Consumers vs COVID-19

As the global coronavirus (COVID-19) pandemic continues to develop, it is raising some serious dilemmas for consumers, from scams to negligent business practice and misinformation.

Consumer protection agencies are taking definitive action, and looking for new ways to share intelligence and best practice to address issues at scale.

Despite the human suffering and the economic crisis brought upon us by COVID 19, there are those who take the opportunity to profit from the chaos and misfortune of others.

This has opened yet another front in our battle against a global virus: protecting consumers. And it is here where Consumer Protection agencies around the world become central players in this battle.

The problem is not exclusive to one country. Many consumers have reported overpricing on essential hygiene consumer products such as masks, hand sanitizers, and basic household products. For instance, in Germany, the price of masks increased by 3000%, from 0.45 to 13.52 Euro. In Kenya, a supermarket chain was ordered to refund consumers after inflating the prices of hand sanitizers. Consumer protection agencies are reacting and rightly so. France, Greece, India, Italy, Kenya, and Nigeria have taken action by introducing price caps.

The exploitative practices go beyond price increases. There has also been a surge in fake products and false claims to trick and mislead consumers. Mexico closed a laboratory for marketing false COVID-19 tests. The Republic of Korea found 53 false advertisements where 45 businesses stated that using their purifiers and humidifiers would prevent the coronavirus. In these instances, the Republic of Korea took immediate corrective measures in 40 cases and sent requests for correction in others.

The Republic of Korea has facilitated consumers to lodge COVID-19 related complaints, through consumer counseling call centers. Colombia launched an app for consumers to report breaches to consumer protection related to COVID-19 in real-time. The Dominican Republic, France, Mexico, Morocco, and Spain, among others, have created dedicated online portals hosting up-to-date information for consumers. The United States hosts a list of tips for consumers to avoid COVID-19 scams. Consumer protection authorities of all EU member States (Consumer Protection Cooperation network), issued a common position on the most reported scams and unfair practices in the COVID-19 context. The objective is to ask and assist online platform operators to better identify illegal practices, remove them and prevent recurrences.

The United Nations Guidelines for consumer protection calls on countries to ensure access to essential goods and services, especially for vulnerable and disadvantaged consumers. Some, like France and Spain have reacted quickly. They suspended payment of public services bills, such as energy and water, for vulnerable consumers, including those who lost their jobs because of the epidemic.

Original source: UNCTAD
Published on 07 April 2020