Framework For Consumer Protection Research Articles

Consumers’ Legal Claims: Motives, Expectations and the Complaint Journey of Indian Consumers

While consumer complaining behaviour (CCB) has seen phenomenal scholarly interest, its effortful facets, such as complaints to regulators or the legal system, remain under investigated. Viewing complaints as deeper patterns of systemic malaise, this study has explored consumers’ legal claims from the perspective of individual complainers. Relying on informants’ lived experiences explicated through semi-structured interviews and a blend of inductive and deductive inferencing, a complaint journey framework based on the dispute tree paradigm was charted. The study’s findings map relevant complaint antecedent and exacerbator themes to the formative stages of naming, claiming, blaming and disputing and visualize consumer problems as they reach the law after germinating through these stages. The work contributes to theory and practice by broadening the understanding of CCB motives, emphasizing the role of emotions, identifying consumers’ recovery expectations and revealing legal action as a blend of agentic choice and structural necessity. In delineating the individual vigilant consumers’ role in shaping the consumer protection framework into motion and their experience of legality, we also raise the need for policy refinements.

Redefining Privity of Contract: The Untapped Rights of Consumers in Goods Delivery Agreements

This study critically analyses the entrenched concept of the privity of contract doctrine within the context of goods delivery agreements and its impact on the final consumer, specifically focusing on issues of delayed delivery and consequential losses. Adopting normative legal research methodologies, it employs statutory, conceptual, and case-based approaches to dissect this complex consumer protection issue. The research reveals that while the privity of contract paradigm posits rights and obligations as exclusive to the contracting parties, the final consumer, as the recipient of goods, possesses legal standing in cases of delivery negligence or incurred losses. The study also highlights the consumer's right to delivery in accordance with the agreed terms, even when not a primary party in the agreement, as long as the goods are not for resale. The paper concludes by emphasizing the critical role of judges in assessing immaterial losses based on the principle of ex aequo et bono, thus underscoring a shift towards a caveat vendor approach in consumer law, with significant implications for both business actors and global consumer protection frameworks.
 Highlights:
 
 The concept of privity of contract is not absolute in goods delivery agreements, and the final consumer can possess legal standing in cases of delivery negligence or incurred losses.
 The recipient of goods, even when not a primary party in the agreement, maintains the right to delivery in accordance with the agreed terms, provided the goods are not intended for resale.
 Judges play a pivotal role in quantifying immaterial losses, underlining the shift towards a caveat vendor approach in consumer law.
 
 Keywords: Privity of Contract, Consumer Protection, Goods Delivery Agreements, Legal Standing, Ex Aequo et Bono.
 

Model Framework for Consumer Protection and Crypto-Exchanges Regulation

Cross-border insolvency of crypto-exchanges, cyber-risks, transnational character of activities with cryptocurrencies, and financial frauds on the Internet are among the key threats for individuals who use Bitcoin as an investment. Moreover, crypto-exchanges impose consumer agreements containing provisions limiting their liability for hacker attacks and other clauses promoting inequality in relations with investors. All the named obstacles highlight the vulnerability of unsophisticated individuals investing in digital assets and have pointed out the necessity to adopt an internationally recognized model of rules for crypto-exchanges, otherwise, it will be impossible to effectively protect the rights of investors engaged in the activities of intermediaries exchanging and keeping decentralized cryptocurrencies. The purpose of the study is to elaborate on the fundamentals for constructing an international legal framework protecting consumers from risks arising from the activities of crypto-exchanges dealing with decentralized cryptocurrencies. Based on the methodology of comparative legal study, this paper examines the judicial practice of various countries and the legislation of jurisdictions popular among crypto-exchanges. The research explores the nature of Bitcoin, describes the types of crypto-exchanges and discusses the main approaches to crypto-exchanges regulation. It argues that an international framework on crypto-exchanges should be based on understanding Bitcoin as a commodity which is situated in the place of crypto-exchange incorporation, licensing of crypto-exchanges, and self-regulation.

Financial consumer protection standards and frameworks for digital financial services: Landscape report

Financial consumer protection standards and frameworks for digital financial services: Landscape report

Strengthening Legal Mechanisms for Consumer Protection in the Digital Marketplace

In the rapidly evolving landscape of the digital marketplace, the protection of consumer rights has emerged as a paramount concern. The transition from traditional commerce to digital platforms, while offering unprecedented convenience and choice, also presents unique challenges that necessitate a robust legal framework for consumer protection. To strengthen legal mechanisms for consumer protection in the digital marketplace, several strategies can be considered: Enhancing Transparency and Accountability: Implementing regulations that require clear disclosure of product information, terms of service, and data privacy policies; Strengthening Data Protection Laws: Ensuring robust protection of consumer data through comprehensive privacy laws and regulations that address the specific challenges of digital transactions; Facilitating Access to Justice: Developing legal frameworks that provide consumers with accessible, efficient, and effective means of redress in cases of dispute or fraud; Promoting Consumer Education: Supporting initiatives that empower consumers with the knowledge and tools necessary to navigate the digital marketplace safely and effectively; International Cooperation: Collaborating with international partners to develop harmonized standards and practices for consumer protection in the global digital economy. In conclusion, the digital marketplace offers immense potential for innovation, growth, and consumer empowerment. However, realizing this potential requires a concerted effort to strengthen legal mechanisms for consumer protection, ensuring that the digital economy operates in a manner that is fair, transparent, and accountable. By addressing the challenges outlined in this letter and adopting a proactive approach to legal reform, we can safeguard consumer rights and foster a digital marketplace that is both vibrant and secure.

A Critical Review of the Nigerian Consumer Protection Framework

A Critical Review of the Nigerian Consumer Protection Framework

A Review of the Strengthening of the Nigeria Consumer Protection Framework via Judicial Activism within the Hospitality and Tourism Businesses

A Review of the Strengthening of the Nigeria Consumer Protection Framework via Judicial Activism within the Hospitality and Tourism Businesses

Information in Consumer Contracts: Reforming Consumer Protection Law in Malaysia

AbstractThis article examines the effectiveness of the Consumer Protection Act 1999 in ensuring that Malaysian consumers can make informed decisions and that their interests are adequately protected in modern electronic commerce (e-commerce) transactions. It first identifies the key elements required of a modern consumer protection framework and subsequently uses this model as a yardstick to assess the legal frameworks in two jurisdictions. The first jurisdiction is Malaysia, a common law country that, although considered a potentially important regional player in the development of e-commerce, has a relatively underdeveloped consumer protection framework. The second jurisdiction is England and Wales, which is likewise a common law jurisdiction but one whose consumer protection framework has been influenced by European Union consumer protection policy and legislation that has further provided the impetus for significant legal reform in both offline and online environments. This article examines the extent to which the laws in both jurisdictions provide appropriate protection, considering countervailing issues (eg, protection of commercial innovation and competition) and identifying potential gaps in provision (eg, inadequate regulation of new platforms or business methods). Based on these analyses, the article proposes an ‘evergreen’ consumer protection framework to improve the legal landscape of e-commerce in Malaysia.

Regulatory Convergence of Consumer Protection in the Single African Air Transport Market: How Far, How Well?

The Single African Air Transport Market (SAATM) kicked off in 2018 and there are currently thirty-five Member States. The legal framework for consumer protection in the SAATM comprises the Yamoussoukro Decision (YD) and the consumer protection regulatory texts which Member States are required to harmonize with their national laws. This article examines the regulatory convergence of consumer protection in Member States of the SAATM. While observing that the extent of the required harmonization is not specified, the article notes that the consumer protection regime is basically passenger rights oriented and there is need for uniformity and consistent implementation in all Member States so as to prevent conflict of laws as well as legal uncertainty for passengers. The article analyses the consumer protection regulatory framework of the SAATM and that of selected Member States and notes the divergences that can impede the operationalization of the SAATM. Africa, air transport, Yamoussoukro Decision, consumer protection, harmonization, airlines, SAATM

International Standards as a Conceptual Framework for Improving Consumer Protection

Issues in the interpretation of the international standards on individual consumer protection are considered. A functional consumer protection framework is a key aspect of economic security of states and regional economic alliances. Consumer protection is also evolving to respond to the new threats and challenges of the global economic crisis. Implementing the international standards on consumer protection in the national legal framework and regional treaties are viewed as a matter of urgency. From a review of a selection of international legal instruments, the author identifi es several systemic trends in the evolution of consumer protection standards, including an emphasis on the environment and sustainable consumption, and facilitation of e-trade as a mechanism for strengthening the economic security of states and regions.

Regulating Borrower Hardship in Australia, Singapore, and Hong Kong: Payment Holidays During COVID-19 and Beyond.

Borrower hardship, while a critical issue, is not often addressed by consumer protection frameworks across the Asia–Pacific. The widespread use of payment holidays during the COVID-19 crisis provides a significant case study on the importance of having borrower hardship provisions as a consumer protection tool. This paper compares the pre-pandemic availability of payment holidays in three Asia–Pacific jurisdictions: Australia, Singapore, and Hong Kong. It evaluates their existing legislative frameworks, as well as regulatory and industry guidelines on borrower hardship, and contrasts this with their use of payment holidays during the pandemic. Where there were existing industry guidelines on borrower hardship, lenders were able to spearhead an industry-wide approach towards payment relief without regulatory intervention by governments. Beyond the pandemic, the paper argues that self-regulation has potential for protecting borrower interests by standardising the scope of, and the procedure for, obtaining hardship relief. It argues that there is a need for a greater prevalence of industry codes of conducts governing lenders’ approach towards borrower hardship across the Asia–Pacific.

Consumer Data Protection and Privacy: A Proposal For a New Law and an Independent Agency

From social media to banking and healthcare, online services increasingly pervade the everyday lives of American consumers. Currently, there is no comprehensive federal regulation to ensure personal data privacy and protection, and consumers have no ownership rights over their personal data. There are various information and sector specific privacy laws, enforced by multiple agencies with overlapping jurisdiction. Moreover, without a principal federal law, many states have developed their own data privacy regulations. Not only is this collective scheme ineffective for American consumers, but it is also an inefficient form of government regulation and makes compliance difficult. This Note proposes creating the Consumer Data Privacy and Protection Bureau, an independent agency that would consolidate jurisdiction for efficient and effective regulation through a consumer protection framework. It would be created through a new law, the Data Privacy and Protection Act. In addition to creating the Consumer Data Privacy and Protection Bureau, this baseline, comprehensive federal legislation would provide basic data rights to consumers, and ease compliance for companies in the United States and abroad. With bipartisan support and an increasingly digital society, this type of reform is realistic, necessary, and timely.

Protecting consumers in digitized and multi-source energy systems

ABSTRACT This paper investigates if the consumer risks of digitized and multi-source energy systems are capable of being addressed under existing energy consumer protection frameworks. Two challenges are identified. First, under existing frameworks the decision about which entities are subject to consumer protection obligations is often binary and may not easily accommodate new energy products, business models, or supply arrangements. Second, the highly prescriptive and detailed nature of current frameworks are ill-suited to the changes occurring in energy markets that require policymakers to develop rules to mitigate consumer risks arising from a rapidly expanding group of products, sources and technologies. To address these challenges, we propose that frameworks adapt to be based around baseline rights for all consumers irrespective of how they source, manage, or consume energy. We also argue for greater reliance on co-regulation to develop, monitor, and enforce a series of codes to protect consumers from the risks of new energy products and services.

Sustainability of AI: The Case of Provision of Information to Consumers

The potential of artificial intelligence (AI) and its manifold applications have fueled the discussion around how AI can be used to facilitate sustainable objectives. However, the technical, ethical, and legal literature on how AI, including its design, training, implementation, and use can be sustainable, is rather limited. At the same time, consumers incrementally pay more attention to sustainability information, whereas businesses are increasingly engaging in greenwashing practices, especially in relation to digital products and services, raising concerns about the efficiency of the existing consumer protection framework in this regard. The objective of this paper is to contribute to the discussion toward sustainable AI from a legal and consumer protection standpoint while focusing on the environmental and societal pillar of sustainability. After analyzing the multidisciplinary literature available on the topic of the environmentally sustainable AI lifecycle, as well as the latest EU policies and initiatives regarding consumer protection and sustainability, we will examine whether the current consumer protection framework is sufficient to promote sharing and substantiation of sustainability information in B2C contracts involving AI products and services. Moreover, we will assess whether AI-related AI initiatives can promote a sustainable AI development. Finally, we will propose a set of recommendations capable of encouraging a sustainable and environmentally-conscious AI lifecycle while enhancing information transparency among stakeholders, aligning the various EU policies and initiatives, and ultimately empowering consumers.

Cash economy, criminality and cash regulation in Ethiopia

PurposeThis paper aims to examine the contribution of Ethiopia’s cash economy to financial crimes. It also investigates the regulation of cash in the context of controlling crime stemming from the cash economy.Design/methodology/approachThis study relies on primary data generated from 20 interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, selected commercial banks and law enforcement agencies and document review from government reports, media press and statutes, as well as secondary data from online and offline sources.FindingsThe cash-intensive nature of Ethiopia’s economy has enabled a significant amount of cash to circulate outside of the formal financial system. This money is partly to blame for the prevalence of criminal activities such as cash hoarding, corruption and illicit financial flows. To address the threat of crime posed by the cash economy, the Ethiopian Government has taken measures such as restricting cash withdrawals from financial institutions, limiting the amount of cash individuals can hold and demonetizing the banknotes. The measures enable the banks to collect the cash circulating outside of the formal financial sector. However, the effect of these measures on reducing future criminality remains uncertain. Improving the financial inclusivity of the country, specifically expanding basic financial products to the rural areas, digitalizing the country’s payment system, raising general financial awareness and establishing a strong financial consumer protection framework would play a critical role in reducing future criminality and transforming the cash-intensive into a cashless economy.Originality/valueThis paper provides a first-of-its-kind analytical perspective on the contribution of Ethiopia’s cash economy to criminal activity and the adequacy of countermeasures so far taken.

China’s long march towards the twin peaks model of financial regulation

ABSTRACT This article traces the evolution of China’s financial regulatory system, and its trend towards what could be referred to as a ‘quasi-Twin Peaks’ model. It then outlines the ongoing challenges with the current sector-based framework, including regulatory competition, regulatory arbitrage and inconsistent regulatory mandates. It then proposes a pathway by which China could adopt a true Twin Peaks model. Finally, the article outlines recent developments in consumer protection, and draws parallel with developments in two Twin Peaks jurisdictions: the UK and South Africa. The article concludes by arguing that the adoption of an overarching framework for consumer protection in banking products and payment services underscores the need for a unified framework that applies to all products and services in the financial sector, including those administered by the CSRC in the securities sector. It also highlights the benefits of separating market conduct and consumer protection regulation, from macro-prudential and micro-prudential regulation, and provides additional support for the argument that the ultimate destination to which China should march, is the Twin Peaks model of financial regulation. This would be in line with the emerging direction of China’s regulatory agency reform, and would better accommodate ongoing financial innovation and cross-sector cooperation and integration.

The New Fintech Federalism

U.S. law has struggled to accommodate the rise of fintech. Instead, the United States has lumbered under a division of regulatory authority between the state and federal governments designed for a financial landscape comprised of banks and large, systemically important shad-ow banks. To catch up to the market, state and federal officials have under-taken a diverse array of initiatives. Numerous regulators have relied on the prevailing paradigm of the past century, seeking to extend its already stretched logic into the realm of fintech and exacerbating its many shortcomings in the process. But several regulatory initiatives of the past decade have broken with prior thinking and charted a different path, one that redefines the relative realms of the federal and state governments and promises a legal regime suited to the technological realities of twenty-first century finance. This emergent paradigm—the New Fintech Federalism—constitutes a radical reversal of the prior division of authority be-tween state and federal actors. Through both cooperative and unilateral initiatives, the states are increasingly adopting an entity-based approach rooted in interstate reciprocity that inures the benefits of jurisdictional competition and reduces the costs of redundant mandates. Meanwhile, by focusing on financial activities, the federal government is pursuing a consumer protection framework less prone to arbitrage and a view of prudential risk suited to the fragmentation of fintech. This Article is the first to identify the New Fintech Federalism, examining how its disparate set of legal experiments could revolutionize U.S. financial regulation. It also details a statutory intervention that would promote the interests of entrepreneurs and consumer protection advocates alike by codifying this emergent approach. Far from jettisoning federalism, this Article’s proposed legislation would harness the distinctive strengths of the state and federal governments to bolster America’s economic vitality and global competitiveness.

Rights of Electricity Consumers and Regulatory Framework for Consumer Protection Under Electricity Law in Nigeria

Electricity supply constitutes one of the basic necessities for a comfortable well being and takes a high premium in modern societies. Nigeria continues to witness power failure for several decades despite efforts by succeeding governments to stabilize the power sector. In any case, the rights of electricity consumers must necessarily occupy a pride of place in the governmental drive to provide adequate power supply. Hence, the role of the Law comes into play. The research is an effort to provide the basic rights of electricity consumers and it is the finding of this work that the relevant regulatory bodies are not effectively implementing these rights.

Financial Inclusion as a Fairness Criterion in Credit Risk Assessment

With loan origination becoming almost exclusively algorithmic in developed countries such as USA, credit risk assessment algorithms are being critically analyzed for bias against certain groups of the population. Newer prediction systems are measured against older statistical models in the number of loans approved and the pricing of loans across different protected groups. Other research has contextualized these systems within existing consumer protection frameworks to highlight legal constraints on algorithmic decisions. Implicit in existing research on fairness of credit risk assessment systems is the boundary of a formal credit market. While concerns around bias of prediction models against protected classes extend to emerging economies, the counterfactual against which the performance of these systems should also be measured is an informal lending ecosystem notorious for predatory lending. The comparison is further complicated in that accessing formal credit via the newly emerging digital lending platforms involves individuals sharing personal information such as location history and phone contact details. This paper presents a framework based on decision theory, to expand existing discussions on fairness of credit risk assessment systems to accommodate trade-offs confronted in emerging economies, by making explicit the cost of participation in these systems. The role of digital lending apps in formal credit markets in India and the United States is contrasted to broadly outline distinctions in the role and adoption of newer credit modeling techniques between developed and developing countries.

Cashless Policy and Consumer Protection: A Critical Appraisal of the Nigerian Cyber Laws

This article in discussing the transitioning of Nigeria to a cashless economy, considers the regulatory framework in place to protect consumers from cybercrimes that surfaced with the policy. A critical appraisal of the existing cyber laws in Nigeria showed consumers have been left in the loop, whilst the law has failed to effectively protect bank consumers from the onslaught of cybercrimes which accompanied the cashless policy. An analysis of the consumer protection framework especially those issued by the Central Bank of Nigeria revealed inadequate protective mechanism for consumers whilst the required standard for compliance by banks has been evasive. Amongst the recommendations given is the need to specify the standards required for banks for effective consumer protection while a specified body should be created to ensure strict compliance. This article concludes by emphasizing that even though a cashless economy is of immense benefit, there is need for banks to put appropriate infrastructures in place that will shield its consumers from cybercrimes and enhance consumer confidence in financial institutions generally. Keywords : Cashless Economy, Bank Customers, Cybercrimes, Cyber laws, Central Bank of Nigeria, Consumer Protection. DOI: 10.7176/JLPG/100-02 Publication date: August 31 st 2020