Project Summaries - Union des consommateurs

1000 Amherst Street, Suite 300
Montréal, Québec
H2L 3K5
Tel: 514-521-6820
FAX: 514-521-0736
Web: www.consommateur.qc.ca/union/

1. Irradiated Food: Issues for Consumers

$22,930

Union des consommateurs (UC) proposes a comparative and critical analysis of food preservation techniques in Canada, namely irradiation. UC will identify best practices in food safety by establishing a detailed comparative profile of the use of irradiation in Canada and abroad, any dangers associated with the process, the advantages and disadvantages, including costs and denaturation of foods, and a list of foods treated.

To meet objectives, UC proposes the following:

• literature review;
• summary analysis of food processing technique in North America and brief comparison with techniques used in Europe;
• analysis of regulations governing the processing of food throughout the food chain in Canada;
• analysis of food processing techniques used in Canada:
  • advantages,
  • disadvantages,
  • usefulness and costs (at the food production and processing stages);
• analysis of alternatives to irradiation:
  • advantages,
  • disadvantages,
  • usefulness and costs (at the food production and processing stages);
• review of the risk management system (Hazard Analysis Critical Control Points) (HACCP);
• survey of information provided to consumers on each technique used in Canada; comparative analysis of mandatory labelling of irradiated foods;
• survey of information provided to consumers on safe handling methods;
• graphic presentation of research results;
• recommendations.

The report will be made public.

In the course of the study, UC plans to draw on the expertise of:

• the Canadian Food Inspection Agency;
• the Health Canada Regulations Unit;
• Agriculture and Agri-Food Canada's Food Safety Office.

UC will also consult the Agriculture and Agri-Food Canada's Canadian Food Safety Adaptation Program.

2. Traveller's Health Insurance: Peace of Mind?

$28,050

"Everyone knows you have to tell your insurance agent everything, But when a travel agent offers health insurance, it doesn't necessarily occur to you to give her your entire medical history, especially if the agent doesn't ask you any questions. However, the insurer has to use your statements to determine whether or not it will insure you or pay compensation."

Through a survey of travel agencies and credit card companies that offer health insurance for travellers, UC will take stock of problems related to the sale and purchase of supplementary health insurance for travellers. The aim of the study is to identify risks that can jeopardize travellers' coverage when they make a claim and to come up with solutions.

To meet that objective, UC proposes the following:

• literature review;
• survey of claims not covered by provincial health insurance plans;
• study of legislation governing the sale of insurance by resellers in three provinces (British Columbia, Ontario and Quebec);
• review of training given to insurance resellers and any applicable regulatory requirements;
• contact with organizations (ombudsmen and financial sector regulatory bodies) that deal with the sale of supplementary insurance in Ontario, British Columbia and Quebec (application of legislation, agent training, etc.);
• analysis of complaints;
• development of an analysis grid and questionnaire for a pilot survey of travel agencies;
• development of an analysis grid for supplementary insurance offered by credit card companies;
• identification of agencies to be contacted and credit cards to be analysed;
• analysis of sales practices of travel agents: pilot telephone survey of 30 travel agencies (10 in each of the three provinces: British Columbia, Ontario and Quebec) that sell traveller's health insurance (information requested and given to consumers by resellers). The 30 travel agencies will each get two calls — a younger person and an older person — to determine whether there is a difference in the information requested and provided;
• analysis of training received by resellers;
• analysis of credit card coverage (eight cards) of traveller's health insurance and applicable conditions;
• analysis of information provided to consumers;
• comparative analysis of vital information required by insurers;
• survey of problems;
• case law search;
• identification of possible solutions.

The report will be made public.

3. Alternative Consumer Credit Market

$33,700

"According to the Association of Community Organizations for Reform Now (ACORN) Canada, the alternative consumer credit market (ACCM) is worth $1 billion a year, charging annual interest rates between 300% and 900%. And the market is growing rapidly in the poorest neighbourhoods. The industry grew after more than 700 bank branches closed in the past several years. What is it that makes consumers go to this type of business? Why is that this market is thriving? What other options do consumers have? What is being done in Canada and elsewhere to combat the problem of this alternative market?"

UC will gather information from ACCM users in order to identify their needs and the obstacles they face getting credit at a more reasonable rate. The study will also make it possible to identify the best consumer credit systems in Canada and elsewhere in order to promote their proliferation and use by consumers grappling with credit problems.

To meet that objective, UC proposes the following:

• literature review;
• background of the explosion of the ACCM in Canada;
• the ACCM and the law;
• field survey:
  1. development of a questionnaire;
  2. exit interviews with ACCM users in three Canadian cities (Ottawa, Montreal and Vancouver);
     • UC proposes to target five outlets in each city and interview 20 respondents (for a total of 300 respondents).
     • The survey will focus on the links with traditional financial institutions; ACCM services used; rate of use; reasons; awareness of interest rates; awareness and use of alternatives; and total debt and sources.
• development of an analysis grid;
• survey of types of consumer credit in Canada and elsewhere;
• identification of innovative types;
• analysis grid;
• study of applicability of foreign measures to Canada;
• analysis and conclusions.

UC will draw on the expertise of PIAC, ACORN Canada and other organizations identified during the literature review in order to identify previous studies and recommendations. The survey report will be made public.

4. The Class Action Process

$23,905

"The criticism is mounting: designed originally to re-balance forces between the parties, particularly between consumers and industry, class action is now tipping the scale heavily toward consumers, and the imbalance is being exploited by consumer groups and lawyers who are making it their specialty."

UC will analyse the criticisms of class action and the arguments on which they are based as well as the response to those criticisms. The aim of the study is to establish the facts underlying the arguments made on both sides in an effort to find an impartial solution, based on the evidence gathered, to disputes over each of the chosen categories.

The topics of discussion will be the role of consumer groups, the role of lawyers and the balance of forces determined by class action. The facts will be verified in the field in three provinces through a study of court proceedings and records and statistics on class actions. Case analyses will be done using specific legal precedents that could be invoked in support of criticisms in one of the specific categories; comparative analysis of legislation and case law in the three provinces to determine whether the same problem exists in each province and the way the courts deal with it.

To meet that objective, UC proposes the following:

1. literature review
   • identification of criticisms and arguments
2. division of criticisms into three categories;
   • criticisms of lawyers
   • criticisms of consumer groups
   • criticisms of the new imbalance of forces — consumers versus industry
3. procedures; in three separate stages
   • review of literature on criticisms related to each category
   • presentation of dispute
   • criticisms and arguments
   • responses and arguments
   • analysis of arguments
   • verification of facts
   • case analysis: proceedings and case law
   • conclusion and reasons

Overall conclusion. The results of the study will be made public.

5. Consumers and Standardization: Plans for Action

$41,220

"Standards play an increasingly important role in the marketplace and in protecting the interests of consumers. There are a number of initiatives currently being taken regarding the use of standards in consumer advocacy and regulation of the marketplace. In that context, many players in Canada and around the world are discussing the issues and finding that it is important for civil society to become more involved in the governance of standardization and the process of developing standards. Specific recommendations to that effect should be made in the coming months. In that context, it seems vital that the Union des consommateurs considers the findings and conclusions of the studies now being conducted and examine in a tangible manner ways of taking action and getting involved in standardization processes."

To meet that objective, UC proposes the following:

• analysis of current initiatives from the perspective of standardization and a consumer agency perspective;
• development of a document identifying the issues;
• inventory of tangible experiments that can be tried;
• participation in specific standardization processes;
• study of the results of previous and current research in order to consider concrete actions ;
• summary analysis and sharing of results with partners;
• final conclusions.

Previous studies by the Union des consommateurs, Consumers International (CI), the Canadian Standards Association (CSA) and others on the same theme will be used as a starting point for the analysis leading up to the development of an action plan.

Given that this is a specialized subject and that the issues may not seem important to an uninformed public, the communication plan will target specialized networks, including consumer groups and probably other types of NGO, the Standards Council of Canada's (SCC) External Advisory Committee on Smart Regulation, the CSA's Consumer Program and the Bureau de normalisation du Québec's (BNQ) advisory committee for consumers (CCCQ). UC is also thinking of using the comments within the SCC, government departments and Parliament, as well as international networks of consumer and standardization NGOs.

6. Alternative Medicine: Regulation, Monitoring and Complaints

$23,930

"This study proposes to analyse the various training courses offered to complementary medicine practitioners and the emphasis placed on issues related to liability and ethics. UC will look at the regulatory and self-regulation frameworks and the rules of ethics applicable to parallel medical practice. UC will take stock of the situation and identify areas for improvement by first considering consumer interest and health imperatives."

To meet that objective, UC proposes the following:

• literature review;
• summary analysis of the status of alternative medicine in Canada;
• inventory of existing types of professional training in Canada;
• inventory of professional associations for complementary medicine professions that do not have a professional order;
• selection of practices to be evaluated: (two practices regulated by professional orders and four practices not regulated by professional orders);
• the six practices will be evaluated in three provinces: Quebec, Ontario, British Columbia;
• For each practice, UC will study:
  • training (types of training, prerequisites, length of training, medical content, content dealing with rules of ethics, professional qualifications of trainers, recognition of diplomas, etc.);
  • type of regulatory structure (including self-regulation).
• Regulation and monitoring (rules of ethics, inspection and sanction, continuous training);
• Comparative analysis of terms and conditions for issuing licences and conditions related to practice, based on the Conseil Interprofessionnel du Québec grid;
• Comparative study of mechanisms for handling complaints and compilation of complaints;
• Brief survey of trustees of the professional orders of physicians in the three selected provinces in order to inventory and analyse complaints received concerning care provided by complementary medicine practitioners and illegal medical practices related to parallel medical professions identified by those orders;
• Summary of findings and recommendations.

UC plans to draw on the expertise of the Health Systems and Strategies Directorate of Health Canada, which took part in a study on issues and policies associated with complementary and parallel approaches to health, The results of the study will be made public.

7. Marketing Junk Food to Children

$33,130

"The aim of this study is to take an inventory of legislative, regulatory or self-regulation frameworks likely to guide junk food advertising directed at children and young adults, conduct a critical analysis of a sample of television and print ads for food products, and determine where selected products whose marketing targets children rank on an analysis grid based on World Health Organization (WHO) recommendations."

To meet that objective, UC proposes the following:

• literature review; marketing practices aimed at children in Canada, the United States and Europe; regulatory and self-regulation systems applied to those practices;
• Identification of the pertinent WHO findings related to the feeding of children; survey of initiatives in industrialized countries, particularly the United Kingdom, aimed at meeting the WHO's objectives for combatting junk food;
• Health and nutrition: literature review; consultation on the subject with Canadian nutrition and public health professionals;
• Comparative analytical study of various food products and the marketing that supports them; identification of worst and best practices from both a nutrition and a marketing perspective;
• Analysis of sections of the Consumer Protection Act governing advertising directed at children and the rules of advertising standards; inventory and analysis of any complaints about the subject;
• Report and recommendations aimed at establishing a legislative and regulatory framework governing the marketing of food products to children;
• Other non-regulatory recommendations: educational programs, labelling, positive advertising, etc.;
• Dissemination of recommendations to potential allies in order to get support;
• Final report.

The results of the study will be made public.

8. Drug Marketing: Seeking Better Regulation

$47,680

"The North American drug industry spends $11 billion a year on public relations and promotion. That equates to $20,000 for every physician. The amount companies spend has an impact on the cost of drugs and the cost of drug insurance premiums, in both the public and the private sectors. The rising cost of drugs is the most inflationary element of the health care system and the one that is least subject to government cost controls. In Canada, there are codes and guidelines, but they are vague and very much open to interpretation. The degree to which these codes are followed is not clear, and the penalties for violations could be described as insufficient."

This study will enable UC to acquire the expertise and tools needed to intervene on behalf of consumers in the regulatory process put in place by Health Canada.

To meet that objective, UC proposes the following:

• Literature review; drug marketing practices in Canada, the United State, Australia and Europe; (in particular: analysis of the 2002 report on the content of presentations made by drug company representatives in doctors' offices);
• Identification of the practices used by drug company representatives in Canada through a survey of 30 physicians (in two provinces) conducted by a polling firm in cooperation with the Association médicale du Québec (AMQ); development of the questionnaire;
• Comparative analytical analysis of existing codes and guidelines in Canada (Rx&D, Canadian Medical Association, Canadian Pharmacists Association, etc.), the United States, Australia (Medicines Australia's Code of Conduct) and Europe (European Union ) that pertain to representatives;
• Overview of the monitoring system in place in Canada, in particular monitoring by the Pharmaceutical Advertising Advisory Board (PAAB) (the PAAB reviews all drug advertising directed at health professionals);
• Analysis of complaints;
• Statement of actions taken against companies about which there have been complaints;
• Analysis of the survey results in connection with the other information and analyses gathered;
• Report and recommendations aimed at establishing a legislative and regulatory framework governing the marketing of drugs;
• Dissemination of recommendations to potential allies in order to get support;
• Final report.

The results of the study will be made public.

9. Credit Counselling Consultation Practices and Ethics

$38,000

"In March 2004, the United States Senate tabled a report entitled Profiteering in a non-profit industry: Abusive practices in credit counselling. The report contained stories of abuses committed in the United States in the field of support services for consumers in debt. Credit counselling is facing a crisis triggered in part by the quest for profit. What is the situation in Canada? Are credit counsellors sufficiently regulated to dispel all fears and eliminate the risk of abuse?"

The aim of this study is to analyse the operation, funding and regulation of credit counselling agencies in Canada in order to ensure that consumers are well served and reduce the risk or fraud or conflict of interest.

To meet that objective, UC proposes the following:

• Literature review;
• Survey and analysis of the different types of credit counselling agencies in Canada — In cooperation with not-for-profit credit counselling agencies in five Canadian cities (Montreal, Toronto, Saint John, Regina and Vancouver), 50 agencies in the target cities will be contacted and will be studied in order to get an overview of the situation.
• The analysis will focus on the following points:
  • cost of credit counselling;
  • sources of funding;
  • policy on the allocation of payments to creditors;
  • existence of a consumer awareness program;
  • nature and size of the business;
  • annual volume of counselling sessions;
  • training required or offered to credit counsellors;
  • rules of ethics;
  • existence of and participation in a national association;
• Comparative analysis of the various financial counselling services provided by private organizations and not-for-profit organizations;
• Survey of training offered to the different types of financial counsellors;
• Search of applicable statutes and regulations in force in the provinces and nationally;
• Search of case law in the target provinces — review of cases and handling by the courts;
• Study of rules of ethics applicable in Canada to the different types of financial counsellors;
• Study of the rules pertaining to the recognition of financial counsellors by creditors and other stakeholders.

UC will call on members of Credit Counselling of Canada for assistance in identifying the agencies to be targeted and finding pertinent local legislation and major legal precedents.

The results of the study will be made public.

10. Consideration of Low-income Consumers in the Utilities Sector: Where Does Canada Stand? Water and energy

$26,330

"Amid the current liberalization and restructuring of energy markets and the establishment of partnerships with the private sector to deliver water services, UC will examine the situation in Canada regarding the terms and conditions of service to low-income consumers. The study will look more specifically at the adaptation of fee systems for those services to that category of consumer, debt collection methods and the handling of unpaid bills. The study will review successful North American and European experiments and draw lessons about solidarity measures and special treatment Canadian municipalities and electric and gas companies could apply to low-income customers."

To meet objectives, UC proposes the following:

Stage 1

Review of the current situation in Canada regarding electricity, gas and water services (information will be gathered from available reports and publications or directly from municipal water departments and regulatory boards and electric and gas companies for energy (telephone calls, Web site visits)):

• The analysis will be limited to the service provided by major electricity and gas suppliers and the water department of the biggest municipality in each Canadian province (for water, municipalities that use water meters may be differentiated from those that do not);
• UC will try to identify any obstacles that reduce access to these essential utilities: energy and water costs in the household budget of low-income families; rates and rate setting; method of settling bills; handling of litigation and role given to consumer advocacy groups as intermediaries between consumers and utilities; level of adaptation of social assistance statutes and regulations to the new economic and social context.
• Analyses of rates and methods of collecting unpaid charges;
• Identification of programs that offer special treatment for low-income consumers.

Stage 2

Research on North American and European experiments aimed at implementing measures to take into consideration the limited ability of poor consumers to pay:

• Analysis of means used: compilation of economic, social, political and regulatory measures applied, such as special rates for electricity, gas and water; contractual arrangements; methods of payment; institutions and structures created; statutes and regulations adapted to the context.
• Evaluation, through these experiments, of the impact of the different measures and practices on low-income consumers in terms of access to the utilities in question; reduction in cutoffs; change in the proportion of expenditures allocated to essential services in the family budget; improvement in social well-being and reduction of exclusion.
• Evaluation, through these experiments, of the impact of the different measures and practices on service providers in terms of debt recovery rates; improvement in companies' social responsibility index; improvement in the image of service providers among consumers and citizens.

Stage 3

• Study of the applicability of the best measures and practices to the problem cases identified in Stage 1 of the project;
• Development of recommendations aimed at reducing obstacles to access to utilities.

The results of the study will be made public and distributed to the government departments responsible for ensuring that Canadians have a decent standard of living, municipalities and managers of drinking water distribution systems, electric and gas companies, and public advocacy organizations.