Japan and Pakistan Collaborate on Digital Market Regulation and Consumer Protection

The Consumer Affairs Agency (CAA) of Japan has informed the Competition Commission of Pakistan (CCP) about its government’s work on a Digital Markets Act. Simultaneously, the CCP is formulating a Bill on Digital Markets to establish a legal structure for the digital market.

CAA Commissioner Yutaka Arai met with CCP Chairman Dr. Kabir Ahmed Sidhu to explore collaborative opportunities, particularly in regulating digital markets and safeguarding consumers.

Discussions on Digital Market Regulation

Dr. Sidhu updated Arai on the CCP’s ongoing projects, notably the launch of a study assessing the competition landscape of digital markets and services in Pakistan.

This study will analyze the influence of digital markets on competition, economic advancement, and employment within Pakistan. It will conclude with suggested policies to align regulations with international standards. Dr. Sidhu added that the CCP intends to propose a Digital Markets Bill, drawing inspiration from legislative actions in countries such as Russia, the UK, the US, and India.

Arai acknowledged that Japan is encountering similar regulatory difficulties in its digital markets and shared that the Japanese government is also creating a Digital Markets Act. Both parties committed to close cooperation and the exchange of research to improve regulatory structures in their respective countries.

Consumer Protection Enhancements

Arai mentioned updates to Japan’s Act on Specified Commercial Transactions, specifically concerning Mail Order Sales, which were implemented in June 2022. These revisions aim to bolster consumer protection by mandating that sellers display essential contractual details, such as item quantity, payment conditions, and delivery schedules, on the final confirmation screen, while also restricting misleading claims. Consumers now have the ability to cancel contracts if deceived. Sellers must also include crucial details like offer periods and cancellation policies in mail order advertisements. Misrepresentation of cancellation rights is strictly forbidden and subject to both administrative and punitive measures.

Arai clarified that while Japanese law doesn’t completely prohibit faulty e-commerce products, sellers are strongly encouraged to guarantee product quality and offer clear usage guidelines to prevent disputes and improve consumer satisfaction.

Dr. Sidhu recognized the significance of Japan’s experiences for Pakistan’s growing e-commerce sector, particularly with increased cross-border online purchasing, which introduces challenges in ensuring product legitimacy and consumer safety. Dr. Sidhu stressed the necessity for Pakistan to proactively tackle these potential risks.

Inspired by the CAA of Japan, Dr. Sidhu suggested that the CCP will recommend a centralized law for product safety to the appropriate Ministry, further strengthening Pakistan’s consumer protection framework.

Future Collaboration

Both delegations decided to form a Joint Research Group, including specialists from both the CCP and CAA Japan, to promote ongoing knowledge exchange, focusing particularly on digital market regulations and consumer protection strategies.

The meeting concluded optimistically, establishing the groundwork for enhanced institutional collaboration between the CAA of Japan and the CCP. This collaboration seeks to improve consumer rights protection and facilitate research sharing on the creation of a digital market legal framework.