THE CONSUMER IN THE CANADIAN MARKETPLACE

By Margaret Crowle, Home Economist

Every day we need to buy goods and services. But as the years go by the number and variety of the products greatly increase. The advertising and selling that surrounds us, the credit terms offered and the small print contained in some sales contracts help to confuse the consumer and make buying decisions more complex.

Previous generations dealt with nails and cartwheels. Today we buy microcomputers and automobiles. The need for statutory protection and for consumer education cannot be denied.

The marketplace, the common meeting ground of buyer and seller, now is worldwide. The speed of communication and transportation brings us a vast range of choice in goods and services. Middlemen, persons and firms, provide a variety of services - advertising, insurance, transportation, warehousing, packaging, financing, displaying. The person who sells the goods very likely knows little about the manufacture and workmanship of the product.

Theoretically, for true forces of the marketplace to regulate prices, where consumers vote with their dollars, we would need to have perfect knowledge of products we buy. In practice manufacturers determine our needs and influence us through advertising. Governments interfere in the marketplace through supplements to producers; and supply management boards control production. The complexity of goods makes it difficult to know quality. The consumer is remote from the people who produce the goods. A factory worker only understands one small part of the good he or she produces and therefore takes less pride in workmanship. Too few dollars are spent on helping consumers to make good buying decisions or identifying their rights and remedies if a product or service is faulty.

Consumer advocacy and action groups attempt to identify and represent the consumer interest. Consumer protections laws address some of these inequities. Consumer information and consumer education are immense but necessary tasks.

Jurisdiction of Consumer Protection Legislation

The British North America Act and the Constitution Act give the Federal Government jurisdiction over:

• trade and commerce
• currency and coinage
• incorporation of banks
• issue of paper money
• weights and measures
• bills of exchange
• interest
• bankruptcy and insolvency
• criminal law

and the Provincial Governments jurisdiction over:

• local works and undertakings
• property and civil rights
• imposition of punishment for breaking provincial laws
• matters of a provincial nature such as credit reporting, credit disclosure, liens

In matters of overlap in legislation the Federal Laws usually have jurisdiction. Recently, the approach between the two levels of government has been harmonization of provincial consumer protection laws so that business and consumer can rely on similar legislation across Canada.

Much of the federal and provincial consumer protection legislation has been developed as it relates to the areas of consumer rights.

1. The Right to Safety
This includes the right to be protected against products, production processes and services which are hazardous to health or life. This right has generated many laws designed to protect the consumer against unsafe consumer products. We now have federal laws which regulate the production of food, cosmetics, textiles and many other products which state that the products must not endanger health or safety and that if a potential for misuse exists, a clear warning must be provided. (Federal Food and Drugs Act, Hazardous Products Act) The Canadian Standards Association sets standards for electrical safety and the Motor Vehicle Safety Act states minimum safety standards for motor vehicles.

This right has been expanded to include the protection of people from themselves such as seat belt and motorcycle helmet legislation where it has been argued that people should not be able to make a decision that is not in their long run best interest.

2. The Right to be Informed
Consumers have the right to be given the facts to make an informed choice or decision. The right to be informed goes beyond avoiding deception and the protection against misleading advertising, labelling or other practices. Consumers should be provided with adequate information, enabling them to act wisely and responsibly. (Advertising Standards industry self regulation, federal Packaging and Labelling Act, Textile Labelling Act, Competition Act, provincial Consumer Protection Act, Direct Sellers Act)

3. The Right to Choose
Consumers have the right to have access to a variety of products and services at competitive prices and in the case of monopolies, to have an assurance of satisfactory quality at a fair price.

The right to choose has been reformulated to read: the right to basic goods and services. This is because the unrestrained right of a minority to choose can mean for the majority a denial of its fair share. (federal Competition Act, broadcasting and cable regulations, provincial regulation of monopolies such as SaskTel, SGI and SaskEnergy, provincial Cost of Credit Disclosure Act, Film and Video Classifications Act, upcoming Saskatchewan funeral and burial services and cemeteries legislation)

4. The Right to be Heard
Consumers have the right to be represented so that the consumers' interests receive full and sympathetic consideration in the formulation and execution of economic policy.

This right is being broadened to include the right to be heard and represented in the development of products and services before they are produced or set up; it also implies a representation, not only in government policy making, but also in those of other economic powers. (Consumer representation on groups consulted when governments are considering legislation-currently SaskEnergy competition regulations, health information protection legislation, funeral and cremation services, cemeteries legislation)

5. The Right to Redress
Consumers have the right to a fair settlement of just claims

This right has been generally accepted since the early 1970's. It involves the right to receive compensation for misrepresentation or for shoddy goods or services, and where needed, free legal aid or an accepted form of redress for small claims should be available. (Provincial Consumer Protection Act, Small Claims Enforcement Act , Sale of Training Courses Act, Direct Seller Act, Landlord and Tenant Act, Legal Aid Act, Personal Property Security Act, Collection Agents Act)

6. The Right to Consumer Education
Consumers have the right to acquire the knowledge and skills to be informed consumers throughout life.

The right to consumer education incorporated the right to the knowledge and skills needed for taking action to influence factors which affect consumer decisions.

7. The Right to a Healthy Environment
Consumers have the right to a physical environment that will enhance the quality of life. This right involves protection against environmental problems over which the individual consumer has no control. It acknowledges the need to protect and improve the environment for present and future generations. (Environmental labelling, pollution control, transportation storage and disposal of hazardous products)

These rights have been adopted by many consumer groups and also by some government departments. They are your rights as consumers and many laws have been put in place so that you are guaranteed these rights.

With these rights come responsibility. You as a consumer have to do your part to make the system better. Your responsibilities have been outlined by the International Organization of Consumers' Unions with the acronym

CASES:

 

For information on legislation and services contact: Industry Canada or Saskatchewan Justice