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Month: April 2023

Accelerate the implementation of the MACPC amendments to enhance the rights of aviation consumers

The Consumer Choice Center (CCC) urges the Malaysian Aviation Commission (Mavcom) to immediately implement the amendments to the Malaysian Consumer Protection Code (MACPC) which should be implemented in the first quarter of 2023 to improve the rights of aviation users.

Malaysian Consumer Choice Center representative, Tarmizi Anuwar said: “Issues involving
consumers such as flight delays and cancellations, reimbursement methods and overdue
periods, passenger rights and voucher redemption have become more serious since the
outbreak of Covid-19. Although the pandemic has ended, this problem is still recurring and
requires immediate action by Mavcom to improve the rights of aviation consumers.”

In 2022 alone, Mavcom has received a total of 8,789 cases of complaints from customers of
which the three highest complaints involve refunds, lost, damaged and delayed baggage and
flight cancellations. This is the highest complaint case since it was first introduced in 2016.

Tarmizi also said that the delay in the implementation of the MACPC amendment may cause
the number of customer complaints and problems for this year to increase due to the
development of international and domestic passengers as well as the increase in aircraft
operations including the resumption of various flight routes after the pandemic.

“Airline consumers in Malaysia have been going through this problem for years and changes
can’t be waited for any longer. It is important to ensure that the amendment is able to regulate
airlines to comply with service quality and safety standards to protect consumers. With the increase in international and domestic flight operations in Malaysia, this amendment to the MACPC cannot be missed because there could be more technical problems.”

“When a flight is canceled, consumers should have the option of receiving either a full refund or
a travel voucher for rebooking a new flight in the future. While the travel voucher should not be
limited to a certain trip or destination but should be based on the value of the trip or destination.
This will give consumers a better choice to make a decision compared to airlines that make
choices on behalf of consumers,” said Tarmizi.

Regarding the refund period for tickets that have a refund value due to the consumer not being
able to board the flight due to the delay or cancellation of the flight by the airline company, it
should be shortened from 30 days to 10 days.

There are many complaints about delays by airlines and the difficulties for consumers to get
refunds, even if the mistake was not on their part. In order to ensure that users are not burdened
by unwanted situations, the repayment period should be shortened to 10 days. This is a
reasonable amount of time to ensure that airlines are responsible for settling user refund claims
when a flight is canceled,” he concluded.

CCC’s comment on the European Union’s Consultation on the Future of Electronic Communications Sector and Its Infrastructure

On April 26, 2023, the Consumer Choice Center submitted comments to the European Commission’s exploratory consultation on the future of the electronic communications sector. This includes comments and thoughts on the proposed “Fair Share” proposal circulated by some EU Member States.

The comments can be read here in full here.

[EU] Public consultation on The future of the electronic communications sector and its infrastructure

The European Commission launched the exploratory consultation on the vision for the
future of the connectivity sector and of the connectivity infrastructure.

You can read the response submitted by the Consumer Choice Center below.

Arkansas Youth Deserve Better Than Gatekeeping of Social Apps

Dear State Representatives and Senators,

As a consumer advocacy group engaged on digital issues, privacy, and defending technological innovation, representing both our members and consumers, we implore you to consider another path when it comes to protecting Arkansas youth online, specifically SB396, which Gov. Sanders signed into law this month after passing both of your respective chambers.

In its current form, once it comes into force in September, the law would be the most draconian age-verification process for online platforms in the nation, requiring all users under 18 who want to use specific social media platforms to provide exhaustive proof of their age and to seek parental consent. 

It would also require select social media apps to collect sensitive pesonal information that we do not believe should not ever be in the possession of any private entities by government mandate. This is ripe for future abuse or data security issues that could have real harm for young people beginning their life online. It will be a pandora’s box of epic proportion.

What’s more, the law makes line-item exceptions to popular social apps like YouTube, Truth Social, and others, which have all the same features as other apps, demonstrating the unequal regulatory position sought by the State of Arkansas, choosing winners and loses, which we would not tolerate in any other industry. 

A solution respecting parental rights, defending American innovation, and allowing online consumers and their parents to choose their apps would not only be more adequate, but would allow the best private sector solutions to emerge, rather than by state decree.

Parents should not have their own authority and decision-making usurped by state law or institutions, no matter how noble the cause. Rather than risk gatekeeping an entire generation from enjoying social connections online, we implore you to provide another solution that works for parents, young online consumers, and the American tech innovators who provide value for each and every one of us in our own lives.

In a free country with a vibrant competitive marketplace, we will not have a competitive global edge if an entire generation is kept from the keyboard and online global village.

Arkansas is inches away from locking millions of young people out of social media

Little Rock, AR – In the name of “online youth safety,” the Arkansas State Legislature this week passed the most draconian age-verification bill for online platforms in the nation, which would require all users under 18 who want to use specific social media platforms to provide exhaustive proof of their age and to seek parental consent.

If signed by Gov. Sanders, SB396 would create a labyrinth of weaponized policies that prevent teens from engaging with friends and family online, would burden future social media upstarts, and would lead to worse precedents that put free speech on the Internet at risk, as well as leading to significant hacker exploits.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, responds:

“Not only does this bill make it more difficult for young people to begin to use the Internet and all the benefits it provides, but it also enshrines into law the idea that governments should pick which social media networks young people can or cannot use rather than parents.

“This bill is paternalistic, sets a terrible precedent for online speech and access, and amounts to nothing more than heavy-handed government control of who is allowed online and when.

“If Gov. Sanders signs this bill, she is aligning with the notion that government should be the final arbiter of whether young people access the Internet at all, and that parents should have diminished say in their kids’ digital lives. That is fundamentally wrong,” said Ossowski.

“The legislation has an exhaustive list of services exempted from these rules — from YouTube to Twitch, Truth Social, and others — demonstrating that instead of trying to “protect kids” writ large, this is nothing more than legislative retribution against certain social media companies, and has more to do with politics than positive discussion on online safety.

“What’s more, by requiring social media websites to collect sensitive photos, IDs, and documentation of Arkansas minors, they are mandating enormous privacy risks that will be a cyberhacker’s dream.

“We as a society should trust that parents have the ultimate right to decide whether or not their children access certain websites or services, not government officials sitting in the state capital,” said Ossowski.

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The Consumer Choice Center is an independent, non-partisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life.

We champion smart policies that are fit for growth, promote lifestyle choice, and embrace tech innovation for tens of thousands of our members and society-at-large, using research and educational outreach to policymakers and the broader public. Learn more at consumerchoicecenter.org.

Innovation in agriculture can actually drive climate protection

The challenge of food systems around the globe is to address the climate impact of agriculture. Farming accounts for about 11 percent of all greenhouse gas emissions in the United States. Arguably, we could just “stop farming” — as suggested by a recent viral video of an environmental protester on Twitter — but as long as we need to eat to get through the day, our policy solutions need to be more sophisticated than that.

As the federal government moves to divest from fossil fuels in transportation or help upgrade residential homes to improve energy efficiency, which contributions can agriculture realistically make?

House Democrats have expressed the desire to make the 2023 Farm Bill into a climate bill, focusing on the protection of forests, research funding in the effects of climate change, as well as conservation programs for wildlife and soil conservation. Those protections are vital, and many of them have bipartisan support in the farm bill, yet arguably the most effective way in which the U.S. reduces greenhouse gas emissions has been its improvement in efficiency.

Between 1947 and 2017, U.S. total factor productivity growth in agriculture tripled, even though farmers are using less land and personnel. There are a variety of reasons for this, including modern farming equipment, crop protection chemicals, as well as crop genetics. Take no-till farming: reducing tillage means farmers are releasing less carbon dioxide into the atmosphere — a practice made possible by the commercialization of herbicides.

Recently, the USDA hosted the Agricultural Outlook Forum, and as someone who covers food and trade policies in Europe, the mere difference between the approach in Brussels and the one in Washington D.C is remarkable. While Europe is entrenched in a battle over whether genetic engineering in farming should be made legal after over two decades of debate, USDA puts biotechnology front and center in the fight against climate change. USDA’s Agricultural Innovation Agenda emphasizes how new technology enables sustainability and growth, contrary to the European perspective, which seeks to degrow the sector.

In Europe, the “Farm to Fork” strategy of the European Commission hangs in the balance. In 2020, the EU executive announced ambitious plans that would slash pesticides use, increase organic farming, as well as reduce fertilizers and farmland, but the COVID-19 pandemic and the war in Ukraine have caused concern. The strategy and its accompanying legislation keep facing harsh criticism from EU governments, members of the European Parliament, and farmer representatives. Last summer, Dutch farmers protested the government in The Hague for disregarding the needs of livestock farmers in the fight against nitrous oxide emissions. The Dutch government plans on buying farmers out of their profession to cut those emissions, making farmers seem as a problem as opposed to part of the solution. The European model of solving climate change by reducing production has come with an array of perverse effects: if the Netherlands reduces its livestock production capacity but not its demands, it will simply import meat or dairy products from neighboring EU members. Or take the example of Amsterdam Schiphol Airport, which buys neighboring farms to get access to more emissions permits. The unfortunate reality appears to be that Europe is focused on meeting targets on paper without a long-term vision of ensuring social and environmental sustainability at the same time.

The Farm to Fork strategy is stuck in the mud. Eastern European nations feel unjustly targeted in the pesticide reduction ambitions; meanwhile, Italy and France argue over a new mandatory nutrition label, which Rome believes discriminates against the Mediterranean diet. Even the EU’s own farm commissioner Janusz Wojciechowski has voiced criticism against parts of the European Green Deal. Late last year, Wojciechowski threatened to block Dutch farm subsidies to bring attention to the unfair rollout of green policies between East and West.

The different approaches between Europe and the United States have been an issue for a transatlantic trade agreement for many years. Current U.S. Secretary of Agriculture Tom Vilsack probably knows this best. In 2021, he explained to the European Parliament in a virtual appearance that the differences in how Europe and the United States treat crop protection and genetic engineering are an obstacle to the two blocs’ trading. Vilsack saw the Transatlantic Trade and Investment Partnership (TTIP) fail when he served as agriculture secretary under the Obama administration. Europe was unable to agree on the specifics of allowing American imports into its tightly regulated food market, and the subsequent four years under the Trump administration killed all hopes for talks being renewed. 

That said, the Biden White House also knows that the tide is turning in Europe. Leaders in Brussels increasingly regret having killed transatlantic trade through its internal disputes, and the EU’s executive is increasingly sympathetic to crop genetics, which caused so much of the trade dispute during TTIP negotiations.

Climate change doesn’t stop at borders, nor should the ambition to improve environmental sustainability. Transatlantic trade, sharing best practices and banking on new technologies are the keys to improving the safety, availability and affordability of food.

Originally published here

EPA Guidelines on PFAS Are Lacking

The Environmental Protection Agency in mid-March announced its first set of federal limits on the presence of per- and polyfluoroalkyl substances (PFAS) in drinking water. Recent headlines show why the EPA is taking a clean drinking water approach to how PFAS is regulated in the United States.

That said, the EPA’s proposed limits, which are essentially near zero, no more than 4 parts per trillion for both perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS), are a radical departure from the limits established by other health agencies and are at odds with the Food and Drug Administration’s assessment on PFAS exposure.

Take, for example, how the EPA’s new limits compare to New York state, the World Health Organization, or the Canadian government, none known for being reckless regarding health guidelines and precautions. New York’s guidelines for PFAS exposure and drinking water, at 10 parts per trillion, is 2.5 times higher than the EPA’s new limit. The World Health Organization’s proposed limit is 25 times higher than the EPA at 100 parts per trillion. At the same time, Canada’s guidelines are 50 times higher for PFOA and 150 times higher for PFOS.

The huge variations in exposure guidelines suggest there is much work to be done when it comes to what the appropriate thresholds are to ensure that drinking water is safe. And unfortunately, that confusion only worsens when you factor in how the FDA perceives PFAS exposure and its associated risks.

The FDA, the regulatory body responsible for ensuring that pharmaceuticals and medical devices work and that their health benefits outweigh their known risks, has continuously approved both drugs and devices containing PFAS.

Most don’t know that the medical community relies heavily on PFAS products. Take, for example, medical implants like vascular grafts, stent grafts, surgical meshes, catheter tubes/wire and heart patches. It is estimatedthat 8 percent to 10 percent of Americans have implantable medical devices, many of which rely on PFAS and are approved by the FDA. In fact, the implantable medical devices market, valued at $72.2 billion, is expected to grow significantly as the American population ages.

Drugs containing PFAS, again approved by the FDA, include but are not limited to tachyarrhythmias (flecainide), antidepressants (fluoextine), non-steroidal anti-inflammatories (celecoxib), antibiotics (levofloxacin), rheumatoid arthritis therapeutics (leflunomide), cholesterol-lowering agents (atorvastin) and COVID-19 antivirals such as Paxlovid.

For all those drugs and devices, the notoriously over-cautious FDA has clearly stated that whatever PFAS exposure exists with these products, they are safe to the point where the benefits far outweigh the risks. Simply put, the presence of PFAS for these drugs and devices passes a safety check and a cost-benefit analysis.

This leads to some serious questions regarding how the EPA arrived at its near-zero threshold and why its assessment is at odds with other government agencies, global health bodies and their colleagues at the FDA.

And that doesn’t even address the externalities of hard-line policies on PFAS. The EPA’s guidelines, alongside legislative efforts like the PFAS Action Act, could seriously jeopardize American capacity to produce lifesaving drugs and devices and seriously undercut the United States’ ability to domestically produce semiconductors. These chemicals are vital for the production of semiconductors, predominantly the use of coolant, and if the EPA and Congress continue down this path, consumers will be in a world of trouble.

We know this is a predictable outcome because this is precisely what happened in Europe, where officials in Belgium paused production at a chemical plant in response to the tightening of environmental regulations. Reporting by Business Korea highlighted that semiconductor producers had only 30 to 90 days of coolant inventory left before they would encounter serious production problems. 

For reference, the chip shortage of 2021 cost auto manufacturers $210 billion in lost revenue as cars sat in lots waiting for chips to be installed. Given that these chips are used in computers, smartphones, consumer electronics, appliances and medical equipment, an actual national shortage would be an economic disaster. If any conflict arises in Taiwan, a global producer of semiconductors, the U.S. economy would grind to a halt.

Rather than doing what appears to be guesswork on safe levels of PFAS exposure, the EPA should instead consult its colleagues domestically and abroad, come to a clear consensus on where and when risks may arise, and regulate from there, taking into account the costs and benefits of their policy suggestions.

Originally published here

FTC Blocking Microsoft-Activision Will Worsen Consumers’ Gaming

In many households, the word “PlayStation” has become synonymous with gaming in the same way that we now “Google” things or “call an Uber.”

The same with kiwis.

Did you know they are actually a trademark, and the fruit is actually called Chinese gooseberries?

When brand names overtake the initial descriptions of their product, it usually means that they have a majority share in the market.

Sony’s PlayStation is no exception: with a whopping 68% of the international console market, the Japanese company has had a stronghold for decades.

Microsoft is attempting to diversify the market with its Xbox console by acquiring video game publisher Activision, but the Federal Trade Commission (FTC) has stopped it in its tracks.

This purchase would allow Microsoft to better compete with Sony while giving consumers more choice between devices, including console and PC, which is important since PC gaming plays a significant part in the gaming market.

The FTC claims that the acquisition would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.” Its most principal concern is that it will make “Call of Duty”and other popular games Xbox exclusives.

We already know this isn’t true. Microsoft has already made a dealwith Nintendo and provided an offer to Sony to keep Call of Duty on their platforms.

Exclusive content is everywhere.

Streaming platforms have objectively become the kings of exclusivity, fencing in original content to gain subscribers.

Listening to Joe Rogan’s podcast can only be done on Spotify, while publishers often get paid by console companies like Sony to keep their products off other platforms.

Sometimes, exclusivity sells; sometimes it doesn’t.

When exclusivity becomes frustrating to consumers, they often abandon the products or services in question altogether.

The UK’s competition watchdog already determined that Microsoft-Activision falls within the latter camp. Stating that exclusivity would be loss-making for Microsoft, it wrote that, “The updated analysis now shows that it would not be commercially beneficial to Microsoft to make CoD exclusive to Xbox following the deal, but that Microsoft will instead still have the incentive to continue to make the game available on PlayStation.”

The deals Microsoft has made with other consoles prove it, yet the FTC still refuses to concede this point and back off its hold.

As an analyst at a consumer group dedicated to promoting and protecting competition, this concerns me for a number of reasons. It’s emblematic of regulators and policymakers’ overuse of antitrust law in this new digital age.

Whether it’s suggesting that Amazon.com should not be able to bundle service in its Prime subscription or that Apple shouldn’t be allowed to pre-install FaceTime on its phones, Washington’s use of a big stick to sideswipe competition hurts the marketplace in a number of ways.

It restricts innovation by reducing the options of products and services firms could offer, it allows the government to decide winners and losers in lieu of consumers, and it raises prices through reduced competition and compliance costs.

Free competition enables consumers to decide on the better product with their pocketbooks. As long as market entry rules are fair, regulatory barriers low, and an industry doesn’t benefit from unjust subsidization; the FTC has no reason to intervene.

Originally published here

No good justification for banning nips in Boston

Early in March, Boston city councilor Ricardo Arroyo filed a motion to ban the sale and distribution of  mini bottles of liquor, aka nips.  Arroyo wants Boston to follow the nip ban as adopted in Newton, Chelsea, Falmouth, Wareham and Mashpee.

When asked about the proposal, Arroyo said the small bottles often end up as litter and that by banning these bottles Boston will experience fewer alcohol-related incidents.

But Bostonians must ask themselves: is this a good justification for banning what is essentially a small version of an otherwise legal product? The answer is no. The nip ban is just another encroachment from the nanny state, this time aimed at adult consumers who prefer nips because they are convenient, ultimately punishing drinkers who want small serving sizes.

For public health, there is little evidence to suggest that prohibition of smaller-sized products works, certainly not from a harm reduction angle. If Boston does go down the road of banning nips, consumers will ultimately make one of two choices in response. The first is that they will buy these convenient bottles beyond Boston’s city limits. This is obviously irritating for consumers, and problematic for Boston retailers as this motion tilts the scales against them.

The alternative to buying nips elsewhere is, ironically, buying larger bottles of alcohol. It is hard to see how fewer alcohol-related incidents will arise from a policy that mandates consumers buy bottles of liquor 3 ounces or larger. Imagine trying to curb obesity by mandating that no meal can be less than 800 calories?

By stomping on convenience for consumers, Arroyo’s motion will actually end up nudging drinkers to larger bottles, and the possibility of more consumption and more alcohol-related incidents. This is a lose-lose scenario.

The second major critique of nips is disposal. Because they are small, too many drinkers dispose of them by simply throwing them out on the street. Of course, this is unacceptable. There are laws against littering, and they need to be enforced. But surely the city council can identify a problem that needs to be solved, without deferring to prohibitionist policies? Other options, such as the expansion of trash bins on city streets, or more by-law litter enforcement, should be exhausted before going down the route of a complete ban of a product consumers clearly love.

Those who support the ban highlight that because these bottles are small, they are virtually impossible to recycle. Municipal websites across the state explain that they often fall through the cracks of the sorting machines, and thus should be put in your trash bag as opposed to being recycled.

This is only true using dated machinery and recycling technology. Through chemical depolymerization, the repurposing of the bonds in plastics, virtually all plastic can be recycled. Take for example Alterra Energy in Ohio. Their advanced recycling plant takes in 40-50 tons of hard to recycle plastics (like nips) and transforms them back into the building blocks for new plastic production, extending the life cycle of these hard to recycle plastics indefinitely.

Is Councilor Arroyo trying to reinvent the wheel of prohibition? The prohibition of alcohol 100 years ago failed. The mindset of banning products that were deemed a nuisance caused more harm than good, which is why alcohol was then legalized. The prohibition of cannabis in Massachusetts failed, as well.

Eventually legislators learned that the consequences of criminalizing cannabis were far worse than the harms associated with cannabis use. Prohibition always promises results, but ends up creating a long list of negative second-order effects, many of which are worse than the initial issue of substance use.

Councillor Arroyo’s campaign to treat us all like children when it comes to the purchase of nips is going to have all the success of previous prohibitions. The nip ban motion should be thrown in the trash can, along with your empty nips.

Originally published here

New EU Regs Could Hurt US Farmers

The European Union is carving out the legislative framework for so-called Sustainable Food Systems (SFS). In essence, these new regulations would label and then seek to phase out what Europe considers to be the least sustainable food products.

This measure will hit European producers as much as American exports to the EU.

In a leaked document obtained by Politico Europe, the European Commission states that it intends to fight the perseverance of agricultural inputs (fertilizers and pesticides) and “unsustainable and unhealthy diets” through SFS. The minimum sustainability requirements by the EU would be based on the “do no significant harm principle” (DNSH), including “non-negotiable qualifiers” for both domestic production, exports, and imports.

The bottom line is that the European Union wants to create governing principles on what a healthy and environmentally-friendly diet looks like and makes no secret of the fact that it seeks to ban products that do not adhere to that principle.

The rules of the SFS would set a new precedent for world trade. The EU’s aspirations of slowly moving to an all-but-organic food model while giving out more farm subsidies than the United States do create further trade imbalances.

The U.S. already imports more food from Europe than the reverse, resulting in a trade deficit of $24 billion in 2021. The European Commission is not just thinking of phasing out food products from the United States it deems “unsustainable” but also those foodstuffs that were treated with crop protection tools that are commonplace in the world food market.

Consider this: Europe demands that American farmers do not export goods to Europe that were treated with neonicotinoid insecticides (known as neonics), despite the fact that France had to put a three-year pause on its ban because sugar beet farmers were facing extinction.

The European Commission also adds in its document that land use is a large contributor to biodiversity loss. While that is correct, it conveniently ignores and omits that the American food system is not only more efficient but that its efficiency is also biodiversity-friendly.

When you produce more food with less agricultural and energy inputs, you lower your carbon footprint and allow forestry and wildlife to recover. Europe’s plans to reduce farmland use, cut down on pesticides and fertilizers, as well as a significant subsidy boost for organic agriculture, makes it more dependent on agricultural imports — imports that it somehow also wants to pick and choose from.

The European Economic Area (which comprises the EU and its associated members) has 447 million consumers, representing a significant marketplace for American farmers. However, while America buys European produce and has made continuous attempts at a free trade deal, Europe has wanted to have its cake and eat it too.

Originally published here

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