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The consumer movement’s response to the cost-of-living crisis

The consumer movement’s response to the cost-of-living crisis

Europe is undergoing a ‘perfect storm’: the rising energy prices, only partly linked to the Russian invasion of Ukraine, and its implications on other sectors (food, chemicals, pharmaceuticals, products and services linked to energy-intensive production) led to heavy inflation. While salaries remain in most countries stable, prices are sky rocketing, and supply chains are being disrupted, generating among many consumers major worries about their short-term future.

These developments have an impact on all our personal lives, and quite logically on the consumer movement. This page presents what the BEUC Secretariat and its members are doing across different areas to support consumers through this crisis.

 

As the voice of 46 independent consumer groups, we have drawn EU policymakers’ attention to important actions they must take to protect consumers from skyrocketing prices.

'Weathering the cost-of-living crisis': European consumer organisations have summarised in this document the most crucial actions for policymakers and market players to roll out to address or mitigate the crisis.

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Weathering the Cost-of-Living crisis, cover
This document summarises the most crucial actions for policymakers and market players to roll out to address or mitigate the crisis.

Our main arguments are:

  • Relief measures should prioritise the most vulnerable consumers. Governments should target less affluent households for longer instead of sparing more affluent households that can cushion the short-term financial blow. Read our recommendations to policymakers:
    'How to shield consumers from skyrocketing energy prices this winter'.

  • This crisis is an opportunity to push us towards – not away from – most sustainable lifestyles. Being sustainable can save money, whether it is shifting towards more plant-based diets, ride a bike over driving a car, or insulating one’s home. But for this to happen, the sustainable choice must be the easy choice.

BEUC has been featured in various publications and media outlets, including:

Our blog ‘Consumer Corner’ contains pieces with a cost-of-living angle. See for example:

Consumer organisations play a major role in helping people to survive this winter.

In a nutshell:

  • Consumer organisations support consumers facing the crisis by granting them concrete and practical support.

  • They also call on policy makers, both at national and European level, to defend consumer interests in policy responses.

  • They help consumers in enforcing their rights where some players abuse of their vulnerabilities and market conditions linked to the inflation economy.

Here are some highlights of what they do in the energy, food, health, and cross-cutting areas.

* Please note this is a living webpage which will be updated as new member actions will take place.


 

Energy | Food | Health | Finance | Consumer Rights | Cross-cutting

Energy

CONSUMER FOCUSED ACTIONS

  • OCU, Spain, organised several campaigns to help consumers mitigate high energy prices.
  1. Collective Purchase of Energy  
  2. Collective Purchase of Photovoltaic Installations
  3. Comparation tariffs tool open to all consumers with record number of visits each month.

POLICY FOCUSED ACTIONS

  • Testachats, Belgium, asked for VAT reduction on consumers’ energy bills and special conditions for the most vulnerable ones. In addition to this they ask national authorities to incentivise consumers to insulate their homes.
  • CECU welcomes the participation of consumer organisations in the preparation of the Energy Contingency Plan to respond to the energy crisis.

Food

CONSUMER FOCUSED ACTIONS

  • Which?, UK, identified the priority areas hit the most. They have provided supermarket analysis for the cheapest ones available and the top tips for grocery shopping. Their campaign 'Affordable food for all' campaign invites consumers to call on supermarkets for action.
  • ZPS, Slovenia, opened their basic food product comparisons to all consumers to help them save on essential supplies.
  • DECO, Portugal, launched a campaign against food waste to help consumers make more financially and environmentally sustainable choices
  • Altroconsumo, Italy, did a yearly market check for the prices of eight main food products and saw increases of over 20%.
  • Testachats’ new study shows that consumers pay up to 20% more in supermarkets.
  • VKI warns consumers on which food products will soon disappear at regional level due to high energy costs.
  • Deco Proteste: a year of monitoring food prices shows an increase of 45 euro in the basic food basket for consumers.

POLICY FOCUSED ACTIONS

  • vzbv requested that VAT be reduced to 0% for fruit, vegetables and staple products especially for vulnerable consumers.

Health

POLICY FOCUSED ACTIONS

  • In Italy children are required to prove good health before subscribing to any sport. Altroconsumo is asking for these medical certificates to be reduced in price not to add more financial burdens to families.

Finance

CONSUMER FOCUSED ACTIONS

  • The Norwegian Consumer council has strengthened their communication to consumers on household finance, with emphasis on debt and payment. They are also pushing for ethical debt collection as financial well-being is in decline after the pandemic.
  • CCNI provides consumers with online budgeting tools for the expenses in the new year.
  • vzbv’s study shows that inflation drives people into overdraft.

Consumer Rights

POLICY FOCUSED ACTIONS

ADVOCACY ACTIONS

  • Which?, UK, is asking telecom companies to ensure a range of social tariffs and enable consumers to leave their contract without penalty when they increase prices mid-contract, regardless of whether or not these increases can be said to be ‘transparent’.
  • OCU, Spain, reported shrinkflation practices on several products to the Antitrust Authority.

Cross-cutting

CONSUMER FOCUSED ACTIONS

  • Citizens Advice, UK. The Cost-of-Living dashboard offers a clear view on how the situation is evolving for consumers in Britain in real time. It’s updated every month and it’s based on the consumer request for advice received by the organisation.
  • FRC, Switzerland's dedicated page keeps consumers informed about the inflation generated by energy price spikes, as well as the actions they undertake to mitigate these.
  • vzbv research shows that only 17 percent of consumers feel relief from increased cost of living even after the recent national measures.

POLICY FOCUSED ACTIONS

  • DECO in Portugal presented to the government and national Parliament a manifesto with 26 measures to help families. This manifesto aims to complement the existing Parliament measures which do not protect consumers enough in the face of inflation and peak of energy prices.
  • Arbeiterkammer in Austria published a series of measures aimed at policy makers on how to stop inflation rising.

 

 

Are you living in Europe and looking for advice on your rights in the current crisis? Please visit this page to find information by consumer groups in your country.