The Power of the People

Can consumer advocacy become a powerful special interest group? I certainly hope so. One of my favorite consumer advocates, Ellen Roseman, is one of the country's few unwavering constants. With a blog and a column in the Toronto Star, she cunningly points out injustices being committed toward the consumer. While for the most part it is teaspoons out of an ocean, she builds awareness on whatever issue, and we're all better for it, including the companies she outs.

Now, Canadians have long been the victim of higher prices. With a relatively small population and oligopolies galore, we only have a few wireless companies to choose from, a few phone companies, a few Internet providers....and wait, it's provided by all the same companies. Of course, such variables do put us in the position for higher prices compared to other consumers worldwide, and we, for the most part, have accepted it. Sure, we complain. But, more so as a conversation piece, not so different from talk of the weather or celebrity gossip. Rarely, has such a statement been proven wrong until recently.

When Rogers won the license to carry the Apple's IPhone, die-hard fans held their collective breaths. If a Canadian wanted an iPhone, they'd have little choice but to accept the fees charged. The fee schedules did finally come out and provoked wide-scale uproar. All of a sudden, Canadians, who had been the victim of higher prices for years, were furious. Passive Canadians, who had accepted their fate of higher cell phone plans, higher gas prices in an oil rich country and a number of other things, were all of a sudden in a fury. Why? Why now? Of course there can be several answers to this, but when people want what they cannot afford....

Most famously, a site (http://www.ruinediphone.com/) was set up with the intention of showing Rogers the frustration felt by Canadians. With over 60,000 people signing the petition, the fervour fuelled countless newspaper articles and negative publicity for Rogers and, by extension, Apple. Reading this commentary myself, I thought Rogers would simply yawn at the headlines, ignore the petition and life would continue. They did have exclusive control over the Apple iPhone.

Shockingly, they yielded. They adjusted the price points, and Canadians can now get an Apple iPhone at a value short of a rip-off.

Why do I care? Why am I writing about this? It's sort of this successful change from the grassroots...the bottom-up approach....that exemplifies probably the most untapped way to get change in this society. Why we haven't more efficiently harnessed it remains beyond me. The Leafs are horrible? We question management's commitment? Why...Why, instead of just fan clubs, do we not just have fan unions, which can boycott entire strips of games. For those sports enthusiasts, remember, when MLSE hired Mike Babcock as GM of the Raptors. A novice GM with no prior experience, we watched Vince Carter get traded away for nothing and a decent team reduced to subpar. It wasn't until the fans stopped attending...that people stopped watching...that Babcock was fired, and they decided to get a former Executive of the Year (now, a two-time Executive of the Year), Bryan Colangelo. The Raptors are a good team again.

I do realize it seems like I'm harping and perhaps I am. However, if this approach can be applied to the Apple iPhone, then why can it not be applied to lobbying for lower MERs (Management Expense Ratio) or boycotting Principal Protected Notes and other investment products that sound sexy but provide little value to Canadians. Lobbies that, if done successfully, will save a Canadian family thousands of dollars and make Bay Street conscious of our educated collective.

It cannot go past us that change from the bottom-up is possible in this country, and we have a responsibiliy to ourselves and future generations to adequately harness a power so far neglected.