Consumer organizations from seven countries have signed a cooperation agreement for consumer protection. The Philippines backed Thailand’s “money-holding measure” to mitigate damages and called for the swift development of a digital consumer protection index to combat fraud effectively.
On August 30, 2024, the Thailand Consumers Council (TCC) signed a cooperation agreement with consumer organizations from ASEAN +3, with representatives from the seven countries participating in the signing. The organizations involved include the Thailand Consumers Council, the Federation of Malaysian Consumers Associations (FOMCA), the Indonesian Consumers Foundation (YLKI), the Sustainable Agriculture and Environment Development Association (SAEDA) from Laos, the Myanmar Consumers Union (MCU), Consumers Korea, and the IBON Foundation from the Philippines.
Ms. Saree Aongsomwang, Secretary-General of the TCC, stated that the meeting of ASEAN +3 consumer organizations aimed to protect consumers in the digital economy and artificial intelligence acknowledged the rapid emergence of issues while existing knowledge and laws are struggling to keep up with fraudsters, which have become a serious threat to the economy and the lives of citizens.
During the forum “Building ASEAN +3 Power for Consumer Protection in the Digital Economy and Artificial Intelligence,” held on August 29 and 30, 2024, representatives from various consumer organizations exchanged information regarding the impacts of digital threats. For instance, a representative from Vietnam reported that in 2023, Vietnam suffered cyber threats amounting to 3.6% of its Gross Domestic Product (GDP). In Hong Kong, consumers faced damages totaling $25 million, equivalent to around 800 million baht. In Thailand, it was found that consumers suffered from cyber threats with an estimated daily loss of 180 million baht, totaling approximately 65 billion baht annually, continuing for the past three years.
Ms. Saree further stated that the incidents occurring reflect the importance of consumer organizations in the ASEAN region needing to work together on this issue. The consumer organizations have collectively decided to collaborate in consumer protection and exchange information, including knowledge, techniques, and guidelines for effective consumer protection work, as well as measures to prevent problems that may arise for consumers.
The Secretary-General of the Thailand Consumers Council continued, saying that in Thailand, the council is currently monitoring issues and pushing for urgent policy proposals aimed at reducing potential consumer losses. One of the primary proposals is the implementation of a “Slow Payment” measure, which would not negatively impact general consumer transactions or daily life. If consumers are confident in their understanding and feel they are not at risk of falling victim to scams, or if they require convenience in transferring a large amount of money, they can request that banks unlock the delayed payments.
“When damage occurs, if a consumer falls victim to money siphoning, they will only be eligible for a refund of 50% of the amount. However, if the consumer is the one making the transfer, they may not receive any compensation at all. Therefore, we believe that implementing a 72-hour delay on payments is currently the only solution that will help mitigate potential losses for consumers in Thailand,” Ms. Saree emphasized.
Meanwhile, Dato Indrani Thurai Singham, Vice President of the Federation of Malaysian Consumers Associations (FOMCA), noted that the ASEAN +3 countries will collaborate to address issues related to online scams and cyber threats. One interesting measure learned through the exchange of information among representatives from various countries is to slow down money transfers to prevent fraud and allow banks to halt transfers promptly. Additionally, the consumer organizations from the seven countries signed a memorandum of understanding agreeing to jointly develop the ASEAN Digital Consumer Protection Index.
Dato Indrani explained that this index will consider the laws of each country concerning cyber threats, as well as current challenges related to digital technology and AI that consumers face, including issues of online abuse or fraud, mobile and internet service problems, online data security, privacy concerns, and consumers’ awareness levels within each country.
For vulnerable groups such as children or the elderly, there is a need to assess how well they understand the internet and online media, their ability to protect themselves, and their susceptibility to scams. Creating an index concerning digital consumer issues to serve as a common standard is essential. Each country must adapt its policies and laws accordingly.
Ms. Anjani Vidya, an educator from the Indonesian Consumers Foundation (YLKI), remarked that while digital technology and AI have their benefits, they also pose risks. Therefore, it is a challenge for consumer organizations to advocate for necessary changes at the local level, nationally, and extend their efforts to cross-border regional cooperation. This involves strengthening legal frameworks and educating consumers to keep pace with the digital world and requires collaboration among all sectors to ensure that technology benefits consumers for their utmost advantage. By working together, creating a safer environment in the digital world is crucial.
The purpose of the memorandum of understanding (MOU) is to strengthen cooperation in consumer protection within the digital economy and artificial intelligence among ASEAN +3 member countries, and to establish a foundation of mutual understanding and collaboration that allows all member countries to benefit equally.
In practice, this will involve sharing information and knowledge related to consumer protection, whereby member countries will share best practices and legal frameworks pertinent to consumer protection. Additionally, they will exchange case studies that can be applied to real policies, leading to more effective consumer protection policy development in the digital age for each country, as well as enhancing the capacity of the individuals within the relevant organizations.
The key points of the MOU are as follows:
1) The relevant organizations will hold official annual meetings to review the progress of cooperative activities under this MOU and adjust cooperation goals or discuss specific improvements as necessary. Furthermore, a working group will continuously monitor the outcomes of these meetings to ensure that activities are effectively reflected in the policies of each country.
2) The relevant organizations may appoint their representatives as coordinators for managing operations within the framework of this MOU. The authorized representatives must maintain regular contact.
3) Financial management to cover the costs of cooperative activities conducted under this MOU must be agreed upon by the relevant organizations on a case-by-case basis, depending on funding availability. To reduce financial burdens, member countries should efficiently allocate existing resources and explore the potential use of external funding when necessary. This approach will support the effective implementation of cooperation projects.
4) Confidentiality: The relevant organizations agree to maintain the confidentiality of documents and information received or provided by any organization during the duration of this MOU.
