1. Key issues for consumer organisations: the example of Bulgaria Bogomil Nikolov Bulgarian National Consumers Association

2. 9.03.2009Bulgarian National Consumers Association Need of consumer associations  The need of consumer protection Consumer is generally the more weak and powerless side on the market Information asymmetry Globalizing market

3. 9.03.2009Bulgarian National Consumers Association What is a consumer association?  Why do we ask this question? There is a significant lack of understanding among general public concerning: what is a consumer association According to surveys, nearly half of the population in Bulgaria hardly distinguish between state authorities and consumer associations

4. 9.03.2009Bulgarian National Consumers Association Legacy of the past  Some of the main believes and prejudices that limit consumer associations’ influence: Average consumer expects protection instead of empowerment (knowledge and influence) Assumption that somebody else should be responsible about their personal problems Trust in market CONTROL instead of market FREEDOM (strict regulations instead of self regulations) Consumer protection is only effective if provided by the state (through penalties) Consumer protection must be free of any charges

5. 9.03.2009Bulgarian National Consumers Association Trust in consumer organizations  The level of trust in consumer associations is lower in the new member states than in the old member states.  According to latest EUROBAROMETER survey, only 22% trust consumer organizations in Bulgaria (EU average – 65%).

6. 9.03.2009Bulgarian National Consumers Association Market surveillance  Market surveillance activities: Safety tests Comparative tests of goods and services Consumer complaints Media investigations

7. 9.03.2009Bulgarian National Consumers Association Market surveillance - examples  Comparative test on cheese (2009)  Comparative test on bank services – bank websites (2008) credit cards, deposits, current accounts

8. 9.03.2009Bulgarian National Consumers Association Consumer education  It is very important to have well informed and active consumers  Consumer education may be provided by both state institutions and consumer organizations

9. 9.03.2009Bulgarian National Consumers Association Consumer education  Important educational topics Consumer rights Safety of goods and services Financial education Health and Nutrition Internet safety

10. 9.03.2009Bulgarian National Consumers Association Example DOLCETA  DOLCETA ( Development of an Online Consumer Educational Tool for Adults ) It is an EU funded project that covers all 27 Member States in all official languages. 4 modules: Consumer rights; Financial services; Consumer safety; Teachers module

11. 9.03.2009Bulgarian National Consumers Association Example Europa Diary  The Europa Diary is an educational tool. It contains the basics of what the EU offers young citizens, covering a range of their specific concerns: e.g. travel, nutrition, drugs, shopping, money matters, environment, climate change, sustainable consumption, etc. It is accompanied by a teacher's guide.  The Europa Diary and the teacher's guide are available in all EU languages. They are distributed to schools for free.  In May/June 2008, a total of 2.814.250 copies of the diary have been distributed to approximately 17 000 schools in the EU-27. 2007/2008 2008/20092009/2010

12. 9.03.2009Bulgarian National Consumers Association Example Internet safety  Useful advises and information for parents on safer use of Internet  Internet website for parents http://onlinechildprotection.org/

13. 9.03.2009Bulgarian National Consumers Association How to develop consumer association in a transition country?  Institutional capacity Technical capacity – experts and knowledge  The most important – legal capacity Cooperation with other organizations International cooperation – CI, BEUC, TACD, ICRT…

14. 9.03.2009Bulgarian National Consumers Association How to develop consumer association in a transition country - Main sources of funding MEMBERS  Membership fees are the main strategic source of funding CA. In New Member States it is more difficult to get support from members.

15. 9.03.2009Bulgarian National Consumers Association Main sources of funding STATE FUNDING  State funding for CA. Advantages It is predictable and continuous Only devoted to CA  no competition with other NGOs Disadvantages: May lead to political dependence May contribute for bad relations with other CA.

16. 9.03.2009Bulgarian National Consumers Association Main sources of funding PROJECTS  Projects may provide significant resources for CA. Weaknesses Project funding is not permanent over time. High bureaucracy and hard procedures. Tough institutional capacity requirements. Funds allocated for specific purposes which may not fit CA needs.

17. 9.03.2009Bulgarian National Consumers Association Alternative sources PUBLICATIONS  Books Hot issues – buying and renting a house, food and obesity, health, responsible consumption etc.  Articles in newspapers and magazines Some media used to pay for interesting articles. It gives you both popularity and income!

18. 9.03.2009Bulgarian National Consumers Association Alternative sources WEBSITE  Some of the information on your website may be paid for users. Single article – it can be paid by SMS. Subscription – month or year subscriptions. Paid by credit card or bank transfer.

19. 9.03.2009Bulgarian National Consumers Association Alternative sources TRAININGS  Consumer associations may organize trainings for consumers or companies on specific consumer issues: General issues – labeling of products, warranties, distance and doorstep selling, resolving consumer disputes etc. Internet safety Organic foods Financial issues Environment

20. 9.03.2009Bulgarian National Consumers Association Alternative sources LEGAL ADVISE  Normally lawyers are very expensive. CA can offer a good specialized legal service at more reasonable conditions. Possible advantages – specialization, price, publicity.

21. 9.03.2009Bulgarian National Consumers Association Alternative sources TRIALS  Collective cases may bring financial compensation for consumer organization. Risk – in case of loosing a trial, it may cost a lot for CA. Solution – make a trial risks insurance.

22. 9.03.2009Bulgarian National Consumers Association Alternative sources PROJECTS  Policy linked programs There are many funding programs that provide funds for different purposes, that may be used by consumer associations, such as:  Educational and youth programs, environmental and health programs, research and development, safer internet etc.

23. 9.03.2009Bulgarian National Consumers Association Alternative sources TAXES  1% Law In some countries, there is a law which allows tax payers to grant 1% of their taxes to a named NGO. When exist, such law gives consumer organizations a real opportunity to attract funds from citizens.

24. 9.03.2009Bulgarian National Consumers Association  Established in 1998 The aims of the association are to protect consumers’ interests by:  Providing information that helps consumers be orientated in the market.  Assisting the consumers, when protecting their rights- by consultation and legal advice for claiming in and out-of-court procedures /conciliation committees/.  improvement of consumer legislation – representing consumers’ interests in case of legislative changes.  Organizational structure of the association  Established 19 regional branches  Two thematic clubs: - E-consumers Club established in 1999, aiming at protecting consumers’ interests using the global network for shopping. - Young consumers club established in 2002, where people under 30 years old are members to raise youth awareness on consumer issues.  Ten consumer contact points in Sofia, Varna, Rousse, Bourgas, Gabrovo, Veliko Tarnovo, Smolian, Razgrad, Sliven and Blagoevgrad.

25. 9.03.2009Bulgarian National Consumers Association Activities:  Publishes magazine - CONSUMER  Fulfills comparative surveys and tests  Provides consumer consultations over telephone, personal and in written.  Periodically conducts sociological surveys among consumers.  Carries on lawsuits for protecting the group interests of the consumers  Participates at the drafting stage of different kinds of consumer related laws.

26. 9.03.2009Bulgarian National Consumers Association Main publications of BNCA  “Consumer” – monthly newsletter 2002 – 2006 Contains articles, tests and surveys and dangerous goods announcements

27. 9.03.2009Bulgarian National Consumers Association Main publications of BNCA  “CONSUMER” – monthly magazine – since 2007

28. 9.03.2009Bulgarian National Consumers Association Main publications of BNCA  Consumer guide for organic products 50 р., (2006)  Educational guide for parents and teachers 48 р., (2006)  Labeling of home devices 18 р., (2006)

29. 9.03.2009Bulgarian National Consumers Association Main publications of BNCA  European Guide for Bulgarian Consumer 160 р., (2004)  Guide for Bulgarian consumer 132 р., (2006)  Collection of comments on the application of the consumer legislation 106 р., (2006)

30. 9.03.2009Bulgarian National Consumers Association Main publications of BNCA  Europa diary 2007/2008  2008/2009

31. 9.03.2009Bulgarian National Consumers Association Website  http://www.bnap.org http://www.bnap.org

32. 9.03.2009Bulgarian National Consumers Association Sources of funding for the last three years Source/Year 2005 in EUR 2005 in % 2006 in EUR 2006 in % 2007 in EUR 2007 in % Members fees 2 1882.892 3002.81 2793.79 Bulgarian government 4 4065.834 0904.985 62416.67 Projects 68 88791.2675 31391.7524 84973.64 Sales 003820.471 9945.91 Total 75 48110082 08510033 745100

33. 9.03.2009Bulgarian National Consumers Association Sources of funding for the last three years by origin Source/Year 2005 in EUR 2005 in % 2006 in EUR 2006 in % 2007 in EUR 2007 in % Domestic (Members fees; Bulgarian government; Sales) 6 5948.746 7728.258 89726.36 International (Projects – PHARE; Socrates; DG SANCO; Governments of Switzerland and Luxemburg; Consumers International; BEUC) 68 88791.2675 31391.7524 84973.64 Total 75 48110082 08510033 745100

34. 9.03.2009Bulgarian National Consumers Association BNCA’s future challenges – political aspects  To increase recognition and level of trust in consumer organizations  To raise the importance of consumer policy  To encourage and develop “consumer empowerment” instead of “consumer protection”

35. 9.03.2009Bulgarian National Consumers Association BNCA’s future challenges – financial aspects  Our organizations’ future challenges To increase domestic financial incomes – membership fees, sales and domestic projects (services) Bring more cases to court and assist consumers to suit producers and claim compensation for damages To carry out more comparative researches (tests) of products on the market – goods and services

36. 9.03.2009Bulgarian National Consumers Association Society challenges  To empower average consumer – to raise personal understanding about consumer responsibilities and interests; to encourage lawsuits; to provide more information through public media  Authorities must accept consumer associations as allies, not competitors.  Better involvement of consumer policy into other sector policies (ex. energy, transport, tourism…)