Consumers
March 01 2005
by Briefing Staffp>Kooling off period
US food group Kraft is taking steps to counter child obesity, saying it will no longer advertise sugary foods on television or radio during programmes aimed at children between the ages of 6 and 11. The decision comes in the wake of a report from the Washington-based Institute of Medicine on preventing childhood obesity, which calls for strengthened self-regulation of food and entertainment advertising to children. Kraft already has a policy in place not to advertise in media aimed principally at children under 6. Contact Nancy Daigler, Kraft, 00 1 847 646 4106 (http://www.kraft.com)
Health ratings
Waitrose was the top performer in Rating Retailers for Health, a health responsibility index published by the National Consumer Council on December 13. Supermarkets including William Morrison, Tesco and J Sainsbury were assessed on the basis of the salt content of a selection of own-label foods; information on labels; the amount of shelf space for healthy snacks such as fruit compared with crisps and sweets; and in store information available on healthy eating. Contact Siobhan Wilson, NCC 020 7881 3057 (http://www.ncc.org.uk)
Flying the flag
Kraft is planning a Sensible Solution flag labelling system for products sold in the US from April. The labelling system features flags on food and beverage products that meet specific 'better-for-you' nutrition criteria established by Kraft for each category of products. In some cases the labels will contain specific information about a product's key nutritional benefits.
'Better-for-you' criteria include the provision of beneficial nutrients, such as protein, calcium, fibre or wholegrain at "meaningful nutritional" levels; delivering a functional benefit such as heart health or hydration while staying within specific limits on calories, fat, sodium and sugar; or meeting specifications for 'reduced', 'low' or 'free' in calories, fat, saturated fat, sugar or sodium. Contact Nancy Daigler, Kraft 00 1 847 646 4106 (http://www.kraft.com)
One for the road
Toyota, Ford and Fiat are among the 42 car brands in the UK that have signed up to a voluntary fuel efficiency labelling scheme for cars launched by the Department of Transport to help purchasers assess how environmentally friendly a vehicle is. The colour-coded labels will also contain information on how much motorists can expect to spend on fuel bills in a typical year for a particular car, and whether the car qualifies for a reduction in vehicle excise duty. Contact Department of Transport 020 7944 3066 (http://www.dft.gov.uk)
Ringing true
Nokia has announced an initiative to clamp down on counterfeit batteries by adding hologram labels with authentication codes to its batteries. Customers can check authentication codes online or via SMS. The company argues that customers pay the price of counterfeiting and cites safety hazards and poor quality as major reasons for the campaign. Meanwhile, Nokia joined Vodafone and Orange in launching a new website to help prevent mobile phone crime. Mobile phone users can register their details on the National Mobile Phone Register free of charge. The register can be used to match stolen or lost handsets with their owners and make it easier to prosecute mobile phone thieves. The scheme is run by the National Mobile Phone Crime Unit, which specialises in street crime involving mobile phones. Contact Nokia 00 358 7180 38194 (http://www.nokia.com); Immobilise 08701 123 123 (http://www.immobilise.co.uk)
Not so fast
Children's use of mobile phones should be controlled, and younger children should not use them at all, the National Radiological Protection Board has said in a recent report. The report advises consumers to take a "precautionary approach" to mobile phone use, although it is unproven whether or not mobile telephony can be linked to adverse effects on human health. Recommendations to mobile network operators include:
l improving the availability of information about mobile phones and masts to the public
l independent review of the planning process for the erection of base stations
l continuing research into possible health effects of mobile telephony
Recent research from MobileYouth indicates that nearly two-thirds (65%) of UK children between 8 and 12 already own mobile phones. In the 12-16 age group, 97% own mobile phones. Contact Christine Jude, UK Mobile Operators Association 020 7331 2029 (http://www.ukmoa.org)
It's your call
Parents should encourage children to keep their mobile calls short, or use text instead, so that phones are not near to their heads for long periods of time, suggests a booklet published by the National Family & Parenting Institute, with the support of Vodafone. Children should also consider using a hands free kit to distance the phone from the head and the body, according to the Mobiles and Health section of Staying in Touch: A Parent's Guide to Mobile Phones.
The booklet is designed to provide clear and comprehensive information to parents about the new services available on mobile phones, aimed at helping parents decide with their children what is appropriate and safe for their use. The guide is available via the Vodafone UK website (http://www.vodafone.co.uk), the National Family & Parenting Institute website (http://www.nfpi.org), and in Vodafone stores across the UK. The NFPI has distributed the guide to hundreds of charities and Parent Teacher Associations. Contact Ally Stevens, Vodafone 01635 33251 (http://www.vodafone.com)
Gem of an idea
Rio Tinto, BHP Billiton and ABN Amro are among ten founding signatories to a statement of intent aimed at building consumer confidence in the ethical standards and reputation of the diamond industry. The initiative, started by US-based trade association Jewelers of America, will:
l create a foundation to coordinate CSR in the industry
l define and implement standards on integrity, human rights and the environment. Contact Clifford Jackson, Jewelers of America 00 1 646 658 0246 (http://www.jewelers.org)
Better buys
The amount of money spent on purchases that align with the ethical values of consumers has grown to £24.7bn a year, according to The Co-operative Bank's annual Ethical Purchasing Index for 2003, an increase of almost a fifth (16%) on figures for 2002. The index has grown from a baseline figure of 100 in 1999 up to 139 in the space of five years. Notable developments include an increase of ethical investment levels by nearly a fifth (18%) to £9bn, and a rise of £600m in the total value of boycotts up to £3.2bn. Energy efficient appliances now account for more than half the market share, and two-fifths of eggs sold are free-range. Contact Carolyn Hicks, Co-operative Bank 0161 829 4252 (http://www.co-operativebank.co.uk)
Smoked out
JD Wetherspoon is to prohibit smoking in all of its 650 pubs by May 2006, with 60 pubs scheduled to become smoke free by May this year. The company believes the move will actually boost rather than damage business, since a significant number of people avoid pubs because of their smoky atmosphere and increasing numbers of people are giving up smoking. Meanwhile, sales of cigarettes in Italy have fallen by almost a quarter (23%) following a ban on smoking in all enclosed public spaces, including bars, restaurants and offices. Businesses face fines of up to €2,000 if they allow customers to smoke, while smokers themselves may be fined €275 for repeat offences. Tobacconists are now seeking tax breaks and the opportunity to sell more products and offer better services. Contact JD Wetherspoon 01923 477 777 (http://www.jdwetherspoon.co.uk)
Violent night
Large pubs will have to contribute to the cost of extra policing for town centres when licensing laws legalising 24-hour sales of alcohol come into effect on February 7, following government reforms announced on January 21. Other premises found to be the source of alcohol-related anti-social behaviour will be given eight weeks to remedy the situation before having to pay to cover the cost of the extra police presence required. While the Association of Chief Police Officers has supported calls for a compulsory levy on the drinks trade to pay for extra policing hours, pub groups claim they already contribute enough to policing costs through tax payments. Contact Department for Culture, Media and Sport 020 7211 6145 (http://www.culture.gov.uk)
High and dry
The World Health Organisation is launching a study into ways to curb alcohol abuse, after its executive board approved a report which indicates excessive drinking is to blame for the deaths of around 1.8m people a year and describes alcohol as "one of the most important risks to health globally". A European Union resolution sets a two-year deadline for WHO to complete the study, which is to recommend measures to counter the problem in consultation with the drinks industry. Contact Marta Seoane, WHO 00 41 22 791 2489 (http://www.who.int)
Poor pay most
Low-income families often pay interest rates of more than 1000% APR in order to gain access to credit, according to a report commissioned by The Co-operative Bank. The report, Would You Credit It? examines interest rates charged by 'buyback stores' such as high-street chains Cash Converters and Cash Generators and door-to-door home credit companies, recommending more action on financial education and stronger regulation of the consumer credit market. Contact Dave Smith, Co-operative Bank 0161 829 5397 (http://www.co-operativebank.co.uk)
Lone sharks
Nearly half of single parent households have been in arrears, compared with a quarter of two parent families. The prevalence of debt among single parent is 14% as compared with 7% among two-parent families where one partner is employed, and the proportion who have no savings is 20% and 55% among couples and lone parents respectively, according to Personal Finance and one-parent families: the facts. The report is published by the charity One Parent Families, which accuses banks and other lenders of discrimination, saying that lone parents are often refused credit or obliged to pay higher rates of interest. Contact One Parent Families 020 7428 5400 (http://www.oneparentfamilies.org.uk)
Editorial Comment
Planning to empower the consumer to make the right choice - healthy, safe, and environmentally sustainable? Great. Now think your CSR job is done? Not so fast.
Yes, labels can help. No business can survive long without giving its customers exactly what they want, so it's smart tactics to educate them to ask for the right thing. After all, companies respond primarily to market signals. Everyone is jumping in on the act, from NGOs through quangos to governments. Even the EU Commission is calling for proposals to investigate a Europe-wide social labelling scheme.
But doubts are growing that labels really work. Lurid labels on cigarette packs certainly haven't deterred smokers (though chemical addiction clearly features here). Mandatory APR disclosure hasn't saved people from wracking up huge debts on their credit cards.
Trials by the Food Standards Agency at the end of last year found initial enthusiasm for a red/amber/green traffic light system on food, but this turned to confusion when meaningful information about fat, salt, sugar and saturates was added. In the US, where mandatory labelling is widespread and detailed, ignorance is rife: in a Hellmann's survey about obesity in January, 96% of consumers thought monounsaturated fat was 'bad' and 36% that trans fat was 'good'.
So what's the answer? Above all, work to reformulate the product to remove the baddies, and add goodies - don't forget in many parts of the world the issue is not so much too many calories but not enough essential nutrients. Then do improve labelling, but backed up by extensive and continuing consumer education - again don't forget in some countries low literacy levels mean complex concepts won't work. Finally, welcome some government regulation so all companies act and market leaders are not exposed to unfair competition. Achieve all that and you deserve a drink. (Just one, mind.)