Let the consumer beware

By R. Nadeswaran, The Sun

> At a meeting to get the views of all parties, Bank Negara invited representation from groups and individuals on the proposal to cut the commissions of insurance agents, who were raking in as much as 35% of the premium on motor and general insurance. Instead of arguing on behalf of the consumer, the representative of the consumer movement was vehemently opposed to any reduction justifying that overheads were on an upward trend.

The people in the room looked surprised expecting somewhat a solid backing for reining in agents’ commissions which were spiralling. Only later did they came to know that the representative was an insurance agent and had presented his case for himself and colleagues. This was more than 25 years ago and these days, agents make 10% from motor premiums.

> Two representatives from another consumer movement turn up in the office. They claim that condensed milk was being sold above the recommended selling price in many shops. When asked to identify the shops so that our reporters could check them out, one of them barked: “It’s your job to find out. We don’t have to tell you.”

> The head of a consumer movement publishes a book. Two chapters are devoted to two utility companies on whom heaps of praise is recorded. Their so-called good deeds are commended but not a word on their service records. Why? Both of them contributed to the cost of printing and publishing.

THESE three anecdotes tell a story of how consumer movements or societies have slid down the ladder in terms of credibility and authoritativeness. While in the yesteryears, news editors directed reporters to get comments from leaders of consumer associations on issues affecting the people, these days, the directive is just the opposite: “No need for quotes from them.”

Such a directive can be justified. According to the last count, there were 63 organisations which styled themselves as “consumer movements” but how many are still in existence or active is unknown, except for the occasional press release or statement which they often make. Some are one-man set ups, with one person being the president and family members making up the rest of the committee. Some are “closed organisations” and you and I cannot be members. The reason is that they want to be re-elected and remain head for life.

Against such a backdrop, the issue of “fake eggs” which prompted a high-level investigation by the Health Ministry and eventually turned up to be a bad joke. Yet again, the claim has been fervently defended and justified but the truth is there for all of us to read and conclude.

In the UK, the Consumer Association is highly respected with all its publications being authoritative, educational and informative. Magazines like Which? are on the must-read list for many heads of multi-nationals and corporations and its website attracts millions of readers.

Why haven’t we come to such a stage.The answer is simple. Many consumer movements are happy with their letters to the editor or their comments appearing in newspapers, which they claim form “substantive part of our aims and objectives”. This, they argue, are representative views of the consumers, which is difficult to swallow.

Others use these clippings as evidence of their activities to source for funds – locally and overseas. Many are said to have received aid from international organisations and operating secret accounts, but this cannot be verified because the Societies Act prevents anyone from prying into their affairs.

A clause in the Act stipulates that only “members in benefit” can have access to annual reports and accounts, and because membership is closed or limited, even investigative journalists face road blocks in their quest to get the truth.

While in the past, discerning members of the public had tended to believe what comes from consumer organisations as the truth, the tide is changing. Many are slowly seeing the other side and using their educated judgment to make the call on much of what is being dished out.