NCAC NEWS(Vol.9,No.1-2)
INDEX
CONTENTS
Ten Characteristics of Consumer Counseling in 1997
The National Consumer Affairs Center of Japan (NCAC) gathers information related to consumer counseling and product-related injuries received at 350 consumer information centers and 20 cooperating hospitals across Japan through PIO-NET (Practical Living Information Online Network System). Through this online system, information on about 350,000 cases is collected each year (with a cumulative total of 2.5 million cases). From this database, we have identified ten characteristics that were notable in 1997 in terms of the number of consumer counseling cases.
1. Number of Consumer Counseling Cases Increased Greatly from 1996.
From January to the end of October 1997, the total number of consumer counseling cases came to about 270,000, an increase of 19.3% from the same period in 1996.
2. Counseling Cases Related to Consumer Contracts Accounted for about 80% of the Total.
Of all the consumer counseling cases, the ratio of cases related to counseling concerning contracts such as sales method, its clauses (or contents) and cancellation of contracts, etc. have been increasing each year, reaching 80% in 1997. The types of product and service with the largest number of consumer counseling cases in the area of consumer contract,were (jewellery) accessories, courses for obtaining qualifications, and "sara-kin" (consumer credit business). The large number of complants and counseling cases related to jewellery accessories was caused mainly by the bankruptcy of one jewelry store.
3. Pyramid and Quasi-Pyramid Selling Cases Are not Declining Despite Amendment of the Law Concerning Door-to-Door Selling, etc.
The amended Law Concerning Door-to-Door Selling, etc. was enforced in November 1996, stipulating new regulations on telephone solicitation, and stronger controls on pyramid and quasi-pyramid selling. As a result, the number of counseling cases related to telephone solicitation for qualification courses has been declining, but the number of cases related to pyramid and quasi-pyramid selling is still growing. With regard to pyramid and quasi-pyramid selling cases, young people in their 20's and housewives are more prone to become victims. Typical products in such schemes include health products, cosmetics, and women's lingerie. In some cases, the individuals involved become so enthusiastic about this type of scheme (pyramid and quasi-pyramid selling) that it causes problems for family members and friends, who often lodge a complaint.
4. Numerous Consumer Counseling Cases Concerned a Supplier of Solar Energy Heating Epuipment. NCAC Made the Name of the Company Public.
Asahi Solar K.K., a major door-to-door dealer of solar energy heaters and boiler equipment, has been the subject of many complaints for misleading or false sales talk and pressure selling. NCAC made this company's name public in April 1997 in order to warn consumers.
5. Consumer Counseling Cases Related to Finance and Insurance Continue.
Reflecting the hard times with very low interest rates, the number of cases related to finance and insurance has been increasing. In particular, with regard to life insurance, after the collapse of a middle-ranking life insurance company was reported in the mass media in April, consumers panicked, and the number of consumer counseling cases rose sharply. There were, of course, many complaints about the handling of insurance policies after the company collapsed from its policy holders. In addition, because of a growing trend among consumers to re-examine the whole issue of life insurance, there were a very many cases from consumers who hold insurance policies with other life insurance companies regarding cancellation and change of policies.
6. Arrests Continue of Traders Selling Ownership Contracts for Japanese Cattle.
Starting around autumn 1996, a number of Japanese beef deposit businesses appeared in quick succession. These firms solicited people to become owners of Japanese cattle, which provide high-priced beef, claiming high profits and guarantee of the invested capital. In 1997, questionable aspects of this business began to be reported in the mass media, and consumers complaints and inquiries regarding the trustworthiness of these companies and cancellation of contracts began to flood in. From May, a number of traders in the Japanese cattle deposit business were arrested in various parts of Japan. In many cases, when these businesses went bankrupt, the consumers' investments were not refunded, and a lawyers' group to assist the victims has been formed.
7. With the Bankruptcy of a Sizable Jewelry Store, a Huge Number of Complaints and Requests for Counseling Were Received.
In January, a jewelry store went bankrupt, and the company's buy-back contracts (with its customers) could no longer be fulfilled. As a result, many consumers suffered major financial losses. In this buy-back contract system, the company pledged to buy back diamonds that its customers purchased five years after the purchase at the same price. Since most of the customers concluded an advance payment contract with a credit company, they have now filed a collective suit against the credit company throughout Japan, seeking the return of the money that has been paid already, and cancellation of any obligation to pay the remaining balance.
8. Appearance of New Scheme Used in House Reform, Linked to Repayment of Home Loan.
Reflecting today's era of very low interest rates, a new scheme that promotes refinancing of home loans has appeared. This scheme claims that by refinancing a consumer's home loan with a new loan at a lower interest rate, the consumer can refurbish their home without incurring new expenses. While claiming that they would handle all the procedures for refinancing the home loan, some of the operators did not do so actually; in other cases, consumers found out that a refinancing loan could not be secured after completion of the renovation work. Consumers who fall victim to this practice end up not only the old home loan, but also the obligation to pay for the renovation work.
9. Troubles with Telephone-Related Services Have Increased Sharply, Reflecting Electronic Society.
As the information and telecommunication environment changes drastically, new types of troubles related to telephones have been increasing. In 1997, troubles related to termination of sales contracts for cellular phones and PHS increased sharply. In the area of telephone information services, more troubles were caused by the appearance of unscrupulous information services that used overseas telephones. Consumer troubles connected with Internet shopping and pyramid investment schemes using the Internet have become very noticeable as well.
10. Injuries Related to Automobiles Continue.
In the area of injuries related to automobiles, sliding rails and child safety seats failed and injured small children in 1996. An increasing number of complaints regarding the function of airbags were received as well during 1997. The main types of complaints regarding airbags were: (1) The airbag did not deploy in a crash. (2) Conversely,the airbag deployed unexpectedly and caused damage. (3) The airbag deployed suddenly while driving. (4) The airbag deployed caused by the driver trying to honk the horn.
NCAC carried out its own investigation on airbag accidents, and provided the resulting information to consumers through the mass media, and demanded the automobile industry to make the necessary improvements.
Children's Accidents Involving Shopping Carts
According to the Consumer Injury Information System operated by NCAC, there are many accidents where children are injured by falling from supermarket shopping carts or by being hit by a shopping cart that overturns. The system has received many reports of such accidents from the 20 cooperating hospitals. While shopping carts are convenient for consumers, especially when shopping with children, the risk of falling from the cart is not widely known. Such accidents are summarized below.
1. Number of Accidents
Ninety accidents were reported by the cooperating hospitals in the five-year period from August 1992 to August 1997, and the number is increasing.
In terms of age, all the children involved were 7 years old or less: 1-year olds were involved in 25 cases (the largest age group), followed by 3-year olds (24 cases), 2-year olds (17 cases), and 0-year olds (9 cases). Small children and babies of 3 years old and younger make up 83% of the cases overall. The ratio of boys and girls was about equal.
2. Overview of Accidents
Parts of body injured were as follows: the head in 71 cases (79%), face 8 cases, and mouth or mouth cavity 4 cases. Parts above the neck accounted for over 90% of the total, including 1 case involving the neck.
As for the types of injury involved, there were 79 cases of abrasion, contusion, or bruise (88%), accounting for an overwhelming share of the total. Many of them were relatively minor injuries, but children in 35 cases (39%) received hospital treatment, of which 3 cases required hospitalization (1 case of fracture of the skull, and 2 cases of damage to the skull).
The most frequent causes of injury were falling from the shopping cart and the shopping cart turning over, with 83 cases. Two types of accidents frequently happened when children stood up inside the shopping cart while the parent was not looking or when children leaned over to take a closer look at merchandise. Also,there were 16 cases where the child was placed not in the seat for young children, but in the basket of the shopping cart, and fell or caused the cart to turn over. Aside from these two causes of falling out and the cart turning over, there were cases where children had their hand or foot caught in the shopping cart, or where the shopping cart crashed against a child, causing injury to the child.
3. Examples of Accidents
*When the parent was looking elsewhere, a 2-year old boy fell from a shopping cart, head first. He was sitting not in the baby seat, but in the basket of the shopping cart itself.
*The parent moved the shopping cart without checking to see if the 3-year old girl was grasping the handrail; the girl fell down backwards and had to be hospitalized for fracture of the skull.
*A 2-year old girl stood up on top of the shopping cart and fell out. She hit the back of her head very hard, and was hospitalized for injury inside the skull.
4. Safety Standards
The Consumer Product Safety Association (CPSA) is a government-affiliated organization, established under the Consumer Product Safety Law. Based on this law, CPSA serves to promote and secure product safety for consumers. CPSA has established approval standards related to the structure of shopping carts used at stores as well as safety, maximum load durability, labeling, etc. CPSA issues an SG mark to those carts that are recognized as meeting these standards. (When any injury is caused by a cart that has been given the SG product, compensation is paid, with the amount decided in accordance with the degree of injury.)
Under these standards, shopping carts without a child seat are classified as S type, and those with a child seat are classified as K type. For the K type, CPSA's standards require installation of a protective frame so that a young child cannot stand up on top of the seat or cannot lean over. NCAC has requested CPSA to develop a more detailed, stricter set of standards that will require manufacturers to install the child seat at a lower position, for example, and attach a safety belt, to prevent children or babies from falling out of the shopping cart.
