Dissemination of Consumer Law and Policy in South Africa

This article considers to what extent some important areas of South African consumer law have been influenced by the laws of international bodies, other countries or regional bodies or, in turn, influenced other laws in Southern Africa and beyond. It focuses on rules on product safety, product liability, remedies for defective quality of goods, some basic rules on unfair commercial practices and various aspects of consumer law relating to the use of mobile phones by South African consumers. The main piece of legislation considered is the Consumer Protection Act 68 of 2008 (“CPA”), which came into force in 2011. The article considers whether aspects of this legislation were influenced by the EC Product Safety Directive, EC Product Liability Directive, EC Consumer Sales Directive, EC Unfair Commercial Practices Directive and EC Directive on Misleading and Comparative Marketing. It shows how the relevant provisions of the CPA influenced the laws of some African countries. The article also considers various issues faced by consumers in the mobile phone sector, including defective handsets, defective services, the high cost of mobile calls and data, the lapsing of “unused” data after short periods, data “disappearing” faster than expected, unfair contract terms, unsolicited marketing and the complexity of mobile phone contracts, which leads consumers to overestimate or underestimate their future usage, therefore paying too much because they are on an ill-suited plan. Conclusion of agreements via mobile phones, marketing of additional services like ringtones and apps and unsolicited marketing via mobile phones are also considered. Some complaints regarding the use of mobile phones should be better provided for in legislation, and enforcement of consumer rights in this sector could be improved.     

Reflections on Consumer Law and Policy in Seychelles

Consumerism only reached Seychelles after a wave of market-liberalization reforms adopted in 2008 as a response to a dire economic crisis. Consumer law is therefore only a recent phenomenon in the country. The main sources of inspiration for Seychelles legislation are the UN Guidelines on Consumer Protection, the EU Directive on unfair contract terms, and the South African Consumer Protection Act. Policy initiatives tend to be modelled either on other small island countries or on Commonwealth countries. The formal legal framework is overall modern and in line with international guidelines. However, the article identifies two sets of challenges encountered in practice. First, local standardization efforts fail to address the matter of poor-quality products entering the market, and this lack of local capacity is insufficiently complemented by reliance on international standards. Secondly, consumers seldom rely on the adjudicatory mechanism provided by consumer laws and informal settlement mechanisms are preferred, which comes at the cost of depriving consumer law operatives of precious interpretative materials, leaving areas of legal uncertainty. While policy guidance from the political sphere would be needed, it is unclear how much attention consumer matters will receive in the medium term.     

Errare humanum est: Financial Literacy in European Consumer Credit Law

Examples of financial mistakes made by consumers lend support to the view that systematic mistakes of consumers exist in the EU credit market and that service providers respond strategically to these by redesigning their products. This paper seeks to determine how existing regulation can be improved to ensure consumer protection. Using insights from behavioural economics, this paper argues that financial literacy??that is, knowledge and understanding of complex financial products and skills to navigate the financial market??as a cornerstone for European financial consumer law is problematic. Current regulation is based primarily on information provision to consumers, which should enable them to make appropriate decisions about the risks and suitability of financial products. Although behavioural economics does not necessarily require legal intervention to take other forms than the introduction of information duties, the type of intervention is dependent on the design and needs of a particular market. The EU consumer credit market, in our view, demands more than the current regulation offers in terms of consumer protection. In particular, behavioural studies reveal that consumers generally do not have a sufficient level of financial literacy in order to enable them to make informed, rational decisions. Moreover, behavioural biases have a distorting influence on consumer decision making. The law as it stands, therefore, seems ill-equipped to offer protection to consumers and to prevent them from rash and bad decision making. Reviewing existing regulation and case law, we propose that in the EU law, the Consumer Credit Directive and the Markets in Financial Instruments Directive require updating in order to offer sufficient protection to vulnerable groups of consumers who, on average, have low levels of financial literacy.     

The Proposed Guarantees Directive: Is It Fit for the Purpose?

The purpose of this article is to critically analyse the provisions of the proposed Directive on the sale of consumer goods and associated guarantees as it will apply, in particular, in the UK. The Directive addresses two perceived problems for the European consumer; the variation in the minimum legal guarantee currently provided by individual Member States, and the lack of clarity and difficulties in enforcement of additional guarantees provided by sellers and manufacturers. The article considers the detailed provisions of the Directive as to both the "legal guarantee" and the "commercial guarantee" and sets these provisions in a UK context in order to assess, specifically, their potential significance for consumers and consumer law in the UK.     

Assessing risks – challenges posed by the European general product safety directive

The concept of risk appears in a prominent way in the recently revised European Directive on General Product Safety (GPSD). Risk assessment is therefore an important tool for the success of the Directive; the question is how risk assessment should be carried out in a systematic manner in order to meet the aims of the Directive. In this paper, the references in the GPSD concerning the concept of risk are reviewed and compared with reported problems in European risk assessment. Existing guidelines for risk assessment are examined in order to determine what factors determine the consistency of the outcome. This leads to recommendations for a process that could be followed in order to make risk assessment successful in the context of the GPSD. On the basis of existing guidelines for risk assessment, criteria are formulated with which methods of risk assessment should comply. A stepwise process is proposed in order to develop a common method of risk assessment that can be applied in Europe to support the GPSD. The requirements for risk management in the new GPSD are rather and lack specification, both for producers and for enforcement authorities. The Directive further refers to the need to develop non-binding guidelines in due course. Sources of different outcomes of the risk assessment process are outlined in this paper as well as possibilities to achieve a more consistent basis for decisions, more uniformity and transparency. These are essential conditions if one wishes to avoid both undue trade barriers and unsafe products on the market. A leading role for the European Commission seems necessary to make sure that the intentions of the GPSD are accomplished.     

Price Intransparency,Consumer Decision Making and European Consumer Law

Price comparison is a basic element of competition. For comparison to work, at least prices need to be transparent. Moreover, price is usually a focal point in consumer thinking and deciding on transactions. Hence, obfuscating prices can be detrimental to consumers. Therefore, it is vital for policymakers to know how transparent pricing is in reality. Commercial practices involving price intransparency can be detrimental to consumer decision making and may be associated with market failure. So, legislative intervention to ensure price transparency is sometimes warranted. Suppliers may disclose and frame pricing information in such ways as to influence consumers. For some suppliers, advantages may be gained by obfuscating price—through practices ranging from the outright hiding of price terms in the small print to subtle ways of throwing in gifts or adding charges during the vending process. Do consumers appreciate the implications of the fact that by framing price in different ways suppliers actually try to influence their demand for products? And how does the law broadly speaking respond to problems of price intransparency? In this article, behavioural science insights are combined with a legal analysis of European consumer law in order to chart some of the detrimental influences of price intransparency on the consumer decision-making process and to answer whether and to what extent European consumer law addresses these issues. In doing so, this article first reviews research from consumer psychology, marketing, and behavioural law, and economics regarding the influence of presentation, framing, and transparency of price on the consumer decision-making process. Subsequently, it describes and evaluates the legal framework offered by European consumer law and how this framework responds to practices of price intransparency. Particular problematic pricing techniques are identified and discussed. In conclusion, attention is drawn to the disadvantages of the increasing full harmonization character of European consumer law for combating price intransparency at Member State level.     

Consumer Law and Policy in Kenya

This contribution seeks to examine the consumer protection law and policy in Kenya with a view to understand how consumer issues, such as product safety and product liability, are addressed as well as the remedies for defective goods. It also seeks to understand the available provisions on the safety standards of consumer products, such as mobile phones, by highlighting the consumer issues that arise for mobile phone users with particular reference to the services provided by mobile network operators (MNOs) – i.e., the financial services and products – and how the consumer protection regime has addressed them. It will conclude by examining how the Kenyan consumer law has manifested itself, either by its influence on other states’ consumer laws and policies or the way(s) in which its own laws have been influenced by foreign and supranational consumer laws. References will be made with regard to the influence by the European Commission (EC) Product Safety Directive, the EC Product Liability Directive, the EC Consumer Sales Directive and the EC Unfair Commercial Practices Directive. Furthermore, this contribution will highlight the challenges encountered with respect to the achievement of a consumer protection regime in Kenya, as a result of the fragmentation of the law and policies.     

Changing Directions in Consumer Bankruptcy Law and Practice in Europe and USA

The consumer bankruptcy or, rather, consumer debt adjustment, is a fairly recent phenomenon in continental Europe. In the nineties, a number of European countries introduced judicial institutions in order to alleviate an excessive debt burden carried by consumer debtors. In addition to the court proceedings, the European jurisdictions often provide the debtor with debt counselling services, supervision, and payment requirements. In the United States, on the other hand, discharge of debt has been an established principle of bankruptcy law since the late 19th century, and bankruptcy is frequently used by consumer debtors. However, in the US, as well as in Canada, debtors are increasingly encouraged to opt for a payment plan. There seems to be a certain convergent trend between the two different legal cultures. Paradoxically, at the same time scholars have pointed out that the variance in local cultures seems to be a main factor in explanations of how debtors choose either a direct discharge or a payment plan. This finding gives us reason to consider the interplay of counselling and other pre-trial measures and its effect upon the rights and duties of debtors.     

欧共体竞争法与欧洲经济一体化

欧洲共同体是在其成员国经济结构和发展水平存在着明显差距、私人垄断和国家垄断不断加强、各国保护竞争立法又有较大差异的背景下建立的,因此,在共同体大市场内制订统一的竞争法,是经济一体化的必然要求.欧洲经济一体化的不断深入,促使欧共体竞争法不断扩展其调整范围,完善其自身的制度和规则.欧共体竞争法的适用协调了成员国的竞争政策,建立了统一的竞争秩序;规范企业的竞争行为,促进了共同市场有序发展;禁止境外企业的不当竞争行为,创设了良好的国际发展环境,保障了经济一体化的健康、有序的发展.     

Product liability and product safety-complementary approaches to consumer safety. Some observations of the situation in the EEA

Abstract

In this paper the author asserts that product liability and product safety are complementary instruments to achieve a safer environment for consumers. Whereas legislation on product liability has a remedying function, legislation on product safety has a preventive one. The present situation in the EEA countries as regards the implementation of the Council Directives on Product Liability and Product Safety is summarized as well as the basic content of the Directives. It seems that almost all EEA countries have implemented the Liability Directive. The EFTA countries probably have-in comparison with the EU countries-to some extent a more positive implementation approach. It is too premature to foresee how the EEA countries will implement the Product Safety Directive of June 29, 1994. However, for many years most West European countries have had rules regulating product safety. The product safety policy in the EEA countries has been enhanced by co-operation within the OECD, the EU and the EFTA. Market control co-ordination will be an important part of the EEA efforts in the future to increase safety for consumers.     

From Grand Policy to Targeted Destruction: Consumers as Victims of EU Satellite Television Policy

In July 1997 the European Commission proposed a "Directive on the Legal protection of Service based on, or consisting of Conditional Access" (to various electronic systems).This paper considers the proposed Directive within the context of the European Union's failure to develop and maintain a coherent policy relating to satellite television broadcasts direct to the individual's home (DTH) within the nascent Single European Market (SEM), and the consequences of that policy failure for "ordinary" consumers who are highly unlikely to have a full understanding of the complex technical, legal and economic environment in which they are making their purchase(s).The paper illustrates how the failure to develop a SEM in DTH resulted in a fragmented market in which the frustrated demand for DTH programmes stimulated the growth of a quasi-legal or illegal markets in goods and services. Faced with legislative failure, companies have increasingly attempted to protect their perceived economic interests through an increasingly sophisticated "techno-war" in which ethical considerations relating to consumers found in the "normal market" appear to have been largely abandoned.The proposed Directive may be viewed as an attempt by interested elements of capital to harness European law to resolve a problem created by their own failure to fully observe European law. The proposed Directive is an indication of the failure to control the broadcasting environment by other means, and the paper gives consideration to the ethics of this development.Whilst the paper's prime is on DTH within the United Kingdom, consideration is also given to the wider EU (for consistency and simplicity the term EU is used throughout this paper).Because of the commercial relationships involved, and the questionable legality of some behaviour, it is not possible to identify all sources precisely. Much of the information has been gathered from formal and informal discussions and investigation, and information has frequently been provided on the clear understanding that the precise source cannot be identified.     

Polish and Belgian consumers' perception of environmentally friendly behaviour

The aim of this study was to design a method for evaluating the importance that consumers place on the characteristics of environmentally friendly (EF) products and on consumer EF behaviour. Attitudes and opinions of consumers regarding the EF value of the different aspects of consumer behaviour – purchasing, using and disposing of goods – were measured. The perception of EF behaviour was analysed for Belgian and Polish consumers, a Western and an Eastern European country. The cultural, economic and political differences between Belgium and Poland may imply that their consideration of EF behaviour is different. The perception of consumers about buying, using and disposing of EF products does not necessarily indicate their own EF behaviour, but it gives an indication of what consumers think is EF behaviour. On the basis of the results, policy‐makers and industry can diagnose the consumers' perceived cost–benefit relationship of EF consumer behaviour. An evaluation of what consumers think is EF can be made for the two countries. Marketers, government and EF organizations can draw on our research results when developing EF products and/or advertising campaigns.     

A review of national arrangements for consumer influence in product safety standardization in the EEA

Abstract

Cooperation between the EC and the EFTA countries in the European Economic Area (EEA) should, among other things, enable consumers to participate in and influence standardization. The EC New Approach presupposes the elaboration of standards to interpret or fill out the special safety provisions of various directives. The notion of safe products according to the Product Safety Directive can be supported by drafting relevant safety standards. Swedish experiences in some product fields show that results can be achieved through expert consumer participation. Consumer influence on standardization is a matter of great importance for product safety in the future.     

Restoring the growth potential of formerly centrally planned economies

All formerly centrally planned economies record very substantial declines in their social products. The largest drops in production are recorded in Poland and in east Germany (the former GDR), that is, in those countries where the most radical steps towards a market economy were taken in 1990. Thus it looks as though a recession was unavoidable during transition. But what are the conditions that must be fulfilled in order to restore growth potential to these countries? The following article aims first to devise a theoretical picture of a successful transition. The criteria thus obtained are then employed for an analysis of the recessive processes in Poland, the first east European country to start a radical programme of transition. Finally, the recession in Poland is compared with that in the former GDR.     

Core Organic Taste: Preferences for Naturalness-Related Sensory Attributes of Organic Food Among European Consumers

Consumers’ preferences for organic food have evolved in recent years, moving from altruistic values to more egoistic buying motivations, such as health promoting or nutritional aspects and sensory properties. Hypothesizing that organic consumers have peculiar preferences for naturalness-related sensory attributes, we developed the concept of the “core organic taste” based on the principles of a wholesome nutrition. This article investigates to what extent the “core organic taste” is relevant across different European countries and its potential relevance for food marketing. A sample of 1,798 organic food consumers was interviewed during 2010–2011 in six European countries. Explorative factor analysis, correlation analysis, ANOVA, and post hoc tests were applied to analyze the data. Results show that the “core organic taste” is not applicable for all countries. Indeed, for most countries only single elements seem to be relevant. However, for Germany and Switzerland the “core organic taste”—representing the first “taste style”—has proven its potential value and points at the need for more research in this field. Depending on the country, product developers and marketers could potentially use different elements of the “core organic taste” to better meet organic consumers’ wishes and expectations. Finally, recommendations and suggestions for practitioners and academia are provided.     

Potential Market Opportunities in Hungary,Poland and Bulgaria

Central European economies are undergoing radical reforms changing from central planning to free market economies. If these changes are to be successful, there is a need for their govemments to liberalise legislation to allow privatisation to take place and to allow and encourage foreign investment in the countries. Potentially the most effective form of foreign investment is the participation of Western companies in the business of the country enabling development of the market and the local understanding of the methods of business in free market economies. Whether and to what extent this participation takes place depends on the macro-environmental climate and the specific market environments in the countries. This paper addresses both of these issues and is based on a twelve month study of marketing conditions in Hungary, Poland and Bulgaria. In the first part the macro changes taking place are explored and the overall attractiveness assessed by comparison with the published literature on the market entry strategies. The conclusion is that Hungary is the most attractive of the three countries concerned for Western company investment in terms of political stability, economic development and performance, cultural unity, and lower legal and geo-cultural similarity.     

A Next Step in Debt Enforcement: the Merger of Debt Help and Debt Collection

Since the 1990s, each Member State of the European Union designed a policy that infused the liberal American fresh start policy into its own social institutions and legal culture. Especially in countries with a civil law tradition, the legal position of the consumer has improved. The paradigm of lifelong liability of debts has been replaced by a form of limited liability. Discharge of debts has established itself as a firm legal principle in all European jurisdictions. In most European countries, the new approach consists of a combination of legal and extrajudicial instruments. Under the umbrella of the courts, social workers, trustees, and administrators perform a broad range of activities in monitoring and helping debtors. The so-called new-chance approach has dramatically changed the playing field amongst debtors and creditors. The new legal equilibrium worked rather well in most European countries in the 1990s and 2000s. However, the systems are obviously far from perfect as almost all European governments are still fine-tuning their laws. Recently, two innovations have appeared on the European stage: Some Nordic countries have opted for a centralized state-controlled enforcement system, while in the UK, commercial debt management plans were developed, mainly by commercial suppliers. In 2005, the US Bankruptcy Code was changed in favour of the creditors. The 2008 credit crunch and its aftermath present a window of opportunity for the next step in the modernization of debt enforcement policy. I will suggest a merger of the fields of debt relief and debt collection, with a pivotal role for independent trustees.     

Transaction factors’ influence on the choice of payment by Polish consumers

The choice of payment instrument, which is used every day to make life easier, comprises one of the consumer financial decisions influenced by several factors. To investigate when, where, and for what amount customers use different forms of payment an interview of statistically representative group of 1005 consumers from all over Poland have been realized, in the first quarter of 2019 with the use of the computer assisted personal interviewing method. The data gives a unique combination of information on consumers payment choice and detailed information about demographics, income, and consumer preferences within a nationally representative consumer survey. Within this article statistical analyzes of the influence of transaction factors on consumer choice of payment have been performed together with a first attempt to employ a data-mining method known as Random Forests for predict the choices that those consumers make regarding the method of payment. The results revealed the complexity and diversity of factors influencing consumer choices. The findings show that, despite the development of innovative forms of payment, traditional forms, especially cash, still have a strong position. Notwithstanding among the customers' personal traits, financial knowledge is one of the most important determinants of their payment choices. These results are an important step toward a predictive model of consumer choice. Additionally presented findings on consumers’ payment behavior can guide policy formulation and strategic decision-making of central banks and stakeholders, and thereby contribute toward improving the efficiency of the payment system in Poland as a whole.     

Consumer safety policy in the EFTA countries

In this article, the author briefly outlines the present consumer safety laws in EFTA member countries. It seems that the EFTA countries are well prepared to adapt to the future EC Directive on Product Safety. Further, the author suggests that in the future, information on product safety matters should be diffused in a West European Safety Information Exchange System.     

How does the EU non-financial directive affect the assurance market?

The objective of this paper was to determine the impact produced by Directive 2014/95/EU on companies’ decisions regarding the assurance of non-financial information statements and the quality parameters under which this service is contracted. Following an analysis based on institutional theory, the results obtained for the reports issued by an international sample of 600 multinational companies in the period 2011–2018 show that the institutional pressures associated with this Directive contributed to an expansion of the assurance market, although they had only a moderate impact on the contractual conditions of the service. Complementary analyses suggest that the adoption of a limited scope in these assurance services may reflect the conservative outlook of auditors, as providers whose service is favoured in the new scenario. Additionally, we find that the influence of this legal framework is different in the United Kingdom from that in the other European countries. The research contributes to the literature by offering a novel understanding of the behaviour of assurance providers and of the quality of the service obtained.