New consumption patterns, Local trading systems: for a social economy

Author

Ariane Chenard, Gabriel Dupuis

Organization

Union des consommateurs

Published

2010

Summary

The purpose of this study is to clarify certain aspects of local trading networks that have arisen in Canada and around the world since the eighties.

Often touted as a route to sustainable consumption, which promotes an economy that is not only focussed on profit and competitiveness but also on mutual aid and social development, these systems legally fall under the category of barter networks. And yet, local trading systems (LTS) are different: Their transactions are not strictly barter because they use a proprietary currency that makes multilateral transactions possible; and they also have social objectives.

Our research will probe the legal issues raised by LTSs, along with the social, economic and environmental benefits they may generate, and the needs they aim to satisfy. More specifically, this study traces the origins of LTSs and describes their underlying philosophy. We also distinguish between the various transaction methods used by the main types of LTSs. This study also describes the pros and cons of LTSs. It thoroughly examines the various Canadian LTSs and provides a legal analysis of them.

Our research leads us to conclude that the legal framework for LTSs should remain flexible, and that their extremely minor economic scale does not justify targeted legislative intervention, since the laws already in effect are quite adequate when applied to LTSs. In addition, the important social role that LTSs can play, and the positive spin-offs they can generate for a community, makes LTSs deserving of public recognition and encouragement, particularly in underprivileged environments, where the benefits of such networks may be amplified.

Certain simple considerations should be taken into account, and certain measures contemplated, to make LTSs more efficient and less precarious, and to clarify certain ambiguous legal aspects. The ultimate goal of those measures would be to foster the development and sustainability of LTSs.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database