50 years of consumer rights – how far have we come?

Jenni Mack

Consumer rights

• The right to safety

• The right to be informed

• The right to choose

• The right to be heard

Substantial achievements

… but many have taken time …

• 50 years for unit pricing

• 15 years for nutrition labelling

• 15 years for mandatory product safety standards

• 20 years for national consumer law

• 20 years for national consumer credit law

Role of Consumers International

• Expanded on the first four rights• Won international recognition for those rights• 1985 UN Guidelines on Consumer Protection

CI added – • satisfaction of basic needs, • redress, • education, • a healthy environment

Early protections

• Weights and measures • Fraudulent ingredients

“Dangerous people”• Hawkers and peddlers Act 1849 (QLD) • Pawnbrokers act 1857 (Tas) • Mondey lenders Act 1912 (WA)

First wave organisations

• National Council of Woman, • Country Women’s Association and • Federated Association of Australian Housewives

Advocacy tools: consumer boycotts and protest marches

Market interventions: co-operatives, bulk buying and discount for cash schemes

Post war boom• Economic prosperity, high employment,

growth in manufacturing

• Explosion in white goods and small appliances

• Emergence of consumer testing organisations

• Ruby Hutchison set up Choice

1960s

• April 1960 - First Choice magazine• 1000 members a week

• 1965 Unsafe at Any Speed• Nader’s Raiders

1970s

• Trade Practices Act 1974

• Standards of business conduct

• s52 misleading and deceptive conduct ban

• Linked competition and consumer policy

1970s activism

• CFA established

• Radical groups - BugaUp

• Global Nestle boycott

1980s – expansion

• Federal Bureau of Consumer Affairs• Ministerial Council on Consumer Affairs• PM Hawke gives first Ruby Hutchison

address

• Consumer’s Health Forum • Consumers Telecommunications Network • Financial counselling • Community legal centres

1990s

• Litigation penalties fund advocacy and assistance

• Working with industry

• Rise of economic policy in consumer debates

• The demanding demand side

Consumer policy to Treasury

• Wallis financial system reforms • National consumer Credit Protection Act

2009• Unfair Contract Terms 2010• Australian Consumer Law 2011• Stronger Super• Future of Financial Advice • Payday lending• National disaster insurance

reform

2000s - behavioural economics

Integration of psychology and economicsLooks at how people actually behave

• Policy tools from behavioural economics

• Choice architecture

• defaults

Future of Financial Advice reforms

• Disclosure doesn’t work for conflicts – hence banned

• Opt-in or mandatory contract renewal to end passive income problem

• Opt-in works on both consumer behaviour and adviser behaviour

This decade?

• Consumer solutions without government or industry

• FoodSwitch App

Consumer initiated campaigns

• Dave Carroll – United Breaks Guitars

• Adam Brimo – Vodafail

• Change.org

Consumer rights - relevant as ever• Consumer rights, social justice and sustainability

will continue to underpin consumer policy

• $3.6million fine against Optus for misleading and deceptive conduct

• New technology doesn’t mean old problems go away

This decade - content?

• Access to services

• Sustainable consumption

• Food regulation to address obesity

• Superannuation

• March of technology

• Confusopoly

This decade - advocacy? For Choice• Consumers want more than info

For all groups• Funding?

Glaring gaps

• Superannuation consumer advice and advocacy centre

• Funding for CFA

Agile and innovative

• Productive 50 years• But no certainty because of them • Consumer rights as relevant as ever

We must be more agile and innovative

Ready to respond quicker

More determined than ever