Earlier this week the Malta Competition and Consumer Affairs Authority, in collaboration with the European Commission and the EU 2017 Presidency Unit, organised the EU Consumer and Competition Day. This year’s event focused on how the digital world is posing new challenges to consumers and traders.
Addressing the conference, Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties, emphasised the need of instilling confidence in consumers to ensure a successful digital single market.
Ms Dalli also spoke about the need to help consumers who are digitally vulnerable by detecting what was hindering them from getting online access to suitable products and services. To this end, she mentioned that under the Maltese presidency a general approach was reached on the review of the Consumer Protection Cooperation Regulation, a regulation that aims to modernise cooperation between national administrations and reduce damage for consumers because of cross-border infringements to EU consumer law.
With regards to competition and its benefits for both consumers and traders, Ms Dalli said that under the Maltese presidency discussions at council level would commence on a proposal to empower national competition authorities to enforce competition rules and to remove obstacles to the proper functioning of the internal market.
In her welcome speech, MCCAA chairwoman Helga Pizzuto spoke about the rapidly evolving digital environment and the new emerging challenges that required addressing if consumers were to fully benefit from the digital single market.
Ms Pizzuto said that to address these challenges the conference would focus on how consumers could be provided with the tools they needed to reap the benefits of eCommerce and would also deal with competition considerations that were becoming more relevant in this particular market.
The opening session of the conference was also addressed by the director general, DG Competition, Johannes Laitenberger, who spoke about the impact of digitisation and how new types of goods and services were changing our lives. Mr Laitenberger mentioned the digital challenges the EU competition law faced and how these should be addressed. He spoke about the need to empower national authorities to be more effective enforcers and to provide them with the investigative tools they need in this digital age.
Speaking from a consumer perspective, Francisco Fonseca Morillo, deputy director general, DG Justice and Consumers, said digital data was the currency of the future, hence the need of making data protection and consumer law fit for the digital age. Mr Morillo also spoke about consumer vulnerability to online practices and how online traders use consumer behaviour for marketing practices.
44 per cent EU consumers do not have the basic digital skills which mean that almost half of the EU population is risking social exclusion
The panel on digital skills and consumer vulnerability discussed the importance for legislation to take into account consumers’ needs and circumstances. Consumers cannot take full advantage of eCommerce if they are excluded from the benefits of the single market. Currently, the EU is undergoing a digital revolution that impacts each and every citizen. The problem is that 44 per cent EU consumers do not have the basic digital skills which mean that almost half of the EU population is risking social exclusion.
To support and improve consumers’ digital competence, consumers need pre-purchase information. They need to have the skills to recognise and evaluate commercial communication and advertising.
From studies carried out by the Joint Research Centre of the European Commission, DG Justice and Consumers, it transpired that both children and adults find it hard to recognise online advertising, and to differentiate whether the information provided to them is sponsored or not.
Consumers also need to be more aware that cookies carry information on what they are interested in, based on their research history, and thus the advertisements they see on their screens are based on their internet behaviour.
Consumers need to be provided with skills so they can feel safe in the digital world. If consumers don’t feel safe, they will exercise caution and this may lead to stagnated markets.
Studies show that 53 per cent of EU citizens feel that they are not informed enough about the risk of cybercrime and this is hindering online activity. To address this, Google has carried out awareness campaigns in Italy, Spain and Belgium, which focus on cyber security, on how internet users can protect their online accounts with passwords and how they can make sure that the device they are using is safe. Details of these awareness campaigns were provided by Marco Pancini, Google’s director EU Policy.
The second panel’s discussion focused on business practices in eCommerce. The evolvement of eCommerce in the last 10 years has brought challenges and opportunities to many businesses. The eCommerce sector inquiry launched by DG Comp in May 2015 brings into relevance the business practices in this industry.
The services offered across the EU through electronic platforms is ever-increasing, so that business and consumers are ever more affected by the behaviour of sellers on the worldwide web. Main findings of the inquiry show that eCommerce is an important driver of price transparency and price competition.
Price transparency leads to more competition and hence an increase in consumers’ choice and their ability to find the best deals across borders. It is imperative to safeguard competition because if competition is weakened consumers will suffer from lack of choice, limited innovation and also higher prices.
The panel also discussed that consumers cannot be protected without first protecting competition. Competition authorities need to have more power to really ensure a fair playing field. Currently, infringement procedures take too long, the authorities’ resources are scarce and lack the expertise to ensure effective enforcement in the digital world.
The conference concluded with a discussion on enforcement, which is an important tool to ensure that those who do not conform to the rules are brought in line. The powers of enforcement by a consumer and/or competition authority are of utmost importance to ensure a fair level playing field.
It is with this in mind that the commission has taken forward certain factors to ensure the strengthening of competition and consumer authorities across Europe. Achieving this will generate a sense of security and confidence among both consumers and traders, which will eventually lead to economic growth.
Godwin Mangion, director general (Competition) within the MCCAA, said online purchases were becoming more popular and increasing at a fast pace. He stressed that this momentum had to be kept to achieve an effective internal market.
Regulators had to ensure that sellers are placed in a level playing field and at the same time consumers can reap the maximum benefits of the goods offered for sale, with regard to both price and quality of products and services offered.
The issues discussed mainly focused on how to remove barriers for both consumers and traders to encourage them to buy and sell online, while at the same time reassuring them that their rights will be safeguarded.
This is good news for the Maltese consumer as cross-border online shopping gives them access to a wider variety of products and services at competitive prices. As consumers living in the smallest EU Member State, we have a lot to benefit from unhindered access to larger markets.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org.mt
Malta Competition and Consumer Affairs Authority
Office for Consumer Affairs
Mizzi House,
National Road,
Blata l-Bajda
HMR 9010
Freephone: 8007 4400
Tel: 2395 2000
Enquiries: info@mccaa.org.mt
Consumer complaints: fair.trading@mccaa.org.mt
Website: www.mccaa.org.mt
MCCAA office hours for the public:
Monday to Friday from 8.30am to 12.30pm
European Consumer Centre Malta
(For complaints against traders in other EU states)
47A, South Street,
Valletta.
VLT 1101
Monday to Friday from 8.30am to 3pm.
Tel: 2122 1901
E-mail: ecc.malta@gov.mt