1. Breda Kutin, President zps@zps.si www.zps.si Taiex, Belgrade 9-10 march 2009 Successful consumer organisation in the region: From start-up to today Developing effective consumer organisations 9-10 March 2009 in Belgrade

2. On 23 June 1990, in the Mountains of Menina, in a rainy and foggy weather, the Slovene Consumers' Association was founded. A handful of individuals who adopted its program and elected its leadership, had a clear vision and an ambitious goal: ZPS Slovene Consumers‘ Association was founded Taiex, Belgrade 9-10 march 2009

3. ZPS, Vision and Mission Programme to set up a strong, independent and influential organization in a changing environment, to create a movement to stand up for consumer rights and interests. Main activities: 1.Consumer information and advice, 2.Consumer education, 3.Lobbying and consumer representation, 4.Consumer research, 5.Co-operation with European consumer organizations and global consumer movement. Taiex, Belgrade 9-10 march 2009

4. Founded but not Funded When ZPS started off working, it had a good vision and great enthusiasm of a few volunteers but no finances, no equipment, no appropriate premises. One of the founding members offered to host the ZPS on the business premises of a newspaper for small business BAROMETER, while the newspaper started publishing bimonthly consumer pages. Taiex, Belgrade 9-10 march 2009

5. Big Consumer Scandals - Opportunity for the ZPS In 1990 thousands of Consumers ordered a car from the leasing company TREND, but only very few cars were delivered A call of ZPS to consumers through media to send copies of the contract – Enormous response from consumers: piles of post and numerous phone calls, the host company BAROMETER was immobilised for several days. – First 300 members enrolled and payed a membership fee. Huge media coverage of the scandal The case TREND helped ZPS to its first temporary premises, offered for free by the local government City of Ljubljana Taiex, Belgrade 9-10 march 2009

6. First Employee The need to communicate and provide services for the members who had joined the organization to get the lead to our “search” for the funds to find the first badly needed employees. Special government grants to reduce unemploiment of young graduates, made possible for the ZPS to employ first staff, leaders still worked for free Taiex, Belgrade 9-10 march 2009

7. Further Activities of the ZPS Call on the government for the consumer protection law, by giving examples of legal gaps and advocate the Western concept of consumer protection. Providing service to members and to all consumers – Providing legal advice to all consumers – Supporting members, providing legal support in court during the bankruptcy procedures of TREND (car leasing) company. Good co-operation with media Very active approach paid off Taiex, Belgrade 9-10 march 2009

8. Money for covering the Costs and for further Development First grant ( Trade Ministry and the City of Ljubljana) at the end of 1990 to cover : – basic equipment, – Some personnal costs – costs for printing /distribution of the consumer pages in biweekly newspaper BAROMETER. Growing media support and public profile. Taiex, Belgrade 9-10 march 2009

9. Another, much bigger consumer scandal Overindepthness of thousands caused by : unfair contract terms and decissions of the bank board of directors,changed reasonable loans to extremly expensive housing loans Taiex, Belgrade 9-10 march 2009

10. What did we do ? ZPS started a Housing Loan Campaign targeted to decision makers (Ministry of the Environment and Housing, The Parliament) and consumers at the same time. Aliance with media Political presure, aliance with MPs &CP Committee – Research grant from the CP Committee was used for the evidence based research and revealed unfair contract terms and unfair business practice on a very large scale. – The first issue of the consumer magazine VIP in March 1991 with the cover story of consumer overindeptedness Taiex, Belgrade 9-10 march 2009

11. The first issue of the consumer magazine VIP March 1991 with the cover story of consumer overindeptedness Taiex, Belgrade 9-10 march 2009

12. Very successful Campaign The ZPS Housing Loan Campaign reached multiple goals: New legislation adopted: The public fund, Housing Fund of the Republic of Slovenia, was established by the Housing Act in 1991 to finance the National Housing Programme. Concrete measures adopted by the Government/ the Ministry: The first tender was designed for overindebted consumers to switch their loans from commercial banks to the Fund under special terms. Significant increase of ZPS public profile Due to the very important role ZPS has played in the case, a seat in the Board of Directors of the Fund (1991-1995) was given to the ZPS represenative. Taiex, Belgrade 9-10 march 2009

13. 3500 contracts were transferred to the Fund. ZPS got approx. 900 new paying members at the beginning of the campaign. ZPS filed 9 lawsuits against the bank on behalf of members for unfair contract terms. First court decision on the case was reached after 10 years and basing on that decision the bank offered a settlement for the ZPS members. After 10 years and for the first time in Slovenia a bank in 2001 paid financial compensation to a consumer NGO and its members. Outcomes of the campaign Taiex, Belgrade 9-10 march 2009

14. Successful Organization During 1992-1996 ZPS developed its main activities, p.e. consumer advice, production of info-materials (brochures, leaflets, monthly magazine), comparative testing, on the basis of support from: Succesful tendering for EU Projects ( e.g.PHARE Democracy Programme) Government support based on annual tenders Other international projects ( German government,, GTZ, Know How fund, British Embassy, Netherland Embassy, itd) Membership fees Government support at the end of 1996 was almost 60% of our budget, From few voulnteers to full time staff Taiex, Belgrade 9-10 march 2009

15. MIPOR International Consumer Research Institute Established in 1993 by ZPS and Consumer Association –WHICH? and individuals Main activities: – Publisher of consumer magazine VIP – Comparative testing and evaluation of quality of goods and services – Publisher of broshures and leaflets – Research activities, professional support to ZPS activities – Policy development and capacity building in SEE and CEE – Technical support to DG Sanco in Information campaigns – International and national co-operation Taiex, Belgrade 9-10 march 2009

16. VIP magazine & leaflet Taiex, Belgrade 9-10 march 2009

17. The Conflict The policy of active partnership and involvement of a consumer NGO in creating consumer policy changed when Consumer Protection Office started to operate in September 1996. Consequences: Drop of the funding from Ministry of Economy (CPO) by 2/3rds, in 3 years the total income halved Consumer Advice network ceased to exist but the head advice office continued to operate and provided service on the national level Taiex, Belgrade 9-10 march 2009

18. Difficult Period Struggle for survival to keep the key experts Inovative approach to secure financial resources for publishing the magazine. Diversification of income: A Partnership agreement with the most known daily newspaper Delo secured continuation of publishing of the magazine VIP and to increase number of subscribers/members from less then 2.000 to 6.500 Identifying other donors Developing new services (p.e. seminars) Taiex, Belgrade 9-10 march 2009

19. Successful Development Diversification of income continued: Tenders from DG Sanco ( in partnership with other consumer organizations) helped develop further the profile of the organization. Increased success from other project applications. After elections in 2000 co-operation improved but support has not reached the level from 1996. (60%) A concession in 2003 for providing consumer information and education by publishing consumer magazine VIP helped to focus more on the content and quality improvement Membership dropped and then increased slowly but steadilly. Successful application for running the ECC – Slovenia in 2006. Taiex, Belgrade 9-10 march 2009

20. Sucessful development Tenders from DG Sanco : Sucessful campaigns like EU Information Campaign in 2006 Euro introduction and pricewatch, the helped re-establish the high profile of the ZPS as a trustful and professional organization – the government, the Central Bank financially supported the campaign. In 2008, ZPS continued with a pricewatch of food and services based on the request of and financed by the government. Membership is increasing slowly. Taiex, Belgrade 9-10 march 2009

21. Special web page for introducing of euro www.evropotrosnik.si Highest in December 2006: 87.248 unique visitors Taiex, Belgrade 9-10 march 2009

22. Web site: www.zps.si Taiex, Belgrade 9-10 march 2009

23. Pricewatch web site: www.precenimocene.si Taiex, Belgrade 9-10 march 2009

25. www.zps.siwww.zps.si unique visitors Taiex, Belgrade 9-10 march 2009

26. Press clipping in national media Taiex, Belgrade 9-10 march 2009

27. Mix of sources to secure operation Consumer Research Information campaigns Seminars specific projects,/tenders Membership service Consultancy /tenders Training All aiming at strengthening consumer organizations and getting means to provide good service to consumers Taiex, Belgrade 9-10 march 2009

28. 18 years of consumer magazine VIP Governement concession /up to 50% funding, consumer information, comparative testing, 465 international and over 100 national tests published since 1994, consumer advice, representation of consumer interests. Taiex, Belgrade 9-10 march 2009

29. ZPS/MIPOR Human resources Taiex, Belgrade 9-10 march 2009 From a small group of volunteers in 1990, ZPS/MIPOR gradually set up a professional structure with 20 staff, 12 p.time experts, while outsourcing some important functions like magazine layout, printing, IT services, finance and other services. Both organizations are managed by elected Board od Directors

30. Taiex, Belgrade 9-10 march 2009 Finances ZPS_SCA INCOME - Membership fee - Projects financed by the Slovenian Government - International projects - Other 2005 228.203 8% 24% 12% 56% 2006 357.311 7% 24% 46% 23% 2007 555.581 5% 42% 45% 8% MIPOR-ICORI INCOME - Subscription - Projects financed by the Slovenian Government - International projects - Other 2005 413.445 37% 12% 14% 2006 558.233 33% 31% 25% 11% 2007 606.550 32% 33% 34% 1%

31. Success criteria 1.Strong leadership with a core proffessional team. Clear mission and vision. 2.Always focus on the benefit of the consumers. Prove claims with evidence from real life. This is the way to gain and maintain credibility in public. Protect credibility. It is very easy to loose it but very difficult to retain it. 3.Be optimistic in planning but realistic in spending. Have strong control over finances. 4.Be innovative in the search for funding. Maintain mix of resources, try to increase it steadily. 5.Build and maintain co-operation with media. They can be a very strong ally. Taiex, Belgrade 9-10 march 2009