Question

Two of the main goals of International Consumer Law is to set a global minimum consumer protection standard and to remove obstacles to cross-border trade. The United Nations Guidelines on Consumer Protection (UNGCP) were promulgated to provide guidance as to the minimal standards of protection within the global market. The United Nations Conference for Trade and Development (UNCTAD) promotes those guidelines to member states. In addition to U.N. activity, the International Consumer Protection and Enforcement Network (ICPEN) was established in 1992 to promote international protection for consumers by creating a collaborative forum to address cross-border misconduct.

The UN Guidelines are designed with the intention of providing a inspirational model. Describe the fundamental principles upon which it is based. In addition, identify the long-term goals of the ICPEN in its effort to motivate cross-border traders to engage in acceptable conduct. Describe a couple of the mechanisms that the ICPEN use to encourage compliance.

Answer 1

1. Fundamental principles

The reform of the Guidelines has resulted in the inclusion of some of the new fundamental principles ofconsumer law: e-commerce, financial services, data protection, misleading energy advertising, cross-border trade, transport, access to universal services, access to knowledge, tourism,consumer redress.

2.The internationalization of consumer law was intended to achieve two main goals: (1) the establishment of a universally applicable minimum standard of consumer protection, and; (2) the abolition of obstacles for the development of cross-border trade. Distinguishing between these two goals may be very important as they reflect the dual nature of the internationalization of consumer law. The double nature of the international consumer law also demonstrates the tension between, on the one side, the urge to establish global minimum standards of consumer protection and, on the other side, the need for the abolition of cross-border differences in order to enhance international trade.

Accordingly, the first aim of the internationalization of consumer law is to lay down a “floor” benchmark for consumer protection, which is accepted in every jurisdiction. International benchmarking in consumer law is increasingly built into the work of regulators and policymakers. Benchmarking may have a significant impact on consumer policy globally (Ramsay 2006, p. 16). In that sense, international consumer law may be understood as the emanation of the evolution of human civilization, where the right to be protected while acting as a consumer has become one of the fundamental human rights, which is something especially important in the contemporary world and its economic model based on consumption. In that context, the principal objective of international consumer law is to establish a minimum level of consumer protection on a global level that would surpass any national border (Ramsay 2006). Today, the question of consumer protection has become an issue of democracy and basic democratic values of any society, and the development of consumer law may be seen as part of the democratization process of the countries, nations and societies. Every citizen is also ipso facto a consumer. As famously stated at the very beginning of the development of consumer law by President Kennedy: “Consumers, by definition, include us all.”Footnote4

The focus of this category of rules of international consumer law is the protection of consumers, i.e., the development of rules which are going to protect the consumers from potential abuse by traders due to the presence of an inequality of bargaining powers – irrespective of where consumer or trader are based. The objective of this approach is to stipulate basics rules only, and it has been left to national legal systems to develop and implement comprehensive and well-functioning national consumer protection systems in line with their needs and particularities. In the context of this first aim, the main driving force behind the development of this kind of rules has been the United Nations and, in particular the United Nations Conference for Trade and Development (UNCTAD). On a global scale, the main vehicle for pursuing the internationalization of consumer law remains the UN Guidelines for Consumer Protection. However, UNCTAD’s powers when it comes to enforcement of consumer law have been very limited. In that light, the existence and the recent developments of the ICPEN network can be appreciated as a very significant development, because it aims to secure some minimum level of enforcement of consumer law on a global level.

1. Generate and share information and intelligence on consumer protection issues.
2. Share best practice in legislative and enforcement approaches to consumer protection.
3. Take action to combat cross-border breaches of consumer protection laws.
4. Identify and promote measures for effective consumer protection enforcement.
5. Promote and encourage wider participation, coordinated work, communication and cooperation with other consumer protection enforcement organisations.

Facilitate cross-border remedies

3.

​The International Consumer Protection and Enforcement Network (ICPEN) is an organization of consumer protection law enforcement authorities from over 65 countries.
ICPEN provides a forum for discussion and encourages enforcement cooperation between agencies.

Colombia, as ICPEN President for 2019-2020, hosts this important event to continue its leadership towards Guiding Consumers in the Digital World and to promote the development of consumer protection within this Network.

During the ICPEN High-Level Meeting, topics discussed include cross-border enforcement cooperation and measuring the impact of an authority’s work.

During the ICPEN Conference, topics discussed include, among other issues, websites design and its impact in consumer psychology, sales through social media, sustainability and advertising, the prioritization of children protection as vulnerable consumers, and unfair trading practices in the financial sector.

UNCTAD will intervene in the high-level session on cross-border enforcement cooperation following the ongoing work of its Working Group in Consumer protection in E-commerce, and on sustainability and consumer challenges related to green claims enforcement actions.