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Day: April 7, 2020

Blog Post

Force Majeure during the COVID-19 Pandemic

By Linda Kavuka, Trade Policy Fellow, Consumer Choice Center

Blog Post

Confirmed cases of the novel coronavirus (COVID-19), which first appeared in China at the end of last year, are currently over 800,000 as of April 1st 2020. What was initially seen as a largely China-centric shock has now become a global pandemic. 

Global consequences of the COVID-19 pandemic have included grounding of flights and limited international travel, closure of public markets, issuance of curfews and also lock-down of countries and cities where there has been rapid spread of the virus. Governments have advised employers to allow their staff to work from home, called for closures of schools and banned all social gatherings, including religious meetings. People have been urged to observe very high levels of hygiene and to thoroughly wash hands with soap and water and use sanitizers in the alternative. 

The International business community has not been spared of the said shocks. With the end of the pandemic unclear, the economic impact is expected to be very severe globally. Considering the disruptions to international supply chains that have occurred as a result of the COVID-19 pandemic, it is expected that many players in the International Trade community will be caught up with non-performance of their contractual obligations, and lawsuits shall follow. Does the COVID-19 pandemic qualify for the operation of the Force Majeure clause as a relief to affected parties?

Ordinarily, when entities and individuals trade with each other, they sign contracts that legally bind them to their agreements. The contracts list obligations of the parties and also circumstances that would call for the termination or suspension of the said obligations. One of the circumstances that could excuse non-performance or termination of a contract is legally known as “Force Majeure”, one of the standard clauses of a contract. 

Article 7.1.7 (1) of the UNIDROIT Principles defines Force Majeure as follows:

“Non-performance by a party is excused if that party proves that the non-performance was due to an impediment beyond its control and that it could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences.”

If the said Impediment is temporary the defaulting party shall be excused for a reasonable period of time. The Force Majeure Clause only takes effect where the defaulting party gives notice to the other party explaining the impediment and the impact it has had on the expected performance, otherwise the defaulting party shall be liable for damages. In order for a party to rely on the Force Majeure defense, the clause must be included in their contract contract and the impediment causing non-performance of their obligation must be expressly stated.

An example of a Force Majeure clause in a Sale Contract reads as follows:

“Either party shall be relieved of all responsibility for any failure or delay for the carrying out of their obligations hereunder due to product discontinuation, manufacturer price changes, supplier price changes, changing market conditions, strikes, riots, civil unrest or an act of civil or military authority, combinations or restrictions of work, Act of God, war, insurrection, fire not caused by its act or omission or that of its servants or invitees on the property, tempest, industrial disputes, an act of a public enemy, a boycott, embargoes, failure of communications systems unavoidable accident or any other circumstances beyond its reasonable control whether or not the same be ejusedem generis with those above.”

Since Pandemics with such severe impacts are uncommon they are usually not expressly provided for in contracts. Events from the past month to date are a clear indication of a situation that is beyond control, and may lead to involuntary breach of contract by parties who fail to meet their contractual obligations. Parties that do not have Force Majeure clauses and are unable to meet their obligations can plead Frustration of Contract which defense does not require prior inclusion in their contracts.

Medical professionals around the world are working tirelessly to find a cure for the COVID-19 virus and are currently testing some combinations of medication. A fact is that we cannot forecast when things will be back to normal and the International trading markets restored. While policy focus by most affected governments has been to provide safety nets for their economies with measures such as food donations and grants to needy families, tax reductions and pay cuts for some officials, unfortunately businesses have been left to think fast and make tough decisions to remain afloat.

Time is of the essence for those who wish to rely on the Force Majeure and Frustration of contract defenses for their non-performance and a reminder that ignorance of the law is not a defense as a rule of thumb. Players of the International trade market and policy makers will all have to act in good faith for the sake of survival as we all anticipate the end of the pandemic, after-which a whole new world order shall begin.

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Rokok Elektronik, Kesehatan, dan Kebebasan Individu

by Haikal Kurniawan

Rokok elektronik, atau yang akrab disebut vape, saat ini merupakan produk yang sedang mendunia, termasuk di tanah air. Di Indonesia sendiri, menurut laporan dari CNBC Indonesia, ada sekitar 1 juta pengguna vape pada tahun 2019 lalu (CNBC Indonesia, 2019).

Bisnis rokok elektronik di Indonesia juga mampu meraup pendapatan yang besar, hingga 200 miliar sampai 300 miliar setiap bulannya (Mix.co.id). Omset yang besar ini juga berdampak pada cukai yang tinggi, hingga 700 miliar rupiah per November 2019 (Waspada.co.id, 2019).

Banyaknya pengguna vape di Indonesia ini menimbulkan kontroversi. Tidak sedikit pihak yang menentang produk tersebut, dan meminta kepada pemerintah untuk segera melarang peredaran vape. Salah satu penentangan tersebut datang dari Komisi Nasional (Komnas) Pengendalian Tembakau.

Melalui manager komunikasinya, Nina Samidi, Komnas Pengendalian Tembakau menghimbau kepada pemerintah untuk menarik seluruh produk rokok elektronik yang beredar di pasar Indonesia. Selain itu, Badan Pengawas Obat dan Makanan (BPOM) menyatakan bahwa vape merupakan produk yang berbahaya. (Media Indonesia, 2019).

Namun, apakah anggapan ini merupakan sesuatu yang tepat? Mari kita lihat faktanya terlebih dahulu.

Berdasarkan laporan dari organisasi Asosiasi Paru-Paru Amerika (American Lung Association), rokok konvensional, ketika dibakar, menghasilkan lebih dari 7.000 zat kimia. Dari 7.000 zat kimia tersebut, 69 diantaranya telah diidentifikasi sebagai penyebab kanker (American Lung Association, 2019).

Sementara, dua bahan yang paling umum yang digunakan oleh dalam bahan cair vape adalah propylene glycol (PG) dan vegetable glycerin (VG), yang digunakan untuk membuat uap dan perasa. Bahan-bahan ini merupakan sesuatu yang terbukti aman dan merupakan bahan yang umum digunakan di berbagai produk makanan dan minuman seperti soda, es krim, dan produk-produk berbahan dasar susu (Food and Drugs Administration, 2019).

Organisasi pemerhati kesehatan asal Britania Raya misalnya, Public Health England, pada tahun 2015 menyatakan bahwa rokok elektronik 95% lebih aman dibandingkan dengan rokok tembakau konvensional (Public Health England, 2015).  Hal yang sama juga dinyatakan oleh Kementerian Kesehatan New Zealand dan Kanada.

Keduanya menyatakan bahwa rokok elektronik jauh lebih aman daripada rokok konvensional, dan merupakan salah satu solusi terbaik untuk membantu perokok untuk berhenti merokok. Kementerian Kesehatan Kanada misalnya, menyatakan bahwa rokok elektronik jauh lebih aman daripada rokok tembakau konvensional, karena tidak melalui proses pembakaran yang mengeluarkan zat-zat berbahaya yang membuat kanker (Health Canada, 2018).

Lantas bagaimana dengan berbagai kasus kematian yang terjadi di berbagai tempat karena penggunaan vape. Bukankah hal tersebut merupakan bukti bahwa rokok elektronik merupakan sesuatu yang berbahaya?

Di Amerika Serikat misalnya, per Februari 2020, lembaga kesehatan Pemerintah Amerika, Centers for Disease Control and Prevention (CDC) mencatat setidaknya ada 2.800 kasus orang-orang yang dibawa ke rumah sakit karena penggunaan rokok elektronik (CDC, 2020). Adanya kasus tersebut juga merupakan penyebab utama Presiden Donald Trump mengeluarkan peraturan pelarangan produk vape yang memiliki rasa selain menthol dan original, pada bulan Januari 2020 lalu.

Originally published here.

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Ontario cuts essential workplaces list to limit COVID-19 spread

The Ontario government ordered more workplaces closed — including bricks-and-mortar cannabis shops and some industrial construction sites — in a stepped up campaign to limit the spread of the coronavirus.

“We can’t stop now,” Premier Doug Ford said Friday. “There’s 1,600 people out there who need us to do everything we can in the next 30 days to help save them.”

Public health COVID-19 models show that many people could die by the end of the month unless more stringent social distancing measures are taken.

A new list of businesses were ordered to arrange for staff to work remotely or shutter their operations by 11:59 p.m. Saturday.

“All industrial construction except critical industrial projects will stop,” Ford said. “Only necessary infrastructure projects like hospitals and transporation will continue.”

While no new residential construction projects will be allowed to break ground, those already under construction will continue.

Ford said the vast majority of Ontario workers have now been told to stay home.

“We’ve had to shut down most of our economy,” he said.

Businesses that remain open include those that supply essential services, supermarkets, restaurants for take-out or delivery, alcohol stores like the LCBO, pharmacies, gas stations, funeral services, vets for urgent care only, hotels and cheque cashing services.

Insurance, telecommunications, transportation and maintenance services can also continue.

Stores that sell hardware, vehicle parts, pet and animal supplies, office goods and computer products will only be allowed to provide alternative methods of sale such as curb side pick-up or delivery.

David Clement, of the Consumer Choice Center (CCC), said it was a shame the Ford government is shutting down cannabis retailers.

“This move does nothing but embolden the black market, who will obviously continue to meet consumer demand,” he said in a statement.

The online option for buying from the Ontario Cannabis Store remains available.

Ford said he’s acting on the advice of his Chief Medical Officer of Health in shutting down more sectors of the economy.

However, he said people will still need to access their medication and food.

“As soon as you take that food off the shelves and close down retail you get … anarchy,” Ford said. “You get civil disobedience — people are going to do what they have to do to feed their family — and we don’t want to go to that point.”

Originally published here.

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

New York, Texas Ease Alcohol Delivery Law Amid COVID-19 Crisis

MOST STATES DON’T ALLOW CONSUMERS TO PURCHASE ALCOHOL ONLINE FOR DELIVERY.

Around the country, law against alcohol delivery are strict, which presents an interesting situation given the mass social isolation from the COVID-19 outbreak. 

According to Consumer Choice Center, Arizona, Florida, Hawaii, Nebraska, and New Hampshire are the only states that allow consumers to buy alcohol online and have it delivered to their home. Alabama, Oklahoma, and Utah ban all alcohol shipments entirely. All of the other states fall in between in terms of allowing shipments of wine, shipments of alcohol after an in-store purchase, and shipments from wineries in the state. 

“Now is as good a time as any to consider changing these laws and empowering consumers to receive alcohol at home just like any other product,” said Yaël Ossowski, Consumer Choice Center deputy director, in a post on the organization’s website. 

In New York, which now leads the country in the amount of COVID-19 cases, the State Liquor Authority announced a change in the law in which restaurants and bars can sell wine and liquor for takeout or delivery, but the consumer must also purchase food. The change was meant to support restaurants that are facing declining sales due to the statewide closure of dining rooms. Restaurants and bars in New York were already allowed to sell beer for takeout or delivery. 

Following New York’s lead, Gov. Greg Abbott announced Wednesday a waiver to allow restaurants and bars to deliver beer, wine, and mixed drinks with the purchase of food. He also told the Texas Alcoholic Beverage Commission to allow businesses to sell back unopened product back to manufacturers, wholesalers, and retailers. 

In Ohio, no laws have changed, but restaurants and bars have been allowed to return unopened high proof liquor products bought within the past 30 days. The same is true for businesses that had to cancel events between March 12 and April 6. If the gathering ban in Ohio continues past April 6, then Ohio’s regulatory body will continue to allow the return of unopened product. 

More than half of states have closed dining areas and have limited restaurants and bars to takeout and delivery. Earlier in the week, President Donald Trump recommended that people do not gather in groups of more than 10. Meanwhile restaurants nationwide have seen sales plunge, and some foodservice organizations have asked the administration for financial relief. 

Originally published here.

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

Il Sistema Lombardo Funziona

Nelle ultime settimane la gestione dell’emergenza in Lombardia è stata oggetto di grande dibattito. Le critiche maggiori sono state rivolte al sistema sanitario regionale. Gli aspetti problematici potrebbero, però, risiedere altrove e le cause di una gestione non ottimale andrebbero ricercate più a fondo.

PERCHÈ È IMPORTANTE?   Una polemica oramai quotidiana riguarda il ruolo della sanità privata, soprattutto in Lombardia, e di come il sistema di cooperazione tra strutture pubbliche e private avrebbe fallito. Proviamo a capire se veramente è il sistema sanitario lombardo a non aver funzionato oppure qualcosa d’altro.

LA RIFORMA   La sanità privata è figlia di una riforma voluta dall’allora maggioranza di centrodestra guidata dal Presidente Roberto Formigoni, che pose erogatori privati e pubblici sullo stesso piano, purché il sistema rimanesse universale (tutti i cittadini hanno accesso alle cure nello stesso modo) e solidale (le prestazioni sono pagate dalla fiscalità generale e non direttamente dal singolo paziente).

Per il paziente nulla cambia, ci si può rivolgere agli ospedali pubblici o privati senza distinzione. Al contrario, secondo i dati ANGES – Regione Lombardia del 2018, gli ospedali lombardi sono parimenti nei primi 10 ospedali italiani, come per esempio il San Raffaele di Milano, il San Matteo di Pavia, l’Istituto dei Tumori di Milano e il Papa Giovanni XXIII di Bergamo.

INVESTIMENTI E RICERCA   Inoltre andrebbe considerato che questa competizione tra pubblico e privato ha fatto sì che la spesa sanitaria privata e pubblica dedicata alla ricerca e alla cura della persona crescesse di quasi il 28% annuo (dati UniBocconi), creando centri di eccellenza riconosciuti in tutto il mondo, sia privati sia pubblici, come ad esempio gli Spedali Civili di Brescia, il Gruppo San Donato, Humanitas e tanti altri.

Questo è un tempo di emergenza, come dimostrano le parole di medici ed operatori sanitari che parlano di una vera e propria guerra, guerra nella quale combattono a nostra difesa sia operatori privati sia operatori pubblici.

Gli operatori privati si sono impegnati a mettere a disposizione il proprio personale sanitario nelle strutture pubbliche, nonché le loro stesse strutture. Regione Lombardia ha riorganizzato la rete ospedaliera creando hub specializzati divisi per patologia e prestazione sanitaria, al fine di liberare posti per pazienti COVID-19.

IL PRIVATO FUNZIONA?   Se tutto questo è stato possibile lo si deve anche alla capacità della sanità privata di riorganizzarsi in tempi brevissimi per poter ospitare il maggior numero di pazienti provenienti dalle strutture pubbliche sommerse dall’ondata di pazienti affetti da Coronavirus, spesso fatto senza attingere a risorse pubbliche, come dimostra il nuovo reparto di terapia intensiva realizzato con donazioni private al San Raffaele di Milano. Ovviamente, la sanità privata è in prima linea anche nella gestione diretta di pazienti COVID lombardi, con circa il 30% di quest’ultimi ospitato presso strutture private.

COME LA COREA DEL SUD   Se il sistema è andato in tilt non è per colpa della competizione pubblico privato, la quale ha fatto sì che i lombardi potessero ancora usufruire di cure ospedaliere di qualità, grazie alla maggiore flessibilità della quale l’erogatore privato è portatore. Ad ulteriore prova dell’assoluta bontà dell’apporto privato nella gestione della crisi dovuta al Coronavirus, andrebbe ricordato che il sistema sud-coreano, portato da molti come modello, è costituto per la grande parte da operatori sanitari privati, e dove la ripartizione della spesa sanitaria tra pubblico e privato è quasi paritetica.

Purtroppo, restano le migliaia di morti e quindi la necessità di porsi una domanda: perché la politica lombarda non ha attuato una strategia di contenimento e di prevenzione come quella veneta, fondata su un intervento di test preventivi, che è risultata più efficace? Se finora non lo si è attuato, perché, alla luce degli evidenti risultati, ora non si procede in questa direzione?

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

5 ways to brighten your quarantine

It’s my 25th day of quarantine, and while I had very ambitious plans at the beginning, for a week or so I could barely switch my attention to anything not related to the pandemic. 

We’ve all been there: even toilet paper memes have had a touch of hysteria to them. After some time, following all the news makes you so intoxicated that you naturally forget about the small things such as cooking, exercising, reading, self-learning, and quality time with loved ones. The things that can actually help us go through this quarantine and preserve our mental health. 

Deciding to drastically limit my news intake was a life-changer. Here I’m sharing a few books and online-courses that have brightened my quarantine. 

1. Stefan Zweig, The World of Yesterday

No book ever written is likely as relevant today as Zweig’s The World of Yesterday. A literary masterpiece that emphasises the fragility of multiculturalism in Europe, a celebration of peace and a rare historical memoir of the world that is long gone, Europe before WWI. 

A few weeks ago, I decided to re-read some of its chapters, in particular, the one where Zweig describes the period of security in Europe at the end of the 19th century. This particular passage made me experience a sort of deja vu:

“The people of the time scornfully looked down on earlier epochs with their wars, famines and revolutions, as periods, when mankind had not yet come of age, and was insufficiently enlightened. Now, however, it was a mere matter of decades before they finally saw an end to evil and violence, and in those days this faith is uninterrupted, inexorable progress truly had the force of a religion.”

There is, of course, a lot more to this book. My colleague Yael Ossowski wrote an excellent and detailed review to capture your attention:

The themes of Zweig’s stories always yield hope. Universalism was key, personal liberty a calling, and culture was the grand unifier. Authority was seen to be absurd and zealous. Cosmopolitanism was both an achievable and desirable goal.

He crisscrossed the European continent meeting fellow artists, philosophers, and thinkers who would come to shape western civilization for decades to come.

It was in the cafes, theatres, and streetcars of major cities that he fell in love with the dream of Europe, a majestic collection of cultures and peoples wed together by history but bonded by a yearning for freedom.

2. The Science of Well-Being, Yale University on Coursera

The Science of Well-Being is the most popular Yale’s course of all time. At first, this fact makes you raise an eyebrow – because obviously we would all expect to see some economics or IT course topping the charts – but it turns out that “What is happiness?” remains one of the most important questions of our time.

The course’s instructor, professor of psychology Laurie Santos, reveals misconceptions about happiness, annoying features of the mind that lead us to think the way we do, and the research that can help us change. Along with various lectures and interviews, the course offers a wide array of tools to practice habits such as meditation and physical exercise. What can be a better motivation to leave a couch and put the phone aside for some time than a promise of happiness? 🙂

3. Easy-peasy apple tart!

For those of us who lack enthusiasm in the kitchen but desperately miss boulangeries and patisseries, here is a very quick apple tart recipe – it takes less than 15 minutes (plus 40 minutes in the oven).

  • Preheat the oven to 180C
  • Chop apples and add some cinnamon (if you like it!)
  • Make the pastry: beat eggs, add sugar and begin whipping it becomes foamy. Then add some flour – it depends on how many eggs you use – and mix it all together until the dough becomes homogeneous. 
  • Add apples to the dough
  • Grease your baking pan and put the dough into it
  • Bake in the oven for about 40-45 mins

Et voila!

4. FitOn – Free Fitness App

Workouts are a cool way not only to improve our health but also, especially in these times, to distract ourselves from the temptation to kill time with eating. Now that most of us are only allowed to go to supermarkets, the possibility of coming out of this quarantine with a few additional kilograms is very high. As delicious as those home-made snacks are, we should resist! And the FitOn app offers free personalised workouts that can come in handy.

For those who’ve always wanted to take up yoga, Waking Up app is a perfect place to start.

5. Follow Consumer Choice Center

Our team has been working hard to continue publishing on the most heated consumer issues. Next time you feel tempted to check the news, you’re much better go on our website and get an insight into our four key policy areas: science and health, consumer goods and lifestyle regulations, digital and mobility.

It’s easy to slide into pessimism with the pandemic looming in the background, but there is nothing most of us can do about it aside from staying at home, and there are many ways we can use this opportunity to the fullest. When we look back at 2020, we will see there were plenty of reasons to be excited about the future.

In the words of the New York Times’ Bret Stephens, “Not everything was bleak. Adults read more books, paid closer attention to their spouses and children, called their ageing parents more often, made more careful choices with their money, thought more deeply about what they really wanted in life. In time, that kind of spiritual deepening will surely pay its own dividends.”

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. The main policy areas we focus on are digital, mobility, lifestyle & consumer goods, and health & science.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org

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