Ghana Celebrates World Consumer Rights Day 2010

Consumer Protection is Government’s Duty!

Government has been urged to meet its obligations in the area of consumer protection both as a constitutional mandate and as required by UN guidelines on consumer protection for governments around the world. This statement was made by Jean Lukaz, Executive Director of the Consumer Partnership-Ghana and ISO Expert Trainer on Consumer Participation in Standardization, during a seminar held to mark World Consumer Rights Day (WCRD) 2010, which was hosted by the Ghana Standards Board (GSB) as part of its efforts at supporting consumer protection activities.

‘Ghanaian consumers must make a conscious effort at changing the culture of silence to adopt a culture of complaints’, he said. This enables businesses, government regulatory agencies and consumer protection organizations to respond effectively to rid out shoddy goods and services and thereby protect their rights, he added.

In his presentation, Mr Lukaz highlighted the fact that not only must consumers exercise their rights but also they should be aware of their responsibilities and the impact of their behaviour on business and government. He added that responsibilities always precede rights and that if Ghanaian consumers want their rights recognised, they must first exercise their responsibilities.

In an attempt to define consumer protection, he said Consumer Protection, thus, can be defined as:

‘the responsible ethical behaviour of consumers, producers or service providers in the respective buying and selling of goods or services and the effective control of the marketplace by the government through the enforcement of laws and regulations, the promotion of standards and the dissemination of consumer education.’ (The Consumer Partnership, 2009)

The best consumer protection is self-protection and consumers require consumer education to protect themselves in the market place. However, most consumer education efforts by governmernt agencies are ineffective because they are in English only and targeted at the literate population who read some key newspapers. This leaves about half the population uninformed and uneducated, he concluded.

Speaking on the theme for this year’s WCRD 2010 ‘Our money, Our rights’ as proposed by Consumers International, Mr Lukaz made reference to the fact that 80 percent of Ghanaians are financially illiterate and this amazingly includes educated folk. He urged that the Financial Services sector must adhere to codes outlined by the Partnership for Making Finance Work for Africa (MFW4A) and the UN Blue Book on Building Inclusive Financial Sectors for Development.

Jean Lukaz criticised the Consumer Movement in Ghana for not being established at grassroot level which has resulted in low levels of impatience and ‘demo-crazyness’. There seems to be more on advocacy than activism but cautioned that the Consumer Movement must desist from statements and activities that will create the perception that it is ‘anti-business’.

Also present were Consumer Protection Agency CEO, Mr Kofi Kapito, who led a discussion on the Ghanaian and quality consciousness and Mr Ken Appenteng of SPEED, who delivered a presentation on financial literacy in Ghana. Representatives from Consumer Focus, Lecturers and students from the University of Ghana Health Science Department were in attendance as well as members of the Public.

The Ghana Standards Board has been supporting consumer protection in Ghana as part of their international mandate from membership to the International Organization for Standardization (ISO) by encouraging consumer participation in standardization through the nomination of Consumer Representatives unto various Technical Committees and the participation of Consumer Organizations in ISO/COPOLCO (Consumer Policy Committee) activities. According to Mrs Adetola, Director of Standards, Jean Lukaz, a consumer representative on a Technical Committee, has been nominated to represent Ghana at the next ISO/COPOLCO Global Workshop on Social Responsibility in Copenhagen, Denmark from 15-21 May 2010.

Mrs Diana Amponsah further explained the activies of COPOLCO and how consumers participate in their activities in a presentation.

The Consumer Partnership-Ghana is advocating for access to stable, secure and fair financial services, which is important for consumers everywhere, not least in the context of the global financial crisis. Government policy makers have a duty to increase consumer information ( ‘truth in lending’ for example), invest in financial literacy initiatives (i.e., consumer education), insist that the retail financial industry take steps to protect consumers (self-regulatory codes of conduct, for example) and encourage the development of an independent regulatory oversight body responsible for monitoring, reviewing and taking complaints.

In a move to protecting Ghanaian consumers in Financial Services, the Bank of Ghana has established a new Investigation and Consumer Reporting Office (ICRO) within the Banking Supervision Department (BSD) as the financial industry watchdog office of the Bank of Ghana (BOG), with responsibility for protecting consumers of financial products/services and educating them on their rights and responsibilities. While this effort is laudable, the Consumer Partnership believes that government should be moving more towards state sponsorship of regulation instead of state provision since this prevents duplication of mandates as is the case of this new ICRO within the Bank of Ghana that is working with the same mission, laws and regulations.