ASEAN+3 collaborates to protect consumers in the digital era, enhancing immunity and awareness of AI threats through a forum for exchanging consumer issue situations in each country. They identified common limitations, including outdated laws, lack of comprehensiveness, and enforceability challenges, emphasizing the need to promote consumer self-protection as well.
On August 29, 2024, the Thailand Consumers Council (TCC), in collaboration with consumer organizations in the ASEAN+3 region (with China, Hong Kong and South Korea), held a forum to address issues concerning fraud in the digital economy and developments in artificial intelligence (AI). The event provided a platform for sharing information and managing increasingly severe problems across the region that are aligned with technological advancements. No country has yet found a comprehensive solution to these issues, leading to regional alerts and recommendations. Emphasis was placed on amending laws, enhancing regional consumer cooperation, and protecting vulnerable groups, including children, the elderly, and persons with disabilities. Additionally, there were warnings regarding the use of AI to interfere in politics during election periods.
Starting with Ms. Saree Aongsomwang, Secretary-General of the Office of the Thailand Consumers Council, she highlighted the top online threats in Thailand, with complaints predominantly coming from Facebook applications. These include scams involving fake product sales, investment fraud, impersonating others, romantic scams, charity fraud, and job scams. Regarding consumer protection in Thailand, there are several agencies responsible for safeguarding consumer rights, such as the Office of the Personal Data Protection Committee (PDPC), which oversees personal data protection. Recently, Thailand made headlines for imposing a 7-million-baht fine on private entities for data leaks.
In addition, there are ongoing efforts to address consumer issues, such as the launch of the Cyber Police hotline 1441 for timely account freezing. There is a ‘See Before Pay’ policy aimed at allowing consumers to view products before making payments, scheduled to take effect in October this year, and measures to extend payment periods for sellers. Other initiatives include registering sellers and enhancing account opening procedures to prevent fraud involving ghost accounts. The TCC has also proposed implementing a hold on funds before transfers, as there have been incidents where consumers were tricked into clicking links that drained their accounts. Money transfers need to be slowed down to prevent falling victim to scammers, making protective measures essential for financial transactions.
Ms. Saree also stated that the TCC provides protection in eight comprehensive areas related to consumer issues, facilitating a space for consumers to come and file complaints about any problems they encounter. They are committed to supporting consumers throughout their experiences.
Meanwhile, Dato Indrani Thuraisingham, Vice President of the Federation of Malaysian Consumer Organizations (FOMCA), highlighted that consumer protection not only addresses issues but also involves educating consumers, which is crucial. In the past, the federation has worked to share information within the ASEAN group to alert each country to remain vigilant. Recently, there was a warning issued about dangerous cough medicine products to help regions stay aware and protect consumers from harm.
Regarding e-commerce businesses utilizing AI, this encompasses various forms, including payment methods, document submissions, and device connectivity, not just buying and selling. Consumers must stay informed about social media trends and the new forms of potential threats emerging. Additionally, concerns exist about influencers advertising products, with issues of misleading advertisements surfacing, where some influencers have never actually used the products and later discovered that those products lacked quality.
Dato Indrani pointed out that AI has both benefits and drawbacks. While AI can be helpful in providing answers through various apps and chatbots, it can also have negative effects, such as when deepfake technology is used to impersonate trusted individuals, particularly well-known figures, to deceive others. The federation is currently receiving numerous complaints regarding such incidents. She emphasized that the federation’s goal is to enhance digital literacy and provide comprehensive information to consumers about both the benefits and risks of modern technology, especially in the safe and effective use of artificial intelligence (AI).
Dato Indrani also addressed issues related to cybersecurity, noting that groups needing caution include not just children and the elderly, but people of all ages. As an organization focused on consumer protection, the messages and information that need to be shared must vary across different demographic groups, as each age group or gender faces distinct challenges.
In Malaysia, information about consumer rights has been integrated into the educational curriculum, providing foundational knowledge for pre-secondary school children about FOMCA and incorporating consumer issues and media literacy into high school teaching. This initiative aims to equip students with essential skills to protect themselves and prepare them for the challenges of today’s and tomorrow’s society, she remarked.
Ms. Andjani Widya, from the Indonesian Consumer Foundation (YLKI), revealed that YLKI plays a significant role in protecting consumer rights in the digital economy and AI. Currently, AI is increasingly being utilized in customer service and product detection, providing convenience for consumers, but it also poses challenges related to personal data usage, deceptive information, and fake advertisements—issues that consumers still struggle to access accurate information about.
She cited a major data breach that occurred in Indonesia in 2022, involving the health insurance administration agency, which exposed and sold the personal information of millions of Indonesian citizens on the dark web. Additionally, false information and fake news generated by AI were identified leading up to the general elections in 2024.
Ms. Andjani noted that Indonesia currently lacks specific regulations regarding artificial intelligence; however, YLKI has actively engaged in various programs to educate consumers about their rights and the potential risks. The organization is also collaborating with policymakers to develop regulations that will protect consumer rights while emphasizing the need to enhance consumers’ knowledge and awareness of their rights.
Information is disseminated to consumers through radio, television, and various media to ensure they can access information on all fronts, including a consumer alert system to minimize damage. There is also a focus on raising awareness among producers about their responsibilities and considering consumers’ interests, she said.
For Mr. Ang Zhong Xin Wilfred, Deputy Head of Consumer Relations at the Consumers Association of Singapore, he mentioned that the COVID-19 situation has changed consumer behaviors, increasing the use of online services for shopping and food delivery. He highlighted five common problems arising from online transactions: 1. Ordered items not being delivered, 2. Companies not fulfilling their agreements, 3. Companies shutting down without refunding money, 4. Stores offering refunds but failing to issue them, and 5. Dissatisfaction with service.
He provided an example of a complaint regarding a lantern festival where approximately 2,000 tickets were sold in advance, but the event was canceled on the day it was supposed to take place because the organizers lacked the necessary permits and only informed consumers on the event day. The proposed remedy was to attend another event, with no refund options, leading most consumers to disagree and file complaints. The Consumers Association of Singapore acted as an intermediary, negotiating for refunds, ultimately resulting in consumers receiving their money back.
For the guidelines on handling disputes in online shopping, the association has outlined five measures: 1. Businesses must verify their identities to establish credibility. 2. Information and communication must be clear and easy to understand. 3. There should be a clear timeline for resolving complaint disputes. 4. Businesses must have a system in place for managing complaints, compensation, and remedying damages, including systems to protect customer payment and data. 5. Facilitation of assistance to resolve disputes through online channels should be provided.
Mr. Ang Zhong Xin Wilfred noted that our society is increasingly using AI in various areas, including chatbots for customer responses, even though there are instances where a human should provide the answers. Currently, there are no restrictions on this practice; however, the use of AI should be approached with caution.
In case of Myanmar, Mr. Aung Naing Min, Secretary-General of the Consumer Union of Myanmar, stated that for over three years, the Consumer Union of Myanmar has laid the groundwork and guidelines for consumer protection. The union stands firm in preserving consumer interests and believes that collaboration will play a crucial role in guiding the effective use of technology to protect consumers.
Additionally, all businesses must be knowledgeable about consumer rights, as a lack of understanding can lead to the provision of substandard services or products. It is essential to prioritize the consumer, ensure transparency, uphold ethics, and build trust and confidence with consumers. However, consumers must also be informed to protect themselves.
Using technology is beneficial, but there must be a responsibility towards the economy and society. The most important thing is to prevent harmful situations from the outset, including monitoring and follow-up. However, many people in Myanmar still do not extensively use technology, which hinders progress on laws concerning technology, according to the Secretary-General of the Consumer Union of Myanmar.
For Laos, Mr. Thongdam Phongphichith, Director of the Association for Agriculture and Sustainable Environmental Development in Laos, shared the recent success in advocating for the government to ban the import of drinking water from China after contaminants from pesticides were discovered, reflecting the crucial role in protecting consumers. Although this case was a success, there are still many challenges, especially regarding consumer protection in the online world, where Laotian consumers often suffer damages from using platforms like Facebook and WhatsApp. When harm occurs, it is usually difficult to track down the offenders. Furthermore, the era in which consumers use technology daily for ordering food, products, traveling, or booking hotels through various platforms complicates control, especially since there is no direct consumer protection agency in the country.
Laotian consumers remain vulnerable to cyber threats and rights violations due to legal limitations, budget constraints, and a lack of technological awareness among the population. Moreover, the capability of government agencies is still insufficient to effectively cooperate in addressing cyber threats, as stated by the Director of the Agriculture Association.
Therefore, the Agriculture Association aims to address these issues by providing knowledge through new media, collaborating with public and private sectors to control product quality, and coordinating with the ASEAN consumer network to develop joint policies in the digital age, amidst the increasing challenges posed by the use of online platforms in daily life for Laotians.
In Vietnam, Ms. Alice Pham, Director of the AP Research Office in Vietnam, stated that technological advancements create new challenges for consumer protection worldwide, particularly in Vietnam, where 24 types of consumer issues have been identified. These issues include receiving products that do not match advertisements, violations of personal data, and distress caused by call center scams and deception through deepfake technology, resulting in damages amounting to over 300 trillion Vietnamese dong, or about 3% of the country’s GDP.
To address the situation, Ms. Alice indicated that Vietnam has been accelerating legal modernization efforts. Although the results are not yet satisfactory, some control over potential offenders has been achieved. Civil society is pushing for proactive measures, such as requiring facial scans for money transfers exceeding $500 and delaying transfers for amounts over $20,000, along with an emphasis on educating consumers to raise awareness about using information in the digital age.
For the Philippines, Ms. Xandra Liza C. Bisenio, Head of Corporate Communications at the Foundation for Research, Education, and Development in the Philippines, explained that the Philippines is striving to become a digital nation by applying technology across all sectors, including public and private services as well as agriculture, to enhance efficiency and convenience for the public. For instance, citizens can use identification cards to access various services. However, the rapid technological advancement brings risks related to consumer rights violations, particularly regarding financial transactions and personal data breaches, as evidenced by the significant data breach during the presidential election in 2016, which included the spread of fake news and cyberattacks.
To restore confidence, the Head of Corporate Communications noted that civil society and the government in the Philippines have implemented proactive consumer protection measures. These include monitoring and warning systems, public education initiatives, and the establishment of consumer networks both domestically and internationally. Furthermore, there is a focus on fostering collaboration between the public and private sectors to develop technological infrastructure and problem-solving frameworks, ensuring that citizens can securely and equitably access the digital economy.
In case of Hong Kong, Ms. Gilly Wong Fung-han, CEO of the Hong Kong Consumer Council, stated that Hong Kong has made significant progress in finance and digital innovation, which has been applied in consumer protection. For example, collaboration between public and private sectors has resulted in benchmark pricing standards for goods and services, providing consumers with better information and choices. Continuous data sharing between agencies and ongoing dissemination of consumer protection knowledge have been implemented to raise awareness of increasingly complex cyber threats.
The CEO of the Hong Kong Consumer Council further noted that in 2023, online shopping emerged as the top concern for consumers in Hong Kong, with an increase in scams involving video clip impersonation. Currently, the council is conducting in-depth studies on online marketplace platforms and AI. Despite its benefits, there remain weaknesses that require additional regulation to protect consumers from fraud.
In addition, in July 2024, the Digital Policy Office was established to outline consumer protection measures against cyber threats, especially concerning AI regulation. Ms. Gilly emphasized that AI will play a vital role in daily life, but without regulation, it could pose a threat. Therefore, promoting clear laws and policies for oversight, along with collaboration among various sectors both domestically and internationally, is crucial to prevent issues and to enhance consumer awareness and understanding.
For Korea, Ms. Youkyung Huh, Director of the Korea Consumer Agency, mentioned that various sectors are widely adopting AI, including both consumers and businesses, particularly in online transactions. While AI brings convenience, South Korean consumers remain concerned about privacy and seek protection against potential adverse impacts from its use.
The Director of the Korea Consumer Agency noted that government agencies, civil society, and the private sector are collaborating to push for AI regulation through the “Korean AI Bills” aimed at protecting consumers. However, this legislation has not yet been enforced despite passing through the legislative assembly, which means that consumer organizations in Korea are continuing their efforts.
Ms. Youkyung pointed out that AI innovation has surpassed current legislation, and relevant agencies have not adequately analyzed the impact on consumers, leaving them vulnerable to deception and fraud. Therefore, there is an urgent need to ensure that laws keep pace with innovations and fraudsters to protect and safeguard consumers.
