CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV

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CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
CONSUMER
ADVOCACY AND
DIGITAL RIGHTS
Consumers International
September 2021
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer advocacy context
Global consumer advocacy
Consumers International Membership*, 2021

  Source: Consumers International
  *Does not include government members (national consumer protection agencies) and affiliates
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer advocacy context

Our members in asean
                                •   Consumer Organisations
    Myanmar                     •   Myanmar Consumers’ Union (MCU)

    Cambodia                    •   NA

    Laos                        •   NA

    Vietnam                     •   Vietnam Standards and Quality Association (VINASTAQ)

    Philippines                 •   Laban Konsyumer
                                •   IBON Foundation
                                •   The Consumer Union of the Philippines (CUP)
                                •   Coalition for Consumer Protection and Welfare
                                •   Nationwide Association of Consumers

    Indonesia                   •   Indonesia Consumer Association (YLKI)
                                •   Institute for Consumer Development and Protection
                                •   Yogyakarta Consumer Institute (LKY)

    Thailand                    •   Thailand Consumer Council

    Malaysia                    •   Federation of Malaysian Consumers Associations (FOMCA)
                                •   Education and Research Association for Consumers
                                •   Selangor and Federal Territory Consumer Association
                                •   Consumer Association of Penang

    Brunei                      •   NA

    Singapore                   •   Consumers Association of Singapore (CASE) (CI member)
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer advocacy context

Consumer advocacy toolkit

          Public                                                                                  Inclusive
                                                       Research for                                                                             Global
       Awareness &                                                                               Consumer &
                                                        Consumer                                                                             Information
        Consumer                                                                                 Competition
                                                         Interest                                                                              Sharing
       Information                                                                                  Policy

   •    Public awareness                           •   Research on consumer                  •   Recommendations and                     •   Sharing information
        campaigns at                                   issues                                    involvement in policy &                     on e.g., complaints,
        national or                                •   Mystery shopping                          standards making at                         standards
        international                              •   Product testing &                         national, regional or                   •   Information systems
                                                       comparison                                international level                         to collate information

                                                                              Collective                                   Innovation
                                Collective
                                                                              Consumer                                     & Adaptive
                                 Action &
                                                                              Empower-                                      Decision
                               Enforcement
                                                                                ment                                         Making

                           •   Class and                              •   Organising consumers to                •   Supporting and building
                               collective action                          take collective action                     innovations, guidelines
                               lawsuits                               •   Increasing consumer agency                 and opportunities based
                                                                          and redress                                on consumer rights
                                                                                                                     principles

                                                                                                                                                               PAGE
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
” CONSUMER ADVOCACY SHOULD
ENSURE GREATER PROTECTION IN THE
DIGITAL ECONOMY, STRONG
REGULATORY FRAMEWORKS TO
PROTECT CONSUMERS, A SHRINKING
DIGITAL GAP, AND SELF-PROTECTION
THROUGH DIGITAL LITERACY.”                          ” THE CONSUMER MOVEMENT WILL HAVE
                          MARIMUTHU NADASON, CEO,   TO UNITE AND BECOME MORE EFFICIENT.
   FEDERATION OF MALAYSIAN CONSUMER ASSOCIATIONS    SHARING OUR KNOWLEDGE OF CONSUMER
(FOMCA) 60TH ANNIVERSARY, CONSUMERS INTERNATIONAL
                                                    PROBLEMS….LOBBYING FOR
                                                    INTERNATIONAL STANDARDS…JOINING
                                                    OUR ENFORCEMENT CAMPAIGNS.”
                                                                KLAUS MULLER, EXECUTIVE DIRECTOR, VZVB
                                                            60TH ANNIVERSARY, CONSUMERS INTERNATIONAL
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
CONSUMERS INTERNATIONAL GLOBAL SURVEY 2020
Crucial focus areas for consumer advocates globally

            Which approaches/activities does your organisation use to deliver change
            for consumers in your country in 2020?
                                                                     All     High     Low    Middle
                                                                           income   income   income
            Public awareness and consumer education                  85%     90%      79%      83%
            Complaints handling and consumer advice                  72%     76%      71%      69%
            Campaigns                                                70%     69%      79%      69%
            Review and monitor relevant laws, policies or codes of   68%     74%      64%      65%
            conduct
            Developing/formulating policies and standards relating   60%    57%      64%      62%
            to consumer products/services                                                             50% of consumer
            Advocating to politicians and parliamentary bodies       60%    71%      57%      54%     advocates receive
            Mobilising consumers to advocate for action              60%    62%      71%      57%        funding for
            Research-based advocacy                                  60%    64%      50%      58%         consumer
            Conducting research on problems experienced by           54%    62%      64%      46%        awareness
            consumers
            Legal representation on behalf of consumers              50%    52%      71%      43%
            Law development                                          49%    57%      36%      46%
            Providing consumer information services (e.g. regular    48%    57%      57%      40%
            price monitoring, comparative product testing)
            Market research                                          45%    50%      43%      42%
            Training and technical assistance                        38%    26%      71%      38%
            Direct supply of consumer goods and services (e.g.       20%    19%      21%      20%
            through consumer cooperatives)
             Source: Global Member Assessment Survey 2020
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer context
Digital rights is – increasingly - a consumer advocacy
priority
Which of the following consumer issues is your organisation currently
working on in your country in 2020?
                                                                                         •   Digital rights and privacy are among the
                                               All      High        Low       Middle
                                                      income      income      income         top issues for consumer advocates
                                                     countries   countries   countries       around the world
Food (security and safety)                     77%      74%         79%         78%
Product safety                                 68%      71%         86%         62%      •   Digital rights impacts all core consumer
Financial services                             64%      71%         57%         60%          sectors including food, product safety
Environment                                    63%      62%         57%         65%          (via ecommerce) and financial serices
Healthcare and medicine                        58%      50%         64%         62%
Information and communication technologies     58%      67%         71%         49%      •   Technology and innovation is in the top
Digital rights/privacy                         57%      79%         21%         51%          3 issues for all consumer advocates for
Retailing/marketing of household goods and     55%      69%         43%         48%          the next 3-5 years
services
Energy                                         51%     60%         64%         43%
Advertising                                    50%     64%         36%         43%       •   In the ASEAN, similar pattern – all work
Counterfeit/fake products                      49%     43%         57%         51%           on digital rights in some form
Water                                          43%     31%         71%         45%
Trade                                          39%     38%         57%         35%
Mobility                                       35%     38%         36%         32%
Professional services (legal and medical)      33%     33%         29%         34%
Housing                                        32%     38%         43%         26%

Source: Global Member Perception Survey 2020
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer context
At national level, mechanisms to protect consumers
                                                                                                                                   D2
online are lacking
  The Digital Marketplace: Which of the following select
  measures/mechanisms to protect consumers are present in your country            •   Greater progress on cybercrime, but
  in 2020?                                                                            limitations on data privacy and
                                                                                      ecommerce
  Type of online protection                                      Yes   In draft

                                                                                  •   By region: East Asia, South Asia and
  Laws to prohibit cybercrime                                    72%     10%
  Laws that protect consumer’s privacy in relation to online     64%     10%
                                                                                      Europe are strongest
  transaction (personal data protection)
  Regulatory body on ICT and multimedia                          59%     7%       •   By income level: High-income countries
  Laws that regulate e-commerce                                  57%     12%          across all regions are more likely to have
  Laws that ensure consumers can access their data or data       55%     8%
                                                                                      provisions in place
  held by them
  Laws to regulate spam                                          49%     9%       •   An exception is that low-income
  A specialised alternative dispute resolution and redress       45%     6%           countries appear to frequently have a
  mechanism for consumers of telecommunications                                       regulator in place for ICT
  Protections for consumers on e-commerce marketplaces           41%     12%
  that are at least equal to those in traditional marketplaces                    •   While provisions may be in place,
  Legal provisions on copyright exceptions that allow            26%     6%           enforcement is always lacking
  consumers to move e-books, music or videos between their
  own devices                                                                     •   ASEAN: Similar pattern
  A specialised alternative dispute resolution and redress       20%     6%
  mechanism for e-commerce transactions

  Source: Global Member Perception Survey 2020
CONSUMER ADVOCACY AND DIGITAL RIGHTS - Consumers International September 2021 - BMJV
The consumer context
Consumer advocates are dissatisfied with progress in
                                                                                                                                    C3
digital rights
  As a consumer expert, how satisfied are you with the following in your                •   Overall, only a third of respondents
  country in 2020?                                                                          are very or partly satisfied with key
                                                             Very or Partly Satisfied       consumer protections in digital in
                                                                                            their countries
  Type of protection                                         Overall         ASEAN

                                                                                        •   There is particular concern about
  Competition law to address particularities of digital       30%             50%           collective action on privacy and
  economy                                                                                   data security where 28% of
                                                                                            respondents reported being very
  Rules and regulations regarding interoperability and         31%            63%
  data portability                                                                          dissatisfied and satisfaction fell to
                                                                                            7% in lower-income countries.
  Net neutral rules and regulations                           26%             25%
  Existence of market monitoring system for digital            17%            25%       •   ASEAN: perhaps a different pattern
  products and services (including independent testing)                                     with less concern about privacy and
                                                                                            greater focus on market monitoring
  Privacy and data security laws                               31%            63%
                                                                                            and net neutrality?

  Collective actions against privacy and data security law     15%            38%
  violations

  Source: Global Member Perception Survey 2020
The consumer context
A few countries are advancing with strategies for
technology – but engagement of consumer advocates is
limited
  Artificial Intelligence (AI): How are consumers engaged in your country in    •   Close to 30% of respondents
  2020?                                                                             highlighted their country has an
  Type of protection                   Yes       No     In Draft   Don’t Know       effort to legislate for AI

                                                                                •   Limited involvement by consumer
  Is there a specific government       16%       43%     10%          31%           advocates
  effort to legislate for AI in
  your country?                                                                 •   Similar results for range of
  Does your country have a             14%       44%      11%         31%           technologies explored – IoT, facial
  national AI strategy in place?                                                    recogition, unmanned vehicles,
                                                                                    biotech
  Are ethical guidelines for AI in     13%       38%      16%         33%
  place in your country?                                                        •   Within ASEAN, there seems higher
  Are consumer advocates               16%       50%      4%          30%           government focus, and consumer
  involved in this government                                                       advocacy engagement appears
  process?
                                                                                    relatively high in IoT but on trend in
  Source: Global Member Perception Survey 2020                                      other technologies

    When the G20 Digital Ministers have encouraged a focus on consumer awareness in digital
      matters, a closer engagement of consumer advocates in these processes may pay off
The consumer context
Top three challenges in ecommerce
Malaysia:                            Viet Nam:                       Singapore:

• Lack of Access – Many              • Shortcomings in the           • False/misleading claims -
  consumers, especially in low         mechanism of dispute            When consumers encounter
  income and rural areas, still do     settlement and handling of      false claims such as fake
  not have access to the internet      violations of the consumers     discounts on products or
  because of lack of coverage or       protection law in e-commerce    hidden add-on fees on goods or
  poverty.                             transactions.                   services, they are unable to
                                                                       make an informed purchasing
• Exposure to scams and other        • Unfair commercial practices     decision.
  digital risks                        and lack of trust between
                                       consumer and supplier /       • No proper dispute resolution
• Data Privacy and Security –          retailer                        process/consumer protection
  Currently substantial amount                                         mechanism
  of personal data is being          • Limitations of consumers on
  collected for various purposes.      awareness and self-protection • Counterfeit products - If online
  There have been many                 actions related to legal        platforms/marketplaces do not
  “leakages”. Consumers’ data is       documents on e-commerce         check/verify their
  not safe.                                                            merchant/product listings and
                                                                       allow counterfeit or unsafe
                                                                       products to be listed, then
                                                                       consumers’ right to genuine
                                                                       products and consumer safety
                                                                       will be affected.
The consumer context
    Case study: fomca (Malaysia)

• National Complaints
  Centre; Finance, health
  management apps

• Policy recommendations
  and representation in
  government groups
  including Advisory Council
  on consumer protection;
  FOMCA adapted UNCTAD
  model for Malaysian
  context

• Direct education and
  empowerment programmes
  currently with
  Cybersecurity Malaysia

        “…. There is no serious commitment to consumer empowerment…digital consumer protection is
        completely absent….There have been recent movements to consolidate the industry through
        mergers to reduce competition in the market. FOMCA has strongly opposed the move. …”
The consumer context
  Case study: CASE (singapore)

      “…. With the raising penetration rate of smartphones, we observed that the consumers trend
      towards online and mobile space. As such, CASE adapted our educational effort from traditional
      on-site outreach activities to digital initiatives …”

• September 2019,
  Price Kaki – price
  comparison for 3,000
  common items
  across 31
  supermarkets and 11
  hawker centres

• January 2020 Fuel
  Kaki
The consumer context
Case study: ylki (indonesia)

“…. For the past three years,,
the complaint data at YLKI
has been dominated by
financial service issues,
particularly online loan
problems. As many as 70
percent of the complaints
related to loans and loans are
complaints about illegal loans,
the rest are complaints about
legal loans registered with the
Financial Services Authority
…” Tulus Abadi, reported in       World Consumer
Tempo, September 2021             Rights Day 2022

                                    Fair Digital
                                     Finance
The consumer context
International arena essential to drive national progress -
change must be built across multiple fora
                                    E.g.,   Select top topics on agenda

                United Nations              •   All e.g., DG Roadmap to Digital Collaboration
                     Agencies               •   UNCTAD: Product safety in ecommerce, sharing
                                                economy
                  Multi-lateral             •   For consumer agenda: dark patterns, personalised
                  Institutions                  pricing, measuring consumer harms, financial
                                                consumer protection
                  Multi-lateral             •   G20: Traceability, data flows
                          Fora              •   G7: Data governance, innovation, responsible AI
                                                (e.g., via GPAI)
              Standard-Setting              •   All
                   Institutions

                                            •   WTO: Ecommerce negotiations finalising 2021
                Bretton Woods
                   Institutions
                       Regulatory           •   Scams & fraud, , data rights, privacy, e-commerce &
                          Bodies                consumer protection online

                  Digital rights            •   Various: more established e.g., World Wide Web
                 organisations                  Foundation, Access Now and newer e.g., AWO
STRATEGY PRINCIPLES

        Opportunity for learning platform

                                    Inclusive
                                  Consumer &                                            Innovation                    Public
        Research for                                        International
                                  Competition                                           & Adaptive                 Awareness &
         Consumer                                            Information
                                      Policy                                             Decision                   Consumer
          Interest                                             Sharing
                                  Development                                             Making                   Information

1                         2                         3                           4                          5
    •   Describe lived        •    Represent the        •    Provide agile          •    Provide               •    Quantity,
        consumer                   independent               global platform             “incubator                 quality,
        experience                 consumer                  for sharing                 hub” to support            effective-ness
    •   Identify &                 voice at                  experience and              best practice              of awareness
        uncover                    regional level            knowledge                   pilots which               raising efforts
        consumer              •    Bring issues              across countries            benefit global
        harms                      and proposals        •    Enable rapid                consumer
    •   Scan for future            to appropriate            response across             advocacy
        consumer                   policy space              regions
        issues and                                      •    ;
        needs

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THANK YOU

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