Since the Industrial Revolution the close relationship between producer and consumer has gone. People today often have little chance of assessing either the quality or performance of the commodity they purchase. The problem in New Zealand is partly met by official action – by legislation and by regulations designed to prevent abuses and to control dangerous goods and dubious practices. Most Government Departments, in one way or another, have as one of their functions the safeguarding of the public. Prominent in this field are the Departments of Labour, Health, Industries and Commerce, and Scientific and Industrial Research. Among other things, these Departments deal with public health, working conditions, weights and measures, standards of quality, marking of goods, profiteering, and restrictive business practices. Although official action of this kind gives real and extensive protection, it is desirable for the consumer to make, as far as possible, his own decisions. The problem is one of adequate information – this has been met in many countries by organisations of consumers, which provide the buying public with accurate information on goods and services.
Consumer movements were successfully established in several of the more heavily industrialised nations in the period between the two world wars. The value of these organisations was appreciated in New Zealand, and several attempts were made in the late thirties to form consumer groups here. For a variety of reasons, mainly public apathy, these attempts failed, with one exception – the movement for uniform standards.
In the post-war years there was a growing awareness and appreciation of the problems facing the consumer. This led in late 1958 to a national consumer conference in Wellington and to the establishment of Consumer Service. Official support of the new movement was confirmed in the following year under Section 8 of the Finance Act of 1959 which formally established the Consumer Council and defined its role:
The Council is an independent body appointed by the Minister of Industries and Commerce to direct the operations of the Service. It is non-political and is not subject to Government direction or control. It consists of nine members of the public, together with the permanent heads of the four Government Departments actively concerned with consumer problems – Health, Labour, Scientific and Industrial Research, and Industries and Commerce. As it was unlikely that the new organisation could have been established effectively without some assistance, the Government, in sponsoring the movement, decided to provide the necessary administrative staff and accommodation. The Council is assisted by District Consumer Committees which have been appointed by the Minister in the four main centres of population. There are also consumer associations in areas where members of the Service are interested in taking a more active part in consumer affairs. These groups deal mainly with local questions, but they also bring to the notice of the Council matters of national interest.
Because buyers are often unable to decide what is the best brand of a particular product to buy, and as they are often misled by extravagant advertising claims, the testing of goods is a major function of any consumer service. It is also one of its most difficult problems. Factors which must be taken into account are the extent of consumer interest in a particular product; the need for testing – that is, the extent to which it is difficult for a consumer to make an assessment himself; the cost of testing; and the facilities available for testing. Products in everyday use, particularly those whose merits cannot readily be assessed because of the appeal of different brands, are possibilities for the testing programme. Suggestions are received from district committees and consumer associations and from members who subscribe to the quarterly publication Consumer Service. The testing committee of the Council narrows the number down by eliminating those projects which have special technical or testing problems that cannot be overcome. Articles remaining on the list are documented, where possible, with the criteria for testing. These include New Zealand or applicable overseas standard specifications, as well as appropriate suggestions for testing from suitable authorities, recommendations as to what testing authorities might carry out the work, the number of samples needed, the time allowed, and an estimate of costs. The projects are then referred to the Consumer Council which approves, modifies, or rejects the proposed tests.
When a project has been approved, the Service buys a range of the product, has them tested by qualified and acknowledged experts, and advises which particular brands give the best value for money. It has been shown quite conclusively that in some instances the higher priced goods are not necessarily the highest in quality, and that far better value can sometimes be obtained by buying cheaper brands. Sometimes particular products are found to be unsafe and do not conform to relevant standard specifications. In a test of domestic rotary lawn mowers it was found that they were all unsafe in one way or another. The manufacturers concerned were given in detail the faults of their machines, and the Standards Council was asked to prepare a safety standard. This is an example of the benefit the public derives from the objective investigation of a consumer organisation. The results of these tests, and descriptions of the testing procedures followed, are published in Consumer. Goods so far tested range from babies' napkins to parking meters. On occasion, if testing is not practicable, guides are published which, without assessing the merits of particular brands, give useful buying hints and compare prices, properties, guarantees, and servicing. Sometimes the attention of readers is drawn to false or misleading advertising or packaging, and the more extravagant advertising claims are analysed. General articles are published on subjects such as guarantees, hire-purchase agreements, and rates of interest. Weekly radio broadcasts supplement the information given in Consumer and reach a very wide audience.
Consumer Service does not operate a complaints service. Many complaints are received and, wherever possible, assistance is given, but it would not be practicable to undertake a long investigation of each complaint. If, however, an important point of wide interest or implication is raised, a very detailed investigation is made.
The activities of the Service are not limited to testing, publishing, broadcasting, and answering complaints. One of its most important functions is to bring to the notice of manufacturers, retailers, and the servicing trades that the consumer has rights that cannot be ignored and that there is an active organisation devoted to seeing that these rights are respected. It is important that, whenever matters affecting the interests of consumers are being discussed, the viewpoint of the consumer be clearly presented. This type of work is often carried out by local associations, but at times representations on a national scale are necessary. Significantly, there is a growing tendency for Consumer Service to be consulted by public bodies which are anxious to have the users' point of view represented.
by Brian Newton Davis, M.A., Vicar, St. Philips, Karori West, Wellington and Edward Stewart Dollimore, Research Officer, Department of Lands and Survey, Wellington.