Consumer protection

Updates

22 Sep 2017 | Uber to lose its licence in London

Transport for London (TfL), the regulator of transportation services in the UK capital, announced that it is not renewing Uber’s licence as a private hire operator (which expires on 30 September). In a statement about its decision, TfL said that ‘Uber London Limited is not fit and proper to hold a private hire operator licence’, as Uber’s ‘approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications’. The company, which has 21 days to appeal the decision, said that it would do so, ‘to defend the livelihoods of all […] drivers, and the consumer choice of million on Londoners who use our app’.

21 Sep 2017 | Equifax data breach: exposed personal information of 143 million consumers

One of the three main U.S. credit reporting agencies, Equifax, issued a press release stating the discovery of ‘an unauthorised access’ to personal data of their consumers. First information indicates the data breach may have affected 143 million Equifax consumers exposing their full names, Social Security numbers, credit card numbers, date of birth, home addresses, and in some cases driver’s license numbers, as well as ‘certain dispute documents with personal identifying information’. The company added that the breach also affected ‘limited personal information’ of certain U.K. and Canadian residents. Media reports the investigation has shown that the unauthorised access occurred from mid May through July 2017. The company has set up a website for their consumers to get an information whether their personal information have been impacted by the breach. 

21 Sep 2017 | Privacy Shield Review: Press Statement by Ross and Jourová

The joint press statement by U.S. Secretary of Commerce Wilbur Ross and Commissioner for Justice, Consumers and Gender Equality, Vera Jourová, on the EU-U.S. Privacy Shield Review has been published. The first annual review of the EU-U.S. Privacy Shield Framework took place in Washington, DC. It states that since the program’s inception, more than 2.400 organizations joined the Privacy Shield. The input on Framework compliance shared by Privacy Shield participants, civil society, and independent recourse mechanism providers was welcomed by the officials underlying the continued functioning improvements of the program this way. The review examined all aspects of the administration and enforcement of the Privacy Shield, as well as commercial and national-security matters. Both sides stated commitment to continued collaboration for the benefit of the Framework’s success.

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Consumer trust is one of the main preconditions for the success of e-commerce. E-commerce is still relatively new and consumers are not as confident with it as with real-world shopping. Consumer protection is an important legal method for developing trust in e-commerce. E-commerce regulation should protect customers in a number of areas, such as online handling of payment card information; misleading advertising; delivery of defective products.

 

A new idiosyncrasy of e-commerce is the internationalisation of consumer protection, which is not a vital issue in traditional commerce. In the past, consumers rarely needed international protection. Consumers were buying locally and therefore needed local customer protection. With e-commerce, an increasing number of transactions take place across international borders.

Jurisdiction is a significant issue surrounding consumer protection. It involves two main approaches. The first favours the seller (mainly e-business) and is a country-of-origin/prescribed-by-seller approach. In this scenario, e-commerce companies have the advantage of relying on a predictable and well-known legal environment. The other approach, which favours the customer, is a country-of-destination approach.

The main disadvantage for e-commerce companies is the potential for exposure to a wide variety of legal jurisdictions. One possible solution to this dilemma is a more intensive harmonisation of consumer protection rules, making the question of jurisdiction less relevant. As with other e-commerce issues, the OECD assumed the lead by adopting the 1999 Guidelines for Consumer Protection in the Context of E-commerce and the 2003 Guidelines for Protecting Consumers from Fraudulent and Deceptive Commercial Practices Across Borders. The main principles established by the OECD are still valid and have been adopted by other business associations, including the International Chamber of Commerce and the Council of Better Business Bureaus.

The EU offers a high level of e-commerce consumer protection and promotes awareness campaigns on online shopping issues. The problem of jurisdiction has been solved via the Brussels I Regulation, which stipulates that consumers will always have recourse to local legal protection. The recast Brussels I Regulation, applicable as of January 2015, further harmonises the rules of jurisdiction by extending the situations under which individuals not domiciled in the EU can be sued by consumers in the courts of EU member states.

More than half of EU consumers (53%) made at least one purchase online in the 12 months to September 2012, almost doubling since 2006. Yet just 15% purchased online from vendors outside their own country. This is reflected in the confidence rating: while 53% feel comfortable purchasing from online domestic retailers, only 36% feel comfortable buying online from another EU country.

At global level, no apposite international legal instruments have been established. One of the most apt, the 1980 UN Convention on Contracts for the International Sale of Goods, does not cover consumer contracts and consumer protection.

A number of private associations and non-governmental organisations also focus on consumer e-commerce protection, including Consumers International, the International Consumer Protection and Enforcement Network, and Consumer Reports WebWatch.

The future development of e-commerce will require either the harmonisation of national laws or a new international regime for e-commerce customer protection.

Events

Actors

(OECD)

Convergence is one of the digital policy issues that the OECD is paying attention to, especially in relation t

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Convergence is one of the digital policy issues that the OECD is paying attention to, especially in relation to the challenges this phenomenon brings on traditional markets, and the need for adequate policy and regulatory frameworks to address them. In 2008, the organisation issued a set of policy guidelines for regulators to take into account when addressing challenges posed by convergence. In 2016, a report issued in preparation for the OECD Ministerial Meeting on the Digital Economy included new recommendations for policy-makers. Digital convergence issues have been on the agenda of OECD Ministerial meetings since 2008, and are also tackled in the regular OECD Digital Economy Outlook report.

(CI)

Consumers International undertakes several activities focusing on promoting consumer protection in the digital

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Consumers International undertakes several activities focusing on promoting consumer protection in the digital environment and creating a #BetterDigitalWorld. In 2016, it published a report on Connection and Protection in the Digital Age, discussing the extent to which existing consumer protection frameworks can address challenges brought by new technologies such as the Internet of Things. In March 2017, it submitted a series of recommendations to G20 member states on Building a Digital World Consumers Can Trust. The organisation also contributed to the elaboration of the ISO 12812 Core banking – mobile financial services standard, and elaborated a briefing paper on mobile payments.

(EU)

In establishing its digital single market, the EU has progressively developed a dense 

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In establishing its digital single market, the EU has progressively developed a dense copyright legislation corresponding to a set of ten directives, which harmonise essential rights of authors, performers, producers and broadcasters. To ensure EU copyright rules are fit for the digital age, the European Commission has recently presented legislative proposals to modernise the EU legal framework, in order to allow more cross-border access to content online and wider opportunities to use copyrighted materials in education, research and cultural heritage; and have a better functioning copyright marketplace.

(ICPEN)

ICPEN carries out several activities and initiatives related to consumers’ protection in the online environmen

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ICPEN carries out several activities and initiatives related to consumers’ protection in the online environment. The Network’s website contains a series of recommendation for staying safe while buying and selling online, especially with regard to sharing personal and financial information online. It also provides advice on how consumers can resolve cross-border disputes related to online transactions and what entities they can refer to. The econsumer.gov platform was launched by ICPEN with the aim to provide individuals with the possibility to file complaints about cross-border fraud transactions and learn about dispute resolution mechanisms.

(ICC)

ICC engages in the WTO particularly representing micro, small, and medium enterprises (MSMEs).

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ICC engages in the WTO particularly representing micro, small, and medium enterprises (MSMEs). In 2016 ICC issued a report calling for a new WTO agreement on e-commerce. ICC’s objective is to have an e-commerce framework that is more open to MSMEs. The report recommends three main actions: a capacity building fund for SMEs; making trade more efficient for SME for instance through harmonised tariffs for low value items; and global rules to support consumer trust in the digital economy. ICC has also carried out research on trans-border data flows.

(UNCTAD)

UNCTAD is very active in the field of e-commerce.

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UNCTAD is very active in the field of e-commerce. It assists developing countries in developing e-commerce legislation, through its e-Commerce and Law Reform Programme. The entity has launched the eTrade for All initiative, aimed to improving the ability of developing countries to use and benefit from e-commerce.  As part of its ICT Policy Review Programme, UNCTAD undertakes reviews, research, and analysis on e-commerce-related issues. It also reviews national policies and provides policy advice to countries on areas such as developing e-commerce strategies and devising measures to strengthen e-commerce. UNCTAD holds an annual E-Commerce Week, featuring events focusing on specific policy areas of e-commerce.

Resources

Publications

Internet Governance Acronym Glossary (2015)
An Introduction to Internet Governance (2014)

Papers

Personal Data Storage in Russia (2015)

Reports

Virtual Currencies and Beyond: Initial Considerations (2016)
Report on OTT Services (2016)
2015 In Retrospect (Vol. 4) (2016)
OECD Digital Economy Outlook 2015 (2015)

 

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