Report on consumer's level of awareness and rights in mogadishu, somalia

© 2016, Ali Jili'ow, Research Report on Consumer's level of awareness & rights Page 1

CONSUMER'S LEVEL OF AWARENESS,

CONSUMER EMPOWERMENT AND

RIGHTS

By

Ali Ibrahim Jili'ow

MBA, OUM

Supervised

By

Dr. Ali Yassin Sheikh

MARCH, 2016


CONSUMER'S LEVEL OF AWARENESS, CONSUMER

EMPOWERMENT AND RIGHTS

TABLE OF CONTENTS

1.0 INTRODUCTION.................................................................................................................... 4

1.1 AN OVERVIEW ABOUT SOMALIA.................................................................................... 4

1.2 SOMALIA AFTER INDEPENDENCE ...................................................................................4

1.3 SOMALIA AFTER 1990s ........................................................................................................5

1.4 SOMALI DEMOGRAPHCS ................................................................................................... 5

1.5 SOMALI'S FIRST SURVEY AFTER DECADES OF CHAOS AND ANARCHY................5

1.5.1 SOMALI POPULATION DISTRIBUTION......................................................................... 6

1.5.2 POPULATION AS GENDER................................................................................................6

1.5.3 POPULATION ESTIMATES OF SOMALIA BY SEX (1995 - 2015).................................7

1.6 POPULATION SIZE AND DISTRIBUTION .........................................................................8

2.0 COMPARING CONSUMER PROTECTION IN ASEAN AND SOMALIA..........................9

2.1 CONSUMER PROTECTION IN SOUTH EAST ASIA .........................................................9

2.2 CONSUMER PROTECTION IN EAST AFRICA ..................................................................9

3. REVIEWING THE LITERATURE..........................................................................................10

3.0 INTRODUCTION ..................................................................................................................10

3.1 CONSUMER RIGHTS AND THE LITERATURE................................................................12

3.2 CONSUMER RIGHTS, PROTECTION & CONSUMER EMPOWERMENT.....................12

3.3 CONSUMER PROTECTION IN MIDDLE AGES ...............................................................12

3.4 EUROPEAN UNION CONSUMER PROTECTION ............................................................13

3.5 MEANING, CONCEPTS, THEORY OF CONSUMER RIGHTS.........................................16

DEFINATIONS OF CONSUMER PROTECTION AND CONSUMER EMPOWERMENT ...16

3.6 DEFINING CONSUMER, WHO IS CONSUMER................................................................16

3.7TYPES OF CONSUMERS...................................................................................................... 17

3.8 CUSTOMERS AND CONSUMERS......................................................................................17

3.9 CONSUMER KNOWLEDGE.................................................................................................18

3.10 BASIC CONSUMER RIGHTS ............................................................................................18

3.11 IS CONSUMER PROTECTION A RIGHT OR A POLICY................................................18


3.12 WHAT IS CONSUMER PROTECTION..............................................................................19

4.0 CONSUMERISM, HISTORY, CONCEPT AND DEFINATION .........................................20

4.1 DEFINITION OF CONSUMERISM .....................................................................................20

4.2 CONSUMERISM & GOVERNMENT.................................................................................. 21

4.3 WHAT IS CONSUMPTION...................................................................................................21

4.4 CONSUMER BEHAVIOR THEORY................................................................................... 21

4.5 WHAT IS CONSUMER THEORY........................................................................................ 21

4.6 WHAT DOES CONSUMER THEORY ASSUMES............................................................. 22

4.7 EMPOWERING CONSUMERS, CONCEPT AND DEFINATION .....................................22

4.8 WHAT IS CONSUMER EMPOWERMENT........................................................................ 23

4.9 WHAT IS MEANT BY EMPOWERING CONSUMERS......................................................23

4.10 SUMMARY ..........................................................................................................................24

4.11 CONCLUSION .....................................................................................................................25

REFERENCES ............................................................................................................................26


REPORT ON CONSUMER'S LEVEL OF AWARENESS AND RIGHTS

1.0 INTRODUCTION

Consumers across the planet there exist generally shared view of being ill-served by our current

business, marketing planning and the demand to take corrective action towards complaints,

deprived quality, dangerous products, misleading advertising, fraud and poor services (Maynes,

1972). In business view, the main purpose of making production is to generate a profit, while

consumption is the ultimate goal for production, and to reach that end point, the business should

satisfy its current and potential customers.

Utilization is the finale of the line of economic activities that initiates with an assessment of

available resources and proceeds through creation of goods and services and delivery of goods

and services among citizens (Neva Goodwin, 2008).

However this report offers an overview about Somalia, demographic characteristics of the

Somali population, comparison of Somalia consumer rights with that of ASEAN, definition of

consumer, Consumer rights, types of consumer rights, consumer empowerment and consumer

legislations in Somalia.

1.1 AN OVERVIEW ABOUT SOMALIA

Somalia locates in horn of Africa, it has land area of 637,657km2; Somalia occupies the tip of

the region commonly referred to as the horn of Africa, because of its resemblance on the map to

a rhinoceros's horn. Inland, Somalia has borders with Ethiopia to the north-west,1,626km,Kenya

to the south-west 682km, and Djibouti to the north 58 kilometers long (Hadden, 2007)

1.2 SOMALIA AFTER INDEPENDENCE

Somalia took its independence in 1960 from European colony, the first president was Aden

Abdule osman (1960- 1967), then President Abdi Rashid Ali Sharma' arke came into the office

until his assassination in Las_ anod in 1969, but later in the year a military junta led by Major

General Moh'ed Siad bare took the leadership of the country, President Barre took the office on

21st October 1969 until 1991, throughout Siad barre's rule there exist widespread of corruption

and military dictatorship, people dissatisfied his leadership and finally opposing groups were

formed and as result president Barre's government was overthrew.


Civil war erupted in Somalia following the fall of the autocratic regime of Siad Barre in 1991.

Peace was established to varying degrees in the diverse regions of Somalia. The civil war first

abated in the Northwest in 1994, and then in the Northeast 1998. Finally, and less so, in the

central and southern parts, with limited and sporadic hostilities still occurring in Mogadishu

(Tatiana Nenova, 2001). Politically, Somalia is divided into eighteen regions, and subdivided

into districts. The regions are: Awdal; Bakol Benadir, Bari; Bay; Galgudud,Gedo; Hiran,

Jubbada Dhexe (Middle Jubba); Jubbada Hoose (Lower Jubba); Mudug; Nugal; Sanaag;

Shabeellaha Dhexe (Middle Shabelle); Shabeellaha Hoose (Lower Shabelle); Sool; Togder, and

Woqooyi Galbeed (Lee, 2007).

1.3 SOMALIA AFTER 1990s

Somali has been without central and well functioning government, it has undergone a major civil

conflict throughout 1990-92 leading to the fall of the government led by President Siad Barre,

and the consequent divide the country. Even though all Somalis belong to one religion and speak

the same Somali language, the Somali people is separated into several clans and sub-clans and

each sub-clan is sensitive about its financial interests and this is compounded by the vested

interests of the clan and sub-clan leaders (K.E.Vaidyanathan, 1997).''A generation ago, Somalia

had an estimated population of around 8,591,000 people. However, population estimates are very

difficult to verify because of the political situation and the mostly nomadic nature of the

Somalis'' (Lee, 2007)

1.4 SOMALI DEMOGRAPHCS

Demographic data in Somalia are insufficient and imperfect, even though two censuses have

been carried out during the prewar period. The primary census carried out in 1975 was not

published, and only an analytical report based on the census results was brought out in 1984. A

national demographic survey was carried out in 1980-1981, but unfortunately the data were not

processed (K.E.Vaidyanathan, Population Statistics of Somalia, 2007)

1.5 SOMALI'S FIRST SURVEY AFTER DECADES OF CHAOS AND ANARCHY

According to Lee, 2007 Somalia is believed to be one of the fastest growing countries in Africa

and the world. The last census was taken in 2014 by Somali Federal government with the help of

UNDP; the result of the nationwide survey was published in 2014, this publication is the first in a

series of reports to be produced. It highlights the population size, distribution by region,

household sizes and provides a breakdown of the population by sex and age.


Table: 1.1 1.5.1 SOMALI POPULATION DISTRIBUTION

Population Number Percentage

Estimated population 12,316,895 %

Urban 5,216,392 42.4%

Rural 2,806,787 22.8%

Nomadic 3,186,965 25.9%

IDPs 1,106,751 9.0%

Sources: UNDP Survey, 2014

1.5.2 POPULATION AS GENDER

The following table shows Somali population as a gender, the total population is 12,316,895,

approximately fifty one percent are males while forty nine percent are females

Table 1.2

Sources: UNDP Survey, 2014

The general survey estimated that the total population of Somalis was 12,316,895. An estimated

2,806,787 of Somalis were living in rural areas, and 5,216,392 (or about 42 percent of the total

population) lived in urban areas. Around a quarter of the population 3,186,965 comprised

nomads. Estimates from the UN‟s Refugee Agency, UNHCR, stated that there were 1,106,751

internally displaced persons in all the regions. Results of the survey show that men made up 51

percent around (6,244,765) of the total population, while 49 percent (6,072,130) of the

population were women (United Nations Population Fund,, 2014).

Gender Number Percentage

Males 6,244,765 50.7

Females 6,072,130 49.3

Total 12,316,895 100


Table 1.3 POPULATION ESTIMATES OF SOMALIA BY SEX (1995 - 2015)

Sources: Population Statistics, UNDP/ UNDOS, 1997

The above table shows Somali's population distribution by combination of sexes, males and

females between the years in 1995_2015, however there has been substantial increase in the

number of population according to this survey nearly forty one percent increase in last year 2015

compared to 1995.

Year Both sexes Males Females

1995 55200 29042 26158

1996 51315 29543 26772

1997 57559 30123 27436

1998 58928 30775 28153

1999 60399 31484 28915

2000 62915 32283 29732

2001 62670 33076 30594

2002 65563 34011 31552

2003 67495 34958 32536

2004 69461 35917 33544

2005 71420 36859 34561

2006 73696 37973 35723

2007 75861 39027 36834

2008 77972 40058 37914

2009 80047 41075 38972

2010 82132 42105 40027

2011 84252 43160 41092

2012 86480 44259 42221

2013 88792 45397 43395

2014 91170 46570 44600

2015 93602 47774 45828


1.6 POPULATION SIZE AND DISTRIBUTION

The following table shows population size and distribution by region, urban, rural, Nomads and

even those who happen to live in IDPS, Internal Displaced Peoples. According to this survey

5,216,392 live in Urban, around 2,806,787 are Rural; nearly 3,186,965 are Nomads while about

1,106,751 individuals in IDPs.

Figure: 1.1 Urban, Rural, Nomadic and IDPs population by region

Source: UNHCR 2014

Region Urban Rural Nomads IDPs * Total

Awdal 287,821 143,743 233,709 7,990 673,263

Woqooyi Galbeed 802,740 138,912 255,761 44,590 1,242,003

Togdheer 483,724 57,356 154,523 25,760 721,363

Sool 120,993 13,983 187,632 4,820 327,428

Sanaag 159,717 30,804 352,692 910 544,123

Bari 471,785 65,483 133,234 49,010 719,512

Nugaal 138,929 31,047 213,227 9,495 392,698

Mudug 381,493 79,752 185,736 70,882 717,863

Galgaduud 183,553 52,089 214,024 119,768 569,434

Hiraan 81,379 135,537 252,609 51,160 520,685

Middle Shabelle 114,348 249,326 100,402 51,960 516,036

Banadir 1,280,939 --------- ------------ 369,288 1,650,227

Lower Shabelle 215,752 723,682 159,815 102,970 1,202,219

Bay 93,046 463,330 195,986 39,820 792,182

Bakool 61,928 134,050 147,248 24,000 367,226

Gedo 109,142 177,742 144,793 76,728 508,405

Middle Juba 56,242 148,439 131,240 27,000 362,921

Lower Juba 172,861 161,512 124,334 30,600 489,307

All Regions 5,216,392 2,806,787 3,186,965 1,106,751 12,316,895


COMPARING CONSUMER PROTECTION IN ASEAN AND SOMALIA

2.0 INTRODUCTION

In Asia, consumer Protection has its deep roots in the rich soil of Indian civilization, which dates

back to 3200 B.C. In ancient India, human values were respected and ethical practices were

considered of great significance. Between 400 and 300 B.C., there was a director of trade whose

principal responsibility was to supervise the market conditions (Prasad, N/A).

2.1 CONSUMER PROTECTION IN SOUTH EAST ASIA

The organization of Southeast Asian Nations (ASEAN) was come to existence on 8th August

1967. The Members of this Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR,

Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Association of South East Asian Nations Committee on Consumer Protection (ACCP) was

established in 2007 to guide ASEAN‟s efforts in consumer protection. The ACCP‟s work is

focused on building capacities at the regional and national levels and to offer direction on the

development of policies, laws and institutions essential to strengthen consumer protection in the

region (Association of Southeast Asian Nations, 2014).

Consumers will more voluntarily and productively engage in the consumer credit marketplace if

they can be somewhat certain they will be treated logically and fairly by lenders, principally if

they default on loan repayments. Laws and policy that can improve buyer confidence in the

marketplace include those protecting them against cruel, irrational, unfair and sometimes

criminal practices (ASEAN, 2014)

2.2 CONSUMER PROTECTION IN EAST AFRICA

In East Africa, Kenya introduced draft consumer protection regulations code, 2013, The

Consumer Protection Act (CPA-2012) provides for the safeguarding of the consumer, prevents

unfair business practices in consumer transactions and for matters connected and incidental

thereto. The law was assented to on December 13, 2012 and operational zed by then Trade

Minister on March 14, 2013.

In our neighboring country Ethiopia, There has been no integrated and separate consumer

protection law until the 16th of August 2010, apart from the repeal Trade Practices Proclamation

N0 329/2003 which had a partial protection for consumers and the COMESA Treaty for

Competition Regulation that ratified by Ethiopia government in 2004 which has coverage for

consumers‟ protection in cross-border dealings and still is valid (Haile, Enforcement of


consumer protection under the new regime of Ethiopia in the light of Eu and US laws and

practices, 2014). In Asia, particular Association of South East Asian Nations Committee on

Consumer Protection (ACCP) was established in 2007 to guide ASEAN‟s efforts in consumer

protection, in Somalia there is no such body that protect the country's consumers, people are fit

up the security .

Somalia has been chaos and anarchy for the last quarter of century, all country's infrastructure,

has collapsed, and there has been no economic development, so we can't compare Somalia and

Association of South East Asian nations politically, socially and economically.

REVIEWING THE LITERATURE

3.0 Introduction

In this section we are going to highlight the literature regarding to consumer rights, consumer

protection, and consumer empowerment, origin of consumer protection in America, Asia and

Europe, and Africa particular in east Africa and also consumerism in Africa.

3.1 CONSUMER RIGHTS AND THE LITERATURE

In the literature, studies and records on public awareness about essential consumer rights are

inadequate. Two unpublished articles on consumerism were written by Ibarra in 1987 and in

1998. One relates to an inter industry analysis on the awareness of three manufacturing

companies on the seven fundamental consumer rights and another study compares awareness of

pharmaceutical companies in Belgium and in the Philippines to the essential rights of consumers

(Ibarra, 2014).

Consumer studies carried out by firms have an objective of discovering consumer requirements

and these, in turn, have encouraged more and not less consumer empowerments when these firms

improve their provisions as a result of such studies (Len Tiu Wright, 2006).

Wilson (2008) argues that consumers have the right not only to expect safety from harmful

products and services purchased in the marketplace, mainly if used properly for their planned

purpose but also the right to be protected from the sale and distribution of unsafe goods and

services. Due to the limited availability of literature explicitly relating to consumer, the strength

of evidence varies depending on the relationship assessed.

There is evidence of the strategic importance of providing aesthetic enhancements for

Consumers during their shopping experiences, supporting previous researches (Booms and


Bitner, 1981; and Zeithaml et al. (1985) about consumer desire to search out tangible clues to aid

service evaluation (Shostack, 1977).

The literature also notes that the behavior (preferences) of consumers and their associated

rationality is highly uncertain and fragmented, such that other factors may restrict consumers‟

ability to make well-informed and confident purchasing decisions. These issues were highlighted

in a number of case studies relating to Australia, New Zealand and the European Union (EU).

Dumalagan (2004) highlighted that all consumers are entitled to a healthy surroundings and

should be protected from the destructive effects of air, earth, and water pollution that could affect

the performance of daily marketplace business.

The literature also notes that the conduct of consumers and their allied rationality is highly

doubtful and fragmented, such that other factors may control consumers‟ capacity to make well-

informed and confident purchasing decisions. These concerns were highlighted in a number of

case studies concerning to Australia, New Zealand and the European Union.

As Harland (1990) affirms, the capability of products and services to cause severe injury or death

has greatly increased because consumers are often faced with insufficient information to assess

whether these goods and services conform to basic safety requirements.

Since the beginning of trading 10,000 years ago consumer safety has been a difficulty, though

the explosive growth in cyberspace has led to some new problems and challenges for consumer

protection (Jawahitha, 2004).

''Consumer rights gained importance in the world at the advent of the 20th century. The rights of

consumers got international recognition when in 1985 the UN promulgated the basic guidelines

regarding consumer rights protection'' (Revilla, 2014,).

''The UN guidelines said that “all citizens, regardless of their incomes or social standing, have

basic rights as consumers” (Subedi, 2007).

The modern era is marked as the age of consumers. No nation can intentionally ignore the

interest of its consumers. This can be arguing on the origin of fast ratification of consumer safety

laws in nearly all part of the planet (SAHOO, 2011).

Most recently consumers have more rights in terms of selection of commodities and services

than few decades ago, especially in the northern hemisphere and western democracies even if the

related risk that connected with the named goods and services have shown an expansion (Haile,

N/A).


CONSUMER RIGHTS, CONSUMER PROTECTION, CONSUMER EMPOWERMENT

3.2 The origin of consumer protection

Since the beginning of trading 10,000 years ago consumer safety has been a difficulty, though

the explosive growth in cyberspace has led to some new problems and challenges for consumer

protection (Jawahitha, 2004).

Since the Middle Ages “Consumer protection” has been around; the original forms of consumer

protection were considered to discourage fake trading practices and to guard the consumers from

danger. “Consumer protection” as highlighted by Britain's Office of Fair Trade for offline

commercial activities, includes basic legal rights that a consumer will have when he purchases or

hires commodities or services. Accordingly, there are three basic legal rights accorded to

consumers (Jawahitha, 2004).

3.3 CONSUMER PROTECTION IN MIDDLE AGES

Consumer protection” has been around since the Middle Ages; the earliest form of consumer

protection were designed to depress fraudulent trading practices and to protect the consumers

from danger. Since the Middle Ages the consumer protection has been existed, however the

earliest type of consumer protection were planned to depress fake trading practices and to protect

the consumers from hazards (Sarabdeen Jawahitha, 2004) .



regarding consumer rights protection'' (Revilla, 2014,)

''The UN guidelines said that “all citizens, regardless of their incomes or social standing, have

basic rights as consumers” (Subedi, 2007).

The modern era is marked as the age of consumers. No nation can intentionally ignore the

interest of its consumers. This can be arguing on the origin of fast ratification of consumer safety

laws in nearly all part of the planet (SAHOO, 2011).

In America, Consumer protection history in the United States relates to the story of precise

formal legal responses to crises and emergencies that make great public outrage and need a

public response. This pattern began against the background of the 19th century common law,

which emphasized free will of contract and caveat emptor means let the buyer beware (Spencer

Weber Waller, 2012).


3.4 EUROPEAN UNION CONSUMER PROTECTION

The Objectives of European consumer policy is to make the European Union (EU) a tangible

certainty for five hundred million citizens by pledging their rights as consumers. That means

protecting consumers from serious hazards and threats that they are not capable to tackle as

persons, empowering them to make choices base on exact, clear and consistent information,

enhancing their wellbeing and efficiently defending their safety as well as their economic

interests. According to the Treaty on the Functioning of the European Union (TFEU), consumer

protection issues are a shared competence of the EU and Member States (Valant, 2015)

Article 169 Treaty on the Functioning of the European Union defines specific objectives of the

European Union Consumer policy.

In Asia, consumer Protection has its deep roots in the rich soil of Indian civilization, which dates

back to 3200 B.C. In ancient India, human values were respected and ethical practices were

considered of great significance. Between 400 and 300 B.C., there was a director of trade whose

principal responsibility was to supervise the market conditions (Prasad, N/A). The Indian legal

system experienced a revolution with the performance of the Consumer Protection Act of 1986, which was

particularly intended to protect consumer interests. The CPA was passed with stated objectives. It is intended to

provide justice which is “less formal, less paper work, less delay and less expense”.

In Africa, The Republic of South Africa put in place consumer protect act, Act no 68, 2008

designed to promotes a fair, accessible and sustainable marketplace for consumer products and

services and for that purpose to establish national norms and standards relating to consumer

protection, to provide for improved standards of consumer information, to prohibit certain unfair

marketing and business practices, to promote responsible consumer behavior, to promote a

consistent legislative and enforcement framework relating to consumer transactions and

agreements, to establish the National Consumer Commission (REPUBLIC OF SOUTH

AFRICA, 2008).

South African consumer rights act, section C affirms that Consumer‟s right to select suppliers,

Expiry and renewal of fixed-term agreements, Pre-authorization of repair or maintenance

service, Consumer‟s right to cooling-off period after direct marketing, Consumer‟s right to

cancel advance reservation, booking or order, Consumer‟s right to choose or examine goods,

Consumer‟s rights with respect to delivery of goods or supply of service, Consumer‟s right to

return goods and Unsolicited goods or services.


While part C of this code confirms that consumers has the Right to disclosure of information,

Right to information in plain and understandable language, Disclosure of price of goods or

services, Product labeling and trade descriptions, Disclosure of reconditioned or grey market

goods, Sales records, Disclosure by intermediaries, Identification of deliverers, installers and

others.






The Consumer Protection Act covers various consumer interest areas including: consumer rights,

unfair business practices, rights and obligations respecting specific consumer agreements, sectors

where advance fee is prohibited, repairs to motor vehicles and other goods, credit agreements,

leasing, procedures for consumer remedies and consumer protection advisory committee

(Consumers Federation of Kenya, 2014).

The code provides Consumers' Basic Rights as

1) Safeguard of life, health and safety against risks caused by practices in the supply of products

and services considered hazardous or harmful.

2) Education and communication as to the proper use of products and services,

3) Appropriate and clear information about the different products and services

4) protection against misleading, deceptive, explicit and abusive advertising in public places

5) Effective prevention against and redress for individual, collective or diffuse material and

moral damages.

6) Access to the jurisdictional and administrative bodies regarding the prevention or Redress for

individual, collective or diffuse material or moral damages, being ensured legal,

administrative and technical protection to the low-income consumer.

In our neighboring country Ethiopia, There has been no integrated and separate consumer

protection law until the 16th of August 2010, apart from the repeal Trade Practices Proclamation

N0 329/2003 which had a partial protection for consumers and the COMESA Treaty for

Competition Regulation that ratified by Ethiopia government in 2004 which has coverage for

consumers‟ protection in cross-border dealings and still is valid (Haile, Enforcement of


consumer protection under the new regime of Ethiopia in the light of Eu and US laws and

practices, 2014).

Most African countries write their constitution for the protection and the safeguarding consumer

rights, and so does Somalia, For instance the Civil Code of Ethiopia has incorporated, in the

chapter dealing with contacts of Sales, the Seller‟s obligation to provide warranty against defects

and non-conformity correlated With the buyer‟s right to demand remedy for the damage

resulting from breach of such warranty (Arts.2287-2300).

According to Section 6 Somali criminal code (1962), crimes endangering public safety, article:

335 denote that whoever pollutes water or any other substance shall be punished with

imprisonment for not less than fifteen years

Provisional Constitution of Somalia Federal Government that was adopted in August 1, 2012

affirms the rights of the Somalia citizens in many aspects, the following articles denote.

Article 10: Human Dignity

(1) Human dignity is given by God to every human being, and this is the basis for all human

rights. (2Human dignity is inviolable and must be protected by all.

(3) State power must not be exercised in a manner that violates human dignity.

Article 27: Economic and Social Rights

(1) Every person has the right to clean potable water.

(2) Every person has the right to healthcare, and no one may be denied emergency healthcare for

any reason, including lack of economic capability.

(3) Every person has the right to full social security.

(4) Every person has the right to protect, pursue, and achieve the fulfillment of the rights

recognized in this Article, in accordance with the law, and without interference from the state or

any other party.

(5) It shall be ensured that woman, the aged, the disabled and minorities who have long suffered

discrimination get the necessary support to realize their socio-economic rights.


3.5 MEANING, CONCEPTS, THEORY, AND DEFINATIONS OF CONSUMER,

CONSUMER PROTECTION AND CONSUMER EMPOWERMENT

The word consumer is easy to understand and the literal meaning is "one who consumes" but as

against a customer in the market place, a consumer has a wider and broader meaning. In

conventional theory the consumer is considered to be knowledgeable about costs, price and

quality of commodities.

3.6 DEFINING CONSUMER, WHO IS CONSUMER?

“Consumer” as defined in the Malaysian Consumer Protection Act 1999 means that a person

who acquires or uses goods or services of a kind originally acquired for personal, domestic or

household purpose, use or consumption; and not for the purpose of trading, or manufacturing

consumption (Jawahitha, Consumer Protection in E-Commerce:Analyzing the Statutes in

Malaysia, 2004).

Malaysian consumer Act 1999, “Consumer” as defined in the Malaysian Consumer Protection

Act 1999 means a person who acquires or uses goods or services of a kind originally acquired for

personal, domestic or household purpose, use or consumption; and not for the purpose of trading,

or manufacturing consumption. (Jawahitha, 2004).

According to South African consumer act: A consumer is a person to whom goods or services

are marketed, who has entered into transactions with suppliers, users of particular goods or

recipients/beneficiaries of services.

Consumer can be defined as, an individual who purchases and uses Products and services in

contrast to manufacturers who produce the goods or services and wholesalers or retailers who

distribute and sell them.

The consumer Protection Act, 1978 of Finland, defines consumer' as "a person who acquires

consumer goods or services primarily for his personal use or for use in his private household."

Cambridge Advanced Learner's dictionary defines consumer as "a person who buys goods or

services for their own use''.

Longman Dictionary of Contemporary English defines "Someone who buys and uses

products and services

According to Al-Jeraisy, 2008, The term consumer refers to two types of consumers as final and

Organizational consumers, Final consumers are those who buys goods and services for his or her


own use, for the use of the household, or as a gift for a friend Organizational consumers relates

to commercial, industry, agricultural firms, Government agencies and non-for profit institution

3.7TYPES OF CONSUMERS

The term consumer behavior describes two different kinds of consuming entities:

1) Personal consumer and

2) Organizational consumer.

The personal consumer buys goods and services for his or her own use, for the use of the

household, or as a gift for a friend. In each of these contexts, the products are bought for final

use by individuals, who are referred to as end users or ultimate consumers.

The organizational consumer –includes profit and not-for-profit businesses, government agencies

(local, state, and Federal), and institutions (such as schools, hospital, and prisons), all of which

must buy products, equipment, and service in order to run their organizations (Bello, 2008)

3.8 CUSTOMERS AND CONSUMERS

The term “customer” it typically used to refer to someone who frequently buys from a particular

store or company. The term “Consumer” more usually refers to any person engaging in any of

the activities used in our definition consumer behavior.

Therefore, a customer is defined in terms of specific firm while a consumer is not. The

traditional viewpoint has been to define consumers strictly in terms of economic goods and

services. This position holds that consumers are potential purchasers of products and services

offered for sale.

A consumer in relation to any goods means any person who might wish to be supplied with the

goods for his own private use or consumption.

Consumption can be defined as the process of purchasing and using product, then disposing of

the reminder (Al-Jeraisy, 2008)

Basic components of Consumption

I. Purchasing

II. Usage

III. Disposal

IV. Inability of the reminder to satisfy other needs


3.9 CONSUMER KNOWLEDGE

According to National Foundation for Credit Counseling, 2005, Consumer education covers a

range of activities including

To understand their rights and responsibilities.

To think about the choices they face as consumers.

To learn about consumer legislation and regulation.

To become better buyers.

To take appropriate action to protect their rights.

3.10 BASIC CONSUMER RIGHTS

What are the basic rights of the consumer?

According to National Foundation for Credit Counseling, 2005 basic Consumer Rights,

The right to safety

The right to be heard

The right to be informed

The right to consumer education

The right to choose

The right to service

3.11 IS CONSUMER PROTECTION A RIGHT OR A POLICY?

The United Nations Guidelines for Consumer Protection, adopted in 1985 and revised in 1999,

propose a list of objectives described as „legitimate needs‟: right to be heard; right to

information; right to safety; right to choose; right to consumer education; right to consumer

redress; freedom to form consumer groups; promotion of sustainable consumption patterns; and

promotion of economic interests of consumers (Consumers International, 2011)

Accordingly Jawahitha 2004, there are three basic legal rights accorded to consumers:

1. The goods and services must be of satisfactory quality;

2. The goods and services must fit for their purposes; and

3. The goods and services must be as described

Consumers' rights had got international recognition when in 1985 the UN promulgated the

fundamental guidelines concerning consumer rights protection.

'' The United Nations guidelines for consumer protection said that “all citizens, regardless of

their incomes or social standing, have basic rights as consumers” (Subedi, 2007).


The ability of consumers to have control of their own choices has been reported to be central to

the experience of empowerment (Wathieu et al., 2002).

The approach of consumers towards the global brands has long been the topic of many studies in

the western nations. Yet they have not adequately studied Chinese consumers, in an academic

way following a precise methodology, even if they may obtain greater significance (Guo, 2005 ).

According to Malaysian Consumer act 1999, consumer” means a person who

Acquires or uses goods or services of a kind ordinarily acquired for personal, domestic or

household purpose, use or consumption; and

Does not acquire or use the goods or services, or hold him out as acquiring or using the

goods or services, primarily for the purpose of

Resupplying them in trade

Consuming them in the course of a manufacturing process; or

In the case of goods, repairing or treating, in trade, other goods or fixtures on land;

The consumers have many rights, so they should now and the businesses are required to address

these rights when dealing with their consumers. According to Manila & Revilla 2014, consumers

have eight consumer rights they are as follows:

a) Right to basic needs

b) Right to safety

c) Right to information

d) Right to choose

e) Right to representation

f) Right to redress

g) Right to consumer education

h) Right to healthy environment.

A great deal of the literature on consumer empowerment focuses on consumers‟ efforts to

recover control of their consumption processes from suppliers (Andrew Newman, 2006)

3.12 WHAT IS CONSUMER PROTECTION?

There has been a series of discussions on the actual definition of the „consumer‟ that needs to be

protected ( Akomolede and Oladele, 2006). However, a modern definition of the consumer,

according to Akomolede and Oladele (2006:16) is any person who purchases or is supplied

goods, or uses or consumes goods and services at the end of a chain of production” (Kamarudeen


Babatunde Bello, 2012). “Consumer protection” as highlighted by the United Kingdom Office of

Fair Trade for offline commercial activities, includes basic legal rights that a consumer will have

when he buys or hires goods or services.

Consumer protection represents today a key-concern for each modern economy, as it reflects its

potential of providing well-being for citizens and of empowering them to act efficiently on the

markets (Ene1, 2012)

Throughout the process of globalization, the limitations among the markets of agricultural-food

crops have moved out and industrial innovations have taken their place in food sector while an

increase is experimental in the number of food-based diseases (Gunden, 2011).

4.0 CONSUMERISM, HISTORY, CONCEPT AND DEFINATION

The origin s of contemporary consumerism lie in the 18t h century, before the 18t h century,

several factor s held consumerism a t bay, first and foremost, the dominant value system of

organized religion. During the time period spanning 1800 – 1920, a number of significant

Events in the development of consumerism occurred.

While the origins of mass consumerism we r e rooted in the early part Of the century, it was not

until the post-World War II that consumer ism began to find a firm foothold in our culture

(Emerald, 2004)

Scholars have argued that consumerism in most Developing Countries, to which Nigeria belongs,

is still at its infancy (Onah, 1979; Thorelli, 1981; Darley and Johnson, 1993; Ho, 2001), in spite

of the prevalence of unwholesome marketing practices by business firms in general. Consumer

protection has been around since the Middle Ages; the earliest forms of consumer protection

were designed to discourage deceptive trading practices and to look after the consumers from

danger (Jawahitha, 2004).

4.1 DEFINITION OF CONSUMERISM

Consumerism has been defined as a social movement that seeks to increase the rights and powers

of consumers (Kotler, 1972; Perreault and McCarthy, 2002)

The term consumerism was first coined by businessmen in the middle of 1960's as they thought

of the consumer movement as another "ism" like socialism and Communism, threatening

capitalism.

Longman Dictionary of Contemporary English defines' the idea or belief that the buying and

selling of products is the most important or useful activity for an individual or a society.


4.2 CONSUMERISM & GOVERNMENT

The Government‟s main purpose for consumer guiding principle is to empower consumers to

formulate wise decisions when purchasing goods and services. Empowered consumers require

selection and by exercising it, inspire competition and innovation as well as high standards of

consumer concern (BIS, Department for Business, innovation and skills, 2011)

Empowerment depends on a reinforcement framework of competition and consumer act so that

choices are offered reasonably. The regulation wishes to be properly enforced but it is essential

that the law is not too rigid; otherwise it runs the risk of dampening competition.

4.3 WHAT IS CONSUMPTION?

Neva Goodwin, Julie A. Nelson, Frank Ackerman and Thomas Weisskop( 2008), Consumption

is the method by which commodities and services are, at last, put to absolute use by people.

Consumption is at the conclusion of the line of economic activities that begins with an evaluation

of obtainable resources and proceeds through production of goods and services and supply of

goods and services among community and groups

Consumption is the only end and principle of all production and the welfare of the producer

ought to be attended to, barely so far as it may be necessary for promoting that of the consumer.

[Adam Smith, The Wealth of Nations, 1937 Modern Library edition, p. 625].

4.4 CONSUMER BEHAVIOR THEORY

This research report used the theory of buyer behavior, this theory is developed by Howard 1969,

and it's also called consumer decision-model, Theory of Buyer Behaviour‟ (or Howard and Sheth

Model) (Howard ANDSheth 1969). It provides “a sophisticated integration of the various social,

psychological and marketing influences on consumer choice into a coherent sequence of

information processing” (Foxall 1990 p.10).

4.5 WHAT IS CONSUMER THEORY

Consumer theory is the study of how people decide what to spend their money on given their

preference and their budget constraints. Consumer theory shows how individuals make choices

given their income and the price of goods and services and helps to understand how individuals

test and income influence the demand curve.

Source: Investopedia


4.6 WHAT DOES CONSUMER THEORY ASSUMES?

Consumer theory assumes that the consumer is rational; in Consumer theory consumers can

choice different bundles of goods and services, this implies that his preference satisfies the

following properties.

They are complete

They are reflexive

They are transitive

They are continuous

They are complete means giving any set of possible bundles of goods, the consumer is always

capable of deciding which one is preferable to other is and then making them in terms of

preference, They are reflexive means any bundle is at least as good as itself They are continuous

means that there are no big jumps in to the ranking of alternatives

4.7 EMPOWERING CONSUMERS, CONCEPT AND DEFINATION

The concept of empowerment has been studied for years from the viewpoint of the employee.

Mary Parker Follett enlightened the significance of people rather than manufacturing techniques

and the importance of a common objective within the business (Rodríguez, 2014). In psychology

the term empowerment is studied, among others, by Zimmerman (2000) who protected the

continuation of three levels of empowerment: individual, organizational and community.

More lately, empowerment has been studied from the approach of the consumer, where Denegri

et al. (2006) separated it into three stages: the consumer sovereignty model, the cultural power

model and the discursive power model (Rodríguez, Consumer Empowerment in the Internet

Generation, 2014).

Consumer power concept has also been utilized to highlight the nature and the basics of demand

to give reason for the role of the consumer in marketing (Smith, 1987). Thanks to the new

technologies, there has been a extraordinary increase of critic research in the analyses of

consumer power (Rodríguez, 2014).

Consumer empowerment contains two extensive elements which interact to create the conditions

for consumers to thrive. Firstly, the resources consumers have at their disposal to make better

choices.


4.8 WHAT IS CONSUMER EMPOWERMENT?

As mentioned earlier, customer empowerment is defined as a process involving interactive

relationships between the service providers and their customers that build trust and strengthen

customer confidence.

4.9 WHAT IS MEANT BY EMPOWERING CONSUMERS?

Empowering consumers is a much used phrase, however, these represent individual elements of

efforts to empower consumers and it is important to view them as parts of a wider concept. The

literature suggests that consumer empowerment consists of two linked broad-based components

with various strands sitting within each: The resources available to consumers to make informed

choices; and the institutions and safeguards that support them in doing this

The empowered consumer articulates preferences more clearly, allowing businesses to better

understand the products required and better able to compete by differentiating themselves in the

market. This leads to better offers, which results in increased consumer welfare because of better

and cheaper products supplied more efficiently because of strengthened competition.”

At the core of consumer empowerment is the idea that consumers should have the tools to secure

the best outcomes for themselves. An empowered consumer should be confident, knowledgeable

and feel protected, and therefore tends to make optimal decisions by understanding their own

preferences, the choices available to them and their rights ( L. C. Panel 2013).


4.10 SUMMARY



regarding consumer rights protection'' (Revilla, 2014,).The modern era is marked as the age of

consumers. No nation can intentionally ignore the interest of its consumers. This can be arguing

on the origin of fast ratification of consumer safety laws in nearly all part of the planet (SAHOO,

2011).

In America, Consumer protection history in the United States relates to the story of precise

formal legal responses to crises and emergencies that make great public outrage and need a

public response. This pattern began against the background of the 19th century common law,

which emphasized free will of contract and caveat emptor means let the buyer beware (Spencer

Weber Waller, 2012).

In Asia, consumer Protection has its deep roots in the rich soil of Indian civilization, which dates back to

3200 B.C. In ancient India, human values were respected and ethical practices were considered of great

significance. Between 400 and 300 B.C., there was a director of trade whose principal responsibility was

to supervise the market conditions (Prasad, N/A).

In Africa, The Republic of South Africa put in place consumer protect act, Act no 68, 2008

designed to promotes a fair, accessible and sustainable marketplace for consumer products and

services and for that purpose to establish national norms and standards relating to consumer

protection, to provide for improved standards of consumer information, to prohibit certain unfair

marketing and business practices, to promote responsible consumer behavior, to promote a

consistent legislative and enforcement framework relating to consumer transactions and

agreements, to establish the National Consumer Commission (REPUBLIC OF SOUTH

AFRICA, 2008).







4.11 CONCLUSION

Somali has been without central and well functioning government for the last two decades, it has

undergone a major civil conflict throughout 1990-92 leading to the fall of the government led by

President Siad Barre, and the consequent divide the country. Even though all Somalis belong to

one religion and speak the same Somali language, the Somali people is separated into several

clans and sub-clans and each sub-clan is sensitive about its financial interests and this is

compounded by the vested interests of the clan and sub-clan leaders (K.E.Vaidyanathan,

1997).In the economy the Somalis are agro based, their economy depends on mainly for fishing,

farming, business and livestock.

Most African countries write their constitution for the protection and the safeguarding consumer

rights, and so does Somalia, For instance the Civil Code of Ethiopia has incorporated, in the

chapter dealing with contacts of Sales, the Seller‟s obligation to provide warranty against defects

and non-conformity correlated With the buyer‟s right to demand remedy for the damage

resulting from breach of such warranty (Arts.2287-2300).

According to Section 6 Somali criminal code (1962), crimes endangering public safety, article:

335 denote that whoever pollutes water or any other substance shall be punished with

imprisonment for not less than fifteen years

Provisional Constitution of Somalia Federal Government that was adopted in August 1, 2012

affirms the rights of the Somalia citizens in many aspects

By Comparing Consumer protection in Somalia and Association of Southeast Asian Nations

Somalia has been chaos and anarchy for the last two decades, all country's infrastructure, has

collapsed, and there hasn't been any economic development, so we can't compare politically,

socially and economically for Association of South East Asian nations and Somalia.

As far as consumer protection, consumer awareness and rights are concerned, to the best of my

knowledge there is no consumer protection here in Mogadishu and apparently elsewhere in

Somalia, even thought I made a number of contacts regarding these issues, the responses

provided by the experts in legal systems and even human rights activists come to conclude

negative, so authorities are expected to take prompt measures to form and implement consumer

protection and consumer rights laws.


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