Consumer Protection and E-Commerce
Issues for developing country policy-makers
This policy primer aims to support policy-makers in developing countries by providing an overview of key consumer protection issues in the digital marketplace and an understanding of the role of trade agreements on consumer policy matters.
Key Messages
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Traditional consumer protection frameworks, designed for physical marketplaces, must be significantly updated to address the unique challenges of e-commerce, including information asymmetry, data privacy concerns, and cross-border jurisdictional and enforcement issues.
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Countries are modernizing national consumer protection laws to foster trust in the digital economy. Increasingly, consumer protection–related provisions are also being embedded in trade agreements, especially RTAs, and are an important feature of the potential plurilateral e-commerce JSI agreement.
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Many developing countries lack modern consumer protection laws for e-commerce. As these countries update their frameworks, key priorities include accommodating technology-driven business models, addressing cross-border transaction challenges, and establishing effective dispute resolution mechanisms.
The digital marketplace is rapidly reshaping global commerce, offering significant opportunities for businesses and consumers alike. In 2023, the global business-to-consumer e-commerce market was valued at USD 5.47 trillion and is projected to rise at a compound annual growth rate of approximately 19% through 2030. However, this growth also presents emerging challenges—particularly for developing countries seeking to participate effectively in the global digital economy. Central to addressing these challenges is the need to build consumer trust through robust consumer protection frameworks.
The policy primer introduces foundational consumer rights and principles, explores their evolution in digital contexts, and examines the integration of online consumer protection provisions in trade agreements, including regional trade agreements (RTAs) and the World Trade Organization Joint Statement Initiative (JSI) on Electronic Commerce. The paper also highlights the current state of consumer protection policies and challenges in developing countries, concluding with practical recommendations to guide policy-making in this area.
This report is part of a policy primer series, funded by the Swedish International Development Cooperation Agency (SIDA), aimed at deepening understanding of the key policy and regulatory foundations that shape today's digital economy.
This is the first report of the Building Blocks of Digital Trade Regulation series. You can continue exploring the series here:
- Report No. 2: Cybersecurity and International Trade: Understanding the policy landscape
- Report No. 3: Setting International Technical Standards to Shape Digital Trade Policy: Approaches, challenges, and opportunities for developing countries
- Report No. 4: Data and Digital Trade Law: Balancing rules, policy space, and development
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