UNIT 7 CONSUMER MOVEMENT IN

SELECT COUNTRIES

Structure
7.0 Objectives
7.1 Introduction
7.2 Consumer Movement in America
7.3 Consumer Mmement in Europe
7.4 Consumer Movement in Asia-Japan
7.5 Consumer Movement in Developing/Third World Countries
7.6 Let Us Sum Up
7.7 Key Words
7.8 Answers to Check Your Progress Exercises

7.0 OBJECTIVES

This unit deals with the Consumer Movement in some select countries of Asia,
Europe and America. A study of thc comparative growth of consumer movement in
terms of issues involved and patterns of growth will enable you to :
Understand the origin of consumer movement and issues involved in different
countries.
@ Appreciate the differences as well as similarities in the patterns of growth of
consumer movement in different countries.
0 Take note of the role of women in the consumer movement.
Draw lessons for expanding the consumer movement in India.

7.1 INTRODUCTION
In Unit 6 on the consumer movement in India, you have studied history and growth
of consumer movement in the country and its influence. You must have realised that
even while the consumer movement in our country has become strong and some
important consumer organisations and activists have made a great impact, there are
still many challenges facing the movement. In other countries on the other hand, the
consumer movement has been very successful in terms of consumer being taken
seriously. Some of them, of course, face problems; which are similar to India.
Information exchange and dissemination is the need of the hour. In this unit, we will ,
attempt issue based comparison of consumer movement in some developed countries
of America, Europe, and Asia. We shall also examine their pattern of development
and features in the less developed countries. This will help you to draw the required
lessons for India.

7.2 CONSUMER MOW?vENT IN AMERICA

1

Consumer movement, as a social movement to protect and augment the rights of

consumers in relation to the producer, originated first in the United States of America
in 1900. .
USA was the first country in which people raised their voice against the malpractices
of the business community. Later, it spread to the other parts of tfre world. The
United States has witnessed three distinct phases in the consumer movement; one in
early 1900, another in mid 1930's and still another one in the mid 1960's.
24
 Pre-Thirties Consumer Movement in
- Select Countries
The first consumer movement, which commenced in the pre-thirties, was the outcome
of rising prices, ethical drug scandals, and other related factors. Uptron Sinclair in his
book-'The Jungle' exposed shockingly insanitary conditions in the Chicago Meat
Packing Plant. The quack cures of tuberculosis and cancer led to ethical drug scandals.
These factors contributed to consumer awareness and the first phase of consumer
movement began with protests and investigations. ' b o landmark laws were enacted in
1 9 0 6 F o o d and Drug Act and Meat Inspection Act-towards protecting the interests of
the consumers.
The American Home Economics Association sponsored a campaign for fiber
identification on textiles in 1918. Many consumers became vaguely conscious of the
increasing complexity of the economic system and high prices of many articles. When
the book 'Your Money's Worth', was published by Chase and Schlink in 1927, it
I furnished a whipping boy for many consumer problems. The writers aroused the
I
consumers' consciousness of their position as never before. One major result was the
I
formation of Consumers' Research in 1929, the first independent agency to 'test and
rate' products in general use and to report to the consumer subkcribers of the service.
The Thirties
The second phase of American Consumer movement was induced by factors like Great
Depression and the Housewives' strike. A tragic case of cosmetic use that led to
blindness made the American Consumers more conscious of their rights. This phase
provided a sort of ideological background to the consumer movement. A flood of
protest literature hit the markets. The book-'Your Money's Worth,' sold over 1 lakh
copies. Then, books like '1,00,000,000 Guinea Pigs,' 'Counterfeit,' '40,000,000 Guinea
Pig Children,' 'Eat, Drink and Be Merry' etc. were read by millions who thus became
conscious of their needs and problems. Thus, the origin of the consumer movement can
be traced to this literature. They helped to broaden the grass-root support for a
consumer movement.
During the 1930s, there appeared many periodicals devoted to consumer problems.
These included bulletins of the testing and rating agencies-'Consumer's Research',
'Consumer's Union' and 'Consumer's Guide'. Consumers also sought help from the
government. The first state consumer department was established In 1938.
The emergence of Ralph Nader on the American horizon gave further fillip to the
movement. Most of the credit for arousing consumer consciousness and making
possible latest consumer legislation in the U.S.A. goes to him. This phase of consumer
movement was marked by effective implementation of laws to protect consumer
interest.
Mid 60's
In the 19609s,a new wave of consumerism developed. It was less economic and more
% social in its orientation. It showed less concern for getting your money's worth and
paid more attention to legislation aimed at correcting the imbalance of power between
the buyers and sellers. There were many leaders during this period, but the best known
of them and the most influential was Ralph Nader. His book, 'Unsafe at Any Speed'
4
(1965) and his successful lawsuit against General Motors were responsible for National
Traffic and Motor Vehicle Safety Act of 1966. There followed a chain of consumer
legislation that included Federal Hazardous Substances Act of 1966; the Wholesome
Meat Act and Fair Packaging and Labelling Act of 1967; a number of Safety Acts for
Natural Gas, poultry products, coal mines, medical devices; Infar~tMilk Formula Act,
1980 and Drug Prices Competition and Patent Restoration Act, 1984. Government
began to develop new consumer rules and corporations started creating their own
inhouse consumer departments. Different groups like senior citizens, students, etc.
started advocating legislation to promote their interests.

In the 1970's consumerism began to develop into a more mature but also a fragmented
social movement. In the late 197OYs,the public became increasingly unwilling to
support consumerist legislation.
P
L
Consumer Movement Today, in America, consumerism continues to be a viable and active social movement.
There are more than 400 state and local consumer groups with 2 million members. The
movement has become diversified and institutionalized. Its base has broadened. One
state level organisation which has really empowered the Consumers is the Citizen's
Utility Board (CUB). Another is Public Interest Research Group (PIRG) which has
worked to clean up toxic wastes with mainly students as its members.

Check Your Progress Exercise 1

Note : i) Use the space given below for your answers.
ii) Check your answer with the model answers given at the end of this unit

1) Fill in the blanks :

a) America was the first country in which people raised their voice against
.................................................... in ..............................
b) Origin of consumer movement in America is contributed to the
.......................................to .................................
2) Xck mark the following statement True (T) or False (F) :
a) First phase of Consumer Movement in America started in 1940. (T) (F)
b) Consumer movement spread from America to other countries. (T) (F)
C) Consumer movement in America is viable even today. (TI (F)
d) Consumer movement in America succeeded with the total support
of Government.

. 7.3 CONSUMER MOVEMENT IN EUROPE

Though Consumer Co-operatives had great success in Europe, this did not result in
formation of consumer organisations. Basically, industrialization did not lead to the
same degree of affluence in Europe as in the United States.
Consumer movement in Europe was fostered by the 'Consumers' Union'. More
specifically, by the constant efforts of Colston Worne. As early as 1939, he started to
make enquiries about groups and individuals that he might try to interest. In London he
was referred to as the Householders' Association. But he was disappointed. People were
not at all enthusiastic about testing. It took another two decades for U.K. to provide a
congenial environment for consumer movement.

Consumer movement in England began in a real sense only after the second world war.
The common law did protect the consumer against aggressive selling, fraud and breach
of promise. The British National Standard Institute in U.K. played a significant role in
arousing the interest of the consumers in 1925. Many consumer magazines and
shoppers' guides were published to educate the consumers. Consumer Associations
came into existence to expose undesirable as well as defective products.

It was Dorothy Goodman, an American living in London who along with Ray
Goodman and Michael Young, founded the Consumers' Association (first called the
'Association for Consumer Research') in 1956. The first issue of its magazine 'Which'
appeared in October 1951.

Gradually, consumer organisations began to take shape in other countries. Befoue 1960,
three major organisations had been founded in Europe: 'Consumen Tehand' in the
Netherlands, the 'Union Belge des Consummateurs' (now the 'Association des
Consommateurs') in Belgium and 'Union Federale de la Consommation' in France. All
b e e n publishing information for and about consumers, including reports on products
they had tested themselves.

A,cbnsumpr awakening of similar type also appeared in Netherlands in 1926. Between

an;d 1957, there was consumer ievolution in Denmark, Federal Republic of
kernany, Switzerland. Japan, Kenya, France, Hungary, Italy, Canada and Belgium.
6
 Consumer Movement in
Press campaigns in favour of the consumer in these countries played a significant role Select Countries
in the creation of the concept of consumerism; Women's organisations in these
countries have been a mainstay of the consumer movement.
Poland was the first country in Eastern Europe to have independent consumer
organisations. 'Consumer Federation' was set up in 1981 and 'Polish Home ~conomics
Association' in 1990. Now, there are many organisations awaiting registration: One is
the\,'Association of Polish Consumers'-20 individuals with support of 1000 readers of
Test Consumer Magazine. The objective of the organisation is awareness generation
among consumers of rights to safety, health, information and education and protection
of economic and legal interests. It has planned several ~am~aignsanmisleadlng
advertisements, agalnst tobacco advertising and to make banks more consumer friendly.

The strongest organisations in the pacific area perhaps were, in Australia and New
Zealand. The Australian movement was independent and received no government
money. A Local Consumer Movement existed in leading Australian cities. New South
Wales and Victo~iahad consumer councils, New Zealand Consumer Institute, on the
other hand, was supported with government finance.
The pattern of consumer protection in Europe bears a remarkable similarity to the U.S.
experience. Indusuialised nations in both the continents generated extensive brand name
advertising and were faced with many of the same problems of ~ackagingand of
ensuring the purity of food and drugs. The idea of supporting the consumer with results
of product testing by brand name crossed the Atlantic after World War 11. Starting with
Great Britain, the Netherlands and Belgium, it spread to Scandinavian countries,
Austria, West Germany and France and then to Australia, Japan and Israel.
Initially, European Consumer Groups feared the legal consequences of publishing
adverse test results by brand name, even though this had never proved a problem in the
U.S. Nevertheless, the movement, once started, spread so rapidly that in April 1960, the
IOCU (International Organisation of Consumer Union) now known as C.I. (Consumer
International) was launched at a conference in the Hague. The charter members were ,
the 'Consumers Union' of U.S. Inc., 'Consumers' Association', London; 'Australian
Consumers' Association', 'Consumerton Bond, The Hague and 'The Association des
Consommateurs', Brussels. The C.I. sought to become an authenticating body that
would admit to membership only those organisations that accepted no income from
advertising and were financially supported either by consumers or govt. It stimulated
interchange of techniques, test results and educational material among its affiliates. It
aisc, moved to assist consumers in less developed countries. At present, it has 203
consumer groups as members in more than 80 countries.

In Britain, the privately owned Consumers' Association assumed the exclusive role of
comparative testing. Through grants, the association established a Research Institute for
Consumer Affairs which conducted investigations into governmental, professional and
commercial services. It also established a National Federation of Consumer Groups. It
was to attend to matters such as complaints, store services and price comparisons and
Consumer Advice Centres in London. In 1970, it had a membership of 532,000. A new
consumer council was created by the Govt. in 1963 as an independent financially
assisted body, designed to glve advice to consumers. The British also created a
Citizens' Advice Bureau.

Except for Belgium and Netherlands, European Consumer Testing Organisations have
followed the pattern set by Scandinavian Countries and not by Britain or the U.S. In
Norway, plenty of govt. grants are given to consumer organisations. The main testing
agency also handles complaints and publishes a monthly consumer magazine. An
Institute of Informative Labelling has been established in Norway to foster-growth of
quality mark. In Denmark, consumer activities are divided between a govt. operated
Household Advice Centre and a Consumer Testing organisation supported by members,
Other Organisations and the govt. The most notable of the European efforts Ausmia's
'verein-Konsume*on'-~nformationCenve which issues a monthly
and publication
'Over a demons'ation cen'e for Consumer guidance. ~ ~organisations
~ t , ~ ~
government. and lo% each is contributed by individual members and
Consumer Movement A number of co-ordinating networks exist among European groups; e.g. European
Bureau of Consumers' Union consisting of organisations from 6 E.E.C. countries, the
Contact Committee of Consumers' European Economic Commission, the International
Labelling Centre linked to the International Organisation of Standardization and the
International Electrical Technical Commission. Similarly, the Scandinavian groups
established a Scandinavian Committee on Consumer matters to co-ordinate research and
information matters. The European Consumer movement, however, was weakened by
the establishment of competing consumer organisations, often split on political lines.
While United States, Canada and Australia have non-governmental consumer groups
and consumerism exists as a grass-root social movement, in almost all European
countries, considerable government support to consumer representation exists. The
Consumer's 'Ombudsman' found in Sweden, Norway, Denmark and Finland, are
perhaps the most visible examples of high level government institutionalization of
consumer representation. An Ombudsman is someone charged with investigating and
resolving complaints. He is usualry a government official. In the United Kingdom,
National Council serves as a consumer advocate within the national government using a
combination of lobbying and research to press its position. In Netherlands, private
consumer organisations are compensated when they are consulted by the government or
asked to participate on national or international committees. The Australian government
helped to create the Australian Federation of Consumer Organisations (AFCO) to co-
ordinate the activities of some fifty consumers and community groups. In addition to
representing the views of its constituent organisations, AFCO also serves as a source
for appointees to government and private organisations dealing with consumer matters
(Committee on Consumer Policy, 1983).
The United States, on the other hand, has been the world leader in developing means
of consumer redress, attempting to serve consumers better through competition rather
than government regulation and finding ways to encourage but still control the
expression of advertisers. Thus, in the European countries decisions on matters
concerning consumers rest totally with the goverament whereas in the USA, relevant
policy is formulated purely on the basis of private initiative by the consumers.
4
Check Your Progress Exercise 2
Note : i) .Use the space ,given below for your answers.
ii) Check your answer with the model answers given at the end of this unit.

1) Give any two examples of government suppbn to consumer representation

2) ~ i i in
l the blanks :

i) A number of co-ordinating efforts exist among European ..................................

ii) In almost all European Countries ....................................... support to consumer
representation exists.

7.4 CONSUMER MOVEMENT IN ASIA- JAPAN

Leadership of testing consumer products to in Asia belonged to Japan. There was
competition between the Japan Consumer Association, the Japan Housewives
Association and the Japan Consumer Union. A number of embryonic movements had
been formed in Korea, Philippines, Malaysia and India.
Unlike in the U.S.A., consumer movement in Japan made its initial progress under the
leadership of women. Also, while the concern of leaders of consumer movement in
U.S.A. was with the safety of automobiles, in Japan it were the basic problems relating
to day to day living.
 Consumer Movement in
In Japan immediately after the end of the war in 1945, the Kansai League of Select Countries
Housewives was formed. This was organised further in 1948 on the occasion of a
protest rally in Tokyo against inferior match sticks. The League's office tested items of
daily use and exposed inferior and defective merchandise. It was the league's discovery
of false merchandising In 1960 when 'Canned Beef', instead of 'Whale' and
'Horsemeat' were found a that law for prevention of 'false labelling' and 'false
premium drawn' was enacted by the Fair Trade Commission. But the league lacked
organisational base and the movement was rather weak. In 1956, the consumer
movement w :joined by men and in 1961, Japan Consumer Association came into
existence. Su11, Japan's consumer movement had to make major progress through the
efforts of women only, led mainly by housewives. In 1964, the 'Livelihood-School
Movement', a voluntary and decentralised local and not central activity as before, was
inaugurated. In every elementary school district, groups of 5 0 to 100 housewives
formed 'Livelihood Schools' to have meetings and discussions of problems and inviting
producers, officials, scholars, etc. This created an awareness about the consumer
movement and moved local governments to establish consumer affair offices.
An epochal event in the history of consumer movement in Japan was the agitation
against double pricing system and boycott of colour televisions. This was in September
1970. The success of this agitation was seen in terms of prices being slashed. This was
due to the 'Livehood Schools' and the women who were considered to be the pure
consumers and their movement for pure necessities of daily life. But lack of experience
and awareness hindered the immediate creation of a suitable organisation that
necessitated the participation of men. It was thought essential for broad basing the
movement.
Today, in Japan there is still a great degree of dependence on government for support.
But, there is a growing community movement in problem areas like pollution, clean
environment, garbage disposal, etc. Women's decade has given a new impetus to the
consumer movement in Japan.

Check Your Progress Exercise 3

Note : i) Use the space given below for your answers.

ii) Check your answer with the model answers given at the end of this unit.

1) Give any two reasons to support the view that consumer movement in Japan is
more relevant to developing countries.

ii) ....................................................................................................................................
2) What led to the enactment of a law for the prevention of 'false labelling' and
'false premium draw' by the Fair Trade Commission in Japan in 1960?

I 7.5 CONSUMER MOVEMENT IN DEVELOPING/

!
THIRD WORLD COUNTRIES
Consumerism in developing countries is shaped by two broad types-. of factors. On one
hand, there are the relati"& indigenous characteristics of markets and ~OWdImersifl
these nations. On the other hand, developing nations impon goods, vision of the good
life and Consumer policies from more developed nations.
-.
In developing countries. the priorities bearing upon a consumer policy are generally h e
reverse of those in developed countries. All developing counoies severely lack in
Consumer Movement consumer protection measures. A large number of factors contribute to such situations.
The market conditions are unfavourably skewed against consumers. The qualities
necessary for self protection are affected because of poverty, illiteracy and ignorance.
The dominant features of the market in developing countries affecting consumer
interests are :
Predominance of indigenous products which are of varying quality.
Inadequate storage and transport, especially for perishables like food.
Deliberate adulteration, shortage in weights and measures and inflation.
Consumer apathy and absence of collective action as well as grievance redressal
forums.
With such a background, just providing information will not serve the purpose; which
is the case in developed countries. What is needed is a proper consumer education
including information and knowledge about market processes, budgeting, decision-
making, asserting)consumer rights and accepting consumer responsibilities.
There are external influences of consumerism in developing countries. Imports and
exports are increasing with liberalisation and globalisation, having both negative and
positive effects. Unnecessary desires are created by the product promotional efforts by
companies and agencies. This necessitates the need for developing countries to tackIe
the issues affecting the majority of the population. What consumer groups in these
countries need is not sophisticated product testing data, but basically two pieces of core
equipment; a correctly calibrated scale to detect fraudulent weights and bottles of
common chemicals to detect adulterants added to spices.
The credit for initiating consumer movement in the Third World goes to C.I. (formerly
known as IOCU) which by 1964 decided to broaden its vision beyond consumers in
the West. Asia, Latin America and the Caribbean were the first among Third World
regions to invite its attention. Remarkably in 10 years it encouraged organisations to
come up in India, Iran, South Korea, Malaysia, Pakistan and Singapore. C.I. set up a
Regional Office for Asia and Pacific in 1974. Under the able leadership of Anwar
Fazal, who later became the first President of CI from the Third World, the Regional
Office for Asia and Pacific achieved tremendous success in spreading the message of
Consumer Protection. Things moved a little slow in Latin America and the Caribbean.
It took 23 years to set up a Regional office for Latin America and the Caribbean.
Finally, it was set up in 1987 in Monte Video, Uruguay. In the meantime, C.I. spread
its wings to Africa. Through several conferences in different parts of Africa, a
congenial environment was created for starting several consumer organisations in the
region.

Check Your Progress Exercise 4

Note : i) Use the space given below for your answers.
ii) Check your answer with the model answers given at the end of this unit.

1) Give names of the following persons :

i) Most influential consumer activist of America ............................................. t

ii) First President of Cwiruner International (formerly' IOCU) from the Third
World.. ...................................................................

2) Name the factors leading to severe lack of consumer ~rotectionmeasures in

developing countries.
3) Name the organisation which spread the consumer movement to third world Consumer Movement in
countries. Select Countries

........................................................................................................................................
........................................................................................................................................
...........................................................................................................................................

7.6 LET US SUM UP

-
In tracing the history and development of consumer movement, you must have noted
that the United States of America was the first country in which resentment of its
people against the malpractices of business community was voiced openly in the
beginning of this century. It were mainly the protest writings which were responsible
for the origin of consumer movement in America. Comparative testing of products by
brand name and information to the people were the main activity of consumer activists
and organisations. Soon consumer movement spread to the other countries in Europe,
Asia, Pacific, Africa and the U.S.A. played a major role in this.

Consumer movement in European and Asian Countries depended mainly on the

government for support. This was quite unlike the U.S.A. where it was mainly private
endeavours in the competitive market. Of course, later on government help did
stimulate consumer movement in the USA also. Like USA, in Canada and Australia
too, development of consumerism was independent of government support giving
impetus to grass-root consumer movement. In Europe, a number of coordinating efforts
are visible and observable.

In Asia, Japan assumed leadership in the field of testing. In Japan the consumer
movement initiated and supported by women concentrated on problems of basic
essentials of every day living. The consumer movement in India can draw good lessons
from Japan's experience.

In developing countries the spread of consumer movement has been very slow. Also the
problems relating to poverty, ignorance and illiteracy require more of awareness
campaign, education programmes and strong government support. People must be
encouraged and mobilised to form consumer organisations because, otherwise, it cannot
turn into a mass movement.

7.7 KEY WORDS

Consumerism: Consumer movement or a social movement to protect and augment the
rights of consumers in relation to producers.

Comparative Testing: Different brandslmakes of the same product are tested for its
qualities and graded in rank order.

Ombudsman: A person, usually a governmental official, who has the job of

investigating and resolving complaints in the area of consumer complaints.

Consumer Empowerment: Making consumers powerful a 0 thdi the bclS.~CSS '

community listen to themhother to take appropriate followup action.

Third world countries: The countries which are trying to develop but have many
characteristics of under-development. Alternatively, countries not forming a part of
blocs led by the USA and erstwhile USSR.
7.8 ANSWERS TO CHECK YOUR PROGRESS
EXERCISES

Check Your Progress 1

1) a) malpractices in business; (in) early 1990.
b) Protest writings; (of) Upton Sinclair, Chase and Schlink.
2) a) F
b) T
c). T
d) F

Check Your Progress 2

1) i) The Consumer Ombudsman found in Sweden, Norway, Denmark and Finland.
OR
In the U.K., National Council serving as a consumer advocate within the
national government.
ii) In Netherlands, compensation to private consumer organisations for
consultation/participation.
2) i) Consumer Groups
ii) Government
, .
Check Your Progress 3
1) i) The movement made its initial progress under the leadership of women.
ii) The issues involved in consumer movement were essentially the concern for
basic essential8 of every day living.
2) It was the Kansai League of Housewives' discovery of false merchandising where
canned beef was proven to be 'Whale' and 'Horse-meat' actually.

Check Your Progress 4

1) i) RALPH-NADER
ii) ANWAR-FAZAL
2) i) Unfavourable market conditions skewed against consumers.
ii) Absence of quality necessary for self protection because of poverty, illiteracy,
ignorance.
3) Consumer International (C.I.), formerly known as IOCU. ',