Creating Confident Consumers

The Role of the Ministry of Consumer Affairs in a Dynamic Modern Economy

May 2003

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11. Recommendations

Having considered all of the issues canvassed in this Report, the Review Team recommends that the General Manager:

1. Agree that the Ministry's activities (outputs) should be aimed at achieving the high-level outcome: "consumers transact with confidence". This outcome underpins dynamic and competitive markets, and contributes to MED's major outcome: "New Zealanders attain a sustainable increase in income growth, promoted by a supportive business environment".
2. Agree to adopt the guidelines for involvement, as they will help the Ministry in exercising its judgement about whether to get involved with different consumer issues. The guidelines for involvement should be reviewed from time to time to ensure they remain relevant and useful.
3. Note that the Ministry has a role in:
   • establishing, administering, and implementing consumer policy and in enforcing the Weights and Measures Act 1987
   • facilitating the development of, and monitoring the effectiveness of, market-based solutions to consumer issues, including self-regulation
   • delivering information to consumers and suppliers, including: requiring the provision of information by suppliers where necessary and desirable; explaining consumers' and suppliers' rights under consumer law; providing information on the safe use of products; and targeting groups of consumers who face particular barriers in accessing information.
4. Agree that the Ministry must maintain internal capability in policy, operational and technical expertise - and, in particular, the Ministry needs to manage succession issues that risk the loss of considerable experience and institutional knowledge.
5. Agree that the Ministry should understand consumer experience, consumer behaviour, trader experience, and trader behaviour and undertake research into existing and emerging consumer issues in order for the Ministry to achieve its outcomes.
6. Agree that the Review has highlighted several significant issues which, with further clarification, may be included in the Ministry's work programme in the medium term. These issues concern:
   • the ongoing effectiveness of the Ministry's information strategies
   • the information needs of targeted consumers, young consumers, and non-targeted vulnerable consumers
   • the assessment of new market practices as they emerge, including cross-border transactions.
7. Note that the Review Team endorses the priority that has been given in the Ministry's proposed work programme for 2003/04 to initiate:
   • a "review of consumer protection law and its enforcement"
   • a first-principles review of self-regulation, and the Ministry's involvement in it.
8. Agree that the review of consumer protection law and its enforcement should consider the mix of approaches to redress and enforcement (including the role of self-regulation) that will best contribute to the Ministry's high-level outcome of consumers transacting with confidence.
9. Agree that the Ministry should be able to provide robust analysis of the impact of its policy and operational outputs on its outcomes.
10. Agree that the Ministry should work with other key government, State Owned Enterprises and industry bodies in the consumer environment to monitor and evaluate their effectiveness in achieving consumer outcomes.
11. Agree that the Ministry should adopt a more systematic approach to its relationships with stakeholders, including identifying and developing structured institutional relationships with stakeholders who:
    • are key players in the consumer outcomes framework
    • can act as a radar for emerging issues
    • can provide information to assist in monitoring and evaluation of Ministry policies and programmes
    • can directly assist the Ministry in achieving its outcomes, while recognising that changing priorities will dictate a need to reprioritise relationships.
12. Agree that the Ministry should seek to have greater input into the discussions between MED (led by RCP Branch) and the Commerce Commission on accountability and monitoring issues.

And the Review Team recommends that the CEO of MED:

13. Incorporate the Ministry's outcomes framework in MED's intervention analysis because of the contribution it makes to MED's major outcome that "New Zealanders attain a sustainable increase in income growth, promoted by a supportive business environment".

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