Consumer Protection and E-Commerce Issues for developing country policy-makers

The report examines the evolution of consumer protection from traditional to digital markets, highlighting the 'equivalence principle' where online consumers should receive protection not less than that in other commerce. It analyzes how regional trade agreements (RTAs) and the WTO JSI Agreement on Electronic Commerce incorporate consumer protections, while noting that developing countries, particularly LDCs, often lack the legislative and institutional capacity to enforce these rights. The document recommends that developing countries leverage technology, trade agreements, and international cooperation to build robust digital consumer protection frameworks.

• The 'equivalence principle' established in the 2015 revision of the UN Guidelines for Consumer Protection (UNGCP) asserts that consumers in electronic commerce should receive a level of protection "not less than that afforded in other forms of commerce."
• Digital marketplaces introduce six primary challenges to consumer protection: information asymmetry, data privacy, enforcement difficulties in cross-border transactions, jurisdictional ambiguities, unique issues regarding digital products, and the rapid evolution of e-commerce technologies like artificial intelligence.
• Regional Trade Agreements (RTAs) such as the USMCA, CPTPP, RCEP, EU-UK TCA, and the AfCFTA Protocol on Digital Trade commonly include provisions on online consumer protection, personal information protection, limits on unsolicited commercial communications (spam), electronic authentication/signatures, and regulatory cooperation.
• The WTO JSI Agreement on Electronic Commerce legally binds signatories to "adopt or maintain measures to proscribe misleading, fraudulent, and deceptive commercial activities that cause harm, or potential harm, to consumers engaged in electronic commerce."
• Consumer protection legislation in developing countries is generally inadequate and varies by economic level; for example, five African countries (Burkina Faso, Democratic Republic of Congo, Gabon, Guinea Bissau, and Namibia) lack specific consumer protection laws.
• Least Developed Countries (LDCs) show significant gaps in digital legal frameworks: only 41% have online consumer protection legislation, and only 2% have experience with cross-border enforcement cooperation.
• Developing countries face three primary hurdles in implementing online consumer protection: weak legislative frameworks with outdated laws, limited implementation and enforcement capacity due to budget and staff constraints, and a general lack of consumer awareness regarding their rights.

APA

Kaukab, R. S. (2025). Consumer Protection and E-Commerce Issues for developing country policy-makers. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-07/consumer-protection-e-commerce.pdf

Chicago

Kaukab, Rashid S. Consumer Protection and E-Commerce Issues for developing country policy-makers. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-07/consumer-protection-e-commerce.pdf.

Wikipedia

{{cite report |last1=Kaukab |first1=Rashid S. |title=Consumer Protection and E-Commerce Issues for developing country policy-makers |publisher=International Institute for Sustainable Development |date=July 2025 |url=https://www.iisd.org/system/files/2025-07/consumer-protection-e-commerce.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kaukab2025consumer, author = {Kaukab, Rashid S.}, title = {{Consumer Protection and E-Commerce Issues for developing country policy-makers}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = jul, url = {https://www.iisd.org/system/files/2025-07/consumer-protection-e-commerce.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }