CONSUMERS’ CHALLENGES IN THE SHARING ECONOMY

EESC Public Hearing “The changing nature of employment relationships,

the sharing economy, zero-hour contracts and the living wage”

31th March 2016, Amaya Apesteguía

31th March 2016 01

DOUBLE CONSUMPTION RELATIONSHIP IN THE SHARING ECONOMY

With the platform and with the other party (peer or business)

HIGH CONSUMER SATISFACTION: 8/10Results from a survey to 8,670 consumers in Belgium, Italy, Portugal and Spain *Source: “Collaboration or Business?” OCU (2016)

3%

24%

73%

Transport

2%

22%

76%

Accomodation

3%

26%

71%

Redistribution markets

4%

29%

67%

Collaborative lifestyles

MOTIVATIONSResults from a survey to 8,670 consumers in Belgium, Italy, Portugal and Spain *Source: “Collaboration or Business?” OCU (2016)

Main motivations:1º) Save money2º) Practical motivations (e.g. flexible hours, more comfort, better suited to my needs…)3) Foster economic relationships between private persons4) To share travel experiences /to get to know people5) To help other people with products I no longer need6) To get rid of things I no longer need7) To place less burden on the environment8) To earn money

NEGATIVE EXPERIENCESResults from a survey to 8,670 consumers in Belgium, Italy, Portugal and Spain *Source: “Collaboration or Business?” OCU (2016)

Negative experiences: Mainly small inconveniences (delays, plannification, cleanliness, lack of personal connection, offer not responding completely to the description on the website

Responses: 1º) to undertake no action (above 60%). 2º) try to come to an agreement (above 20%). 3º) Contacting the website to complain and writing a bad reference in the web profile of the other party. 4º ) Contact consumer authorities to deal with the problem. (less than 3%)

Need to improve effective mechanisms for redress:tracking of conflict resolution + Alternative Dispute Resolution (ADR)

BIG QUESTIONS FROM A CONSUMER PERSPECTIVE:

1) CONSUMERIST: Who is responsible in case of conflict?

2) SOCIAL: Do we risk to becoming “exploiters” of other citizens?

31th March 2016

WHO IS RESPONSIBLE IN CASE OF CONFLICT?

The other party If prosumer, civil legislation If business, consumer’s legislation

Legislators should define the parameters that distinguish a private and a professional activity. Ideally, such a consensus should work at European level.

The platform Just an intermediate, or intervenes in the provision of the service? Just a marketplace, or is it an employer?

It is necessary to clarify platforms' roles and responsibilities: users deserve to have clear legislation that specifies responsibility when conflicts or problems occur.

31th March 2016

DO WE RISK TO BECOMING “EXPLOITERS” OF OTHER CITIZENS?

Maybe European citizens don’t need a lifetime employment, but they still need incomes and social security: health, education, social protection…

Consumers want to save money, but not at any cost.

Race to the bottom Vs

Crowd Social Responsibility As prosumers and freelancers continue to generate micro-incomes in the sharing economy, and as stable jobs are increasingly scarce, tax should be 'fair'.In this sense, we suggest that taxes and social contributions should be calculated on an individual basis, according to their real income earned.

THANK YOU!

Amaya ApesteguíaEthical and Collaborative consumption

amayapes@ocu.orgwww.ocu.org