Seminar: Enforcement of Consumer Protection
22-24 November 2004
Hotel Kapsis – Thessaloniki – Greece
Role of Consumer Organizations &
Relations with State Bodies
Ioannis Sidiropoulos
INKA/GCFG: Head of International Relations
Key Aspects
NGOs and Democracy in the EU
Sources of Financing of Consumer Organizations
Independence of Consumer Organizations
Consumer Organizations and State Bodies
Factors of Success for a Consumer Organization
The Hellenic Experience
NGO’s and Democracy in the EU
NGOs and Democracy
NGOs are A Leading Factor of Realization of Democracy in the
EU
NGOs Constitute the Active Expression of the Especial
Feelings, Needs and Beliefs of the Citizens in All Issues of
Interest to them
NGOs Are – Should Be:
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Integrated in the Decision Making Processes,
Supported to Effectively Represent the Citizens,
Respected as Independent Entities
Main Characteristics of EU COs
EU Consumer Organizations: More than 50 years in action
The peculiarity of COs is based on
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the political traditions,
the level of economic development,
the social conditions and
cultural values
Main Characteristics of Consumer Organizations
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Activist Group
Player in Civil Society
Active Part of the Establishment
Historical Phases and/or Ideological Designations
Activist Groups
Consumer Activist Groups are usually small but quite Active
Based mainly on Volunteers they Carry Dynamism and
Emotional Content thus Gaining Sympathy and Support
Their Main Aim is to Persuade Government and Business to Put
Consumer Issues on their Agenda
Player in Civil Society
A Consumer Organization - Player in Civil Society has already a
Long History and Successful Promotion of Consumer Rights
In this Phase the Organization is a Political Factor
The Main Aim is to Develop Consumer Issues in Policies
Their Critical Success Factors are:
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Deliver Consumers Value for Money (Professional Publications) –
Self Financing
Independence (Economical – Political)
Credibility - Legitimacy
Part of the Establishment
A Consumer Organization that is Part of the Establishment
Plays a Major Role in Democracy
The Main Aim is to Secure Consumer Participation and Affect
Consumer Policies
Their Critical Success Factors are:
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Popular Trust
Credibility – Legitimacy
Broad Approach to Consumer Policy Issues
Effectiveness in Policy Management
Methods of Activity
Provision of Information, Advise and Support to Consumers
Demonstrations and Law Suits
Specialization:
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Comparative Product and Services Testing,
Market Surveys and Research,
Social Studies
Dialogue with Social Partners and the State i.e. via the
Participation in Official Bodies
Communication with the Media and Effective Utilization of the
Internet Community
Organization and Participation in International Events
Integration into Networks, Coalitions and Cooperation
Sources of Financing for CO’s
Sources of Financing
Self financed Organizations
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Member or Subscriber Based Organizations
Publication of Test Magazine(s) and/or Consumer Guides
Information and Assistance Services to Consumers
Services to Consumers are – in some cases – partly subsidised by
the state
State Financed Organizations
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A considerable part of the annual budget is covered by
Governmental support
Specific Projects
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EU or National Government (Co)-Financing
Subsidization towards services provided to consumers
About the Independence of CO’s
Independence I
Unlike most NGOs Consumer Organizations cannot be
sponsored by the providers
Consumer Organizations have to maintain independency from
both economic and political interests in order to:
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Provide independent information and support to consumers and
Work with the key actors in the market as well as clash with any of
them when necessary
Economical and (thus) Political Independence of Consumer
Organizations are:
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A Principal Issue
A Key Success Factor
Independence II
A Consumer Organization may only develop its strength and be
effective in its role if it depends:
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Mainly on the Organization’s own resources and
Supplementary on the financial support from the state
It is on the same basis that the Organization may develop its
independency, too.
CO’s and State Bodies
Consumer NGOs & State Bodies I
Can a Consumer Organization be Independent if it Receives
Financial Support from the Government?
Is it Possible that this Organization may Raise Criticism towards
the Government?
Why, in the First Place, should a Consumer Organization turn to
the Government for Support?
Consumer NGOs & State Bodies II
Consumer Organizations Receive no Donations from the Private
Sector (Independency from the Providers)
Consumer Policy is/should be based on the fact that consumers
are the weak side in the consumer-to-provider relationship
Consumer Organizations should have the Capacity to
Represent and Support Consumers
Governments are the Only Possibility for Consumer NGOs may
receive Support from
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Financing of Consumer Policy Activities
Co-financing of Provision of High Quality of Services
Consumer NGOs & State Bodies III
Independence of NGOs: an Ongoing Political Struggle
NGOs: A Relation that Invokes
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Cooperation and Political Criticism
State Bodies: Conditional Financial Support
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Respectfulness of NGO Independence
Common Sins Governments Do
Governments, Parliaments and Enforcement Authorities Usually:
Do not Distinguish Consumer Organizations as Allies
Would Prefer to Support Organizations as long as they Act In
Line with their Policy or not come into Conflict with it
Do not want extra-governmental Centres of Power
Prerequisites
A Consumer Organization is (may be) the ‘Weak’ Side of this
Relationship, Unless it Presumes:
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Ideological and Political Integrity
Sound Strategy
Stable Course and Ability in Political Manoeuvring and
Enhancement of their own Income
Factors of Success of CO’s
Critical Mistakes
Persistence in ‘consumable’ activities: these do not leave much
behind
Controvert the need for professional expertise and rely on purely
volunteer work: no expertise and/or stable activities
Lack of strategy, sound priorities and mid- long term planning
Uncritical adoption of successful ‘foreign’ models
Deadly Mistakes
‘Addiction’ to state or EU funding – misidentification of the need
for consumer base: Loss of social role of the organization
Financing of the everyday operation of the organization from
project budgets. We should place projects among our priorities,
within a specific plan, in the frame of a sound strategy
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to enhance the viability of the organization and its further
development
Deadly Misunderstandings
‘Successful Organizations owe their success to the favourable
environment of their country’. No! they owe their success to the
fact that:
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They developed strategies
They planned their priorities
They made the right choices in most of the critical issues in their
history
‘Subventions are a de-facto right’: This is half the truth.
A Consumer Organization should ensure
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A good plan
Financial and Technical Capacity to implement the plan and
A history of good results
Deadly Underestimation of:
The importance to develop viable activities/services
The value of stable and essential networking and cooperation at
National, European and International level – the ‘poor and lonely
… cowboy’
The European and International procedures that may develop
the organization’s know-how
Cost effectiveness
The use of other’s experiences
The Hellenic Experience
Consumer Policy in Greece I
Consumer Policy has always been a policy of low priority in the
country
In the 23 years that Greece is an EU member state, the national
consumer policy did not follow the developments and the
performance realized at EU level
At practical level national consumer policy was exhausted in:
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The harmonization of the EU legislation into the national law
The ‘enforcement’ by means of communicative political verbalism.
There has never been
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A National Strategy on Consumer Protection or
An Action Plan or
A Remarkable Budget
Consumer Policy in Greece II
Consumer Policy has never been considered as an autonomous
policy, but:
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A reflection of the results of other policies
A result of purely retroactive activities
In general Consumer Policy has been
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Hypotonic and Uninspired and
Excessively under-budgeted
Results
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Inadequate Enforcement of Consumer Protection in the Country
Lack of Effective Market Surveillance
Dissatisfied and Unsafe Consumers
Retardation in the Development of the Movement
Effects on the Consumers
EC Survey: Greek consumers feel more protected in other EU
countries than in Greece
Effects on the Movement
Creation of Many Small, Non Viable Associations (65 today)
encouraged by:
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The Consumer Law with regard to Consumer Organizations
Policies of ‘Equal Distances’
Absence of Criteria of Support
Retardation in Development of the Movement
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Due to All of the Above and
Minimal Financial Support (Consumers actually pay for themselves)
The Consumer Movement
Having no support from the state the Movement should rely on
itself
The obvious strategy to strengthen the Movement was
Networking and developing Common Activities
INKA and INKA Network
INKA, the first ever Greek consumer organization, was
established in 1970
The current structure of the Network of INKA Consumer
Organizations (the umbrella organization) was established in
1995
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To promote the consumers’ interests in the country
The Practical Role of INKA/GCFG
At practical level the umbrella organization had to undertake,
develop and distribute to the Network all the common, critical
and high cost activities so that:
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the cost to performance ratio of the services provided to the
organizations and to the individual consumers should be the best
possible
access to these services should be ensured for all organizations in
the Network as well as their individual consumers-members, even
for organizations who could not financially contribute to the costs
and in some cases services were also provided to individual
consumers, regardless the fact that they were members of any
organization in the Network or not.
Ioannis Sidiropoulos
INKA/General Consumers’ Federation of Greece
Head of International Relations
3, De La Salle Str. – Thessaloniki – 57010 – Greece
Tel: +30 2310 676220 – Fax: +30 2310 676221
ioannis@inka.gr
Thank you for your attention