INTRODUCTION

For the development of consumer law, the United Nations by adopting United Nations guidelines
for consumer production in 1985 established milestone best publishing international consumer
law principles for the first time. Right after that because of the rise of digital era there have been
some dramatic changes that has been experienced in the landscape an ever-rising global
challenges are being faced by these consumers in sector related to finance. In order to show these
changes in 2015 some new Provisions have been added by revising the guidelines of 1999 that
includes recommendations on e-commerce financial protection and good business practices.
These guidelines are not binding on the states hence they are considered as soft laws. The issue
that arises here is that in order to promote consumer law how effective these guidelines can be at
National and global levels.

While on one hand a different kind of role with a broad approach for consumer protection has
been played by United Nations. The legal powers and resources that are required in order to fully
implement these guidelines are most of the times lacking. Therefore, this article monitors the
development of consumer protection law at international level, by managing key players and
legal landscape of the field.

Therefore, the current paper aims towards full implementation of its guidelines. It analyses the
role of United Nation in consumer protection area. Furthermore, this article first analyses the
current international framework that is emerging in the concerned area. It then examines the
essential role of United Nation in consumer protection promotions which focuses on the core
aspects of the guidelines that is e commerce, good business, redress, institutional machinery and
cooperation.

DEVELOPMENT OF INTERNATIONAL CONSUMER LAW

In the last few decades there has been an increase in the involvement of international bodies in
the consumer protection development who are motivated by changing economy and movements
of consumer. National and regional system has been affected by high-level principles, best
practices and recommendations adopted by these organisations by applying soft law approach1.
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Howells et al. 2018, pp. 1–15
In this development many factors have played an important role. Firstly, new technologies and
trade barriers reductions helping in increasing transaction on cross-border basis played the
paramount role2. On one hand this has turn out to be a benefit for the consumers but at the same
time it has resulted in problems in implementing cross border rights for consumers. Hence, a
national law is applied that can provide a limited remedy. Secondly, in the development of
standards the international organisations have been more active now, by trying to fill in the
loopholes and gaps in national consumer protection law 3. In this regard a major role has been
played by United Nation by implementing its guidelines and hence promoting it at ground level.
In doing so UN has came out as the frontline promoter of consumer protection which lacks a
protective framework.4 OCED after looking at the guidelines of UN have framed their own
guidelines which includes e-commerce, dispute resolution and sustainable consumption.

It is progressing in a wide and pluralistic landscape in which though the guidelines, consumer
protection standards and best practices have expressed strong vibes in favour of co-ordination
and harmonisation. Today there are many organisations and agencies that have came forward in
order to deal with consumer protection but most of them deal with a particular aspect of it
instead of dealing with it completely for example, financial services or health protection.

UN GUIDELINES FOR CONSUMER PROTECTION

In 1985, a very vital contribution was made with the adoption of UN Guidelines for international
consumer protection law. Before this, along with Consumer international addition of
international instrument has been argued by many consumer groups in which they suggested a
code for consumer protection5. In an answer to such an initiative of global nature, the secretary of
UN Economic and Social Council was delegated with task to develop guidelines for developing
countries keeping in mind their specific requirements. After a rigorous discussion the guidelines
were adopted in order to provide a broad and international consumer protection framework for
the first time. A larger range of area of consumer protection is covered under it which includes
safety and health, consumer information and education, economic interest promotion, and
effective redress resulting in becoming a core point of reference for member states.
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Wei 2017, pp. 3–22
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Durovic and Micklitz 2017, p. 2
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In 1999, the guidelines were expanded during the 1992 Earth Summit in Brazil because many
civil society groups inspired partly by successful advocacy and introduced a new rule on
sustainable consumption. A basic framework was included for sustainable consumption by the
revised version at the national level so that agencies of government could be applied to
assimilate existing provision on this matter.

Again, in the year 2015, digital era and global economy witnessed some major changes. New
sections were introduced on financial services, electronic commerce, national consumer
protection policies and good business practices. In addition to this the sections on international
cooperation and consumer redress broadened to deal with challenges related to dispute resolution
and recent enforcement, while specific areas sections recently included tiuris, public utilities and
energy. Lastly, in order to monitor periodical implementation of guidelines it established an
institutional mechanism.

Effective Business Practices

An integral aspect of the guidelines issued in 2015 is that it is inclusive of sections related to
good business practices. It requires that direct responsibility should be taken by companies in
order to ensure consumer protection. A paradigm shift is visible from these versions. It is a
victory over the earlier model which centred on consumer protection bye by National
government's promotions. For companies that are involved in production of consumer goods or
services, the UNGCP AIMS towards establishment of good practices benchmark in order to
ensure 'high levels of ethical conduct' and the same has been incorporated in Guideline 1c of
Section 4.

A broader trend is seen by this approach during the last decade, aunty inclination is clearly
towards methods of businesses which promote co-regulation and self-sustenance (UNCTAD,
2017 Manual). Active participation of several International organisations is clearly visible
regarding the same. Organisations such as ISO has come up with guidelines related to social
responsibility and OECD guidelines pertaining to multinational enterprises recommendations for
responsible business conduct, 2011.

In line with these recommendations, the UN Guidelines cover a large number of business
practices, ranging from the fair and equitable treatment of consumers to disclosure and
transparency; from education and raising awareness to protection of privacy and dispute
resolution. Companies are expected to “deal fairly and honestly with consumers at all stages of
their relationship,” and “should avoid practices that harm consumers” (Section IV a). In
particular, they should abstain from “illegal, unethical, discriminatory or deceptive practices,
such as abusive marketing tactics,” which may deceive or expose consumers to unnecessary risks
(Section IV b). In addition, the Guidelines require firms to comply with strict standards of
disclosure and transparency as they should “provide complete, accurate and not misleading
information regarding the goods and services, terms, conditions, applicable fees and final costs to
enable consumers to make informed decisions” (Section IV c). Companies are expected to go
even further by helping consumers acquire sufficient skills and knowledge to understand risks
and make decisions informed by competent advice and support (Section IV d). They should also
protect the privacy of consumers and offer complaints handling mechanisms to resolve disputes
expediently (Section IV e and f). At the same time, Member States are expected to actively
promote these practices at the national level by adopting consumer policies that encourage
responsible corporate behaviour while promoting the relevant education of both business and
consumers (Guidelines A (a) and (i)).

The new focus on good business practices is a welcome addition to the previous UN Guidelines
and a significant step towards self-regulation as a means to improve consumer protection
(Pearson 2017, pp. 39–50). Self-regulation can play an essential role in consumer law as an
instrument to support existing legislation and as a mechanism to set standards for contracts
(Cafaggi 2007).

ELECTRONIC COMMERCE
In the last few decades with various benefits being derived by the consumers in terms of
convenience and choices the e-commerce has grown significantly. Consumers at the same time
have to face many problems such as online payment security, misleading advertisement data
protection, dispute resolution and unfair terms6. A new section got developed particularly to e-
commerce from the 2015 revised guidelines in order to deal with the recent developments. As
per the guideline number 63, “member states should have their focus on enhancing confidence of
consumer in electronic commerce by constant development of effective and transparent policies
on consumer protection, by ensuring protection level which is not less than that adopted by other
forms of commerce”. Moreover 64th guideline motivates member states to make sure that
consumers and businesses are aware about their duties and rights in digital market place.
Provisions on consumer privacy and data security are included by section V A oof policies on
national consumer. Lastly, other international standards on electronic commerce is referred
specifically the OCED guidelines in terms of e-commerce for consumer protection, that must be
applied by every state that is member in collaboration with all others and also taking into
interpretation the particular national view.

The OCED guidelines of 1999 which was later on in 2016 got updated has an aim to ensure like
the UNGCP that equal protection provides benefit for those people who but from local stores.
Moreover, topics such as dispute resolution, privacy protection secure, means of payment,
transparent transactions confirmation, air business advertising, clear information for consumers
and redress mechanism. Most importantly these guidelines laid down a new protective standards.

Financial Services

Over the past decades, there has been a proliferation of financial services that has broadened the
choice of consumers and made services more widely available. At the same time, financial
products have become more complex, making it difficult for consumers to assess related risks
such as over-indebtedness (Benöhr 2018; Ramsey 2015). This all became painfully clear with the
recent financial crisis which, however, had the positive effect of focusing the attention of
legislators across the globe on consumer protection. As a result, in 2011, the G20/OECD
developed the High-Level Principles on Financial Consumer Protection Footnote11 and in 2012, the
World Bank established Good Practices to strengthen financial consumer protection.Footnote12

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In a similar trend, the UNGCP added a new section on financial services to encourage legislative
action and enforcement at the national level (Section V J). This covers many aspects of financial
services, including oversight entities, education strategies, fair treatment, disclosure, responsible
business conduct, and data protection. According to the Guidelines, Member States are
encouraged to establish consumer protection policies and financial oversight bodies (Guideline
66 a and b). They should promote education to improve financial literacy and also encourage
disclosure; in particular, there is a recommendation to expand the use of written policies to reveal
and help identify any possible conflicts of interest with the service provider (Guideline 66 d and
e).

Another aspect of particular importance since the financial crisis is the focus on fair treatment of
the consumer and on responsible business conduct. Together, these have become the centre of
attention for new reforms at the regional level, supported by reference to a principle of financial
inclusion. Accordingly, the UNGCP encourage financial service providers to apply responsible
lending practices and ensure that sales are suited to the means and needs of consumers
(Guideline 66 f). The Guidelines also suggest that Member State take action to integrate and
strengthen consumer policies with regard to financial inclusion in order to avoid the exclusion of
vulnerable individuals (Guideline 67). Finally, providers have to ensure adequate data protection
for financial service users to avoid potential abuses and fraud, and enhance consumer trust in the
digital economy (Guideline 66 g).

Dispute Resolution and Redress

The 2015 UNGCP expanded the section on consumer redress to follow recent innovations in
dispute resolution systems and inspired by a general increase in mass actions and cross-border
cases (Section V F). The current version is more detailed than the previous one, and now
mentions alternative, cross-border, and collective dispute resolution mechanisms. According to
the Guidelines “Member States should encourage the development of fair, effective, transparent
and impartial mechanisms to address consumer complaints through administrative, judicial and
alternative dispute resolution, including for cross-border cases” (Guideline 37). In addition, these
mechanisms have to be expeditious, cheap and accessible, and should be available for
disadvantaged and vulnerable consumers. Furthermore, companies should play a major role in
resolving consumer disputes by offering voluntary advisory services and complaint procedures
that should be cheap, transparent, and fair. These can be measures to encourage in-house dispute
resolution, avoiding escalation to an external mediator or, even more expensive, the court
process (Guideline 38).

Another significant novelty of the revised Guidelines is that Member States should provide for
collective redress procedures that have to comply with certain standards. They have to be
“expeditious, transparent, fair, inexpensive and accessible to both consumers and businesses,
including those pertaining to over-indebtedness and bankruptcy cases” (Guideline 40). Finally,
Guideline 41 recommends that consumers are made aware of the different options in terms of
dispute resolution mechanisms and procedures if no amicable solution is found.

The revised UNGCP therefore reflect a general shift from a focus on “traditional” mechanisms of
redress, towards a broader access to justice approach, which aims to provide consumers with a
wider choice between different dispute resolutions and redress options (Benöhr 2013;
Cappelletti 1993; UNCTAD Manual 2017, 83–88). In particular, the quality requirements for
collective redress and alternative dispute resolution mechanisms set by the new UNGCP
constitute an important step in facilitating access to justice.

International Cooperation

The UNGCP Section VI on international cooperation was significantly revised in 2015 spawning
a number of new Guidelines. The objective was to promote stronger cooperation between the
different national agencies, which is essential because currently, no international court exists to
deal with cross-border consumer disputes (Pearson 2017, pp. 39–50).

According to Guideline 79, Member States should develop mechanisms for the exchange of
information on national consumer protection policies and promote cooperation in the
implementation of relevant policies. They should also cooperate “to improve the conditions
under which essential goods are offered to consumers, giving due regard to both price and
quality.” This could be achieved through the exchange of information on procurement options, or
the joint procurement of essential goods. Although measures are not compulsory, Member States
are encouraged to develop information links regarding banned or severely restricted products and
should try to ensure homogeneity in product quality to protect consumers (Guideline 81).

A special area of cooperation is that of enforcement and suppression of illicit behaviour. First,
according to Guideline 82, Member States should “cooperate in combating fraudulent and
deceptive cross-border commercial practices” and their agencies should develop a framework for
this purpose. Several Guidelines then cover the cooperation between enforcement agencies to
deal with investigations and enforcement tasks, avoid interference with the work of other
agencies, and resolve disagreements that may arise.

Furthermore, a network of enforcement agencies is envisaged, with each country being

encouraged to designate a relevant enforcement agency to become a contact point and facilitate
cooperation (Guidelines 83–85 and 87). To achieve this, Member States “should provide their
consumer protection enforcement agencies with the authority to investigate, pursue, obtain and,
where appropriate, share relevant information and evidence, particularly on matters relating to
cross-border fraudulent and deceptive commercial practices affecting consumers” (Guideline
88). Finally, Guideline 89 asks Member States to strengthen cooperation between courts and
agencies by means of bilateral and multilateral arrangements, with the objective of facilitating
the cross-border recovery of foreign assets and the enforcement of decisions. Here again, the
Guidelines make reference to other, existing standards protecting consumers from fraudulent
cross-border practices, such as the OECD Guidelines for Protecting Consumers from Fraudulent
and Deceptive Commercial Practices. A last group of “cooperation” Guidelines encourages
Member States to work together to promote capacity building in the field of sustainable
consumption, and to facilitate cooperation between consumer groups by means of education and
information programmes (Guidelines 91–93).

IMPACT OF THE GUIDELINES

In spite of being a soft law these guidelines have a very noticeable impact over the national and
global consumer protection in these of the following four ways:
Firstly, as it is mentioned that the development of regional and national consumer is influenced
by the guidelines on developingandtransitioningcountries. UNGCP helped the countries
particularly those that were evaluating and strengthening their regime or even important in
establishing them where they are missing completely.

Secondly, consensus being adopted, a moral force and sensitivity to consumer issues have been
created by the guidelines, to promote further reform it provided with a useful basis of consumer
organisations7. For instance, consumer international, has usually used the guidelines by referring
them in order to inspire and promote development of consumer protection law at national level8.

Thirdly, other international and regional consumer rules for protection got inspired by the United
Nation guidelines. For instance, the consumer policy committee has been established by OCED
which offers a forum for discussion among Member States and drafts consumer protection
guidelines.

Fourthly, the development of cross-border cooperation has been influenced by UNGCP at

regional level. For instance, in 2009 the adoption of ASEAN committee in consumer protection
cooperation mentioned it clearly that UNGCP is a point of reference in order to develop a
common approach for consumer protection.

CONCLUSION

An international framework was provided by UNGCP for protection of consumer that includes
minimum standards of consumer and cooperation provisions for member states. After the
revision of guidelines in 2015, more areas related to consumer protection got covered by it and
also defined the in charge institutional machinery of implementation of guidelines and promotion
of cooperation. A clear shift in focus can also be seen from new UNGCP. Earlier they focussed
on members states but now they take discourse of corporate responsibility, encouraging best
practices and companies. In addition to this, seemingly the guidelines are converging more
towards broader and inclusive model of consumer protection as new provision has an aim to deal
with essential utilities of consumer and provide protection to vulnerable customer.

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The UNGCP in total have great potential and have been upgraded from the previous version in
order to further improve consumer protection at both national and international level. As they
aim to give standard which covered aspects of consumer protection which is most relevant, and
at the same time have proved to be a point of reference for both developed as well as developing
countries. Only the restrictive areas of consumer protection is being covered by them whereas
other international organisations have become in this space equally active by covering only
narrow region or by stopping before defining a complete agenda. Guidelines being accepted with
consensus, have a non- negligible effect and at the same time carry a strong moral force at the
regional and member state level. UN being an active promoter of capacity builder and inter-
governmental cooperation has been amplified and supported by its contribution. As an outcome,
consumer protection has attained attention internationally as an area of policy and law which is
required to be globally addressed, instead of purely regulated at the national level.

In spite of being so impactful, the Guidelines due to limitation with regard to enforcement and
limitation remain a soft law. This results in the rise of a question that in order to further support
the international consumer protect an increased institutional innovation and a more binding legal
mechanism could help or not. The current paper tried to come up with certain ways to bring
change and improvement in the same direction. For now, in order to recognise consumer law the
UNGCP is regarded as a major step towards international area, and an inspiring change by force.
It is the matter of time that will tell whether or not the guidelines being a soft law will help the
institutions and member states to resolve the practical challenges of customer globally.