Consumer Protection in industrialized economies
San Jose, Costa Rica, March 13-15, 2007
Overview of the Course
Prof. Dr. Roger Zäch, University of Zurich
Vice-President Swiss Competition Commission
Acknowledgment
I thank lic.iur. Lukas Schaub, scientific collaborator, Swiss Competition Commission, for
conceiving and
Overview of the course (1)
I. General Introduction
II. Tasks of the state in all economic systems
1. Avoiding Health and Security (accident) risks caused by
dangerous products an services
a) Preventing the production and consumption of dangerous
products and services through production rules
Health protection and security within consumer law‘s scope
b) Compensation in cases of damages through liability rules
Product liability – Liability for defective products
2. Information and Education
Folie 2 Prof. Roger Zäch - Overview
Overview of the course (2)
III. Tasks of the state in market economies
1. Safeguarding a minimal balance of power between „offer“ and
„demand“, e.g. between producers/dealers and consumers in the
market place through Competition Law.
Competition law as instrument to prevent market power and the abuse of it –
also in the interest of consumers
2. Administrative price fixing in case of lack of competition in the
market, a Swiss speciality
Administrative price fixing where competition is not working – The Swiss Price
Controller as means of consumer protection
3. Protecting consumers from unfair competition and advertising
practices through legislation
Consumer protection principles – unfair competition law, law against
misleading and unfair comparative advertising
Folie 3 Prof. Roger Zäch - Overview
Overview of the course (3)
4. Avoding „financial“ damages caused by dangerous service
products, e.g. insurance and loans on consumption
a) Preventive measures: „Dangerous“ businesses must fulfill
specific requirements before getting the permit to enter the
market
Dangerous service products e.g. insurance and banking
b) Compensation in case of damages based on (contractual)
liability rules
Folie 4 Prof. Roger Zäch - Overview
Overview of the course (4)
5. Avoiding financial damages caused by unfair or abusive contracts
due to uneven bargaining power
Preventive measures: Legislation on:
• General Terms and Condition (GTC)
General Terms and Conditions (GTC) – benefits, dangers and strategies
• Contracting outside commercial establishments
– unordered mail
Dispatch of products without prior request
– at home
– E-commerce
• Regulations for risky contracts e.g.
– Consumer credit
Consumer credit – necessary but dangerous
– Package travel
Package travel – consumer protection
Folie 5 Prof. Roger Zäch - Overview
Overview of the course (5)
IV. Judicial Protection in all economic systems
1. Private enforcement: simple and quick
2. Administrative enforcement
3. Criminal enforcement
4. Endowing Consumer organizations with the right to sue
V. Advocating Consumer Interest in the legislative process
1. Right to form Consumer associations and right to lobby for
consumer interest
2. Financial support from the state for consumer associations
3. Consultative Consumer Commission for the government
VI. To conclude:
1. Global Competition and South American Countries – Problems to discuss
2. Economic Theory and Competition Law: the so called more economic
approach
Folie 6 Prof. Roger Zäch - Overview