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

This IISD report examines the challenges and opportunities for consumer protection in the e-commerce sector of developing countries. It highlights a significant gap in legislative frameworks and enforcement capacity, particularly in LDCs, and analyzes how regional and multilateral trade agreements (like the WTO JSI and AfCFTA) are attempting to standardize protections against fraud and data misuse. The report recommends that developing countries leverage digital technologies, trade agreement commitments, and international cooperation to modernize their consumer protection systems.

• The global business-to-consumer (B2C) e-commerce market was valued at USD 5.47 trillion in 2023 and is projected to grow at a compound annual growth rate of approximately 19% from 2024 to 2030.
• E-commerce introduces six primary challenges to consumer protection: information asymmetry, data privacy, enforcement difficulties in cross-border transactions, jurisdictional ambiguity, unique issues regarding digital products, and the rapid evolution of technology such as artificial intelligence (AI).
• Regional Trade Agreements (RTAs) such as the USMCA, CPTPP, RCEP, EU-UK TCA, and the AfCFTA Protocol on Digital Trade generally include common consumer protection elements: prohibitions on fraudulent/deceptive activities, personal data protection, limits on unsolicited commercial communications (spam), and recognition of electronic authentication and signatures.
• The WTO JSI Agreement on Electronic Commerce legally binds signatories to maintain measures against misleading, fraudulent, and deceptive commercial activities that harm consumers. While it covers a broader range of countries than RTAs, its scope is noted as potentially less extensive than the AfCFTA Protocol on Digital Trade, which prohibits both 'activities and practices' rather than just 'activities'.
• Consumer protection legislation in developing countries is highly heterogeneous and often inadequate. According to UNCTAD data, five African countries (Burkina Faso, Democratic Republic of Congo, Gabon, Guinea Bissau, and Namibia) lack specific consumer protection laws entirely.
• Least Developed Countries (LDCs) face severe gaps in digital consumer protection; while 70% have cybercrime legislation, only 41% have online consumer protection laws, and only 2% have experience with cross-border enforcement cooperation.
• Developing countries face three primary systemic challenges: weak legislative frameworks with outdated laws, limited implementation and enforcement capacity due to budget and staffing constraints, and low consumer awareness of rights caused by literacy gaps and a lack of advocacy groups.
• Brazil and India are cited as examples of developing countries with comprehensive digital consumer laws. Brazil's CDC allows consumers 7 days to cancel online purchases without justification, while India's 2019 Act and 2020 Rules mandate that e-commerce platforms respond to grievances within 48 hours and provide an electronic filing portal called E-Daakhil.

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} }