5th Sofia Competition Forum: Expert Meeting on the Interface between Competition and Consumer Policies

Ladies and Gentlemen,

Good afternoon. Thank very much to for attending this consultative Meeting on the revision of the United Nations Guidelines for Consumer Protection. I know many of you have traveled distances to be here, which for me demonstrates the important role consumer policies can play in the world economy.

With consumer expenditure representing 60% of the world GDP, the active participation of confident and empowered consumers is essential. We want to put consumers at the heart of the globalized economy. We want to provide them with a framework and the tools to make the globalized economy work for them. This is why the United Nations is working towards a comprehensive strategy that covers consumer interests in all relevant policies.

As part of this process, we had to look into a number of key \u0020challenges in consumer policy. For instance: the growing complexity of markets and the mismatch between the information provided and what consumers actually need; the move towards more sustainable patterns of consumption, which is a necessity both from an environmental and an economic point of view; and the needs of vulnerable consumers - not forgetting that we all can be a vulnerable consumer at some point.

The ultimate goal of both competition and consumer policies is to enhance consumer welfare. But they approach this goal from different perspectives.

Competition policy addresses the supply side of the market and aims to ensure that consumers have adequate and affordable choices. Consumer policy tackles demand-side issues, and aims at ensuring that consumers can exercise their choices effectively.

In 1985, the United Nations General Assembly adopted, by consensus, the United Nations Guidelines for Consumer Protection . The Guidelines constitute a comprehensive policy framework outlining what governments need to do to promote consumer protection in eight areas: basic needs, safety, information, choice, representation, redress, consumer education and healthy environment.

Since their adoption, the Guidelines have provided an international framework for the development and evaluation of the consumer policy. And Governments have often seen the Guidelines as an essential reference set for consumer protection.

While not legally binding, the Guidelines provide an internationally recognized set of principles, particularly designed for governments of developing and newly independent countries to use in structuring and strengthening consumer protection policies and legislation. They aim to address not only issues of product safety and economic efficiency, but also social justice and economic development; and encourage international cooperation in consumer protection.

Disadvantaged consumers are and must remain the focus of consumer policy, whether they are a disadvantaged group in an affluent country or citizens of a disadvantaged country.

Since the adoption of the United Nations Guidelines, nearly three decades ago, important changes have occurred in the global economy. For instance:

• Goods and services enjoy a freer movement which includes the removal of tariffs and other impediments to trade;
• Radical developments in the information and communication technology are changing the way we produce and consume;
• Internet has become a platform not only for socializing and exchange, but also for market transactions;
• A range of services, particularly essential services previously provided by governments, are being privatized.

These changes deserve a review of the Guidelines not only to ensure that they have achieved what its drafters had intended, but also to assess how relevant the guidelines are in today's reality.

Indeed regular reviews of the guidelines themselves need to be written in as a clause of the guidelines themselves if they are to be of any relevance to current and emerging consumer concerns in a dynamic market place.

In UNCTAD, we consider that there are at least eight key areas of concern, which all nations should unite around as we examine the future of consumer protection.

1. Safety, as a cornerstone of consumer policy;

2. Consumer education: we need to improve consumer information and education to help consumers navigate through increasingly complex markets;

3. Consumer protection: it highlights the fundamental role of consumer organizations not only through informing and raising consumers' awareness, but also by effectively representing and defending their interests;

4. Proper enforcement is essential to increase consumers' trust in markets, and also ensure a level playing field for traders;

5. Capacity building is of crucial importance. The focus should be towards a wider, more active and participatory training community, with a more diversified and multilingual online and off-line offers;

6. Consumer protection should continue being about enhancing knowledge for both consumers and traders;

7. Consumer protection should ensure that consumer rights and policies are in line with current technological and societal developments;

8. Consumer protection also means that consumer interests should be included in sectoral policies that are particularly important for consumers. For instance: e-commerce, food, energy, or financial services.

Ladies and Gentlemen,

Informed and empowered consumers are drivers of innovation, productivity and competition. And this is why Governments, courts and consumer agencies cannot take a back seat as far as consumer protection issues are concerned.

I wish you success in your deliberations and thank you for your attention.