An Economic Analysis of Consumer Protection in Contract Law

Haupt, Stefan

doi:10.1017/s2071832200012013

Cited by 16 publications

(8 citation statements)

References 42 publications

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“…The 'inequality of negotiating power' theory emphasises the consumer's economically weaker status than suppliers (Haupt, 2003;Liyang, 2019;Porter, 1979). The 'inequality in bargaining power' principle emphasises the customer's economically inferior position to suppliers (Haupt, 2003). The 'exploitation theory' also supports a similar view to the 'weaker party' argument.…”

Section: Theoretical Frameworkmentioning

confidence: 94%

“…Therefore, due to low bargaining power, it is agreed that their interests need to be secured. The 'inequality of negotiating power' theory emphasises the consumer's economically weaker status than suppliers (Haupt, 2003;Liyang, 2019;Porter, 1979). The 'inequality in bargaining power' principle emphasises the customer's economically inferior position to suppliers (Haupt, 2003).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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E-Commerce and Consumer Protection in India: The Emerging Trend

Chawla

Kumar²

2021

J Bus Ethics

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Given the rapid growth and emerging trend of e-commerce have changed consumer preferences to buy online, this study analyzes the current Indian legal framework that protects online consumers' interests. A thorough analysis of the two newly enacted laws, i.e., the Consumer Protection Act, 2019 and Consumer Protection (E-commerce) Rules, 2020 and literature review support analysis of 290 online consumers answering the research questions and achieving research objectives. The significant findings are that a secure and reliable system is essential for e-business firms to work successfully; cash on delivery is the priority option for online shopping; website information and effective customer care services build a customer's trust. The new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India's e-commerce growth. Besides factors such as security, privacy, warranty, customer service, and website information, laws governing consumer rights protection in e-commerce influence customers' trust. Growing e-commerce looks promising with a robust legal framework and consumer protection measures. The findings contribute to the body of knowledge on e-commerce and consumer rights protection by elucidating the key factors that affect customer trust and loyalty and offering an informative perspective on e-consumer protection in the Indian context with broader implications. Keywords Consumer protection • E-Commerce • Online protection Study BackgroundThe study context, which discusses two key aspects, namely the rationale for consumer protection in e-commerce and its growth, is presented hereunder: The Rationale for Consumer Protection in E-commerceConsumer protection is a burning issue in e-commerce throughout the globe. E-Commerce refers to a mechanism that mediates transactions to sell goods and services through electronic exchange. E-commerce increases productivity and widens choice through cost savings, competitiveness and a better production process organisation 1 (Vancauteren et al., 2011). According to the guidelines-1999 of the Organisation for Economic Cooperation and Development (OECD), e-commerce is online business activities-both communications, including advertising and marketing, and transactions comprising ordering, invoicing and payments (OECD, 2000). OCED-1999 guidelines recognised, among others, three essential dimensions of consumer protection in e-commerce. All consumers need to have access to e-commerce. Second, to build consumer trust/confidence in e-commerce, the continued development of transparent and effective consumer protection mechanisms is required to check fraudulent, misleading, and unfair practices online. Third, all stakeholders-government, businesses, consumers, and their representatives-must pay close attention to creating effective redress systems. These guidelines are primarily for cross-border transactions (OECD, 2000).Considering the technological advances, internet penetration, massive use of smartphones and social media penetration led e-co...

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Section: Theoretical Frameworkmentioning

confidence: 94%

Section: Theoretical Frameworkmentioning

confidence: 99%

E-Commerce and Consumer Protection in India: The Emerging Trend

Chawla

Kumar²

2021

J Bus Ethics

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“…For instance, Scandinavian national consumer law does not envisage an "average" consumer benchmark in the legislation, which is resulted in the formation of a type of "weak", "vulnerable" consumers and a higher standard of their protection 27 . Nevertheless, according to the Supreme Court of Finland, as a result of the full harmonization of the Unfair Commercial Practices Directive 2005/29/EC, when applicable, the traditional image of the irrational consumer goes backward and the court relies on the EU average consumer standard 28 . Meanwhile, studies in modern economics, psychology, and neuroscience have also revealed that the information paradigm is a symbol of consumer law in modern England 29 .…”

Section: Image Of the Consumer And The Information Paradigmmentioning

confidence: 99%

Behavioral and Comparative Analysis of the Information Paradigm in Consumer Law

2021

LAW

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This article examines the issue of information asymmetry in consumer law and deliberates on the necessity of regulation of the status of a consumer and their protection mechanisms. It is evident that the relevant Georgian law, by and large, does not guarantee the sufficient safeguarding level and thus the approximation to the respective EU legislation cannot be deemed successful in toto. Furthermore, this article analyzes the Draft Law of Georgia on the Protection of Consumer Rights and displays the possible challenges. In addition, the special emphasis is on consumer credit contracts. In the wake of the growing importance of behavioral analysis and its impact on the law and economics, the standard of an in- formed and rational consumer, which constitutes a cornerstone of the EU consumer law, is now highly debated. By reviewing some findings in behavioral law and economics, along with the international legislation and case law, it is argued that some im- plications of behavioralism should be taken into account in the field of consumer law.

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“…Therefore, it is accepted that their interests should be protected due to inferior bargaining power. The doctrine of 'inequality of bargaining power' stresses the economically weaker position of the consumer vis-a-vis the suppliers (Haupt, 2003). As Barnhizer (2005) points out from the United Sates case law, "gross inequality of bargaining power could negate the meaningfulness of choices available to the weaker party".…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Protection of Consumer Rights on the Internet: Prospects and Challenges for the Sri Lankan Legal System

Ariyaratna

2018

OUSL Jnl

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The development of Internet and e-commerce has tremendously changed the habits and behaviors of consumers. This fast and efficient medium of transaction has been able to overcome many obstacles inherent to offline transactions and as a result, e-commerce and e-transactions have become more popular among consumers who are struggling with hectic lifestyles. However, it is evident that online consumers are exposed to many inevitable challenges on the Internet, more than the offline consumers specifically with regard to violation of their consumer rights. Every consumer is entitled to several rights whether he/she is dealing online or offline, including the right to information, right to redress, right to privacy, etc.

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An Economic Analysis of Consumer Protection in Contract Law

Cited by 16 publications

References 42 publications

E-Commerce and Consumer Protection in India: The Emerging Trend

E-Commerce and Consumer Protection in India: The Emerging Trend

Behavioral and Comparative Analysis of the Information Paradigm in Consumer Law

Protection of Consumer Rights on the Internet: Prospects and Challenges for the Sri Lankan Legal System

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