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Month: September 2023

Consumer Choice Still Best Way to Govern Markets

One of the questions I have been asked through the years I’ve worked at Consumer Choice Center is what it precisely means to defend consumer choice — the foundation on which it is built. One might say the clue is in the name, but consumer choice comes with a set of prerequisites that requires a functioning market economy.

In a nutshell, consumer choice describes the idea that consumers should be able to freely choose to buy a product or service or not to buy it, based solely on their own judgment and predicated on wants and needs they set themselves. Government regulations across the globe negate many aspects of this principle.

For instance, there are regulations that mandate you buy certain services, such as insurance, even though you might feel more comfortable self-insuring or buying the service on a subscription basis.

On the other hand, the government also has a list of products and services you are not allowed to buy and even sets rules for the time and place during which you are allowed to buy them. Examples of these are restrictions on sales times for alcohol, bans on vaping products, or regulations such as Foreign Account Tax Compliance Act (FATCA) that make it impossible for many American expats to access bank accounts abroad.

The enemy of consumer choice is most often government regulation, but that does not mean that all regulatory means are automatically contrary to consumer choice. Substances that could be harmful to minors should be inaccessible to them. Also, in cases of fraudulent promises by producers or harm caused through faulty products, consumers should be able to seek redress through the courts.

A common rebuke to these principles is that even though an open market exists, consumers don’t have access to a variety of service providers. This often comes from a misunderstanding of the rules that currently govern the marketplace. In the health insurance market or banking sector, the absence of a sufficient number of service providers comes from heavy-handed market-entry barriers that prevent entrepreneurs from accessing the market.

Or think of ride-sharing: while Uber or Lyft disrupted the taxi market, we are unfortunately falling back into the trap of taxi lobbies in those cities that aggressively try to regulate away the sharing economy. The misunderstanding does not necessarily lie with the influence of the government over market openness, but also over what constitutes excessive market concentration.

Take the example of Amazon, currently targeted by the FTC because it presumably consolidates and offers too many different products and services through its Amazon Prime bundle. Despite its successes, Amazon is far from representing a monopoly on the marketplace: Amazon’s e-commerce business represents less than 40% of the e-commerce market share, and given that e-commerce only represents 15% of all retail in the United States, it makes Amazon a curious monopolist with a remarkable market share of … 6%.

We need to define terms and provide context, and make sure that the conditions for consumer choice are met: We need an open and free market that allows companies to compete for consumers, not the other way around. When there is consumer choice, we see the rippling effects of creativity and innovation.

Consumer choice is also the neutral and judgment-free approach to viewing purchasing patterns. Those who are willing to support organic agriculture can shop at Whole Foods and at organic farmers markets, while others can shop cheaper (and with equal quality) at other stores.

Those who believe that the entrepreneurial success and the service of Amazon is something to be admired can use its services, while those who believe it represents the moral decay of late-stage capitalism are free to shop second-hand and locally. With consumer choice, consumers get to boycott products because they believe the CEO said something insensitive, and others get to buy the products because they support the statements (or the products) made.

Companies spend trillions of dollars on market research agencies, advertising questions and AI-driven analyses to figure out what the consumers want — because the one vote that counts for them is the consumer vote of confidence. However, when the market is limited to a few companies and/or products through regulation, consumers are disenfranchised from that vote.

Consumer choice is the only productive way to govern our market system: It guarantees individuality and free expression for all.

Originally published here

Why isn’t agriculture an issue in presidential debates?

In 2016 and 2020 , farmers overwhelmingly supported Donald Trump for president. The track record of his administration justifies the choice, as Trump appointed agency directors who reversed unnecessarily strict Obama-era regulations on chemical crop protection products that are essential for fighting pests and preserving yields. 

Now, with President Joe Biden nearing the end of his term and having gone back to much of the Obama years of the Environmental Protection Agency opening the floodgates on pesticide regulation while injecting large green stimulus into the farm sector, where is agriculture as an issue in the national debate?

Much of the presidential debates involve rehashing points of the last two presidential terms. Gun rights, immigration, and the conduct of Trump during his time in office are certainly important topics, but the impact of farming policy on consumers cannot be understated. In recent years, matters such as repeated fires at livestock farms (which killed half a million farm animals in 2022), the increase in farm pests due to climate change, supply shortages and higher costs due to hurricanes , the nationwide herbicide shortage , and 5% food price inflation hitting consumers all contributed to a less resilient farm and food system in the United States.

Meanwhile, the debates on the 2023 Farm Bill once again focus mostly on SNAP benefits and eligibility , leaving aside a much more opportune conversation on the productivity and independence of the farm system. What are practical solutions to the fertilizer shortage during a sanctions regime on Russia? How much of a role should the government have in conservation or organic agriculture through farm subsidies? Is it reasonable that the U.S. continues a long array of court battles over pesticides when decisions over authorizations should instead be made in Congress after advice from scientific bodies? These are questions that aren’t being asked to presidential candidates, even though once in office, the president has a key impact on those matters through his or her agency appointments.

It is true that farmers aren’t regarded as a significant enough voting bloc during elections. Direct-on-farm employment represented a little over 1% of total employment in 2023. That said, when we take all of the agricultural and food sectors into account, that makes for a good 10% of the total workforce, which gains exponential importance, especially in key swing states. 

It may also be that farmers have fallen victim to the effect of being taken for granted. As they overwhelmingly support Republican candidates, Democrats feel like it is easier for them to paint farming as an environmental problem rather than addressing the intricacies and challenges of modern farming and the real hardships that professionals face. This is why farmer representatives would be better served to align their interests with those of consumers.

onsumers are often unaware of the backbreaking work put into their food supply and how regulatory changes affect the prices they see in supermarkets. When appeals to an administration are made not merely to protect the interests of farmers but also of those who buy their products, that is where the voter base inflates.

Framing agriculture not merely as a niche policy issue but as one that affects purchasing power and consumer well-being can help shed more light on the views of presidential candidates, and it can pull agriculture out of its obscurity into the spotlight it deserves.

Originally published here

People renting backyard pools told to stop operating ‘public pools’

Backyard pools across the Triangle are available for rent, advertised on the Swimply app as ‘Hidden Gem’, ‘Private Oasis’ and ‘Tropical Retreat.’

However, some hosts on the site are getting push back from local officials. The hosts are being told to stop operating as a “public pool” or face consequences.

There is no law in North Carolina governing backyard pool rentals specifically; but guidance from the Department of Health and Human Services says if you rent out your backyard pool, the pool is considered public.

Orange County said they were following that guidance when they sent a letter to Chris Paolucci telling him to stop operating the pool in his backyard as a public pool.

Paolucci is a Swimply host and has been renting his backyard pool to others who may not have pool access.

“It gives that opportunity for people without, and it gives us an opportunity to cover our costs,” Paolucci told 5 On Your Side.

Swimply works like other sharing apps Airbnb and Vrbo, but it’s just for pools and visitors can rent by the hour.

“Typical it’s like 2 to 5 people coming, small families,” Paolucci explained about his experience hosting on Swimply.

Paolucci said he was confused when he got the letter from Orange County. The letter said Paolucci needed to have a public pool plan review, a commercial grade pool and an operational permit from the county to keep operating as a public pool.

Read the full text here

Pentingnya Menjaga Hak Kekayaan Intelektual untuk Pembangunan Berkelanjutan

Persoalan mengenai kerusakan lingkungan dan pemanasan global saat ini merupakan masalah global yang menjadi fokus berbagai negara dan organisasi di seluruh dunia. Banyaknya lingkungan yang tercemar, dan juga temperatur yang semakin meningkat, telah mendatangkan berbagai bencana yang menimpa banyak orang di seluruh dunia, mulai dari erosi, banjir besar, krisis air bersih, hinggal gelombang panas.

Seiring dengan perkembangan teknologi, pemakaian energi yang kita gunakan juga semakin meningkat. Tidak bisa dipungkiri bahwa, teknologi telah membawa banyak manfaat bagi kehidupan miliaran orang di seluruh dunia. Berkat perkembangan teknologi, kita bisa menikmati lampu di malam hari, bepergian dengan jauh secara lebih cepat, dan mengakses informasi secara lebih luas.

Tetapi di sisi lain, pemakaian energi yang semakin besar juga membawa dampak yang negatif, seperti pemanasan global dan juga kerusakan lingkungan yang disebabkan oleh berbagai hal, mulai dari polusi udara, sampah yang semakin menumpuk karena konsumsi yang semakin meningkat, dan lain sebagainya. Namun, pada saat yang sama, menghentikan atau memutar balik perkembangan teknologi juga merupakan sesuatu yang hampir mustahil.

Untuk itu, dibutuhkan kebijakan pembangunan yang dapat mendorong kemajuan, tetapi pada saat yang sama juga bisa memitigasi dampak kerusakan lingkungan dan juga pemanasan global. Saat ini, kita sudah memiliki kerangka kebijakan untuk melakukan hal tersebut, yang dikenal dengan nama “Pembangunan Berkelanjutan” atau Sustainable Development.

Pembangunan berkelanjutan, atau sustainable development, sendiri, dimaknai sebagai pembangunan yang dapat memenuhi kebutuhan kita saat ini, tetapi pada saat yang sama juga tidak mengorbankan kemampuan dari generasi mendatang untuk memenuhi kebutuhannya. Secara konsep, ada banyak cara untuk menginterpretasi dan memahami pembangunan berkelanjutan. Tetapi, pada intinya adalah, bagaimana kita bisa menyeimbangkan kebutuhan kita dengan kondisi serta batas-batas lingkungan, kondisi ekonomi, dan kondisi sosial yang kita hadapi saat ini di dalam masyarakat di seluruh dunia (un.org, 13/3/2023).

Dengan demikian, dimensi dari pembangunan berkelanjutan ini tidak hanya pada isu lingkungan saja, tetapi juga isu ekonomi dan sosial, seperti memastikan penyediaan layanan kesehatan, pangan yang tercukupi, dan juga akses air bersih bagi semua orang, serta agar seluruh anak-anak usia sekolah bisa mendapatkan pendidikan. Untuk mencapai tujuan tersebut, tentu merupakan sesuatu yang tidak mudah untuk dilakukan.

Untuk itu, inovasi dan juga perkembangan teknologi merupakan sesuatu yang sangat penting untuk mewujudkan adanya berbagai hal penting tersebut. Untuk mencegah semakin ebrtambahnya polusi udara misalnya, maka dibutuhkan inovasi teknologi yang memungkinkan penggunaan sumber bahan bakar yang lebih ramah lingkungan dan tidak membuang banyak emisi.

Selain itu, agar semua orang mendapatkan pangan dan nutrisi yang tercukupi misalnya, dibutuhkan kemajuan teknologi untuk memastikan bahan pangan bisa dipanen dan diproduksi secara lebih cepat dan produktif. Terkait di bidang kesehatan misalnya, inovasi dan kemajuan teknologi tentu merupakan hal yang sangat penting, agar berbagai penyakit kronis dapat segera disembuhkan dan diatasi.

Tidak hanya dari sisi inovasi dan teknologi, untuk bisa mencapai tujuan pembangunan berkelanjutan, dibutuhkan dana yang tidak sedikit. Agar fasilitas kesehatan dan sarana pendidikan bisa dibangun dan diakses oleh seluruh lapisan masyarakat misalnya, dibutuhkan dana yang besar untuk menyediakan berbagai sarana dan fasilitas tersebut.

Dengan demikian, dibutuhkan serangkaian kebijakan yang dapat mendorong inovasi di bidang kemajuan teknologi dan juga pertumbuhan ekonomi untuk meningkatkan pendapatan pemerintah agar bisa menyediakan berbagai layanan untuk dinikmati masyarakat. Salah satu kebijakan yang sangat penting untuk diberlakukan adalah perlindungan hak kekayaan intelektual yang kuat.

Melalui perlindungan hak kekayaan intelektual yang kuat, maka perusahaan dan inovator akan memiliki insentif yang semakin besar untuk berkarya yang berinovasi (financierworldwide.com, October, 2021). Kita tidak bisa memungkiri bahwa, peran perusahaan dan dunia usaha dalam rangka pembangunan berkelanjutan sangat penting. Terkait dengan polusi udara dan kerusakan lingkungan misalnya, bisa kita lihat saat ini berbagai perusahaan teknologi berlomba-lomba membuat kendaraan pribadi berbasis listrik sebagai salah satu solusi untuk mengurangi polusi udara, khususnya yang berasal dari kendaraan bermotor.

Bila semakin banyak sarana transportasi yang melakukan migrasi bahan bakar dari yang menggunakan bahan bakar fosil menjadi menggunakan listrik, hal ini tentu merupakan sesuatu yang sangat positif. Dengan demikian, polusi udara bisa semakin berkurang, dan akan semakin banyak penduduk yang bisa menikmati udara bersih dan segar.

Di bidang lainnya, seperti pangan misalnya, peternakan sapi merupakan salah satu sumber emisi gas rumah kaca terbesar (epa.gov, 28/4/2023). Hal ini karena gas metana yang dikeluarkan oleh sapi. Untuk menanggulangi persoalan tersebut, berbagai perusahaan teknologi berupaya untuk membuat produk daging sintesis hingga produk daging yang diambil dari sel tissue hewan dan kemudian dikembangkan di laboratorium.

Bila hal tersebut sudah bisa kita lakukan secara masif, berarti kita sudah bisa menyelesaikan salah satu sumber utama produsen gas rumah kaca. Tidak hanya itu, lahan-lahan luas yang sebelumnya digunakan untuk peternakan sapi kini bisa dikembalikan kepada alam melalui program reboisasi untuk menumbuhkan kembali hutan-hutan yang hilang karena pembangunan peternakan.

Sebagai penutup, perlindungan hak kekayaan intelektual yang kuat merupakan salah satu faktor yang penting untuk menunjang pembangunan berkelanjutan. Melalui perlindungan hak kekayaan intelektual yang kuat, maka insentif bagi para inovator untuk berinvoasi juga akan semakin meningkat, dan akan membuat berbagai produk yang bermanfaat bagi publik. Dengan demikian, ekonomi juga semakin berkembang, dan akan semakin banyak pemasukan negara yang didapatkan melalui pajak untuk membiayai berbagai program sosial yang penting bagi masyarakat.

Originally published here

Consumer Choice Center rejects the DOJ’s politicized attack on Google

Google is about to fight the first serious antitrust battle of the 21st century. Beginning this week, the Department of Justice (DOJ) will argue in federal court that Google engaged in anticompetitive practices to maintain its status as the most popular search engine in the world. 

The claim, being put before Obama appointee Judge Amit P. Mehta, is that Google wrongfully entered into exclusivity agreements with smartphone manufacturers, including Apple and Samsung, to preinstall its search engine as the default option on their device web browsers. 

Stephen Kent, Media Director for the Consumer Choice Center, an international consumer advocacy group based in Washington, D.C., said of the DOJ’s case, “Antitrust cases like this are predicated on the false assumption that consumers have been duped into using a product, even when that product is broadly accepted as the gold standard for its industry. This is a waste of time for our court system.” 

The lawsuit was originally brought in October 2020 by then-Attorney General Bill Barr, during the final months of the Trump administration. The suit contends that Google has illegally kept the public from easy access to Microsoft’s Bing, Mozilla, and DuckDuckGo for online searches. If Judge Mehta agrees, Google could be forced to restructure. 

Default search engine deals are commonplace in the development of web browsers. Consumers enjoy ready-to-use products and expect a quality experience. That’s why Mozilla canceled its deal with Yahoo in 2017 for a default search arrangement, reinstating Google Search. So many consumers were switching manually, Mozilla responded in an effort to protect their own brand.

The Consumer Choice Center stands against this politicized attack by the Department of Justice on Google. Mobile device manufacturers want consumers to have a top-notch experience when using their product, and presetting Google as the search engine is within their right. “I’ve used DuckDuckGo on my iPhone now for several years, and even now it takes just four clicks to switch back to Google, Bing or Yahoo,” Kent continued, “This suit is about distracting Google from its core business, bogging them down to prevent further growth, and making an example of a major tech company for political points at a time of bipartisan skepticism of the tech sector. This does nothing to improve consumer welfare, and will harm future innovation that consumers demand.”

Flight Canceled or Delayed: Know Your Air Passenger Rights

Traveling by air can be both exciting and stressful, and one thing you should always be aware of as a passenger is your rights. These rights can vary significantly depending on where you’re flying from or to. In this blog post, we’ll explore air passenger rights in Brazil, Europe, and the United States to help you better understand what to expect in different situations.

Brazilian Air Passenger Rights

In Brazil, the National Civil Aviation Agency (ANAC) is the regulatory authority that oversees all matters related to flights. When it comes to air passenger rights, the key legislation you should be familiar with is ANAC Resolution No. 400.

ANAC Resolution No. 400 clearly outlines the responsibilities of airlines when flight-related issues occur. It also covers various passenger rights, specifying the types of assistance that airlines are obligated to provide in each situation.

When Does Consumer Protection Apply in Brazil?

  • Domestic flights within Brazil
  • International flights departing from a Brazilian airport
  • International flights arriving at a Brazilian airport
  • Connecting flights at a Brazilian airport
  • Any airline ticket issued in Brazil (even if the flight is operated abroad)

Your Rights in Brazil

  1. Information: In the event of a flight delay at the airport, the airline must promptly inform you of the cause of the delay and the new estimated departure time. They should also provide updates every 30 minutes.
  2. Right to Assistance: Whenever flights are delayed or canceled, the airline must provide material assistance to passengers. The type of assistance depends on the length of the delay after your original departure time:
    • From 1 hour: communication (internet, phone)
    • From 2 hours: food (voucher, meal, snack)
    • From 4 hours: accommodation in case of an overnight stay at the airport and round-trip transportation. If you are in your hometown, the airline may only offer transportation to your residence and back to the airport.
  3. Right to Refund or Re-accommodation: According to ANAC rules for flight cancellations or delays exceeding 4 hours, airlines must offer the following options to passengers:
    • Full ticket refund, including the airport tax OR
    • Re-accommodation on another flight operated by the same airline OR
    • Re-accommodation on a flight operated by another airline if there is no availability with the airline you purchased the ticket from OR
    • Rescheduling the flight for a new date and time at no cost
  4. Rights in Overbooking Situations: If your flight is overbooked, the airline will ask passengers to volunteer to give up their seats. Volunteering passengers may receive compensation, but the amount can be negotiated individually between the passenger and the airline. If no one volunteers, the airline can deny boarding to some passengers.
    • Domestic flights: R$1,300
    • International flights: R$2,600


European Air Passenger Rights

In the European Union (EU) and associated territories like the UK, Iceland, Norway, and Switzerland, air passenger rights are governed by Regulation (EC) No. 261. This comprehensive legislation, adopted in 2004, applies to all passengers departing from or arriving at airports within these areas.

Key Rights in Europe

Right to Information: Airlines must provide information to passengers at check-in counters in all airports where they operate.

Right to Assistance: Passengers have the right to free material assistance from the airline in the event of flight disruptions. While awaiting a solution, the airline should provide:

  • Drinks and meals
  • Two communications (phone, fax, or email)
  • Accommodation if the alternative flight is not on the same day
  • Transportation to and from the airport and the accommodation location

If the airline does not offer this assistance, keep all receipts for additional expenses, as you may be eligible for reimbursement.

Compensation:

Compensation for delayed flights: Any delay exceeding three hours entitles passengers to compensation. The amount depends on the delay time and flight distance.

  • Less than 3 hours: No compensation
  • 3 to 4 hours: €250 to €400 depending on the flight distance
  • Over 4 hours: €250 to €600 depending on the flight distance
  • Never reached the destination: €250 to €600 depending on the flight distance

Compensation for canceled flights: If the airline notifies you of a flight cancellation less than 14 days before the scheduled departure, you may be entitled to compensation based on the distance and waiting time.

The statute of limitations for claiming compensation varies from 1 to 10 years, depending on the European country, so be sure to check your specific case.


U.S. Air Passenger Rights

Air travelers have certain rights in the United States, but they differ from those in Brazil and Europe. While U.S. airlines are required to compensate passengers for overbooking situations, there are no mandatory regulations for passengers affected by long delays or cancellations.

Overbooking Compensation in the U.S.: If you’re denied boarding due to overbooking in the U.S., you could be entitled to up to $1,350 in compensation.

Baggage Issues in U.S. Domestic Flights: Passengers on U.S. domestic flights have clear rights when it comes to damaged, delayed, or lost baggage. You can learn more about your rights regarding delayed baggage on our website.


Tips for Dealing with Air Travel Issues Worldwide

No matter where you’re flying, here are some valuable tips for dealing with air travel disruptions:

  • Don’t wait for the airline to come to you; seek assistance proactively.
  • Take immediate action to resolve the issue and then seek reimbursement.
  • Avoid checking baggage whenever possible, as canceled flights usually hold your checked luggage until a new flight is allocated to you.
  • File a complaint immediately, preferably in writing, and attach all documentation. Take photos of airport boards and keep any evidence that can help support your case. Record conversations with airline staff if necessary.
  • Consider purchasing travel insurance, especially when traveling to non-EU countries, as almost all of them offer reimbursement or composition in case of delayed and canceled flights.
  • Review the coverage and conditions of your credit card’s travel insurance.

Remember, being aware of your air passenger rights can make your travel experience smoother and help you get compensation when things go wrong. Safe travels!

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