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The Perspectives of the Ministry of Consumer Affairs'
Stakeholders
Background Paper to Creating Confident
Consumers
May 2003
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6. Future
Consumer Issues
6.1 E-Commerce
Building consumer confidence in e-commerce and further
advances in communication technology.
6.2 E-Government
Government introducing a demand for consumers to access
computers, assuming that consumers can access computers.
6.3 Self-Regulation or Government
Regulation
The role of self-regulation vis-à-vis regulation-which is the
most effective in economic and consumer protection terms?
6.4 Globalisation
- Cross-border transactions and all their problems.
- The economic and social consequences of reducing costs to
do with distance. Will the risks increase for consumers; will
there be greater distrust as a consequence in the market?
- The challenge of an ever greater array of goods arriving as
a result of globalisation will continue and the global market
for the provision of services will present a new challenge.
- Internet sales.
- Will there need to be global consumer groups to keep up
with the issues?
- Trade-offs between efficiency and equity.
6.5 Labelling
There will be an intensification of the requirement for the
extensive labelling of products in terms of safety. Food
labelling will have been taken over by New Zealand Food Safety
Forum (NZFSA).
6.6 Safety
The issues labelled as "consumer safety" are likely to
disappear because the Ministry has done so well that only
information will be required. But trans-Tasman product safety
management will be an issue, as well as trans-Pacific, and
Australia-United States.
6.7 Weights and Measures
- Trade Measurement (TM) will become the central government
advisory service for legal metrology.
- TM will also be involved in trans-Tasman and trans-Pacific
issues, and have a closer working relationship with South
Pacific economies.
- Will trust be maintained in weights and measures?
6.8 Credit
The unreality of credit cards in terms of money, plus the
distance of the actual credit providers from the people taking
the credit, will mean that the availability of credit to people
with insufficient ability to pay will continue. You can't
legislate against consumers?
6.9 Targeting
There is no expectation that poverty/lack of employment will
have lessened in five years, nor that good levels of service will
have been restored to rural areas. Therefore, these will remain
issues and targeting will continue to be necessary.
6.10 Goods and services
A range of matters were raised by the stakeholders:
- Where will the vulnerabilities of the average consumer lie
over the next 10 years? Should we be systematically checking
systems to find out?
- Closer regulatory integration with Australia-one market
through
CER and one set of regulatory institutions. Australian
and American standards are going to push against some elements
of New Zealand's regulatory agenda but the prize for New
Zealand will be access to vast markets. What will the
trade-offs be? Will some consumer benefits be lost? For
example, the United States dislikes the concept of Pharmac and
the control of the purchase price of drugs; Australia tends to
have a greater degree of government regulation.
- Too much choice and never enough information/too much
information.
- Bundling of services will make it difficult for the
consumer to unravel the real costs of each service. For
example, one service provider providing the following services
for one fee: telephone, satellite TV, Internet, electricity,
and insurance. There will be a need for impartial analysis.
- The boundaries of all legislation will be pushed to the
limit-for example, what is a sale? Air New Zealand promotion of
fares to Telecom customers who frequently call Melbourne?
6.11 The Cost of Home Ownership
6.12 Retirement Savings,
Superannuation, Ageing Population
Will superannuation be a consumer issue? Will the large
retired population bring other new issues?
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