international standard setting and co-ordination with regard to financial consumer protection.

Justin Macmullan continued: "International co-operation on financial consumer protection has the potential to deliver substantial savings for individual governments.  This can be achieved through the co-ordination of research, the development of standards and guidelines, the sharing of best practice and the avoidance of costly crises.

"There are very strong feelings on this issue amongst CI's 220 member organisations, many of whom have lobbied their governments to demand that consumers are not forgotten in the G20 discussions.  CI has also contacted the President of the World Bank and the President of the European Council and will continue to press for change until consumer needs are at the heart of the financial services industry, not an after-thought."

-ends-

 

---

[i] Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere.

 

Our member organisations have extensive experience of working in financial consumer services including the testing of financial products and services, the provision of financial education and information to consumers, as well as consumer representation and advocacy.

 

For more information, visit www.consumersinternational.org

 

 

Demanding more from our leaders on financial consumer protection.

Consumers everywhere need access to stable, fair and competitive financial services. They have had to put up with abusive practices for too long and the recent global recession has not improved matters.With its members around the world, CI has launched Consumers for Fair Financial Services - a new campaign to address this crucial issue.

Despite making commitments at recent summits in Pittsburgh and Toronto, financial consumer protection has remained neglected by the G20. But getting this right is not only vital to consumers, but also to the stability of the world economy.

This is why the consumer movement is calling on G20 leaders to set up a new Experts Group on financial consumer protection at the their next summit in Seoul, South Korea on 11 to 12 November 2010. The Experts Group should be tasked with reporting to the G20 summit in 2011, with strong recommendations on protecting consumers of financial services.

To find out more download CI's full campaign call below:

• Investigative film shows unacceptable social and environmental conditions suffered by pineapple-grower communities in Costa Rica
• Pineapple plantation workers receive just 4% of retail price, retailers 41%
• Cut price tropical fruits undermining supermarket's own initiatives

Consumers International (CI)[i] today launched a Europe-wide campaign[ii] to expose the complicity of leading European supermarkets in the unacceptable social and environmental conditions being suffered by pineapple-growing communities in Costa Rica.

Three-quarters of pineapples sold in Europe come from Costa Rica, with many leading supermarket chains buying from Del Monte, which exports 50% of Costs Rica's pineapples, and Grupo Acon.

CI today released an investigative film revealing the conditions for workers and their families on pineapple plantations in Costa Rica, including those supplying Del Monte, and Grupo Acon. The film, Pineapples: Luxury fruit, at what price?[iii], will be followed by a report later this month revealing:

No living wage:
Grupo Acon workers facing continued cuts in wages for long shifts of backbreaking work, six days per week, that already fall well below a living wage.

Workers suffering from exposure to toxic chemicals:
"I got a skin disease from the chemicals I used whilst I worked preparing the pineapple beds... I had gloves, an apron and a mask to wear but it didn't stop me having problems". Ex-worker at Pindeco (Del Monte subsidiary)

"Twice I was poisoned. The symptoms included vomiting, nausea, physical weakness, lack of energy and skin irritations.... I was taken off the job with chemicals for 15 days and made to do other work, but I didn't get any time off to recover - I had to be back to work the next day". Ex-worker at Pinales de Santa Clara plantation (Del Monte supplier)

Hazardous working conditions:
"Less people work at night than during the day, not many workers like to do night shifts. There are snakes in the plantations at night and these sometimes bite workers.  Three workers have been killed this way in the last year. The artificial lights they give us aren't good enough either, they cast shadows where you can't see anything." (Worker, Grupo Acon)

Contamination of water supplies:
Communities that have drinking water brought in by tanker, as the local source is too polluted by chemicals used in pineapple production to consume. Residents are forced to continue to use local water sources for washing and attribute skin complaints and health problems to this. Hacienda Ojo de Agua has been producing pineapples adjacent to these communities for seventeen years.  The company sells its fruit to Del Monte.

Union breaking:
"When the mass sackings started only non union members were re-hired and the workers that were re-hired found that their new jobs were on lower wage rates. Wages reduced by about 40% in this period and union membership has been reduced to just 11 workers now, from 90 before the sackings started." (Alfonso, Grupo Acon)

These unacceptable conditions exist despite the stated commitment of many supermarkets to source responsibly. Consumers International's research[iv] into the policies of powerful European supermarkets concludes that these positive intentions are being undermined by retail price cuts and aggressive procurement practices that lead to cuts in worker wages and fewer resources for developing better working practices.

Catherine Nicholson, Programme Coordinator at Consumers International said:

"Consumers want low prices, but not at the cost of fair living conditions for producers. While European supermarkets point to their socially responsible policies, price wars are having an unacceptable impact on the conditions for pineapple workers in Costa Rica.

"If supermarkets are serious about promoting fair working conditions in their supply chains they need to pay a fair price to producers, work with them to improve conditions, and adopt purchasing practices that support that commitment."

 

---

[i] Consumers International (CI) is the only independent global campaigning voice for consumers. With over 220 member organisations in 115 countries, we are building a powerful international consumer movement to help protect and empower consumers everywhere. For more information, visit www.consumersinternational.org

 

[ii] The CI campaign kicks-off with the launch of an investigative documentary made for the global consumer body by Guardian Films. Pineapples: a luxury fruit, at what price? is being released by CI and its member organisations in Belgium, Denmark, France, Greece, Poland, Spain and the UK. The aim is to shed light on the poor conditions for workers in Costa Rica and the failure of EU supermarket chains to take their responsibilities seriously.

[iii] Pineapples: Luxury fruit, at what price? can be viewed in here: http://www.youtube.com/watch?v=8p4Kt1dDPDo Language versions and hi-res copies available on request.

[iv] CI is running a wider programme looking at supermarket corporate social responsibility http://tiny.cc/re2af. CI was invited to present the programme's findings on European supermarket policies to the UN last March and in May held a debate at the European Parliament which brought together Costa Rican union activists, retailers and policy makers.

The full findings are available to download: Checked out: Are European supermarkets living up to their responsibilities for labour conditions in the developing world? http://tiny.cc/uuyxa

A regional seminar on banking, credit, financial services and consumer protection in the Caribbean. Organised and facilitated by CI, this event brings together leading experts and financial policy makers from across the region and beyond.

Sessions include:

• Information, Advertising and Contract Terms: A Caribbean Perspective
• Banking for/to the Poor: Access to Basic Banking Services, Credit and Financial Services
• Regulating Financial Markets and Services in the Region: The Role of the Government and other Actors
• Consumers and Financial Literacy: Towards Responsible Borrowing and Credit
• Towards a Legal Framework for Consumer Protection in the Financial Services. Developing Tools and Remedies through Legislation: Best Practices

The United Kingdom's Future of Banking Commission has today delivered its findings to the UK Government, calling for profound reform of the banking system.

The United Kingdom's Future of Banking Commission has today delivered its findings to the UK Government, calling for profound reform of the banking system. The Commission, which was set up by CI's UK member Which?, is a cross-party body looking to increase consumer input into financial services reform.

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See also... Consumer solutions to the financial fix, Our Money, Our Rights! - World Consumer Rights Day 2010