Geoff BrowneCAV Consumer Congress 2006, Affluenza Commentary

1
Affluenza Implications for consumer agencies
Geoff Browne
2
Approach

• Identify the key propositions made in Affluenza
• Consider the role of consumer regulatory agencies
• Apply the Affluenza propositions to current
  regulatory roles
• Identify whether new or changed roles for
  consumer regulatory agencies emerge

3
The Affluenza problem

• The marketing industry encourages
  over-consumption, leading to
• increased credit and debt (leading to personal
  and financial harm)
• overwork (damaging personal and relationship
  health) and
• environmental costs (waste harm to natural
  environment)

4
Simple consumption model
Txn
Txn
consumer
supplier
Credit Debt providers
representation
representation
5
Activities of consumer agencies
Fair market, terms
Inform rights, warnings
Txn
Txn
representation
representation
consumer
supplier
Credit Debt providers
Fair representations
Inform obligations
Inform obligations
6
Affluenza consumption model
Txn
Txn
supplier
consumer
Credit Debt providers
Marketer
Marketer
representation
representation
CREATE THE AFFLUENZA ENVIRONMENT
Wellbeing
7
Affluenza consumption model
Work/ leisure trade-off
Txn
Txn
supplier
consumer
Credit Debt providers
Marketer
Marketer
representation
representation
CREATE THE AFFLUENZA ENVIRONMENT
Wellbeing
8
Affluenza areas of concern