Consumer Protection Issues Research Articles

The Evolution of Complexity of the ELS and the Financial Consumer Protection in Korea

금융상품의 복잡성에 대해, 단지 금융혁신의 부산물이라는 견해(incidental complexity view)와, 고의적으로 금융상품의 불투명성을 증대시키는 수단이라는 견해(obfuscation or shrouding view)가 대비된다. 최근 연구들에 의하면, 복잡한 구조를 지닌 소매구조화금융상품들이 금융혁신에 기인한다는 증거가 분명하지 않고, 오히려 정보우위의 판매자(금융회사)가 정보열위의 구매자(금융소비자)를 착취하는 수단이 되는 것으로 보인다. 복잡한 소매금융상품일수록 사전적으로 기본적인 가치에 비해 비싼 가격에 판매되며, 사후적으로도 수익 성과가 열등함이 발견되었다. 그리고 이론적으로 금융상품의 이러한 복잡성 효과는 시장경쟁에 의해서도 소멸되지 않고 지속될 수 있다. 본 논문은 금융상품 복잡성 관점에서, 국내 ELS 금융상품의 경제적 제도적 특성을 설명하고, 금융소비자보호에 관한 주요 이슈를 분석하며, 관련된 감독당국의 견해의 변화를 분석함으로써, 결론적으로 금융소비자보호에 관한 정책적 시사점을 제시한다.Concerning the complexity of the financial products, there are two contrasting view points. The incidental complexity view argues that the complexity is the incidental by-product following the efficiency-increasing financial innovation. The obfuscation or shrouding view explains that the complexity obfuscates or shrouds the information asymmetry between the sellers and the buyers. Recent studies seems to support the shrouding view by showing that the complex financial products are expensive ex-ante and have bad performance ex-post. This paper takes into account the complexity concept and explains the economic and the institutional characteristics of the ELS(equity linked securities) in Korea. We analyze the related financial consumer protection issues, the evolutionary process of the ELS products, and the changes in the perception of the ELS characteristics or the stance by the supervisory authorities. Lastly we provide the policy implications about the complex financial products and the financial consumer protection.

International Protection of Consumers as a Global or a Regional Policy

This article argues that the international protection of consumers should be a global policy in the twenty-first century, since consumers are important actor of the globalization. But beside the UN Guidelines on Consumer Protection (UNGCP) from 1985, revised in 1999 and 2015, there is no other universal – or “global” – legal instrument (either soft or hard law) on consumer protection. In opposite to environmental law, there is no single global convention or binding international legal instrument on consumer protection issues. The article analyses the role of South America with regard to the promotion of international consumer law and two efforts of the Brazilian Government to enhance the international protection of consumers, in Mercosur and at the Hague Conference on Private International Law, and the chances of their success as a future hard or soft law. The main problem discussed in this article is whether the current international protection of consumers is a global policy or a mere regional or national policy, which contributes for a fragmented picture of the consumer protection worldwide.

Sanksi Pidana Terhadap Kandungan Non Halal Terhadap Produk Makanan Bersertifikat Halal Yang Dilakukan Korporasi

The deviant behavior of corporations towards products that contain non-halal elements has clearly stipulated in Article 27 paragraph (1) jo. Article 56 of the JPH Law that a business actor who does not maintain the halal status of a product that has obtained a Halal Certificate, can be sentenced to a maximum of five years in prison or a maximum fine of Rp 2 billion. Consumer protection is an inseparable part of healthy business activities. In a healthy business activity there is a balance of legal protection between consumers and producers. This research is a prescriptive normative legal research, research conducted to be able to produce an argument that until now there has been no clear action and legal certainty. The issue of consumer protection will never run out and will always be the subject of conversation in the community. As long as many consumers are disadvantaged, the problem will never be resolved. Therefore, the issue of consumer protection needs to be considered. Consumer rights that are ignored by business actors need to be examined carefully. In the era of globalization, economic development, especially in the field of industry and national trade now, has produced various forms of goods and services that can be consumed. This study aims to find out how the regulation of halal certification and halal labeling as a form of legitimacy of halal products in Indonesia and to find out the form of legal protection given to consumers of products containing non-halal elements to products that are certified and halal lebelisasi.

PRAKSIS HUKUM PIDANA DALAM PERLINDUNGAN KONSUMEN

This paper discusses the issue of consumer protection in criminal law, where in the applicable laws and regulations, the inclusion of standard clauses in motor vehicle loan agreements through leasing institutions whose contents are detrimental to consumers has been explicitly prohibited, even in the Consumer Protection Act there is a criminal threat for business actors who violate these provisions. But in practice, motor vehicle financing agreements through leasing still include standard clauses that provide flexibility to act for creditors when there is a problem in installment payments. With law enforcement against violating business actors, it is expected to provide a deterrent effect for business actors.

WHICH COMMUNITIES COMPLAIN TO POLICYMAKERS? EVIDENCE FROM CONSUMER SENTINEL

Consumer complaints provide a signal of the problems that different American communities face. I use a large database of millions of complaints to examine how per capita complaint rates vary across communities, as well as heterogeneity in who complains to different agencies and about different consumer protection issues. I find higher complaint rates in more heavily Black, more educated, higher income, older, and more urban communities and lower complaint rates in more heavily Hispanic and higher household size communities. The demographics of complaints are quite different for the Consumer Financial Protection Bureau, with much higher rates of complaints from Black and college educated areas compared to the Federal Trade Commission or Better Business Bureaus. I also find much higher rates of finance related complaints from Black communities across all reporting agencies. (JEL D18, H50, J10)

Milletlerarası Özel Hukukta Tüketicinin Korunması

<span style="color: rgb(0, 0, 0);">Under international private law, the issue of consumer protection bears significance regarding conflict of laws rules and international jurisdiction. Turkish Private International Law and International Civil Procedure Code no. 5718 (PIL Code) stipulates the relevant choice of law rules pertaining to consumer contracts under Art.26. On the other hand, the international jurisdiction of Turkish courts over consumer contracts are stated under Art.45 of PIL Code. In determining the international jurisdiction of Turkish courts over consumer contracts, PIL Code refers to Art.26. Hence, the scope of Art.26 regarding the types of consumer contracts it encompasses, bears a great significance both regarding the applicable law and international jurisdiction of Turkish courts. Under the first section of this study, the scope of the Art.26 will be determined. Following this, under the second section international civil procedure rules pertaining to consumer protection are examined. In this context, the legal characteristics of international jurisdiction rules under Art.45 will be explained; the validity of choice of court agreements in matters relating to a consumer contract will be examined; and finally, the recognition and enforcement of foreign judgments regarding consumer disputes will be discussed.</span>

Could do better! A high school market survey of fish labelling in Sydney, Australia, using DNA barcodes.

BackgroundProcessed seafood products are not readily identifiable based on physical characteristics, which leaves the industry vulnerable to high levels of product mislabelling (globally estimated at 5–30% mislabelled). This is both a food safety issue and a consumer protection issue as cheaper species could be substituted for more expensive species. DNA barcoding is proving to be a valuable tool for authentication of fish products. We worked with high school students to perform a market survey and subsequent species assessment via DNA barcoding to investigate the accuracy of fish product names used by retailers in Sydney, Australia.MethodsSixty-eight fish samples, sold under 50 different common names, were purchased anonymously from two retailers in Sydney. Each product name was recorded and reconciled with the Australian Fish Names Standard (AFNS). Samples were DNA barcoded and resulting sequences were deposited in the online Barcode of Life Data system using the simplified Student Data Portal interface.ResultsForty percent of the fish names did not comply with the AFNS, however, half of these were either spelling errors or vendors supplied more information than the standard requires. The other half of the non-compliant samples were given common names not listed on the AFNS. Despite this lack of standardization, DNA barcode data confirmed the retailers’ identifications for 93% of samples and 90% of species sampled.DiscussionThe level of mislabelling we report for Sydney retailers (7% of samples or 10% of species) compares favorably with the global rates of 5–30%, but unfavorably with the only previous DNA barcode fish authentication study for Australia, which found no confirmed mislabelling in Hobart. Our study sampled mostly Australian produce, only two retailers and no restaurants. Results of our limited sample suggest that although many Sydney fish retailers attempt to implement the voluntary fish name standards, the standards are inadequate. As Australia imports 75% of its seafood, and in other countries restaurants generally show lower levels of compliance than retailers, broader surveys are needed before generalizing these results. DNA barcoding is a powerful yet simple method supported by accessible online analytical tools. Incorporation of fish barcoding into high school science classes provided students with valuable firsthand experience in scientific research and drew together different strands of the NSW curriculum relating to genetics and sustainability. Given the techniques, equipment, and reagents are now readily accessible, we expect to see greater uptake of DNA barcoding technology by high schools, citizen scientists and consumer groups in Australia in future. However, there remains much scope for further development of DNA barcode diagnostics (both data and analytical methods) for commercial fish species.

Rethinking Automated Investment Adviser Disclosure

Today, investment advisers, including robo-advisers, push dense disclosures to consumer investors who may not be able to fully comprehend their import. Tomorrow, robo-advisers and their innovative technology, if embraced by regulators and consumers, can facilitate and cultivate a trusted collaborative relationship between investor and adviser where the adviser learns from the investor and provides education tailored to the investor, helping to solve vexing consumer protection issues and lessen the impending retirement crisis. More and more of us are comfortable making decisions without human involvement and entirely through a digital interface. Despite consumers’ increasing comfort relying upon machines to direct and guide their decisions, most Americans nevertheless lack basic foundational knowledge in finance and investing. Even those Americans who are able to save for retirement lack financial sophistication and may not be able to understanding the complex products in which they are invested. Robo advice may not be the solution for these problems, as robo-advisers present a potential black box problem where the digital investment advisers may not be capable of explanation beyond the information input and advice output. In such a world, it is not only the new technology that should be questioned. The existing standards through which the new technology is regulated should similarly be explored. An understanding of potential benefits and potential harms may provide lessons that better allow us to protect consumer investors and better prepare for the so-called retirement crisis. This essay explores the parameters of the pre-existing regulatory regime as applied to a new landscape of investing with a focus on the key regulatory tool of disclosure. This short essay examines the challenges of delivering appropriate disclosures in a new world of robo-advisory advice. It suggests a reconceptualization of the aim of disclosure to capitalize on robo-advisers’ ability to truly know their clients and shift the burden of investor education from the customer to a fiduciary level adviser capable of tailoring advice and education to each investor at a level she is capable of understanding. The essay concludes with a recommendation: robo-advisers and investor collaboration via an active and iterative disclosure regime that encourages investor comprehension, understanding, and learning.

CURRENT ISSUES OF ENSURING SANITARY AND EPIDEMIOLOGICAL WELLBEING DURING THE PREPARATION AND HOSTING THE 2018 FIFA WORLD CUP ON THE VORONEZH REGION TERRITORY

We systemized the experience of the Rospotrebnadzor Office in the Voronezh Region in organization and carrying out the sanitary and hygienic and anti-epidemic (preventive) measures during the preparation and hosting the 2018 FIFA World Cup (Championship) to ensure sanitary and epidemiological wellbeing within its subordinate area. The priority directions of activity during the preparation and hosting the competitions period are determined. We showed and presented the results of the laboratory control for the environmental objects, monitoring during the Championship preparation and hosting period; the results of the surveillance activities regarding the potential risk objects; outreach on the infectious diseases’ prevention.The issues of interdepartmental interaction with the territorial bodies of the federal executive bodies, the executive bodies of the Voronezh region during the preparation and hosting of the mass events are reflected. The paper presents an assessment of the epidemiological situation on the morbidity of infectious and parasitic diseases on the territory of Voronezh during the preparation and hosting the Championship. We showed the activity issues of the Rospotrebnadzor Office in Voronezh Region at checkpoints across the state border of the Russian Federation; immunization of people who were taking part in the events of the competitions. The issues of consumer protection on issues related to the Championship are briefly covered.

Consumer protection in the telecommunication sector: A comparative institutional analysis of five African countries

The telecommunications sector has proliferated in recent years, especially in developing countries. However, little attention has been paid to consumer protection issues. As more people get connected to telecommunication networks and competition becomes increasingly fierce, it becomes essential to revamp institutions that ensure consumer protection in the telecommunication markets. This paper analyses the current status of institutions that protect consumers in the telecommunications sector in five African countries from the perspective of three pillars of sound institutional design. The findings indicate that while all cases analysed herein have some form of institution that upholds consumer protection, in most cases, such protection is limited to mobile communications. Furthermore, in most cases, there are only general sanction provisions that are either too weak to bind service providers or that leave overly discretionary powers to regulatory agencies, which can lead to corrupt practices, hence weakening consumer protection. This paper describes current affairs with regard to consumer protection in the telecom industry, identifies its weaknesses, and proposes areas of improvement to attain a healthier telecommunications sector.

Setting Policy Priorities for Front-of-Pack Health Claims and Symbols in the European Union: Expert Consensus Built by Using a Delphi Method.

Despite the fact that front-of-pack nutrition labels such as health claims and symbols have received growing attention in consumer behavior research, comprehensive conclusions could not yet be drawn to develop concrete policy actions, owing to the complexity of the subject and a constantly changing market environment. In this study, evidence-based policy recommendations and communication guidelines have been derived from the findings of the EU FP7 project CLYMBOL (“Role of health-related CLaims and sYMBOLs in consumer behavior”, Grant Agreement 311963), and have been evaluated and prioritized by European stakeholders using a three-round Delphi method. A moderate level of consensus was achieved and results suggest that policy priority should focus on ways to improve consumer motivation and interest in healthy eating. Consumers’ interest in healthy eating could be increased by adopting appropriate communication strategies such as using innovative ways to communicate the importance of healthy eating, which may aim to change the possible negative association between healthiness and tastiness. The highest-rated finding was related to consumers’ favorable attitude towards health claims with shorter and less complex messages and health symbols with a visible endorsement. Meanwhile, there was a clear consensus that health claims need to be scientifically substantiated and credible but phrased without using overly complex scientific wordings, in order to be meaningful for consumers. Furthermore, stakeholders from academia and industry believe that consumer awareness about existing health claims should be increased. The identified policy recommendations and communication guidelines stem from recent empirical evidence and provide useful insights that guide future policy development aligning consumer protection issues as well as public health and food marketing communication interests.

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.

Vampires in the Technological Mist: The Sharing Economy, Employment and the Quest for Economic Justice and Fairness in a Digital Future

ABSTRACTThe gig economy, the sharing economy, or collaborative consumption; these are all synonyms for a technologically enhanced mechanisms for linking independent contractors with consumers for the purposes for exchanging goods and services. This business model has proliferated exponentially in the last decade and has been touted as offering freedom and increased autonomy for workers. However, as yet it seems to have had a vampire-like effect, sucking resources and protections out of the economic eco-system while only benefiting a very small group of technology platform developers and their shareholders. This new business model has given rise to ethical and moral dilemmas which question the role of government in providing the social safety net as well as regulation and policy in protecting employees from abusive labour practices as well as consumers from price gouging and other consumer protection issues including consumer safety. This paper uses the principles of the human rights framework to explore key constructs such as dignity, transparency, accountability and nondiscrimination to begin the process of creating an affirmative framework to guide policy and practice in the future.

Competition and Consumer Protection Issues in Communication, Information, and Media Technology Networks

In response to a request for comment from the Federal Trade Commission, this report is divided into three parts: • The FTC’s continuing leadership in consumer protection for Internet access • Competition and consumer protection in a changing communications industry • Competition and consumer protection in a changing media industry

Workshop 7 report: The “uberisation” of public transport and mobility as a service (MaaS): Implications for future mainstream public transport

This paper synthesizes evidence from Workshop 7 ‘The “uberisation” of public transport and mobility as a service (MaaS): implications for future mainstream public transport’ of the 15th International Conference on Competition and Ownership in Land Passenger Transport. Workshop 7 was specifically concerned with the way in which the widespread adoption of portable and/or wearable internet-connected devices such as smartphones has opened up new possibilities in the transport sector. These are referred to as ‘uberisation’ by some and the creation of Mobility as a Service (MaaS) by others. In some cities and countries, these new services have been welcomed and even facilitated, while in others there have been clashes with regulators as well as with incumbent operators. Workshop 7 considered how these new services might be integrated into the market and whether more widespread development of ride-hailing or ride-sharing might lead to new ways of creating flexible and truly on-demand urban bus services, or alternatively would the way public transport is organized and financed ultimately be disrupted so that what is viable in terms of competition, contracts and governance would need to be reconsidered. The Workshop presented evidence and undertook discussion that could be considered under four themes: conceptual; the role of MaaS in the uncertain future, including the new digital era; the experience of flexible transport in developing countries as compared to Australia and finally, how MaaS might provide for community needs. Over and above the detail provided by the evidence in papers, the Workshop discussion identified a tension between policy formulation and operator viewpoints, the need for flexibility in developing contracts, the importance of partnership in developing MaaS packages, including bundling mobility with other services provided by government and a need to address consumer protection issues. The Workshop developed a long list of areas worthy of further research including understanding how to move travel behaviour from ownership to mobility as a service, a need for further pilots to develop the evidence base, defining the regulatory frameworks and understanding pricing strategies.

ICLE Comments, FTC's Hearings on Competition and Consumer Protection in the 21st Century

In this comment, we primarily address the first question asked by the Commission (“The state of antitrust and consumer protection law and enforcement, and their development, since the Pitofsky hearings”). However, our comments also speak to several other questions. We do so in part through the lens of history, in part through the lens of contemporary economic analysis. In section I, we look at the history and evolution of antitrust policy. In Section II, we consider the continued vitality of the consumer welfare standard. In Section III, we discuss the importance of economically grounded, evidence based antitrust. In Section IV, we address consumer protection issues.

Which Communities Complain to Policymakers? Evidence from Consumer Sentinel

Consumer complaints provide a signal of the problems that different American communities face. I use a large database of millions of complaints to examine how per capita complaint rates vary across communities, as well as heterogeneity in who complains to different agencies and about different consumer protection issues. I find higher complaint rates in more heavily Black, more educated, higher income, older, and more urban communities and lower complaint rates in more heavily Hispanic and higher household size communities. The demographics of complaints are quite different for the Consumer Financial Protection Bureau, with much higher rates of complaints from Black and college educated areas compared to the Federal Trade Commission or Better Business Bureaus. I also find much higher rates of finance related complaints from Black communities across all reporting agencies.

Future of Indonesian Archipelago Consumer Protection Law in the Era of ASEAN Economic Community

Today, consumer protection issue is not only a national issue, but it also has become an international issue. Indonesia has had the consumer protection law since 1999 which is expected to protect the interests of consumers in an integrative and comprehensive manner and can be applied effectively in the community. After being applicable for more than 17 years, a number of weaknesses were found that the results were less optimal in consumer protection in Indonesia.On the other hand, since 2007, the ASEAN Committee on Consumer Protection (ACCP) has been established, which aims to notify and exchange information, to resolve cross-border consumer issues, and to increase the capacity of ASEAN communities. Finally, the ASEAN countries established a partnership through the integration of economic sectors in a single market in Southeast Asia, called the ASEAN Economic Community. The advances in information and communication technologies are increasingly pushing for the new techniques of trade transactions, which directly or indirectly affect consumers. Consumer protection aspect also becomes one of the parts included in the ASEAN Economic Community Blueprint 2025 (AEC Blueprint 2025). The paper was a conceptual study that used a qualitative analysis of the future of consumer protection law in Indonesia in the era of the ASEAN Economic Community. The analysis results show that the Indonesian Consumer Protection Law still have some weaknesses in the aspects of substance, structure, and legal culture. UUPK (Consumer Protection Law) as the substance of Indonesian consumer protection law requires revisions considering the AEC Blueprint 2025.

Ochrona konsumentów na wybranych rynkach usług w świetle regulacji prawnych i możliwości pozasądowego rozwiązywania sporów konsumenckich

Celem niniejszego artykułu jest przedstawienie regulacji prawnych, w których ujęto problematykę ochrony konsumentów na rynku wybranych usług oraz sposoby dochodzenia roszczeń przez konsumentów w przypadku naruszenia ich praw. W ramach badań dokonano analizy danych wtórnych, tj. aktów prawnych, sprawozdań wybranych podmiotów sektorowych (publicznych i niepublicznych) w zakresie pozasądowego rozwiązywania sporów między konsumentem a przedsiębiorcą, wynikających z zawartej z konsumentem umowy. Dokonane analizy wskazują, że nie zawsze przestrzegane są prawa konsumentów na rynku usług. Ponadto, pomimo zwiększającego się zainteresowania polubownym sposobem rozwiązywania sporów, nadal istnieje konieczność prowadzenia przez różne instytucje i organizacje działań informacyjno-edukacyjnych w tym zakresie. Przyczyni się to do wzrostu świadomości istnienia możliwości wykorzystania tego sposobu rozwiązywania sporów, zarówno wśród przedsiębiorców, jak i konsumentów.

The Necessity of the Digital Single Market Strategy for Small Media Markets: Case of the Biggest Video-on-Demand Platforms in Lithuania and Estonia

This article analyzes the biggest Lithuanian and Estonian video-on-demand (VOD) platforms including Telia, their capabilities for fostering European film production and mass media in general. It is important to accentuate that non-linear TV and VOD services are attracting more and more users in Europe, and it is even considered that VOD could become a strong competitor for theatrical releases in film distribution, while, in the context of mass media, the growth of users might be associated with potential threats of propaganda, which still has its own distribution mechanisms within linear TV. However, the audiovisual content that is being supplied for the users of VOD platforms and TV is also regulated by the Audiovisual Media Service Directive (AVMSD). Without regulation, the users of VOD platforms and TV might face a limited choice of audiovisual content. Therefore, the Digital Single Market (DSM) strategy is aimed at creating a single market in Europe and eliminating the geo-blocking that limits user abilities to use VOD services during travel across borders while also establishing better access to digital goods and services at the same time. Looking from the perspective of the VOD platform, a DSM strategy might bring about a monopolization of VOD services in Europe; in that case, the little markets of the Baltic States would suffer. Another important issue that small media markets come across is related to the level of propaganda that is being transmitted from Russian TV channels that are registered in different EU countries. The article argues, and the research results show, that a DSM strategy and the elimination of geo-blocking do not eliminate the problem of fostering European audiovisual content that is and could be available to the users of VOD platforms in Lithuania and Estonia, and that these measures do not pay significant attention to EU’s consumer protection issues.