46 national governments and the European Union adopted a declaration on ‘Protecting and Empowering Consumers in the Digital and Green Transitions’ at an OECD meeting of Consumer Policy Ministers.
The declaration notes that consumer spending accounts for around 60% of gross domestic product across OECD countries and highlights that “consumer well-being should be a priority for businesses and for government policy”. But it overlooks the need for regulatory action to protect consumers and is silent on the need to boost consumers’ spending power to enable working people to buy more climate- and environment-friendly goods and counter the on-going cost of living crisis.
The declaration’s emphasis on consumers’ power to “collectively influence business conduct” “in well-functioning markets” also misses the mark: markets are not well-functioning but even if they were, regulation is still needed to govern business conduct.
Ministers and the European Union commit in the Declaration to:
- identify and take action against ongoing and emerging consumer harms in digital markets;
- encourage businesses in digital markets to pay due regard to the interests of consumers and act in accordance with fair business, advertising and marketing practices, as well as the general principle of good faith;
- protect and empower all consumers.
Veronica Nilsson, TUAC’s General Secretary, said “While consumer behaviour can, to some extent, influence business conduct, it is regulation that ultimately sets the rules of the game and ensures business practices serve society’s values and goals. The many references in the Declaration to well-functioning markets should refer to well-functioning and adequately regulated markets, but disappointingly do not.
“Encouraging business to pay due regard to the interests of consumers is not good enough. The market cannot and will not solve all problems, and government action cannot simply be about helping consumers to make the right choice; it has to impose and enforce regulation.”
Participating in the Ministerial meeting on behalf of the trade union movement was also Therese Guovelin, Vice President of TUAC and former Vice President of LO-Sweden, who made a strong case for Government policy to boost the purchasing power of consumers to enable working people to buy more climate and environment friendly goods, and to combat low growth and prevent job losses.
Therese Guovelin also spoke in favour of prohibiting the destruction of returned, unsold and serviceable goods in e-commerce and said Ministers should support circular business models, highlighting the growing trend for second-hand goods.
Photo @OECD 2024
