Is consumer Is consumer protection protection relevant to relevant to

climate climate change?change?

Gordon RenoufGordon Renouf

CHOICECHOICE

National Consumer Congress National Consumer Congress 20082008

OverviewOverview

1.1. Is consumer protection relevant Is consumer protection relevant ……

2.2. … … to public policy on Climate to public policy on Climate ChangeChange

3.3. … … to individual consumer choicesto individual consumer choices

Climate change is an Climate change is an externalityexternality

“ … “ … we should worry about we should worry about costs and benefits missing costs and benefits missing from the market transaction. from the market transaction. … our marginal pricing … our marginal pricing should reflect those should reflect those externality costs accurately.externality costs accurately.

““whatever society decides whatever society decides about the seriousness of the about the seriousness of the externality, externality externality, externality charges are the most charges are the most efficient way to deal with it.”efficient way to deal with it.”

.. Voluntary action also .. Voluntary action also essentialessential

Shaky information about costShaky information about cost Taxes and standards are negotiatedTaxes and standards are negotiated Policy responses are delayedPolicy responses are delayed Voluntary action promotes Voluntary action promotes

innovationinnovation Need integrated public and vol Need integrated public and vol

action action

Consumers and government Consumers and government actionaction

Consumers pay the price Consumers pay the price of policyof policy … … we don’t want a lemonwe don’t want a lemon … … equity is importantequity is important

Consumer voiceConsumer voice

Consumer actionConsumer action

Consumer’s right to chooseConsumer’s right to choose

Innovation Innovation

Participation builds constituency for Participation builds constituency for changechange

Consumers are interested but confused

75% of US/UK consumers are concerned about climate change but don’t know what they can do to make a difference

www.consumersinternational.org/climate

Supporting consumer Supporting consumer actionaction

ConfidenceConfidence

MotivationMotivation

200 claims on non-food in one 200 claims on non-food in one

small supermarketsmall supermarket

61% of companies expect to 61% of companies expect to

increase profitsincrease profits

How significant is green How significant is green marketing?marketing?

Greenwash?Greenwash?

Not so eco credit card

.The CHOICE shonky for Greenwash

Regulator probes Woolies' green claim

Responding to Responding to GreenwashGreenwash

ACCC GuidelinesACCC Guidelines

+ accurate information about + accurate information about alternativesalternatives

+ choice restriction+ choice restriction

Dob in a dodgy green claimDob in a dodgy green claim

ConclusionsConclusions

Consumers need to heard in Consumers need to heard in policy developmentpolicy development

ConclusionsConclusions

Consumers need to heard in policy development

Mandatory responses and Mandatory responses and voluntary responses should be voluntary responses should be mutually reinforcingmutually reinforcing

ConclusionsConclusions

Consumers need to heard in policy development

Mandatory responses and voluntary responses should be mutually reinforcing

Good consumer protection is VITALGood consumer protection is VITAL to protect consumers’ rightsto protect consumers’ rights to activate competition and innovationto activate competition and innovation to ‘save the planet’to ‘save the planet’

Thank youThank you

www.choice.com.auwww.choice.com.au

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