World Consumer Rights Day – a time to reflect

Today is World Consumer Rights Day. It was established to remember the basic consumer rights and through them to become more aware of the difficulties that consumers face on a daily basis. Consumers’ difficulties depend on the markets they face. Thus the focus tends to change depending on the level at which the organisation operates. As a local consumer organisation, the Għaqda tal-Konsumaturi (GħK), we associate ourselves with all three levels – the global, the regional and the local – because of their relevance to local consumers.

At the global level, Consumers International (CI) is focusing on the need for more consumer protection in the financial sector. The action is targeting the G20 leaders of the world. It has already seen fruit during their last meeting in South Korea when, in their declaration, they included the “options to advance consumer finance protection through informed choice that includes disclosure transparency and education; protection from fraud, abuse and errors; and recourse and advocacy”.

This was a step in the right direction but CI still holds that much needs to be done in this area. It is thus putting forward a set of proposals to rectify the present situation in which financial institutions, especially banks, are making things more complex in order to shift the market risks onto consumers. We believe these proposals are very relevant to the local scene where during the last financial crisis, the local banks, contrary to local consumers, suffered only a slight blow and are now seeing their profits soar again while the consumers are still licking their wounds.

At the regional level, BEUC, the European Consumer Association, is this year embarking on a campaign to promote collective redress at the European level. This campaign, which is being run by the local consumer associations throughout the 27 countries, is based on a survey to show the need for collective redress. In Malta we will be launching this survey today and we encourage all consumers to participate as this will have an impact at the EU level. Fortunately in Malta, the government has promised that by the end of this year it will be publishing its ideas on the subject.

At the local level the GħK uses this day to project our immediate future direction. I must say that last year we noticed a great change, especially at the end of the year, where a number of local competition issues arose and, unfortunately, are still with us. The change is the consumers’ attitude. Through the press, consumers have expressed their dissatisfaction with the way a number of markets are still dominated and cornered. Not only this but they are demanding action from our regulators in the field. Consumers are not only demanding more competitive markets from these regulators but action to ensure that the benefits of competition end up in consumers’ pockets.

I mention two areas which presently are at a standstill in spite of the fact that consumers have demanded action. The petrol stations’ issue where the owners, through the GRTU, are demanding that consumers pay to the tune of €50 each to bring petrol stations up to the required standard. The GħK is still demanding to know what is going on behind the scenes and behind closed doors as finally it is the consumers who, unfairly, will be made to pay.

Another issue is gas liberalisation. Consumers were relieved when a new competitor entered the market but they are still waiting to experience the benefits of competition as the distribution issue is still pending.

This brings me to the future. Soon the Malta Consumer and Competition Authority will be set up though the Bill is still before Parliament. We feel that in order to have a proactive and vibrant authority to deal with the above issues, it needs to be answerable to Parliament, with less ministerial powers and fresh blood to run the show. We hope that it will have an “Elizabeth Warren” to lead it as otherwise the consumer, as a taxpayer, will end up having just another useless authority. Just like a newborn, its setting up brings about new hopes and expectations. Whether they materialise or not will depend on our actions and inactions.