Conference in Oslo14 May 2001
Improving services for consumers: How can standards help?

Services, standards and the consumer

Ms. Solveig Solbakken, State Secretary,
The Ministry of Children and Family Affairs

Dear participants,

Ladies and Gentlemen,

Many of you may relate to the following scenario:

We wake up in our bed, an invention from the Middle East (that is the bed, not waking up). We may crawl out of a blanket made from Australian wool and sheets made of cotton from Sudan.

We put on a pair of slippers, invented by American Indians, and take off our pyjamas, which is a garment from India. In the bathroom we wash ourselves with soap, like the Arabs taught us, and may be shave ourselves like they did in ancient Mesopotamia.

On entering the kitchen we glance through the window, glass was invented by the Egyptians. We drink a glass of juice from Cyprus and a cup of Ethiopian coffee with Cuban sugar. Then we read the newspaper with letters created by the ancient Semites, on paper that originated in China, and was further developed by the Germans.

Finally, as we are about to leave our homes it starts raining and we decide to use an umbrella, like they first thought of in India, and then we walk down the road on rubber soles made of rubber from Malaysia.

People, commodities, thoughts and ideas have always travelled around the world, nowadays faster than ever. As consumers we are facing a rapidly changing market, accelerated by new means of communication and new technologies. The Internet has made global trade and communication easier. In the course of the next years the development is expected to gather further speed. We will see the convergence of television and Internet, and also mobile Internet, and the introduction of new business solutions to go with them. This will be to the great delight of some and the annoyance of others. Irrespective of our own views, we have to be prepared for continuous change.

For the consumers, the introduction of new technologies and the increased importance of cross-border trade entail new options. E-commerce, for instance, gives the consumers an opportunity to deal in a global market that offers a vast selection of products and services.

However, the new means of commercial influence and new technical solutions also challenge us as consumers. The vast amount of products and services on offer and the increased flow of communication make it harder for the individual to get a clear view of the situation, gather sufficient information and to make an informed choice. This makes great demands on the individual consumer.

It also raises the following questions:

To what extent is consumer protection the central issue?

Or is it more important to secure a well-functioning market, in which the consumers take active part in setting the premises?

I believe both aspects are important. However, in the future we have to further emphasise the connection between consumer, trade and competition policy. On the part of the consumers, this implies a more active role towards the market. We need consumers who require a high standard in the goods and services they buy, and who are conscious of the influence they may constitute as a group.

The changes we are faced with are not a result of technological and commercial developments alone. They are also influenced by political choice. I believe it is important to see to that we develop a market economy that takes into consideration both the environment and consumers. Or, in effect a market economy that takes human factors into account.

To achieve this, trade and industry will have to assume greater responsibility for attending to the interest of consumers. In my opinion, attention to the protection of consumers should not represent a drawback for economic life. It should rather be regarded a competitive advantage.

National authorities are responsible for market control. It is, however, impossible for the authorities to control all products and services placed on the market. Consequently, the standard of products and services cannot be assured by regulatory control alone.

Legislation is subject to frequent revision. Still, legislators often do not manage to keep pace with developments. In addition, international trade limits the powers of national authorities to exercise market control and to influence market behaviour.

Codes of conduct and self-regulation by trade and industry may be important supplements to legislation. And so may standards be.

Internationally, we have wide experience in the standardisation of products.

However, it is the growing importance of the services sector that has made us all take part in today’s workshop. As opposed to the product area, the standardisation of services is still in its preliminary phase.

Standardisation of services is not an easy task. In some ways, one might say that services are somewhat less tangible than products. It is hard, if possible, to standardise cultural characteristics, personal service and individual expectations. It is probably not even a viable option.

The challenge for all of us is to identify passable paths for international standardisation of services, and how we within such a framework are able to look after the interest of consumers.

The workshop pays particular attention to two categories of services with a cross-border dimension, tourism and financial services.

Tourism has by its very nature a cross-border dimension. A key problem for consumers as regards tourism is that quality standards and systems may vary from one country to another.

For instance, if you reserve a room in a three-star hotel, what should you be able to expect upon arrival?

Or, if you decide to go downhill skiing and you wonder whether you should try the black slope or the red slope. How steep is actually a black slope compared with a red one?

Climatic differences are another challenge to international standardisation of tourism services. Scuba diving is one example. Scuba diving off the coast of Norway sets somewhat other requirements to equipment and qualifications than does scuba diving in the Red Sea.

The introduction of new technologies leads to an increase in the supply of financial services. New technologies also make financial services more easily accessible, both nationally and internationally.

The developments raise questions such as:

How is it possible to guarantee consumers operating in the electronic marketplace a satisfactory level of protection?

As consumer, shouldn’t I be able to compare the different offers of insurance that I have received?

Should I have confidence in the financial planning advice that I have been given?

With regard to both tourism and financial services, standardised terminology and information may solve some of the problems consumers are faced with. Consumer confidence in the services provided is a key factor.

As I stated at the beginning of my speech, good thoughts, ideas and solutions have always travelled around the world. The better the ideas and solutions, the greater the chance of becoming an integrated part of economic and everyday life.

Consumer participation in standardisation is of great importance. For this reason I am very pleased that you all had the opportunity to attend this workshop.

I do not expect today’s workshop to find solutions to every obstacle to international standardisation of services, but we should all keep in mind that

The vision of a better world,

is a better world,

a little on its way.

(Åse Marie Nesse)

Thank you for your attention.