The Role of PVOs in Consumer Protection: A Proposal to SEEP Membership

Publication Date: 23 Oct 2003
Published by: Small Enterprise Education and Promotion (SEEP) Network
Document Type: Presentation

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Setting the stage for protecting consumers

This presentation discusses the importance of consumer protection, the role that private voluntary organizations can play and the involvement of SEEP in the consumer protection process.

The presentation discusses:

• The need for consumer protection;
• The background of SEEP’s engagement in consumer protection;
• The vulnerability of consumers;
• Examples of consumer abuse in Bolivia and South Africa;
• Benefits of a proactive approach to consumers:
  • Fair and equal treatment,
  • More informed decisions about financial services;
• Benefits of a proactive approach to institutions:
  • Obtaining greater client loyalty and higher retention rates,
  • Avoiding burdensome and costly government regulations.

Discussing the roles of international private voluntary organizations (PVOs) and SEEP, the presentation states:

• Role of PVOs:
  • Taking a pro-consumer stand,
  • Assisting local microfinance associations and networks in becoming credible industry representatives,
  • Sharing best practices and providing tools.
• SEEP’s leading role:
  • Helping members adapt consumer protection measures to the range of institutional types and the range of services offered,
  • Catalyzing and supporting member initiatives in consumer protection.

  The Presentation offers the following proposal and tasks to SEEP membership:

  • Proposal:
    • Adopt ethical statement for consumer protection,
    • Review experiences after two years.
  • Tasks - to discuss the:
    • Pros and cons of adopting an ethical statement about consumer protection,
    • Recommendations regarding the proposal.

  The presentation concludes by stressing the need to identify next steps for action based on the discussions of the members.