Proposal for a NPN module 2010 on Consumer Empowerment DG SANCO (Dir B, Consumer Affairs), EUROSTAT 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics Policy Context 2007-2013 EU Consumer Policy Strategy: Special focus on the importance of reinforcing the consumer dimension of the internal market and focusing EU policy towards consumers; Need to understand how consumers behave; Consumer empowerment as one of the aims of the strategy. Single Market Review: Need to move towards evidence-based policies. Commission’s goal to ensure that consumers’ interests are properly taken into account of in all EU policies that directly affect consumers: Need to have figures and indicators of consumer empowerment in order to drive regulation; … but a consistent and harmonized data set on consumer empowerment at EU level is currently missing. 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics Consumer Empowerment  Protecting consumers from risks which they are unable to address and, for those issues they can address, equipping them with the tools to make better choices.  The fact that a consumer is well informed, especially about his/her rights as a consumer and how to get them respected, and feels confident and assertive when consuming. 13 January 2009 Meeting of the Directors of Social Statistics

Aims and rationale of the project: To deepen overall understanding of consumer empowerment Much consumer-related regulation is based on the notion of an average consumer. Need to gain further insight into the average capacities of the EU consumers and their breakdown by age, education level, country, etc. In the Consumer Markets Scoreboard several reported figures need to be read in conjunction with other indicators. A picture of the extent to which consumers know their rights and are willing to assert them will provide important contextual data to benchmark the consumer environment. A statistical snapshot of consumer awareness and assertiveness will also provide a basis for consumer information, consumer education, and potential redress initiatives. Presence of disadvantaged consumers or specific vulnerabilities in the population. 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics General issues Implementation of the module planned for 2010 (1st semester, preferably 2nd quarter of the year). Common questionnaire with ICT is proposed as optional but not compulsory. Total sample size (EU27): 135,000 effective individual interviews (individuals aged 15+) 2,819 in MT 10,493 in DE Mode of data collection: given the specificity/difficulty of some important questions (e.g on skills), DG SANCO strongly favours face to face interviews. Expected average duration: 25’ (including the core social variables) Assets of the project: Timely delivery of results (expected by the end of 2010) With at the same time a very good level of quality 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics State of play April 2008-December 2008: development of the module (by SANCO and EUROSTAT, with the support of external experts). 12 December 2008: presentation of a proposed draft list of variables and wording to the TF members and external experts. Then the list of variables and the draft questionnaire were modified according to the TF’s feedback. January 2009: draft questionnaire (FR and IT version) are tested in FR and IT (small-scale pilot). 13 January 2009 Meeting of the Directors of Social Statistics

Proposed Survey Content Are consumers well informed Are consumers assertive? How well equipped are consumers with the appropriate skills/capacities Identification of potentially ‘vulnerable consumers’  59 variables (plus core variables) 13 January 2009 Meeting of the Directors of Social Statistics

Are consumers well informed? Rights (awareness of unfair contractual terms, unfair commercial practices, guarantee rights, distance-purchasing rights, …) Institutions (knowledge of government and NGOs protecting and representing consumers) Information (main used channel) Prices Breakdown analysis by demographic and socio-economic categories (cf core social variables).  Need to raise awareness. 13 January 2009 Meeting of the Directors of Social Statistics

Are consumers assertive? Experience of problems with consumer goods and/or services Complaints behaviour (yes, no, why not?) Estimation of detriment Experience of misleading or fraudulent offers Reporting behaviour Membership of consumer NGOs Need to raise assertiveness and confidence Benchmark data for other indicators 13 January 2009 Meeting of the Directors of Social Statistics

How well equipped are consumers with the appropriate skills/capacities Basic numerical and financial skills Consumers' knowledge and recognition of products warning and symbols Estimation of decoy effect Face to face interviews necessary for the proposed questions 13 January 2009 Meeting of the Directors of Social Statistics

Additional variables to detect potentially vulnerable consumers Proposed indicators: Difficulties paying all or some of the bills at the end of the month Implication of having a mother tongue which is different from the official language(s) of the country of residence 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics Funding EU-funding: The amount of financial contribution shall amount to a maximum of 90% of the eligible costs. Eurostat’s estimations: 1.31 euros/minute on average ~ 4M euros funding would be necessary for the module. Taking into account the recommended mode of interview (face to face), costs are likely to be higher. Thus, the Commission made necessary provisions, and supplementary funding is available (3.5M). 13 January 2009 Meeting of the Directors of Social Statistics

Meeting of the Directors of Social Statistics Conclusion The DSS are invited to comment on any aspects of the proposed module and to ask for any further clarifications. The DSS are also invited to decide whether or not to put this project on the agenda of Statistical Programme Committee (SPC) of 12 February 2009. 13 January 2009 Meeting of the Directors of Social Statistics