Literature Review Poster

Introduction

This literature review focuses on the topics of consumer protection in the United Kingdom. It has two sections:

The history and evolution of customer protection in the UK

The current status of consumer protection in the United Kingdom

History and Evolution of Consumer Protection

The development of the consumer protection regime began in the 17th century.

During the pre-industrial era, production and consumption were low, so consumer protection was not greatly relevant

The doctrine of caveat emptor was developed, advocating that customers should look after themselves.

During the industrial revolution (18th century), consumptions grew, necessitating more robust consumer protection rules.

During the era of industrial society (19th century), case law for consumer protection developed in England.

During the 20th century, mass production emerged and increased consumption, leading to further developments in consumer protection laws.

Source: Khan, Muhammad 2017

Current Status of Consumer Protection in the UK

Regulatory Divergences

The reforms in consumer protection legislation will cause different divergence before, after, and even without Brexit.

Before Brexit

Objectives and scope of the Consumer Rights Act 2015 and the Consumer Rights Bill 2015 will diverge

Divergences will be seen in privity of contracts, the supply of services and digital content, unfair contract terms, sale of gift vouchers, and transparency in contracts,

After Brexit

Language and concepts utilised

The structure of consumer protection law

The interpretation of the domestic provisions of the law

Without Brexit

Models of consumer protection adopted

Modes of mapping amendments against the existing legal framework

Source: Kelly 2018

Reforms in Consumer Protection within Brexit

Introduction of new digital consumer protection rules

Revision of rules that impact digital service supply

Increased transparency obligations on online endorsements and reviews

Improved enforcement and penalty regime.

Integration of the digital content directive

Changes in consumer contracts for online sales of goods

Sources: Nahon 2019; Wessing 2016

Consequences of Brexit on Consumer protection

Consequences examined from three models:

EEA model

WTO mode;

Tailor-made agreement model

Consequences based on the first model – UK membership of EEA will lead to the implementation of high consumer protection standards.

Brexit provisions for strengthening UK sovereignty will incompatible with the EEA agreement, making consumer protection complex

Consequences based on the second model -difficulties in interpreting EU consumer protection directives. Uncertainties of conflict-of-laws, enforceability, and jurisdiction.

Consequences based on the last model- failure to achieve harmonisation of consumer protection standards provided by both the EFTA and EU

Source: Kramme 2017

Consumer Protection In Financial Services

UK has consumer protection legislation with explicit references to financial services

Also has consumer protection regulations outlined within the financial section legislations framework.

Consumer protection regulation prevents market failure in the financial sector.

Conclusion

The literature review has focused on two areas: the evolution of consumer protection and the current status of consumer protection in the UK.

Bibliography

Khan, Muhammad A ‘The origin and development of consumer protection laws in united kingdom’ (2017) 3 (3) Journal of Asian and African Social Science and Humanities (ISSN 2413-2748) 38-52.

Kramme, Malte F ‘Consequences of Brexit in the area of consumer protection’ GPR: (2017) 14 (5) Journal of European Union Private Law 210-222.

Kelly, C ‘Consumer reform in Ireland and the UK: Regulatory divergence before, after and without Brexit’ (2018) 47 (1) Common Law World Review 53-76.

Nahon, L ‘Consumer law reforms will impact UK regardless of Brexit’ (15 Nov 2019) Out-Law Analysis Pinsent Masons https://www.pinsentmasons.com/out-law/analysis/consumer-law-reforms-will-impact-uk-regardless-of-brexit.

Wessing T ‘UK Consumer law in the wake of the EU referendum (17 Jul 2016) University of Oxford, Faculty of Law https://www.law.ox.ac.uk/business-law-blog/blog/2016/07/uk-consumer-law-wake-eu-referendum.