Month: June 2024

Good Riddance, Chevron Doctrine

Washington, D.C. – The Consumer Choice Center (CCC) celebrates today’s Supreme Court decision overturning the 1984 ‘Chevron‘ doctrine, an outdated ruling that exploded the power of the federal government to use the administrative state to craft rules in the absence of clear legislation from Congress.

Chevron enabled unelected federal bureaucrats to interpret and implement regulations on business, public health, consumers, and much more, drastically increasing the cost of compliance and leading to higher prices for consumers.

Yaël Ossowski, Deputy Director of the Consumer Choice Center, commented on the ruling, stating, “This is a monumental win for consumers and rule of law. The Chevron doctrine had allowed federal agencies to overstep their bounds, creating an unbalanced regulatory environment that often worked against the interests of consumers. The Supreme Court’s decision restores a much-needed check on regulatory power.

The ruling arose from cases brought by Atlantic herring fishermen in New Jersey and Rhode Island, who challenged a 2020 National Marine Fisheries Service rule requiring them to pay for government-mandated “observers”. Lower courts had upheld this requirement based on the Chevron precedent. The fishermen appealed, and today in the highest court in the land, they won. 

“Whether it’s the haphazard rule making from the Securities and Exchange Commission (SEC) on cryptocurrencies or ESG disclosure requirements, expansive EPA rules on emissions that practically no vehicles can match, or the overzealous FDA’s regulatory denials on nicotine alternative products, overturn of Chevron puts power back into the hands of the people through Congress, rather than the administrative state. No longer will agency “experts” have broad authority not explicitly granted by law. This is a great day for the rule of law and a more humble, restrained, and focused Executive Branch, which will benefits consumers who want the freedom to choose,” added Ossowski.

The Consumer Choice Center firmly believes that this decision will lead to a more transparent and accountable regulatory process, which benefits consumers by preventing the kind of overreach that reduces choices, raises prices, and squashes innovation.


About the Consumer Choice Center:

The Consumer Choice Center is a non-profit organization dedicated to defending the rights of consumers around the world. Our mission is to promote freedom of choice, healthy competition, and evidence-based policies that benefit consumers. We work to ensure that consumers have access to a variety of quality products and services and can make informed decisions about their lifestyle and consumption. 

Find out more at www.consumerchoicecenter.org

The latest troubling data hacks underscore the futility – and danger – of excessive KYC/AML rules

Three years ago, I opened a column by running through a number of damning data hacks and leaks that looked terrible at the time:

On a Monday, there is a data leak affecting half a billion Facebook accounts, by Tuesday a bot has scraped 500 million LinkedIn accounts. On Wednesday, Stanford University announces a hack that exposed thousands of Social Security numbers and financial details. Then Thursday, the world’s largest aviation IT company announces 90% of passenger data may have been accessed in a cyberattack. And so on. The cycle is endless.

This week, we’re treated to a new batch of significant compromised data, affecting a major bank and FinTech platform provider as well as an identity verification company.

Rather than making the case for a national privacy law with teeth that could put a stop to this, as I’ve articulated too often before, now is a better opportunity to ask why these companies had this information in the first place, and why the KYC/AML policies that require such data collection should be drastically reformed to better protect consumers from this happening again.

The ID leak should dim the prospects for KOSA and other bills

The first hack of the identity verification company was reportedly the result of administrative keys being exposed for over a year.

As reported by 404 Media, the Israeli security company AU10TIX somehow had the master credentials to their logging platform publicly viewable on their database directory, which “contained links to data related to specific people who had uploaded their identity documents.”

A subsequent malware attack allowed hackers to access names, dates of birth, nationalities and identification numbers, and full-resolution copies of uploaded drivers licenses and other identity documents.

Links and examples of this data were posted to various channels on Telegram, selling access to the cache of information that could likely expose the personal data of hundreds of millions of users.

The identity company was a verification service of choice for major platforms including X, Fiverr, PayPal, Coinbase, LinkedIn, Upwork, and many more, though we haven’t gotten confirmation which platform was hit the hardest.

Why is this significant?

First, the fact that this data is available out there – whether on .onion websites on the dark net or elsewhere – means that potentially hundreds of millions of Americans could be vulnerable to identity theft, extortion, or significant financial or personal harm. Even if the harm doesn’t come today, these credentials and information cost virtually nothing to store and weaponize later by bad actors.

Second, companies are required to collect and store this data in order to comply with various statues. And yet more could be on the docket.

As pointed out by R Street’s Shoshana Weissman, this latest hack should once again dim the prospects for the various state and federal attempts at requiring ID verification for online services for both children and adults, whether on social media, pornography websites, or even rudimentary payment services.

Whether it’s the proposed Kids Online Safety Act (KOSA), or various state laws intended to block young people from using or accessing online services, forcing anyone to upload their photo ID and personal information just to use a website or a service demonstrably can do more harm than good.

At the cost of leaking every user’s data to the hacker-infested waters of the Internet, are measures intended to make sure young people can’t use certain websites worth the cost? We’d gather, no.

The financial hack that should undermine the KYC and AML regime

The second significant hack that likely affects not just personal identities but likely billions of dollars is the ransomware attack on Evolve Trust and Bank.

This “cybersecurity incident” of the trusted bank and partner to hundreds of FinTech services has been posted to various darknet websites, and contains social security numbers, account numbers, balances, phone numbers, addresses, and much more.

Considering the significant trove of precious financial information including even individualized transactions, this is likely one of the most costly hacks to ever occur at an American financial institution.

Why did this bank have all of this information at the ready?

Because of the various “Know Your Customer” and “Anti-Money Laundering” laws in place in the United States, financial institutions are required to collect and store this information in case the government wants to build a case against a customer.

The actual laws requiring this are numerous, and the penalties for not complying are just as steep.

The Bank Secrecy Act, PATRIOT Act, the FDIC’s Customer Identification Program, the Dodd-Frank Act, and the Corporate Transparency Act all forcibly require service providers to collect this information and have it handy to give over to authorities to conduct investigations.

The main purpose of these laws are to prevent crime, terrorism, and bad actors. But we must now ask whether the collection and storage of all this data is itself more dangerous than allowing police to do their jobs without significant data collected by private companies.

These criminally motivated and sophisticated attempts at scooping up terabytes of data containing personal and financial information – whether by criminal actors or foreign militaries – are harmful and will lead to terrible consequences.

But their availability – forced by various federal and state laws – should also inform the debate about whether they are necessary at all, and whether we should have a serious conversation about reforming KYC/AML laws in this country.

RUU Penyiaran dan Pelanggaran terhadap Hak Konsumen

Munculnya wacana mengenai Rancangan Undang-Undang (RUU) Penyiaran di Indonesia saat ini masih menimbulkan pro dan kontra. Di satu sisi, ada pihak yang berpandanga bahwa adanya aturan ini merupakan sesuatu yang sangat penting, mengingat semakin luasnya pengguna internet di Indonesia. Tetapi di sisi lain, tidak sedikit pihak-pihak yang menyatakan kalua RUU ini berpotensi melanggar kebebasan warga negara Indonesia di dunia maya.

Penggunaan internet yang semakin meluas digunakan oleh masyarakat untuk berbagai hal, salah satunya adalah mengonsumsi konten digital, seperti film, video vlog, podcast, dan lain sebagainya. Hal ini membuat sebagian pihak merasa perlunya Indonesia memiliki kerangka hukum dengan tujuan untuk mnegatur konten digital, untuk mencegah apa yang mereka anggap sebagai hal-hal negatif dari tayangan tersebut.

Terkait dengan regulasi konten misalnya, Indonesia pada dasarnya sudah memiliki undang-undang dan juga lembaga yang berwenang melalui Undang-Undang Penyiaran melalui lembaga Komisi Penyiaran Indonesia (KPI) (hukumonline.com, 24/4/2024). Namun, UU Penyiaran dalam hal ini hanya mengatur dan meregulasi tanyangan melalui siaran televisi dan radio, dan demikian pula wewenang yang dimiliki oleh KPI. wewenang tersebut tidak mencakup tayangan dan konten yang didistribusikan secara digital melalui dunia maya.

Untuk itu, belum lama ini, muncul isu terkait dengan revisi terhadap Undang-Undang Penyiaran yang berlaku di Indonesia yang memperluas wewenang KPI hingga mencakup tanyangan digital. Meskipun secara sekilas adanya revisi ini seakan merupakan sesuatu yang penting, tetapi ada beberapa poin yang sangat serius dan mengkhwatirkan dari revisi undang-undang ini, yang bila lolos dapat mengancam kebebasan berekspresi dan juga mengebiri hak kebebasan konsumen untuk memilih konten hiburan.

Misalnya, Pasal 50B Ayat (2) menyatakan adanya pelarangan penayangan eksklusif jurnalistik investigasi. Hal ini tentu merupakan ancaman yang serisu terhadap kebebasan pers yang sudah dijamin dalam undang-undang pers, yang menegaskan tidak ada lagi penyensoran dan pemberedelan hasil karya jurnalistik (cnnindonesia.com, 29/5/2024).

Tidak hanya itu, bila revisi undang-undang ini lolos, maka para content creator di Indonesia harus melaporkan dulu karya mereka kepada KPI untuk diverifikasi. Hal ini tentunya merupakan yang tidak masuk akal dan akan sangat memberatkan serta menghambat kreativitas para pembuat konten di Indonesia (primakara.ac.id, 20/5/2024).

Belum lagi, dari sisi lembaga regulator, tidak terbayangkan berapa banyak tenaga yang dibutuhkan oleh KPI bila seluruh pembuat konten digital di Indonesia harus terlebih dahulu melakukan verifikasi terhadap konten yang dibuatnya. Hal ini tentu sesuatu yang mustahil untuk bisa dilakukan secara komprehensif.

Selain itu, kita juga bisa melihat track record dari implementasi regulasi siaran yang dilakukan oleh KPI selama ini melalui media televisi dan radio. Sangat masuk akal tentunya hal tersebut bisa kita jadikan prediksi mengenai bagaimana nantinya KPI akan mengatur konten digital yang ada di internet bila revisi undang-undang ini berhasil disahkan oleh parlemen.

Beberapa waktu lalu misalnya, KPI melayangkan teguran terhadap tayangan televisi “Brownis” dan menjatuhkan sanksi administratif. Teguran dan sanksi tersebut dijatuhkan karena tayangan tersbeut menampilkan karakter laki-laki yang berpakaian sebagai perempuan, dan hal tersebut dianggap telah melanggar etika dan juga norma yang berlaku di masyarakat. KPI sendiri menyatakan bahwa pelanggaran yang dilakukan tayangan Brownis sudah tidak bisa ditolelir karena sudah sering mendapatkan peringatan (republika.co.id, 5/1/2024).

Hal ini tentu sesuatu yang mengkhawatirkan, mengingat konten dan tayangan digital yang ada di internet sangat beragam. Bisa dibanyangkan, nantinya ada berapa banyak tanyangan yang “dikenakan sanksi” atau bahkan dilarang di berbagai platform, seperti, YouTube, Netflix, Amazon Prime, Disney, dan HBO, karena mengandung hal-hal yang dianggap oleh KPI tidak sesuai dengan norma dan etika masyarakat Indonesia.

Belum lagi, tidak hanya melanggar hak kebebasan berbicara, hal ini juga akan mengancam hak dan kebebasan konsumen untuk mengonsumi produk tayangan digital. Pilihan konsumen akan semakin terbatas, dan juga bukan tidak mungkin hal ini juga akan mambuat para investor dan luar negeri, khususnya yang bergerak di bidang dunia hiburan, akan semakin enggan untuk berinvestasi di Indonesia.

Bila hal tersebut terjadi, maka hal tersebut tentu akan menjadi sesuatu yang akan merugikan bagi negara kita. Berapa banyak misalnya, potensi lapangan kerja di bidang industri kreatif dan hiburan yang akan hilang bila para investor dan juga pelaku usaha dari luar menjadi enggan untuk menanamkan modal mereka di Indonesia karena adanya aturan yang berbelit dan juga regulasi yang sangat ketat dan melanggar kebebasan untuk berkarya dan berekspresi.

Sebagai penutup, tidak bisa dipungkiri bahwa, semakin meluasnya penggunaan internet di Indonesia membutuhkan kerangka aturan yang harus sesuai. Tetapi, seharusnya adanya kerangka aturan dan regulasi ini berfokus pada keamanan konsumen dan pengguna internet, dan bukan justru malah membatasi dan melanggar kebebasan masyarakat untuk berbicara, berpendapat, dan memilih tayangan hiburan yang mereka inginkan.

Originally published here

POST-ÉLECTIONS EUROPÉENNES : UNE COMMISSION EUROPÉENNE PLUS OUVERTE À L’INDUSTRIE ?

La Commission européenne pourrait devoir ajuster ses politiques environnementales en raison du maintien d’une majorité de centre-droit et de libéraux au Parlement… ce qui pourrait mettre en question la reconduction d’Ursula von der Leyen à sa présidence.

A la suite des élections européennes, de nombreux commentateurs semblaient avoir rédigé leurs titres à l’avance et voulaient de toute façon « publier ».

Cependant, malgré les gains de la droite en France et en Allemagne, le nouveau Parlement européen ressemblera beaucoup à l’ancien. La majorité actuelle de centre-droit, de sociaux-démocrates/socialistes et de libéraux devrait se maintenir, ce qui, en théorie, signifie que la Commission européenne pourrait continuer à fonctionner comme prévu.

Cela dit, il est vrai que les élections ont envoyé un message fort aux dirigeants de Bruxelles.

D’une part, les pertes des partis écologistes à travers l’Europe sont significatives, ce qui jette une ombre sur une Commission européenne qui, depuis 2019, était fortement axée sur la protection de l’environnement et les changements politiques à grande échelle à cet égard. Qu’il s’agisse de la politique environnementale, de la réforme agricole ou de l’interdiction du moteur à combustion interne, il est clair que les électeurs se sont violemment rebellés contre ces politiques.

Le Parti populaire européen (PPE), le groupe politique le plus puissant du Parlement, n’a sauvé son siège que parce qu’il a pivoté sur le Green Deal européen, a promis de revenir sur l’interdiction des voitures à essence ou a voté contre la nouvelle législation sur les pesticides suggérée par Berlaymont.

D’autre part, le maintien d’Ursula von der Leyen à la présidence de la Commission européenne n’est pas encore garanti.

D’un côté, elle doit être recommandée par le Conseil européen. En 2019, Emmanuel Macron a approuvé sa nomination, parce qu’il voulait Christine Lagarde à la tête de la BCE et parce que la chancelière allemande de l’époque, Angela Merkel, voulait expulser Ursula von der Leyen de Berlin en raison des allégations de corruption compromettantes dont elle avait fait l’objet dans la presse.

Mais aujourd’hui, Emmanuel Macron est confronté à des élections législatives difficiles à la fin du mois, et Mme Von der Leyen n’est pas exactement l’atout politique qu’il pensait qu’elle serait. Du point de vue de la stratégie politique, il serait plus logique de choisir une personnalité moins connue d’un petit Etat membre de l’UE – peut-être quelqu’un d’Europe centrale ou orientale, pour à la fois apaiser les sensibilités de ces membres et apporter un vent de fraîcheur à Bruxelles.

Ursula Von der Leyen a elle-même tenté le plus grand pivot politique dans sa campagne électorale jusqu’à la semaine dernière. Après avoir posé pour des photos avec Greta Thunberg, la politicienne allemande s’est rendue à des réunions avec de grandes entreprises pour discuter de la future politique industrielle de l’Europe.

Ce pivot porte même un nom : la déclaration d’Anvers pour un pacte industriel européen. Il y a un besoin urgent de clarté, de prévisibilité et de confiance dans l’Europe et sa politique industrielle. Comme l’a très clairement déclaré le Premier ministre belge Alexander De Croo : « Nous avons besoin de notre industrie pour sa capacité d’innovation. Pour trouver les solutions climatiques de demain. C’est pourquoi l’Europe ne doit pas seulement être un continent d’innovation industrielle, mais doit rester un continent de production industrielle. »

Cependant, il pourrait être un peu trop tard pour la Commission européenne actuelle. Mme Von der Leyen a misé sa réputation sur le Green Deal européen, et tandis que Frans Timmermans a tenté sans succès sa chance dans la politique intérieure néerlandaise, son héritage dépend de l’accueil que les législateurs réservent à son changement d’avis.

Tout candidat à la présidence de la Commission européenne doit être approuvé par un vote secret au Parlement européen.

Comme il n’y a aucune garantie que la coalition gouvernementale puisse maintenir ses rangs, elle aura besoin d’un soutien supplémentaire de 10% de la part des autres partis, ce qui lui laisse deux options : soit elle double ses promesses écologiques pour obtenir le soutien des Verts européens (ce qui lui fera perdre des voix au sein du PPE et de certains libéraux), soit elle cherche ses voix du côté de la droite, ce qui pourrait lui coûter des voix du côté des sociaux-démocrates.

Ursula Von der Leyen a déjà été confrontée à un dilemme similaire en 2019, lorsqu’elle a conclu un accord avec le PIS, le parti au pouvoir en Pologne, et Viktor Orbán en Hongrie pour être élue. Ce vote potentiellement serré pourrait être l’une des raisons pour lesquelles certains membres du Conseil européen ne voudraient pas qu’elle soit nommée en premier lieu.

Pour ma part, je ne m’attendais pas à ce que Von der Leyen change de marque. Elle a montré son vrai visage au cours de ce mandat politique : il s’agit d’une politicienne de centre-droit qui a échoué dans sa tentative d’obtenir des références vertes et qui a appauvri le continent avec ses politiques dans le processus. Si la Commission européenne souhaite une nouvelle approche de la politique industrielle au cours des cinq prochaines années, nous aurons besoin d’un nouveau candidat.

Originally published here

Bad rules are making banking more expensive

When the Financial Action Task Force was established by the G7 group of nations back in 1989, the national leaders at the time probably did not imagine that their rules for combatting money laundering would one day cost their citizens double the amount of money spent on the policing of all other crimes put together. Nevertheless, that is precisely the situation today in the UK, one of the founding G7 members.

A new discussion paper from the Institute of Economic Affairs provides some startling data. In 2021/22, UK banks were forced to spend £34.5 billion to comply with Anti-Money Laundering Regulations (AMLR). In contrast, the total cost of policing the entire country was £17.4bn.

The general public may be forgiven for believing that the enormous cost of AMLR compliance has nothing to do with them, as it is paid for by the banks. However, banks are mostly owned by private shareholders and are, therefore, for-profit enterprises. Consequently, the banks are obviously not going to simply accept a massive £34bn dent in their operating income due to government regulations, and they have little choice but to pass on those costs to their customers. 

They do so by charging higher account maintenance fees and higher interest rates on loans and mortgages, and by paying less interest on deposits. Dividing up the £34.5bn costs of AMLR compliance in the UK, one arrives at a cost per bank customer of £220 annually.

Whether by accident or design, politicians have thus detached the state and themselves from the cost of financial policing. This is extremely convenient for the politicians, as the public tends to blame the bankers, already a much-maligned tribe, for the excessive AMLR bureaucracy and the corresponding costs that the banks burden their customers with.

In spite of the extreme costs, at least the AMLR protect the average consumer against unscrupulous criminals who could otherwise use banks for their nefarious activities – right? Probably not so much. 

The single largest source of money laundering is the illegal drug trade. Between 1990, when the first AMLR were introduced, and 2021, the number of illegal drug users around the world is estimated to have increased by 60%, and the number of drug-related deaths to have doubled. In 2022, cocaine prices fell by some 30%. Probably not due to less cocaine use, given that its ubiquitous availability suggests an undimmed popularity, but more likely due to a greater supply of the drug.  As with any commodity, prices go down when the supply of it goes up, and the demand remains unchanged.

Apart from being very expensive and probably rather ineffective, the AMLR also have very unpleasant consequences for the large number of blameless individuals who have their bank accounts closed by the banks simply as a precautionary measure. About 170,000 individuals are being debanked in the UK every year due to the AMLR. By comparison, only some 1,000 individuals are actually convicted of money laundering. Thus, the remaining 169,000 individuals are done a very serious injustice as being without a bank account has profoundly negative consequences for most people.  

Again, overzealous AMLR are to blame since the cost of compliance for the banks is so high that they simply choose to debank certain categories of customers rather than spend time and money on finding out whether each individual customer has done anything wrong.

Originally published here

Social media needs fresh thinking, not warning labels

Surgeon General Vivek Murthy dropped a bombshell into the national debate over social media regulation on Wednesday with an opinion piece calling for Congress to slap health warning labels on social media apps. This marks a seismic shift in the federal government’s souring attitude toward social media at a time when states are passing their own laws on social media algorithms and app features aimed at protecting minors online.

Congress should not take up the surgeon general’s call to label social media like cigarettes and alcohol. Social media clearly affects the lives and development of young people in many ways, but the expansion of warning labels into the realm of mental health outcomes online is both subjective and politically loaded. 

Murthy’s call to action states that “social media is associated with significant mental health harms for adolescents. A surgeon general’s warning label, which requires congressional action, would regularly remind parents and adolescents that social media has not been proved safe.” 

This line alone raises some serious questions about the angle the nation’s top doctor is taking to assess which products warrant warning labels. A product of any kind being “proven safe” is different from being “proven hazardous.” It’s the same framework as “innocent until proven guilty” versus the other way around. 

The conclusions of Murthy align with author Jonathan Haidt, whose book The Anxious Generation has been garnering national attention since its April release. Both agree that Washington “can’t wait for certainty” when it comes to putting warning labels on social media apps. 

Haidt and Murthy both skirt recommendations on what a warning label would look like when it comes to social media and what apps or platforms would qualify. Various social media regulation proposals in Congress have directed regulation toward platforms with particularly large user bases while exempting smaller players. Others have created carve-outs for apps driven by direct messaging features, creating room for hybrid social messaging apps such as Snapchat to avoid regulation affecting their competitors. 

Will the label go on the app’s logo on your device’s home page? Will the label appear each time you open the app or only once upon creating an account? The surgeon general seems to leave this up to Congress to decide, along with any metrics for what platforms qualify as the social media responsible for poor mental health in youth. 

It’s not an insignificant question. Does Discord count as social media, or are Facebook and Instagram the design standard by which Congress would legislate labels on these apps? It’s doubtful that Congress will ignore the political subculture of different apps when considering which ones it finds harmful to public health. 

Congressional Democrats did not come around to forcing ByteDance’s sale of TikTok in the United States based on the effect of the app on its users’ mental health, which is suspect, but instead were motivated by national security concerns. 

When you remove the designs of various social media platforms as well as algorithms, you’re left with platforms that simply connect people to each other. There is real cause for concern that this could serve as the metric for “social media,” lumping TikTok, Pinterest, WhatsApp, X, and LinkedIn all into the same category. To avoid the warning label, tech companies would offer fewer unique design features and curated experiences using algorithms. 

You could also see a future in which social media companies accept the warning label so that they can treat it as a new cost of doing business and be shielded from any future liability over harm done to users. The government-imposed label creates a shield for the firms and does little to inform parents of children using social media more than they already know. 

There is little doubt to regular users of social media that these apps create certain levels of stress and anxiety that weren’t showing up in mass before 2010 when social media went mainstream. For parents and educators, the distraction and addictiveness social media poses to children are already well-known points of concern. A warning label is not going to change the dynamic. It will, however, stumble into political favoritism and bias based on whose constituents prefer which apps. 

Consider the political culture of TikTok, the elephant in the room for this conversation. Are Democrats and Republicans ready to have a candid conversation about which mental health trends, specifically, they find so worrisome on these social media platforms? 

Social media is not a public health equivalent to smoking cigarettes. Fresh thinking on these challenges is what consumers need, not “copy and paste” strategies from the 1960s. 

Originally published here

Banning the display of vape products may impact retailers and lead to boom in the industry’s black market, experts warn

KUALA LUMPUR, June 21 — With the Health Ministry set to fully enforce the Control of Smoking Products for Public Health 2024 (Act 852) this month, experts said drastic moves like banning the display of vape products at shop counters can lead to creating a whole new market for non-compliant and illegal products.

Pankaj Kumar, managing director of Datametrics Research and Information Centre (DARE), said such a ban can undermine both consumer safety and government revenue.

“The vape industry, which is currently valued at RM3.48 billion, contributes to the economy by creating jobs and facilitates growth of the retail sector. Drastic measures can stifle this growth and lead to job losses,” he said at the Control of Smoking Products for Public Health Act 2024 (Act 852) Roundtable here.

“Implementing and enforcing drastic measures can also be costly for the retailers. Hefty costs and investments would need to be made to adjust to the ban of display of vape products and these resources could be better spent on facilitating growth of businesses especially in current economic situations.

Read the full text here

How Agriculture Tipped the Scale on Europe’s Biggest Election

Many of the 370 million European Union citizens eligible to vote headed to the polls recently to elect a European Parliament. The EU’s legislative body does everything from amending legislation to appointing an executive arm in Brussels, with all 720 seats up for re-election. 

While Germany, France and Italy represent the largest populations, allegiances in the Parliament are formed on ideological grounds, less so national affiliation. Political parties from all 27 member states form political groups, or caucuses, that help them pass legislation in line with their manifestos.

The election shows a shift in the tide of Europe’s priorities. In 2019, the focus was mainly on environmental protection and social justice. Since then, voters have increasingly expressed support for parties echoing industrial development and ease in regulation. Overall, center-right and right-wing nationalist movements have made gains. In France and the Netherlands, those movements have been stronger than ever, in a rebuke to the policies pursued by the EU in the last five years.

Not one election can be pinpointed in its results to one specific event. Since the last election, Europe has gone through the effects of COVID-19, the continuing inflation, energy shortages and war in Ukraine. Issues of migration remain high on the agenda. That said, the farmer protests of the last two years have eroded trust in the EU’s institutions.

Farmers have protested environmental regulations in Belgium, the Netherlands, France and Germany. They expressed frustration that even though their businesses are essential for consumer welfare, the regulatory state has made it increasingly impossible. Other environmentalist policies — such as a planned ban on the internal combustion engine, eco-tax schemes, or the ban on plastic single-use kitchen items — also touched consumers. The farmer protests made the issue more palpable for voters.

While farming has changed over time, it has always had a special bond with consumers. Government bureaucracies, by contrast, always seemed detached, whether it was keeping farmers poor under the feudal system up until the modern versions of farming in which every niche is over-regulated and calculated to fit a political trend. Since 2019 in Europe, agriculture has been blamed for the continent’s failure to reduce its greenhouse gas emissions.

Ironically, the suggested policies wouldn’t have done much to improve the environmental sustainability of farming; instead, they have bankrupted the sector. For instance, a since-dropped proposal to reduce pesticide usage by 50 percent would have made it even more difficult for European farmers to switch to no-till farming, which reduces soil erosion and prevents more carbon dioxide from being released into the atmosphere. EU institutions had become captured by anti-pesticide activists ideologically opposed to these products at the expense of scientific reasoning, consumer welfare and farmer livelihoods.

Voters in Europe have sent a clear message to policymakers: There are reasonable ways to protect and improve the environment we live in, but large-scale interventions that aren’t means-tested will hurt the people who feed us. This is also why those new lawmakers will be incentivized to untangle many of the bureaucratic webs that the EU has spun over the previous mandate.

The tide has turned on radical environmentalism in Europe, and we’re all better off for it.

Originally published here

Pembatasan Pembelian Barang dari Luar Negeri dan Terbatasnya Pilihan Konsumen

Perkembangan teknologi informasi yang semakin pesat merupakan hal yang sudah mengubah hidup miliaran orang di seluruh dunia, termasuk juga di Indonesia. Saat ini, hampir seluruh kegiatan dan keseharian yang dilakukan oleh masyarakat bisa dilakukan melalui internet secara daring, seperti memesan transportasi umum, mencari pekerjaan, menikmati tayangan film, hingga kegiatan jual beli barang yang sangat beragam melalui toko daring.

Adanya toko daring tentu merupakan hal yang sangat menguntungkan bagi jutaan konsumen di Indonesia. Melalui toko daring, konsumen memiliki pilihan barang yang sangat banyak dan beragam dari seluruh dunia, yang bisa didapatkan dengan cepat dan ringkas tanpa harus membuang-buang waktu pergi ke toko seperti di tahun-tahun sebelumnya. Tidak mengherankan, jumlah nilai transaksi di toko daring mencapai angka yang fantastis, hingga lebih dari 500 triliun rupiah pada tahun 2023 lalu (kemendag.go.id, 5/1/2024).

Semakin luasnya praktik jual beli online ini, meskipun membawa manfaat yang sangat luas kepada konsumen, hal ini juga memunculkan tantangan baru. Adanya kesempatan konsumen untuk membeli barang dari seluruh dunia membuat banyak pedagang lokal dalam hal ini juga harus bersaing dengan pedangang dari negara lain.

Untuk mengatasi hal tersebut, beberapa waktu lalu misalnya, Pemerintah Indonesia melalui Kementerian Perdagangan mengeluarkan aturan yang membatasi kebebasan konsumen di Indonesia untuk membeli barang dari luar negeri. Batasan tersebut dalam bentuk adanya nominal minimum yang diperbolehkan untuk pembelian tersebut, yakni sebesar USD 100 (cnbcindonesia.con, 27/09/2023).

Adanya aturan tersebut tentu sangat membatasi kebebasan konsumen Indonesia. Tidak jarang, ada barang tertentu yang tidak dijual di Indonesia, dan sangat dibutuhkan oleh seseorang, dan harganya tidak terlalu tinggi. Dengan demikian, melalui aturan tersebut, cara agar seseorang bisa mendapatkan barang tersebut adalah apabila ia membeli dalam jumlah besar sampai lebih dari USD 100.

Pihak yang paling dirugikan dari kebijakan ini tentu adalah konsumen menengah ke bawah. Kebebasan mereka untuk memilih produk menjadi sangat terbatas, dan bukan tdiak mungkin mereka akan dipaksa untuk membeli barang tertentu dengan kualitas yang berbeda dengan yang mereka inginkan dari dalam negeri, karena mereka tidak memiliki sumber daya bila harus membeli barang yang serupa dengan kualitas yang lebih baik dari luar negeri dalam jumlah yang banyak.

Tidak mengherankan, adanya aturan tersebut menimbulkan banyak kritik dari masyarakat, khususnya para pengguna dan konsumen toko daring. Tidak sedikit dari keluhan tersebut ditumpahkan melalui media sosial. Barang-barang yang dibeli tersebut akhirnya ditahan di bea cukai ketika masuk ke Indonesia (kumparan.com, 14/01/2024).

Adanya batasan minimum jumlah tersebut juga sangat mempengaruhi operasi berbagai toko daring di Indonesia. Shopee misalnya, yang merupakan salah satu toko daring terbesar di Indonesia, sejak aturan ini diberalakukan, beberapa waktu lalu akhirnya menutup halaman untuk pengguna dapat membeli barang dari luar negeri. Hal ini tentu sangat menyulitkan bagi konsumen (republika.co.id, 05/9/2023).

Selain itu, adanya aturan ini juga tidak akan membantu para pemilik usaha mikro, kecil, dan menengah (UMKM) di Indonesia. Tidak sedikit misalnya, para pemilik UMKM yang memiliki model bisnis pre-order atau PO dari luar negeri, di mana mereka menyediakan beragam barang yang tidak bisa didapatkan di Indonesia. Adanya aturan tersebut tentu akan mematikan para pemilik usaha UMKM yang memiliki model bisnis tersebut.

Kebijakan pembatasan jumlah minimum pembelian barang dari luar negeri sendiri tentunya merupakan salah satu bentuk kebijakan proteksionisme. Sebagaimana dengan bentuk kebijakan proteksionisme lainnya, hal ini tentu berpotensi bisa menimbulkan berbagai kerugian, salah satunya misalnya yang paling nyata adalah terbentuknya kartel bisnis tertentu yang dapat mengatur harga dan tentunya sangat merugikan konsumen.

Adanya pembatasan minimum ini tentunya akan menguntungkan segelintir pemilik usaha tertentu karena pilihan konsumen akan semakin terbatas. Para konsumen tidak lagi memiliki pilihan untuk mendapatkan barang dari luar negeri dengan kualitas yang lebih baik dan harga yang paling murah. Belum lagi, adanya kebijakan ini juga berpotensi akan ditanggapi dengan kebijakan proteksionisme tandingan dari negara lain. Bila ada negara lain yang menerapkan kebijakan serupa untuk barang-barang ekspor dari Indonesia, tentu kerugian paling besar akan dirasakan oleh para pelaku usaha di Indonesia yang mengekspor barang-barang dagangan mereka.

Sebagai penutup, setiap aturan tentu akan ada unintended consequences yang muncul dari aturan tersebut. Mungkin niat dari pembuat kebijakan pembatasan ini adalah baik, tetapi niat baik saja tidak cukup agar suatu kebijakan dapat membawa manfaat besar bagi publik. Jangan sampai, adanya kebijakan yang diawali dari niat baik tersebut ujung-ujungnya justru menjadi kontraprodukti dan justru semakin mempersulit masyarakat untuk mengambil pilihan.

Originally published here

Sunak’s pledges sacrifices consumer freedoms

Mike Salem, The UK Country Associate for the leading international consumer group, the Consumer Choice Center (CCC), reacted to the launch of the Conservative Party manifesto earlier on Tuesday.

In a statement, Salem expressed support for proposed tax cuts, building on brownfields to alleviate the housing shortage, using AI and integrating technology in the NHS, as well as plans to encourage nuclear energy.

However, despite these pledges, Salem raised concerns about the feasibility of these cuts, which would halve £178 billion of government revenue, and the control over lifestyle options by reintroducing the Tobacco and Vapes Bill. He further raised concerns about the credibility of these promises in light of the government’s priorities over the last two years.

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North Carolinians deserve clarity on the legal status of poolsharing

Copying homework is as endemic to tech innovation as it is to regulatory policy. A new video application will take off in Silicon Valley, and before you know it, every major social media company has its own spin on the concept. There exists now an “Airbnb but for [insert private property]” for everything from backyards to vehicles. Regulators scramble to keep up with the disruption one good idea can cause, so localities survey the country for agencies who pulled the trigger early on regulatory intervention. Both scenarios are perfectly captured by the rise of Swimply in North Carolina, “Like Airbnb but for backyard pools,” and local government’s attempts to squash what consumers call “pool sharing.”

On May 20, Mecklenburg County blasted out a warning to residents of the Charlotte-metro area, saying, “RESIDENTIAL POOLS FOR SHORT TERM RENTALS FORBIDDEN IN MECKLENBURG COUNTY.” The release specifies that “residents who rent out their private pools to third parties on a short-term basis” are running afoul of NC General Statute 130A-281, and homeowners in violation could face legal action. 

A homeowner with a backyard pool they’d like to share by the hour with locals might be surprised by the language of Statute 130A-281, which reads, “No public swimming pool may be opened for use unless the owner or operator has obtained an operation permit.” 

Mecklenburg is making the argument that a private oasis in your backyard being rented to someone on an app for a fee is now regulated under state law as a public swimming pool. Yes, a public pool like those with swimmers packed shoulder to shoulder, lifeguards giving lessons, and hosting swim meets for competitive teams.  

A public pool must follow all manner of regulations, including having a landline available to its swimmers for dialing 911 in an emergency. They must log daily tests of water pH levels, temperatures, and disinfectant levels. Backyard pools only have to meet the installation and structural requirements to be in use, and if you’ve ever had a friend with a pool, some are immaculate and others are nasty. 

Mecklenburg County’s Public Health Environmental Health Division copied the homework of Orange County and Buncombe County, which began sending threatening letters to homeowners in 2023 who were using the Swimply app to share their pool. Swimply responded with legal pushback from the firm Squire Patton Boggs (SPB), asserting that the departments were overstepping their authority in determining the legal status of pools rented on third-party apps. 

Regulatory agencies like to play copycat and coordinate with their colleagues in other states. They also “push where there is mush,” meaning any vagueness in state law is taken as an invitation to regulate. North Carolina’s 1999 Vacation Rental Act (VRA) is the existing law of the land for short-term rentals. Due to its age, the VRA has been at the center of one local fight after another, as sharing apps like Airbnb, VRBO, and FlipKey have come on the scene. Battles have raged from Wilmington to Asheville, and just as the state legislature began to get familiar with the concept of homesharing, new forms of peer-to-peer commerce arose like pool sharing (Swimply) and the peer-to-peer exchange of backyards for dogs to play in (Sniffspot). 

North Carolina’s Department of Health and Human Services (DHHS) has not been amused by the fun people are having in renting backyard pools for birthday parties and social events. The agency released a memo in 2021 offering “guidance” to local health departments, which amounts to a strongly worded suggestion that can be enforced with impunity in the absence of clarification of law by the state legislature. 

Carolina Journal published an article recently by the John Locke Foundation’s Jon Sanders, who rightly called this a form of “regulatory dark matter,” where lone bureaucrats essential rule by blog post. A simple publication on an agency website, a press release, or any documentation bearing an official state watermark is enough for most to treat it as law when it is not. 

North Carolina’s copied homework is just one of many instances of regulatory dark matter that have popped up since Wisconsin’s Department of Health Services took action against pool sharing in 2021. Since then, Nevada, New York, South Carolina, Oregon, and Minnesota have tried their hand at eliminating the freedom to swim in a privately owned pool for a reasonable hourly rate. 

In many cases, the state agencies know that a backyard Swimply pool does not meet the legal standard for a public pool. Their solution is to overregulate and spook homeowners out of listing their property on the app. Minnesota threatened hosts with fines up to $10,000. The risk now outweighs the potential reward for supplemental income. 

Local officials frame their crackdowns as matters of safety and protecting the welfare of children, but they notably exempt backyard pools from their concern if the entire home is being rented on an app. There are hundreds of Airbnb properties throughout Mecklenburg County boasting pools among their amenities. Airbnb has fought hard for every inch of protection under the law in North Carolina, and good for them, but the door is being kicked shut on new concepts built on the gains of homesharing. 

The trend amounts to an equal protection issue for new entrants to the sharing economy, such as Swimply. NC DHHS exempts home rentals from their thinking on pool “safety” in no small part due to the coastal tourism industry where large rental properties boast private pools.

If you’ve ever been to eastern North Carolina, these McMansions with pools are a destination for booze-fueled late-night parties and wedding receptions, precisely the kind of activity you’d be most concerned about when it comes to drownings and general safety issues. But a homeowner in Charlotte or Hillsborough hosting a family of three for an innocent two hours of swimming is treated as anarchy. 

North Carolina’s state legislature must take action this year and clarify the state law’s scope of coverage for short-term rentals. It’s going to be a hot summer and thousands of families will be looking online for ways to cool off and entertain both kids and guests by the poolside. 

Homeowners should have the opportunity to make use of their private property to make ends meet. Consumers should have more choices for spots where they can swim. But above all else, the law should be clear to all. If consumer choice and property rights are not to be upheld in the state, the least the legislature can do is settle this issue for all the North Carolinians being intimidated and harassed by regulators with too much time on their hands. 

Originally published here

Juul Ban Reversal Welcomed

The potential return of Juul to U.S. store shelves would represent a win for consumers and tobacco harm reduction, according to the Consumer Choice Center (CCC).

On June 6, the U.S. Food and Drug Administration rescinded its 2022 marketing denial order. While the move is neither an authorization nor a denial, it places the company’s premarket tobacco product application back into scientific review, meaning it could potentially be authorized at some point.

“This is a step in the right direction for consumers who want more nicotine alternatives to combustible tobacco,” said CCC U.S. Policy Analyst Elizabeth Hicks.

The FDA said in its June 6 statement that it had “conducted additional substantive review of the applications in a number of disciplines, including toxicology, engineering, social science and clinical pharmacology” and that their change of course is based on a “review of information provided by the applicant” plus new case law based on court decisions involving MDOs for e-cigarette products.

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