Consumer Protection Regulation Research Articles

The impact of consumer protection in the digital age: Evidence from the European Union

We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts’ evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.

Unfair Contract Terms Protection in Slovakia

The unfair contract terms protection in Slovakia is currently regulated by a system of rules in the Slovak Civil Code; the path to the current extent of consumer protection has not been very straightforward. This article analyses the legislative framework on unfair terms, and questions of law enforcement. It further outlines selected issues and empirical evidence in the context of “surprising contract terms,” transparency of a contract term, legislative power of the judiciary, it discusses the controversial of the German approach to resolve conflicts revolving around unfair clauses. The article concludes that the current Slovak regulation of unfair terms in consumer contracts seems to fulfil the requirements set by the UCTD; however, all in all, Slovakia’s national regulation remains fragmented in the Civil Code, the Act on Consumer Protection and special sectoral regulation and supplemented by special procedural regulation.

СТРАТЕГІЧНІ НАПРЯМИ ДЕРЖАВНОГО РЕГУЛЮВАННЯ ТОРГОВЕЛЬНОЇ ДІЯЛЬНОСТІ В УКРАЇНІ

The subject of the study is the strategic aspects of state regulation of trade activities in Ukraine. The article presents the state of domestic and foreign trade activities, as well as the place of the state in the regulation and development of the domestic and foreign markets. The concept of a mechanism for regulating the activities of commercial enterprises in the context of a fall in the level of national production with a significant import volume at the same time is revealed. The role and place of the state in the management of foreign and domestic trade, as well as the relationship between the state and the subjects of the domestic and international market, are considered. It is established that the system of state regulation measures should ensure the functioning of a competitive environment for all market participants, while ensuring the effectiveness of fair legal regulation of consumer protection, replacing managerial FSCS with regulatory ones. The objective necessity of regulatory policy and its impact on the effective development of retail trade of each individual enterprise and the domestic market as a whole is justified. The tools of the state body regulating the sphere of trade and the possible consequences of their application with clearly defined functions and powers to support innovations in this sphere of activity are considered. The analysis of the most significant legislative documents is made. The main problems and imbalances in the development of trade activities as a result of inadequate attention of the state to trade issues are identified. According to the results of the study, promising areas for improving the state's regulation of domestic and foreign trade are identified, based on the examples of world experience and the laws of progressive development of trade activities, which demonstrates the need for the state to guarantee a balance of interests of consumers, producers and network trading companies.The directions of improvement of the state regulation policy that will contribute to the development of trade and effective entry of Ukraine into the world community are highlighted.

CONCEPT AND CONTENT OF THE LEGAL STATUS OF A CONSUMER OF MEDICAL SERVICES

Introduction. The mechanism of legal regulation of consumer protection in general, and consumer rights in the field of medical services in particular, has passed certain historical stages of formation and development. Of particular importance in the system of organizing consumer protection at the international level was the creation in 1960 of the International Organization of Consumers - Consumers International, which is a world federation of consumer groups. The activities of international and national organizations have a common goal of "consumer protection" by consolidating the efforts of consumer groups and relevant organizations and protecting their rights, including interests, before the relevant state and international bodies and organizations. Summary of the main research results. The legal status of the patient is a complex theoretical and legal phenomenon, including the legal personality of the patient, basic rights, duties, responsibilities, guarantees for the realization of his rights and freedoms, and the like. The content of the legal status of the patient consists of his rights, obligations and legal responsibility. Conclusions. The entire system of patients’ rights - consumers of medical services can be conditionally divided into the following groups: 1) general medical rights - this group of rights is enshrined in the basic regulatory legal acts. General health rights include: the right to health care; the right to consent to or refuse medical care; the right to information; the right to confidentiality and protection of personal data; 2) special medical rights; 3) the rights of persons who forcibly acquired the legal status of a patient; 4) the rights of persons who participate in medical and biological experiments and tests.

The Impact of Consumer Protection in the Digital Age: Evidence from the European Union

We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts' evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.

KESAKSAMAAN PRINSIP-PRINSIP KESELAMATAN PRODUK SEBAGAI SEBAHAGIAN DARI ASPEK ‘ḤALĀLAN ṬAYYIBAN’ DENGAN PRINSIP-PRINSIP SYARIAH: The Similarity of Product Safety Principles as part of the ‘Ḥalālan Ṭayyiban’ Aspect with the Shariah Principles

Product safety is one of the main protections under the consumer protection regulations. It should be the primary aim in any consumer protection policy in every country, including Malaysia. This is due to the fact that there are a lot of consumer goods that are heterogeneous and more technologically advanced that are continually being introduced to consumers. The principle of product safety is in line with the principles laid down by Shariah. This article discusses the similarity of product safety principles as part of ‘ṭayyiban’ aspect with the Shariah principles.

KESAKSAMAAN PRINSIP-PRINSIP KESELAMATAN PRODUK SEBAGAI SEBAHAGIAN DARI ASPEK ‘ḤALĀLAN ṬAYYIBAN’ DENGAN PRINSIP-PRINSIP SYARIAH

Product safety is one of the main protections under the consumer protection regulations. It should be the primary aim in any consumer protection policy in every country, including Malaysia. This is due to the fact that there are a lot of consumer goods that are heterogeneous and more technologically advanced that are continually being introduced to consumers. The principle of product safety is in line with the principles laid down by Shariah. This article discusses the similarity of product safety principles as part of ‘ṭayyiban’ aspect with the Shariah principles.&nbsp

E-COMMERCE AND SOME OF THE FEATURES OF CONSUMER PROTECTION RIGHTS UNDER EU LAW

The paper deals with the problems of consumer protection rights in the distance selling and service provision, e-Commerce under the law of the European Union (the main and additional requirements for the information provided at various stages of the agreement; the consequences of non-fulfillment of the information obligations by the counterparties of the consumer provided by the EU law). The provisions of the acts of primary and secondary law of the European Union affecting the regulation of consumer protection rights in the distance selling and provision of services, e-Commerce are analyzed. The responsibility of service providers acting as intermediaries in the implementation of e-Commerce is considered. The classification of prohibited types of unfair influence on the economic behavior of the consumer is provided, i.e. improper influence, unfair commercial activity (and its types), etc. The prospects of studying and adapting the experience of the European Union in the field of regulation of consumer protection in the distance selling and provision of services, e-Commerce for the Russian Federation are noted. Some features of regulation of sale of goods (services) through the Internet are highlighted, and general recommendations on improvement of the current legislation are given.

Does Consumer Protection Enhance Disclosure Credibility in Reward Crowdfunding?

ABSTRACTWe study how the interplay of disclosure and regulation shapes capital allocation in reward crowdfunding. Using data from Kickstarter, the largest online reward crowdfunding platform, we show that, even in the absence of clear regulation and enforcement mechanisms, disclosure helps entrepreneurs access capital for their projects and bolsters engagement with potential project backers, consistent with the notion that disclosure mitigates moral hazard. We further document that, subsequent to a change in Kickstarter's terms of use that increases the threat of consumer litigation, the association between project funding and disclosure becomes stronger. This evidence suggests that consumer protection regulation enhances the perceived credibility of disclosure. We find the effect of the change in terms of use to be more pronounced in states with stricter consumer protection regulations. Taken together, our findings yield important insights on the role of disclosure, as well as on the potential effects of increased regulation on crowdfunding platforms.

Does Consumer Protection Enhance Disclosure Credibility in Reward Crowdfunding?

We study how the interplay of disclosure and regulation shapes capital allocation in reward crowdfunding. Using data from Kickstarter, the largest online reward crowdfunding platform, we show that, even in the absence of clear regulation and enforcement mechanisms, disclosure helps entrepreneurs access capital for their projects and bolsters engagement with potential project backers, consistent with the notion that disclosure mitigates moral hazard. We further document that, subsequent to a change in Kickstarter’s terms of use that increases the threat of consumer litigation, the association between project funding and disclosure becomes stronger. This evidence suggests that consumer protection regulation enhances the perceived credibility of disclosure. We find the effect of the change in terms of use to be more pronounced in states with stricter consumer protection regulations. Taken together, our findings yield important insights on the role of disclosure, as well as on the potential effects of increased regulation on crowdfunding platforms.

New Scholarship

New Scholarship

Juridical Analysis of Protection of Bank Customers from Skimming Action Reviewed from Consumer Protection Law

Today technology is growing rapidly including in the banking sector, banks as service providers continue to provide services to facilitate customer transactions, one of which is in the form of an ATM machine (Automatic Teller Machine), besides that customers as consumers in banking services also have the right to get comfort and security for funds entrusted by the customer to the bank, and also the bank is obliged to provide protection and safeguard against crime by third parties with skimming mode, as stipulated in the consumer protection law. The method in this research is normative juridical research. Research data were collected through literature study and interviews with resource persons to obtain primary data and literature studies to obtain primary data. The focus of this research is to find out how the Protection of Bank Customers From the Act of Skimming Viewed from the Consumer Protection Regulation. The results of the study indicate that the form of legal protection for bank customers from acts of skimming in terms of the Consumer protection Act that is legal protection and direct protection, and if there is a skimming action that is detrimental to the customer, and it is proven that there is no element of negligence from the customer, the bank will provide compensation for the amount of money lost.

Harmonization Of Private Law In The Field Of Consumer Protection Under Remote Contracts

The scientific article is devoted to the study of the state of legal regulation of consumer protection under distance contracts in Ukraine and its compliance with EU law. At the same time, the author analyzes the international legal documents, the current legislation of Ukraine and the views of other researchers of this problem. The author has identified a number of shortcomings in the legal regulation of consumer protection under distance contracts in Ukrainian legislation.
 In particular, the Law of Ukraine «On E-commerce» obscures the requirements for an online store, which are actually dealt with by buyers (potential buyers). The main disadvantage is that an online store is recognized as a means of presenting or selling a product, work or service through an electronic transaction and not as a party to an e-commerce relationship with the obligation to provide relevant information. The problems of concluding and executing electronic transactions are also considered. Attention is drawn to the fact that the dispositive wording of the essential terms of electronic transaction in domestic law does not comply with the Directive 2000/31 / EC on e-commerce. This inconsistency can be remedied by imposing a mandatory information requirement to be provided by the service provider to the recipient in accordance with the Directive, rather than a dispositive list of electronic contract requirements.
 Progressive and in line with EU law is the provision of the Law on e-Commerce of Ukraine, which prohibits the use and demand of personal data by parties to an electronic transaction for a purpose other than committing the transaction.
 It is concluded that the creation and implementation of an effective system of consumer protection in Ukraine based on EU law is possible only through the interaction of all components of the system of consumer protection.

Net In-Neutrality's Impact on Health Care

The Internet is a utility, just as water and electricity are, and is directly linked to care outcomes, budgeting considerations, and workforce acquisition. If water or electricity services were to be throttled up and down or commoditized, it would be important for health care leaders to understand and prepare for the resulting disruptions. In 2017, the Federal Communications Commission voted to eliminate consumer protection regulations that stopped Internet service providers from interfering with Internet service put in place under President Bush and maintained during the Obama administration. The elimination of these protections threatens to disrupt the Internet as the platform on which our health care industry builds capacity for health information exchange. The ability of Internet service providers to throttle up and down speed based on their own interests threatens our ability to meet community needs and increases the likelihood of health care disparities, just as would happen if city water providers could ration water based on their own economic interests. Proponents for net in-neutrality argue that not all Internet traffic should be equal. For instance, there could be an advantage for health care if data traffic related to health care operations was prioritized over video streaming a movie or uploading a video, but if health care companies would be required to pay for that speed, there would be financial considerations. Nurse leaders need to understand the real and possible consequences of the Internet's lack of consumer protection regulations.

Sharing Guilt: How Better Access to Information May Backfire

We study strategic communication between a customer and an advisor who is privately informed about the most suitable choice for the customer but whose preferences are misaligned with the customer’s preferences. The advisor sends a message to the customer who, in turn, can secure herself from bad advice by acquiring costly information on her own. In our experiments, we find that making the customer’s information acquisition less costly leads to less prosocial behavior of the advisor. This can be explained by a model of shared guilt, which predicts a shift in causal attribution of guilt from the advisor to the customer if the latter could have avoided her ex post disappointment. We conclude that providing better access to information through, for example, consumer protection regulation or digital information aggregation and dissemination, may have unintended negative consequences on peoples’ willingness to take responsibility for each other. Data files and the online appendices are available at https://doi.org/10.1287/mnsc.2018.3101 . This paper was accepted by Uri Gneezy, behavioral economics.

Non-judicial Forms of Resolving Disputes Related to the Protection of Consumer Rights in Russia and the European Union: Results of 2018-2019

The authors examine the features of the legal regulation of consumer protection in Russia and the European Union. It has been revealed that: (1) the evolution of non-judicial forms of consideration of consumer disputes both in the Russian Federation and in the EU will help to increase consumer protection and the accessibility of the exercise of the right to resolve disputes for consumers of different property levels, since the procedures under consideration are free of charge; (2) due to the specifics of disputes with consumers of financial services, the creation for these disputes of a special procedure for consideration by professional specialists of the financial market is justified and should positively affect the quality of consideration of cases; (3) the introduction of non-judicial forms into practice will entail a reduction in the resolution of conflict situations and a decrease in the load on the judicial system; (4) there is still some confusion of dispute settlement procedures in a number of provisions of the bill on the settlement of consumer disputes in electronic commerce in the Russian Federation, which is advisable to eliminate when finalizing the bill.

Consumer Protection, Modern Regulation, Paternalism and the Nanny State: Understanding the Legitimacy Challenge

Regulation to protect consumers from making choices that may be harmful to themselves is common place in Australia. Yet commentary on such regulation can be both polarised and bi-polar. At one extreme are libertarian groups and business for whom much regulation is a reflection of government overreach and interference. ‘Nanny state’ is the label they oft attach to it, and to the experts that advocate it. Those experts on the other hand, describe such regulation as the epitome of the modern regulatory state - one that seeks to proactively shape a world in which people live healthy, wealthy and happy lives. And in the middle are people for whom discussion of consumer protection regulation produces contradictory impulses. Such extreme and variable views represent a challenge to the legitimacy of consumer protection regulation. This paper examines developments specific to the consumer protection regulatory landscape to understand the underlying causes of this legitimacy challenge. It is only by understanding those causes that governments can hope to navigate a path to better legitimacy.

Mandatory Disclosure of Cyber Incidents and the Cost of Equity

We exploit state-level variation in data breach disclosure laws to study whether shareholders benefit from consumer protection regulation. While the intended purpose of these laws is consumer protection, we argue that the laws can help reduce shareholder risk through both a real effects channel (i.e., encouraging firms to prioritize cybersecurity) and a capital markets channel (i.e., serving as a commitment to disclose). Consistent with these arguments, we find an on-average decrease in shareholder risk, proxied by cost of equity, after the staggered passage of these laws. We also find the effect is stronger for firms that did not prioritize cybersecurity before the laws and for firms with ex ante worse information environments. Finally, after passage of these laws, firms are more likely to have an IT security officer and increase IT investments. Our collective evidence suggests that consumer protection regulation, in the form mandated disclosure to other stakeholders, benefits shareholders.

Viselkedésgazdaságtan a fogyasztóvédelemben

THE AIMS OF THE PAPER Revealing unfair manipulation of consumer decisions and the related consumer protection regulations are important for understanding consumer behaviour. In the last decades, research findings of behavioural economics play a key role in shaping consumer policy. In our paper, we examine how results of behavioural economics could be applied in the practice of consumer protection. METHODOLOGY Based on case studies from the decisions of the Hungarian Competition Authority (GVH) connected to three types of products, we present examples of decision-making heuristics and look at how authorities resolved these practices and how they affected regulations. MOST IMPORTANT RESULTS We identified commercial practices taking advantage of decision-making mistakes (even if unintentionally), particularly in terms of quantity, delivery method and product attributes relevant in buying decision making process. In part, this might be traced back to the over- or under-regulation associated with certain groups of products. RECOMMANDATIONS The non-rational consumer behaviour patterns explored by behavioural economics both implicitly and explicitly appear in consumer protection legislation and practices. Therefore, they may serve as a solid basis not only for law enforcement but for legislation as well. We also aim to highlight the importance of consumer protection regulation studies in marketing education. In addition, we argue that the analysis of our cases could be useful for marketing professionals. Profound knowledge of regulation is a key aspect for the corporate side, and consumer protection helps to make better decisions on the demand side.

Instrumenti zaštite potrošača u finansijskim uslugama na makro i mikro planu u mađarskom pravu

The study deals with the legal questions of Hungarian consumer protection. The purpose of the paper is to reflect on nowadays issues of financial consumer protection and to demonstrate how does it affect everyday life. A malfunctioning monetary intercessory scheme is likely to give a rise to major imbalance in the structure of economy; therefore, consumers lose their persuasion in the reliability of financial institutions. Concerning the definition of consumer, the authors call out the contentious fields of the whole area of law while sketching some solutions of the Hungarian regulation. It is inevitable to be aware that without the services of financial institutions, the economic development is unimaginable. That is the reason why financial consumers have toface with injustices in most cases, concerning the monetary sector. The study puts injustice great emphasis on the consumer protectionist role and on the tools of the supervision, underlining the newly regulated macroprudential instruments. Based on experience, there is a need for softening the regulation of financial consumer protection, as long as it is an important, not just an individual-related question. There are different solutions for defending the rights of consumers, including the tool system of the financial supervision, the alternative dispute settlement conducted by the Financial Arbitration Board and the office of the financial ombudsman.