INTERNATIONAL GUIDELINES

Esther Peterson!

I am pleased to be with you to discuss important As you all know, our world has indeed become international developments in the consumer move­ increasingly "g lobal "--economically and socially. ment. In December in Bangkok, I attended the The information explosion experienced in our 11th congress of the International Organization country is a worldwide phenomenon focusing of Unions (IOCU). IOCU, an organization increased attention on global relationships. As of which ACCI is a member, was f ounded more than international trade has increased in breadth and twenty years ago by Colston Warne, whom you also complexity, the need for international consumer honor. He was joined then by consumer leaders i n representation is of growing importance. Thi s other countries who saw the growing movement of struck me most vividly at the conference in goods between countries, and the g rowth of multi­ Bangkok. Here were representatives from almost national corporations as a powerfully dynamic, 50 countries, developed and underdeveloped, t hat really super-national world force. They under­ had one strong common demoninator--wanti ng to be stood the need to develop countervailing powers part of the deci sions that are being made in that would protect the costumer from the negative corporate board rooms and elsewhere that effect aspects of this global market expansion. Since their lives and well-being. The tragedy of that beginning, IOCU has been an effective force Bhopal, which occurrred just before the confer­ in helping to bring meaningful balance to the ence , gave urgency and sadness to our discus­ marketplace, chiefly through sharing of consumer sions. It permeated the actions of the ent ire problems and solutions across international confer ence. "No more Bhopal s ," became the cry. borders. And the cry meant far more than just preventing similar tragedies. From the Bhopal tragedy it As early as 1971, an IOCU conference addressed became clear that consumer concerns are uni­ t he need to develop consumer guidelines f or food versal. Many nati ons therefore l ook to t he UN and commodities applicable to member states of for g uidance, leadership, and help in inter­ the UN. Noting the growing awareness of the national consumer crises. consumer interest, the UN passed a resolution instructing the Secretariat to report on The UN may not be t he perfect vehicle we hoped it consumer protecti on in the member states. That would be for achievement of permanent peace in resolut ion eventually resulted in the drafting of the world; but it ' s there, it exists, it a set of guidelines and their consideration in functions, and i t can be used to establish the Economic and Soci al Council (ECO SOC). After principles of decency and j ustice which all going through numerous draft s and revisions, the na tions can then be persuaded to recognize. And guidel i nes were f inall y approved in ECOSOC late so it is with the consumer guidelines. l ast year and are now pending in the General Assembly. Although t hey are not as st rong as we One of t he thi ngs that we need is more consumer­ wanted, the guidelines i n their present form ists in t he diplomatic establishments of the could be a di stinct , positive beginni ng. Equally major nations--or at least more active lobbying important, i s passage by the Genera l As sembly of by each national among its own the consolidated list of banned and potentially country' s dipl omats. From my own experience in dangerous pesticides, chemi cal s, drugs, and the consumer movement , I am aware of how much consumer products. time and effort we have always devoted to lobby­ ing our own politicians and governmental admini­ Working on these two issues--the consumer guide­ strator s , but we never made our diplomatic corps lines, creati ng a world charter on consumer a target for such efforts. Of course, UN rights, and t he consolidated list , making infor­ representatives follow their governments' mation on internationally banned chemi cal s avail­ instruc tions, but we must see to it that our able to all UN memb er countries--has constituted government' s instructions to its UN diplomats my major activities as an IOCU vol unteer --servi ng represent the voice of t he people. We just as representati ve of this accredited Non-Govern­ haven' t appreciated t he rol e the UN can pl ay in mental Organization (NGO) at the UN . As an the consumer field, and how important it is for accredited NGO, I OCU ha s the right to appear us to make sure our respective national represen­ before UN agencies to argue its point of view on tatives in the UN develop an understanding of UN proposals and to attend and monitor some consumer issues. Our recent experiences have otherwise closed committee meetings--unless a UN taught us a good deal about this. member country objec t s. I'll let you guess for a bit what country objected to my being present at I think of what El eanor Roosevelt did for several mee tings l ately. humanity when she served as an American represen­ tative to, and Chairman of, the UN Commission on Human Rights . She ran into r eluctance on the lunited Nations International Organization of part of career diplomats to make waves and upset Consumer Unions Representative to Economic and rel ationships between nations over what are often Soci al Council mi st akenly regarded as "internal" matte rs. She

305 established the principle that what happens to even in our own country, wide disparity in the poor, the disadvantaged, the repressed, and abilities to purchase wisely. That disparity is persecuted in any country were causes for concern compounded when merchandisers extend modern in all countries. American sales practices into other cultures.

And so it i s with the consumer guidelines. They Let me remind you of a product introduction in can serve as a Charter of Human Rights in the the United Stat es marketplace that illustrates my consumer area. That doesn't mean that every point. Do you remember the l emon liquid dish nation would sc rupulously obey and implement soap packaged in bright yellow with a picture of those principles. Many would not. But the a lemon displayed prominently on its l abel? This existence of a UN sponsored Charter of Consumer product was mistaken by more than a few consumers Rights can simply not be ignored by any nation to be a lemon food-concentrate. This newly which wishes to be considered civilized. marketed dish soap found its way into more iced tea and l emon drinks t han any producer would want Some people think of the UN as strictly a peace­ to acknowledge. keeping organization, and that it should t here­ fore stay out of social and economic questions. I'm familiar with a similar case where strawberry Tho se people feel that the only justification for shampoo ended up on a consumer's pancakes. It the UN' s existence is as a kind of "cyclone looked like strawberr i es. • .and it smelled like shelter" to avoid war--some place people can talk strawberries •••Howev er, this particular user instead of fight. Something that is not well did not read English. understood however, is that the charter gives t he UN a very important role, and I My point? U. S. consumer s can read, and still quote, "in achieving international cooperation in misunderstandings or apparent misrepresentations solving international problems of an economic, occur . What of the consumers who have even less social, cultural , or humanitarian character. " basis for effi cient consumption? What of users These may be some of t he very problems which, if who simply don't have the background to make left unsolved, could lead to war. While this knowledgeabl e decisions when buying processed work of t he UN isn' t so well known, one-third of f oods, beauty aids, and drugs? t he United Nations budget goes to it. The guide­ lines for are encompassed in John F. Kennedy' s historic 1962 Consumer Rights this economic and social development branch of Speech set the course for a great forward move­ the United Nations. ment for protection in the U.S. His is celebrated on March 15th In developing coutries , consumers simply don't throughout the world as Consumer Rights Day. I n have the kind of protection we take for granted 1972, the Heads of State of the European Economic here. Few of us realize how remarkably good life Community recognized consumer protection as an is for consumers in America, even compared wi th international issue when they declared their full Britain. In the developing world it's very support for strengthening and coordinating different. People in undeveloped countries have consumer protection throughout the Community . In pitifully less--economically and educationally-­ 1983, the Council of Europe adopted a consumer and are l ess able to protect themselves. Improved protection charter. consumer protection for t hese peopl e is desparately necessary. These significant strides parallel ed and influenced the creation of the propo sed UN Few of you ar e old enough to remember the ki nd s consumer protection guidelines. The first formal of abuses and unchecked power industrialization move took pl ace i n July, 1981 , when the Ec onomic brought to the developed world. It meant mass and Social Council, one of the policymaking production , modern advertising, and sal es method s bodies of the United Nations, asked t he persuading consumers to buy shoddy, or unneeded, Secretary-Counsel, to prepare a report containing even hazardous products. Some of us are even old guidelines for consumer protection. enough to remember the Lydia Pinkham days when harmful addi ctive drugs were sold to women. The Secretariat' s office first prepared a draft based on t he recommendations and decisions As you realize, in developing countries the adopted by various international bodies like t he disparity between consumers and producers i s in Food and Agriculture Organization and the World even greater imbalance. With very limi ted Health Organization, and drew on work being discretionary income and little formal education undertaken by existing world organizations. people in t hese countries are bei ng subjected to pressures they cannot be expected to understand. This first draft was t hen sent to Governments I n the marketplace, these consumer s face a range asking f or comments. Twenty-three governments of highl y sophisti cated products desi gned with a replied--including the United States. Some very different consumer in mind, The assumption governments approved the draft , and others is mi stakenly made by multinationals t hat these proposed changes--sometimes merely drafting very different consumers are the same ; that users changes, and sometimes introducing new ideas such in developing countries have the same ability to as the need to allow for cost/benefit analysi s . use a product as do consumers in developed Not surprisingly, the United States proposed countries. This simply isn' t the case. We see, ext ensive changes to the text.

306 The guidelines were then reviewed and issued as a conform to national and international standards working document. In July of 1983, the Secretary­ for consumer protection, including the pertinent General presented the revised guidelines to the provisions of the United Nations system." This Economics and Social Council. Representatives was one of the points receiving a great deal of had an opportunity to comment on the guidelines attention from the USSR and unaligned countries. in May of 1984, and again in July of 1984. In spite of long discussions and meetings both in The guidelines try to take into account the New York and in Geneva, agreement could not be differences between developed and developing reached, and it was decided to continue countries. For instance, a special section is discussions in New York with a view toward their devoted to food and pharmaceutical products, in adoption at the 39th UN General Assembly session. view of the fact that a high proportion of Again in late November and early December, consumer income in the developing countries is further discussions took place. spent on food and drugs. (I was appalled that the U.S. government suggested the entire section Finally a consensus was reached on an ad refer­ dealing with food, pharmaceuticals, and water endum basis. It was agreed that the guidelines quality standards be deleted.) would come up for final adoption at the contin­ uing session of the General Assembly in 1985. There is also a special section dealing with The request to del ay was made by the United distribution facilities for essential goods and States in order t o make possible further services, since poor distribution facilities can consultations with the governments and cause many consumer problems in some developing constituents. countries. Because of the variability in economic and social conditions among developed The draft guidelines contain a series of and developing countries, the implementation of principles and measures concerning various these measures and princples must be assessed in aspects of consumer protection. They are based the light of the conditions prevailing in each on what have been the main tenets of consumer country. That is why the ECOSOC Secretariat when protection in almost all advanced countries, requesting the elaboration of the guidelines, namely: that products should be safe and not of explicitly stated that "the primary responsi­ inferior quality to that which they purport to bility for consumer protection rests with each be; that restrictive business practices which State," meaning that the formulation of national negatively affect consumers' economic interests consumer protection policies is a prerogative of should be regulated; that consumers are entitled Governments, and that it is the prerogative of to the information required to make rational each of them to decide what consumer protection choices and to the kind of policies it should adopt. necessary to that end; and that there should be effective and speedy redress procedures for As I see these guidelines, they are at most legitimate complaints. expressions of support for the kind of consumer protection we in the United States, and consumers The guidelines are divided into three major in other industrial nations, have been enjoying parts: objectives, general principles, and the for decades, indeed for generations. It was not guidelines themselves. The guidelines are in Franklin D. Roosevelt in the 1930's, but his turn divided into eight parts, dealing with: cousin, Theodore Roosevelt, U.S. President in the earl y years of this century, who brought us laws - physical safety; governing the purity of foods and the wholesome­ ness of meat sold across state borders. But it - protection of consumers ' economic interests; was not until Presidents John F. Kennedy proposed, and Lyndon B. Johnson acted more than - standards for the safety and quality of half a century after Theodore Roosevelt ' s law, consumer goods and services; that the U.S. finally ordered that all meat sold in our country, even if produced and sold within - distribution facilities for essential consumer a single one of the 50 states, had to be subject goods and services; to the same standards of wholesomeness as we had required since 1906 on meat sold across state - measures enabling consumer to obtain redress; lines. It takes time. It comes piece by piece, slowly, painfully, and only after excruciating - guidelines for measures in the areas of food, battles among our own politicians and economic water, and pharmaceutical products. interests, and often only after consumer tragedies of great sadness. In addition, there is a section on international cooperation in the area of consumer protection What , then, t he size of the chall enge, the due to the fact that certain specific problems in dimension of the problem, in helping emerging this field can be effectively approached only by nations with limited resources to achieve such international solutions, as in the case, for standards for themselves? Are we, as some of our exampl e, of export of banned hazardous products own nation's leaders foolishly suggested, to like Tris, and some pesticides. With respect to l eave the people of underdeveloped nations to transnational corporations, the draft guidelines their own resources and hope that they can solve say that "transnational corporations should these problems by free competition among sellers,

307 perhaps through some voluntary business-domina t ed these small barriers will effectually di sappear council on good commercial practices? as standards are applied. It is especially important, however, that they apply uniformly to Those things never worked--never succeeded--in both domestic and foreign businesses. the United States or in other developed countries. How could they do the job in a small The effect will translate into two important underdeveloped, impoverished nation? Here's economic changes. The first will be improved where you in the academic world have a genuine product quality for those developing counties responsibility to show, that yes, the free with current below-minimum standards and the enterprise system works in this country, and we second will be increased international competi­ believe in it. But it can only work for us and tion. However, the most important point to make to our best interests if we maintain and in r esponse to the concern that the guidelines strengthen, and do not abandon, the checks and will act as a trade barrier is that safety and balances we have worked so hard for so many years health and basic human rights should never be to incorporate. sacrificed to the marketplace. Protections that benefit consumers more than they cost are accep­ We regretful ly know that much of our progress in table--and are not trade barriers when they apply the consumer area has been made because of to all. tragedies. We remember thalidomide in the 60' s and the tragedy of the the elixier of sulfanila­ A second argument against the international mide in the 30's. But we know that guidelines is that the issues of consumer cannot consist merely of uncovering the cause of protection should be addressed through self tragedies and then writing laws to prevent them regulation. My response to this objection is in the future. Consumerism must seek to bring that in many cases self regulation simply doesn't issues to the forefront--to bring about solutions work. We've seen evidence of businesses dragging that not onl y will prevent old tragedies from thei r heels--digging in t heir heels against recurring but new ones from developing. "No more proposed consumer protection--for decades now. Bhopals," not in India and not in Charl eston, There doesn't appear to be any evidence that W. Va, either! things are different in an international market­ place. In fact, just the opposite is true. The We must recognize the impact on underdeveloped complexity and multiplicity of international nations of the sometimes intimidating techniques issues confr onting consumers, and the resulting used by vast and powerful multi-national corpora­ problems have greatly increased. tions seeking new and untapped markets. Business is global, international--consumeri sm mu st be the A third objection is the view that the guidelines same, Big corporations should not be permitted, are a move toward int ernati onal regulation, and a let alone encouraged , to dump abroad the products creeping "Global Socialism." There is concern they can no lon~er legally sell at home. "Made that proponents of t he guidelines are in favor of in America" should be a sign of quality, not a converting the United Nations into a "consumer warning. And the people of developing nations cop." A New York Times article reporting on some must have a say in how t hey want their productive Senate hearings in May of 1983 suggested that capacity to be used, how their soil is to be according to some trade association testimony the used, how t heir people are to be fed, rather than guidelines seemed to be a blueprint for more l etting these decisions be made unemotionally in centrally planned economies, and were not corporation of fices half a continent or half a intended for, or practical for, free private world away. enterprise economies. In fact, neither of t hese suggestions wa s or i s valid. The guidelines Yet, look at the opposition earlier drafts of our explicitly stress the importance of competition guidelines have encountered at ECOSOC. One would in providi ng consumers with the greatest choi ce think that the world's consumers, as represented of products and services at the lowest price. by IOCU , are visionary but impractical dreamers-­ And while it is true that governments are reques­ troubl emakers seeking to tie the hands of inter­ ted to voluntarily take many responsibilities, national traders and stifle industrial inno­ they are requested to do so after the model of vation; that their ideas come from the writings countries such as the U.S. that carefully watch­ of Karl Marx, not from the speeches of John F. tower free enterprise. Kennedy. I say to opponents in this effort •••what we Let's look at three of the most commonly discus­ want for the consumers in poor countries i s no sed objections to the international guidelines: less than what we take for granted for ourselves in the well-off-Countries. Basic human needs are First is the objection that the guidelines could identical. Is there any theory of human, hurt international trade because they act as biological, or ethical practice which makes the non-tariff barriers to trade, It's true that the aspirations and need s of one people different consumer protection standard put forth in the from the other, and says that one can treat them guidelines would initially serve t o restrain differently when i t comes to t hese basic princi­ international trade to a degree if not uniformly ples we are considering? Our hearts go out to adopted and implemented . However, once countries the suffering of starving people. • • and our food unitedly adopt consumer protection mea sures, aid follows our hearts. But what we are calling

308 for through the guidelines--and what IOCU numbers of pro-consumer coalitions, religious and believes in--is extending not just a loaf of environmental groups, working with consumers on bread, but the ability to grow one ' s wheat, and the consolidated list of banned products and the assurance that the bread from that wheat will related issues. be pure and wholesome. If some multinational wants to make that bread, fine; but the The work of the Health Action International on a protections abroad should be as good as those code for pharmaceutical products, similar to the here at home. No, I don't think this is asking code concerning the marketing of infant formula, "too much" in the twentieth century. is another exampl e. Health Action International's work with the World Health Organization in I assure you that we are not rocking the promoting the use of a catalogue of essential foundations of world commerce or instituting a drugs, and restricting drug proliferation based new economic order by trying to bring more not on health needs but on sales objectives, is a rational international consumer standards into very constructive effort. So we consumers are existence. Certainly, business executives do not not, by any means, helpless. International like consumerists getting in their hair and consumer cooperation can be effective. We must complaining about products and trying to regulate expand the use of such tools. It was this group business more effectively. Their jobs, as these that so effectively organized the Nestle's executives see them, are to expand sales and boycott. And it must be remembered that the profits, not serve as keeper of the world' s complaint was not against the product, but morality. My heart is warmed by the number of against the way it was promoted. corporate executives who privately, and sometimes even publicly, recognize the need for corporate It is exciting for me to be working in an social accountability• • • and it's a growing enlarged consumer endeavor that is new and group. demanding , The need for our international work is inevitable, given our "global" economy. The The second major IOCU effort at the UN has been chall enge is great, and I hope the challenge will the promotion of the publication of banned and be accepted by all of you, I l ook to you in the hazardous products. I 'm happy to say that this academic community to train, educate, and supply has been accomplished. The effort grew out of the new professionals who will move our efforts the IOCU-supported resolution adopted by the forward--professionals who will contribute to our General Assembly of the UN two years ago this efforts for what I like to call a "better, safer, month calling for "protection against products happier world." harmful to health and the environment." The real bite of this resolution lies in the direction to the UN Secretariat to prepare a consolidated list of products whose consumption or sales has been banned, withdrawn, severely restricted, or not approved by governmental regulatory agencies because of test results or hazard impl ications. This is a spl endid example of t he effectiveness of the work of IOCU , which your organization helps to support.

The antagonisms to the promulation of t he conso­ lidated list by some major multinationals is cl ear evidence of the potential usefulness of such a list in al erting consumers, and their governments, in less developed nations to irresponsible and unfettered drives for market power. Here, too, I hung my head in shame when the U.S., for the third time, was the only country voting against the publication of this list. Why was this singul ar dissenting vote cast? Because, we were told, that publication of such a list "cost too much," and interfered with free enterprise and was not needed.

We are developing new mechanisms through IOCU dealing with many of the problems of the globali­ zation of the marketplace: Consumer Interpol, which monitors and reports on global trade i n dangerous products; the Health Action Inter­ national, which tries to monitor and report on pharmaceutical compani es' actions; and the Pesticide Action Network, which monitors and reports on the dangers of specific pesticides and their uncontrolled use. There are growing

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