Consumer protection in GCC remains top priority

GCC economies have been growing fast, incomes have been rising and new infrastructure projects are under way. The business sector is flourishing, and e-commerce industry and the wider sharing economy are gaining momentum. According to a recent study conducted by management consultancy Strategy& these developments will directly impact efforts required to protect consumers against fraud, and consequently should be addressed. The rapid development of the GCC has led to significant improvements in infrastructure, rising income for citizens, and higher levels of international tourism. All of these have increased the need for more sophisticated consumer protection. Rising incomes for example have led to a dramatic increase in consumption. Additionally, rapid growth in tourism (both inbound and outbound) has exposed the GCC to markets abroad with more sophisticated consumer safeguard regulations. All of these factors are ultimately putting pressure on GCC governments to offer more robust and effective consumer protection solutions. Commenting on the need for increased consumer protection in the GCC, Chucrallah Haddad, partner with Strategy&, said, “Progress will depend on the governments’ attention to a few key areas. GCC governments need to look at the institutions currently responsible for consumer protection and think about how their roles need to evolve. They must have a clear understanding of when to use prevention measures versus enforcement measures by defining a clear enforcement philosophy, and make sure to involve better-informed consumers and the community in an effort to safeguard their own interests. GCC countries should also take a long-term view of consumer protection, recognising that the challenges of tomorrow will be different from today.” According to the study by Strategy&, there are six tenets of consumer protection in the GCC: 1. Creating regulations that are in equal parts comprehensive and flexible. Detailed laws are the building blocks of a well-established consumer protection landscape; 2. Put in place the right institutions and operating model. An empowered consumer protection body is required to manage core consumer protection functions such as consumer handling, research and inspection; 3. Define an enforcement philosophy; 4. Engage with the consumer and the community; 5. Go beyond state borders. GCC authorities should look to outline a clear road map and develop practical mechanisms to strengthen collaboration and share knowledge across borders; 6. Take the long term view and continually evolve. It is important to keep improving the wider consumer protection ecosystem through leveraging research. Research is a vital part of understanding main threats for consumers and identifying possible remedies.