Event Highlights

Advancing Digital Justice and Consumer Protection in ASEAN

On 26 Aug 2024, the Tech For Good Institute participated in the 4th ASEAN Consumer Protection Conference, organised by the ASEAN Committee on Consumer Protection (ACCP), the Consumer Protection, Competition, and Fraud Repression Directorate-General (CCF), and the ASEAN Secretariat. The panel discussion explored existing consumer protection systems and initiatives underway in ASEAN, as well as ways to create infrastructures that better address consumer empowerment and digital inclusivity.

As the ASEAN digital economy is poised for substantial growth, ensuring robust consumer protection remains a priority for regulators and businesses alike.

However, obstacles such as disparities in digital literacy within and between ASEAN states continue to impede consumer protection efforts. Within ASEAN states, digital literacy rates of youths living in rural areas tend to lag behind peers from urban areas. Across ASEAN, internet penetration rates fluctuate vastly, with Malaysia achieving a high 97% adoption rate while Indonesia, at 66.5% as of January 2024, continues to expand its digital reach. Low digital literacy often leaves consumers vulnerable. This is because those with limited understanding of privacy policies and security measures are at higher risk of falling prey to scams and fraud.

Despite these challenges, consumer protection measures continue to be pivotal in empowering consumers to navigate the digital ecosystem confidently to safeguard the growth of the digital economy in Southeast Asia. Most commonly, online dispute resolution systems, such as the Philippine Online Dispute Resolution System (PODRS) and the ODR system in Indonesia, are essential in securing consumers’ access to justice for digital services. Additionally, robust legal frameworks and regulations ensure that consumers’ interests are protected while the digital economy becomes more competitive.

In light of these developments, distinguished experts shared insights on how to improve current consumer protection measures, and the difficulties that lie ahead in implementing these measures.

Moderator and Panellists

Heidi Farah Sia Abd Rahman, Acting Deputy Director-General of the Department of Economic Planning and Statistics, Ministry of Finance and Economy (Brunei Darussalam)
Cherryl G. Carbonell, Officer-in-Charge Director of Consumer Policy and Advocacy Bureau (CPAB), Department of Trade and Industry (DTI) (Philippines)
Dr Ming Tan, Founding Executive Director, Tech For Good Institute
Raden Dwi Tiara Lestari, Senior Trade Analyst, Ministry of Trade (Indonesia)
Zoe Dayan, Regulatory Reform Attache, British Embassy Jakarta

Key Takeaways

1. Secured digital access, through digitalised justice and the development of a just digital ecosystem, is crucial for consumer protection.

Digitalised justice leverages technology to enhance access, efficiency, and transparency in legal processes, making legal remedies such as Online Dispute Resolution (ODR) systems more accessible and equitable for everyone. While not traditionally seen as a public service, digital access to justice should be recognised as a public good that is essential for all citizens aligning with central concerns of key stakeholders from our 2023 study across Southeast Asia. However, digitalising justice alone is not enough; it must be supported by the development of a just digital ecosystem. This ecosystem should encourage competition to drive innovation and broaden consumer choices while implementing robust consumer protection measures such as cybersecurity and data protection to foster trust in the digital environment.

2. Consumer protection requires a whole-of-society approach.

As competition drives innovation and expands consumer choices, protecting consumers in the digital age has become increasingly challenging. This requires a comprehensive effort from all parts of society. Governments must not only strengthen consumer protection laws but also enhance interagency coordination, as reflected in Tech for Good Institute’s study on the Evolution of Tech Regulation in Southeast Asia. Businesses also play a critical role in enabling inclusion and safeguarding consumers via investments in cybersecurity, data protection and solutions for their users. For instance, Carousell’s Buyer Protection offers secure payments and proactive dispute resolution, which individual buyers and sellers cannot afford to offer on their own. Nonetheless, successful consumer protection relies on consumers also improving their own understanding of the technologies they use daily. This can be done by strengthening their own digital literacy and relevant product literacy. For example, financial literacy is critical among consumers using digital financial services. Without adequate financial knowledge, consumers are more vulnerable to risks and misuse of digital financial products.

3. Addressing emerging challenges in consumer protection demands a fit-for-purpose strategy.

Integrating larger players into the digital ecosystem and establishing effective rules are crucial for robust consumer protection, but the approach must evolve to remain effective. Emerging challenges include information asymmetries, where consumers lack vital details about providers’ locations, reputations, and responsiveness, making it difficult to assess fairness and make informed choices. This issue is compounded by fake AI-generated reviews on online rating systems, which can erode trust. Additionally, increased security awareness does not always lead to more cautious behaviour. For instance, multi-stage verification processes in the financial sector, while intended to enhance security, can discourage consumer engagement if perceived as cumbersome. To address these challenges, a dynamic and well-coordinated strategy is needed to ensure transparency, fairness, and trust, adapting to the ever-evolving digital landscape.