CONSUMER MOVEMENT IN ROMANIA Presentation for ECCG meeting, 13 March 2014, Emil Bojin.

CONSUMER MOVEMENT IN CONSUMER MOVEMENT IN ROMANIAROMANIA

Presentation for ECCG meeting,13 March 2014, Emil Bojin

•1919-1929: The Consumers League: a cooperative, protection of economic interests

•1990: the first modern consumer organisation: Consumers Protection Association (APC).

•Before, in the planned economy: regulations on food quality, home appliances. Consumers vs. State.

•APC first activities: to make complaints

1992:

•Office for Consumers Protection is established

•The first law on consumers rights (according to the U.N. Guidelines, promoted by Consumers International)

•Young free market, old mentalities (county prefect asks PM for help selling potatoes, Gov imports a fleet of sugar)

The ’90s: the transition•Consumers concerns: poor quality of food products and of imported goods (expired, counterfeit), high prices

• Old authorities disappeared, new ones not efficient yet.

•An opinion pool of 1994 asked who is protecting the consumers; results : justice 12%, authorities 24%, police 43%.

The ’90s: the transition•Large inflation rate: over 100%.

•Traders rarely admited any responsibility (it’s producer’s) , widespread labels: "sold goods are not taken back".• •A pyramid Ponzi scheme totally new for the common citizen

•Skilled western advertisers towards naive eastern consumers.

•Public services: textbook examples of monopolies.

The 90s- 2000s: •APC projects financed by EU, CI, Soros, Germany, foundations: leaflets, market studies, small comparative tests, campaigns, courses

•1994: the Ecological University in Bucharest, first course on consumer education

•Local consumer groups – processing complaints

Problems with NGOs:• set-up with foreign aid• set-up by authorities• set-up by individuals looking for profit Problems with consumers :• lack of enthusiasm for public interest• no time for voluntary work• young people look for employment• old people with obsolete attitudes (one inspector/shop)

2007 - today: •Romania joins European Union•National regulations according to European law (hundreds of legislative acts today)

•Large international companies enter local market, bring international products and attitudes•Local traders modernize

•The market is affluent•Growth rate +8,5% in 2008, -6.5% in 2009, +3,5% in 2013•Consumer credit boom

APC today:•Staff: 7 employees•Sources of income: public funding (European Commission and Romanian Government), membership fees, private funding (specific projects)•Members in 2013: 181 paying, 25,000 non-paying members•Main activities: consumers information and advice, comparative testing (ICRT member C), consumer representation and advocacy, consumer education•APC has 18 branches, cooperates with 7 local consumer associations

Member of BEUC, Consumers International, ECCG, International Consumer Research and Testing , Trans-Atlantic Consumer Dialogue

Represents consumers in: • consultative bodies (standardization, laboratories, competition, trade etc.)• parliamentary commissions;• ministry commissions

Policy making: opinion on ANCP drafts

Totul despre D.A.E.

Successful projects:• It is your right, act!• ECC• Family budget• All about APR• Trusted: certification mark for e-shops

APC today:•since 2008, the host organisation of ECC Romania•website visits in 2013:

• APC: 18,990• ECC Romania: 26,229• Family Budget : over 200,000 since 2008

•Advices: 22,000 •Complaints : 8140•Media presence: 350 articles, 7 TV, 22 radio

Other organisations:-about 80 local organisations, poor resources-Complaints, media presence (ANPCPPSR), finances (Conso.ro)-Many leader-oriented

•Current consumers concerns:-Most complaints about non-food products and services (guarantees, tourism)-Credit problems-Influenced by tabloid media (E-nnn ingredients, Codex Alimentarius)•Recent developments:Traditional food shops vs. HypermarketsProtecting local traditions (AOC)

EUROBAROMETER 2012:Most popular organisations are APC and ANPC (gov.)

Classic Bucharest

Modern Bucharest

Thank you !

Country life