Eighth United Nations Conference on Competition and Consumer Protection
Since our last Conference in 2015, we live in a different world: Multilateralism has come under attack; Digitalization has become ubiquitous; and we are facing the most severe pandemic, by far, in the last hundred years.
Consumer protection and competition authorities have been on the frontlines of the fight against the pandemic from addressing the supply shortage of essential hygiene consumer products such as masks and hand sanitizers due to price gouging to granting exemptions to cooperation agreements among competitors, especially in strategic sectors such as pharmaceuticals, or adjusting public procurement procedures to ensure swifter distribution of essential goods.
Consumer protection agencies have led the fight against scams and false claims, especially miracle products to treat COVID-19, as well as safeguarding consumers’ rights to refund for cancelled air tickets. They have also shifted their consumer information and dispute resolution initiatives online to cater for locked-down consumers.
As we work towards a better recovery, competition and consumer protection policies remain as essential as in the emergency response phase. Financial stimulus packages are changing the competition landscape with many undercapitalized companies from stronger foreign rivals strengthened by massive financial support.
SMEs are in a dire situation: COVID-19 crisis hit SMEs with fewer financial reserves harder, making them more vulnerable. The most affected sectors include accommodation and food services, arts, entertainment and recreation, and education with firm exits in these sectors expected to increase in the medium to long-term, threatening to increase market concentration.
The pandemic has also accelerated the shift towards a digital world. Dominant online platforms have benefited significantly from COVID-19. Stock prices and market capitalization of top big technology companies have been on the rise since March 2020, when lockdown measures were adopted. This has created more incentives for these companies to invest in start-ups, thereby strengthening their market power.
We need to make sure that our legislative frameworks are fit to address increasing market power of dominant digital platforms and to better protect consumers from unfair and misleading practices. Consumers must enjoy a level of protection online that is no less than offline. This may mean enacting or reviewing national policies and upgrading enforcement capacities. The good news is that our UNCTAD World Consumer Protection Map shows that 97% of the 84 member states that responded to the related UNCTAD questionnaire have a consumer protection law, of which 62% currently address issues related to e-commerce. But more needs to be done. Consumers need access to fair, effective, transparent, and impartial dispute resolution mechanisms, particularly online. Businesses should protect consumers’ privacy through a combination of appropriate control, and consent mechanisms relating to the collection and use of their personal data.
The UN set of principles and rules for competition policy remain a key global instrument for maintaining a level playing field for all businesses and ensuring that restrictive business practices remain the exception not the rule. Likewise, the United Nations Guidelines for Consumer Protection remain a relevant tool for governments aiming to improve consumer protection in the medium and long-term with their latest revision in 2015 equipping them for the digital era. UNCTAD is the focal point within the UN systems on these two issues and offers the only platform for truly global international cooperation in this field. I trust that your deliberations will help address the concerns raised by the pandemic and chart a way forward for international cooperation in these areas.