Key Trends in Consumer Policy

Background Paper to Creating Confident Consumers

May 2003

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Introduction

Trends are defined in the Ministry of Consumer Affairs' Terms of Reference as:

• key changes in the nature of the social, economic, technological and consumer environment since the inception of the Ministry and over the next 5-10 years
• key changes and potential future trends in the nature of consumers and their needs
• international trends in consumer policy (with a focus on "what works for whom") and the role of key consumer agencies.

Deciding what is or is not a key trend necessitates a subjective analysis of a wealth of material. This paper has drawn heavily on overseas research and analysis that reach conclusions based upon similar market, legal and political structures. The relevance of overseas trends to New Zealand's economic development is evidenced by the pressures of a free market world economy and the resultant emphasis on harmonisation of national trade rules. As a signatory to international trading rules and agreements New Zealand is limited in its ability to autonomously run its domestic economy. Whether we like it or not, key international trends will impact on our economy.

Market trends are only one feature that will impact on consumers and consequently shape the direction of future consumer policy. It is also necessary to have an idea of who New Zealand's consumers are and, in terms of statistical information, how they are likely to develop over the next 10 years. Building an understanding of the likely characteristics of consumers is crucial to the development of relevant consumer policy objectives, and to assist us in determining how to provide consumers with information that encourages effective participation in the economy.

Related to this is the need to build collaborative relationships with other agencies, both within and outside the public sector, and the Government has signalled its expectations in this regard. Non-governmental organisations (NGOs) can be effective representatives of consumer concerns provided they are supported and listened to. This paper raises some key concerns for the future of the consumer movement.

Finally, the paper looks at trends in the law from the United Kingdom that challenge current thinking about the type of information consumers need to inform their purchase decisions, and also suggest new ways of thinking in terms of the methods employed to deliver information.

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