Press Release

Österreich: Die Koalition muss die Überwachung von verschlüsselten Nachrichten-Apps ablehnen

WIEN – Diese Woche enthüllte Innenminister Gerhard Karner von der ÖVP, dass er einen Gesetzesentwurf “schnell” durchsetzen möchte, der der Regierung die Befugnis geben würde, verschlüsselte Kommunikation in Nachrichten-Apps zu überwachen.

Obwohl Karner betont hat, dass die neuen Befugnisse nur sehr gezielt eingesetzt würden, ist unklar, ob die Entwickler und Anbieter von Nachrichten-Apps gezwungen werden sollen, die Verschlüsselung zu brechen, um die Anordnungen durchzuführen.

Wie der stellvertretende Direktor des Consumer Choice Center, Yaël Ossowski, erklärte, würde diese Befugnis bedeuten, die Verschlüsselung für Millionen von österreichischen Verbrauchern zu untergraben und zu brechen.

„Jeder Versuch, die Verschlüsselung für einige ausgewählte Personen zu brechen, gefährdet gleichzeitig die Privatsphäre von Millionen von Österreichern. Dies ist weniger eine Frage der angemessenen Polizeibefugnisse als vielmehr eine Frage der technischen und sicherheitsrelevanten Aspekte. Schwächere Verschlüsselung macht österreichische Nutzer weniger sicher“ sagte Ossowski.

„Verschlüsselungsstandards von Apps wie Signal, WhatsApp und sogar iMessage aufzuheben, würde der österreichischen Regierung außergewöhnliche Befugnisse einräumen, die das Risiko bergen, jede und alle Kommunikation zu kompromittieren, nicht nur die von Verdächtigen oder Terroristen.

„Um gegen kriminelle Akteure vorzugehen, sollte die Koalition das bestehende Justizsystem nutzen, um Haftbefehle auf Grundlage eines begründeten Verdachts durchzusetzen, anstatt Messaging-Dienste und Apps dazu zu zwingen, diese Aufgabe für sie zu übernehmen“ erklärte Ossowski.

Das Consumer Choice Center weist darauf hin, dass ähnliche Versuche, die Verschlüsselung mit polizeilicher Gewalt zu brechen, bereits im Vereinigten Königreich und in Frankreich unternommen wurden, wo sie von Bürgerrechtsgruppen abgelehnt wurden.

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Das Consumer Choice Center ist eine unabhängige, parteiunabhängige Verbraucherorganisation, die die Vorteile von Wahlfreiheit, Innovation und Wachstum im Alltagsleben für Verbraucher in über 100 Ländern fördert. Wir interessieren uns insbesondere für regulatorische Trends in Washington, Brüssel, Wien, Berlin, Ottawa, Brasília, London und Genf genau.

Erfahren Sie mehr auf consumerchoicecenter.org

Thailand’s Nicotine Vape Ban Harms Consumers and Public Health

BANGKOK, TH – Last week, the Thai House of Representatives approved a report proposing three potential approaches to regulating vaping and heated tobacco devices, reinforcing the existing ban, regulating HTPs while maintaining a vape ban, or legalizing both under stern regulations. 

However, defying harm reduction efforts, lawmakers dismissed legalization, citing dubious concerns about health concerns, youth access and enforcement challenges. This effort is not just misguided, but an assault on consumer choice and effective harm reduction.

Shrey Madaan and Tarmizi Anuwar, regional representatives of the global consumer advocacy group Consumer Choice Center, criticized Thailand’s denialism that will continue to harm adult consumers.

“Prohibition doesn’t eliminate demand—it fuels black markets. This is evident in countries that have imposed vaping bans, only to see illegal trade flourish,” said Shrey Madaan, India Policy Associate. 

“Bhutan’s tobacco ban, once praised as a model for public health, collapsed under the weight of rampant smuggling, forcing the government to reverse course. When governments outlaw safer alternatives while leaving combustible cigarettes on the shelves, they create a perfect storm for organized crime and lost tax revenue,” added Madaan.

The claim that banning vapes and heated tobacco products is essential to protect youth is flawed. Flavored vape products are 2.3 times more effective at helping adult smokers switch from cigarettes. The real health crisis isn’t an alternative nicotine product but continued dominance of the traditional tobacco market. 

Thai policymakers are turning blind eye to concrete scientific evidence that establishes vaping and heated tobacco products are significantly safer alternatives to smoking. Public Health England’s finding has suggested that vaping is about 95% less harmful than traditional cigarettes.

Nations like the UK and Sweden have embraced harm reduction, leading to sharp decline in smoking rates and smoking related deaths. Sweden, which permits use of nicotine pouches, snus and vapes has observed a 55% decline in smoking in a decade and has cancer rates 41% lower than Europe’s average. Japan has also observed a drop in cigarette consumption following the introduction of heat-not-burn devices.

“The best solution is not an outright ban but a more holistic approach through education and awareness,” said Tarmizi Anuwar, Malaysia Country Associate. 

“An effective approach should focus on consumer education and parental responsibility rather than merely enforcing bans that may ultimately encourage the black market. Awareness campaigns based on facts, rather than fear-based tactics, should be promoted to educate young people about making better choices and the consequences of irresponsible nicotine use. Additionally, parents play a crucial role in monitoring and guiding their children in making informed decisions. Effective regulations must balance consumer freedom with regulatory mechanisms that do not infringe on individuals’ rights to choose,” concluded Anuwar.

Thailand remains a hotspot for cigarette tourism, with smoking rates exceeding 19%, much higher than the global average. Rather than embracing proven harm reduction tools, lawmakers are doubling down on prohibition. Previous attempts at modernizing the law have unfortunately fallen short.

The Consumer Choice Center believes there’s a dire need to focus on smart regulation and consumer awareness. If Thailand truly desires to curb smoking-related deaths, it should follow the science, not outdated fears.

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in state and national capitals, as well as other hotspots of regulation, and inform and activate consumers to fight for #ConsumerChoice.

Learn more at consumerchoicecenter.org.

Georgia House passes sound lawfare liability and tort reforms to save costs for consumers

ATLANTA,GA – Earlier today, the Georgia House of Representatives passed SB68, a civil justice reform bill to modernize liability standards for firms and help save costs for consumers by cutting down on frivolous lawsuits that raise prices for firms and businesses that serve them.

The bill caps non-economic damages in civil trials, adjusts liability standards for responsible establishments, and limits medical cost awards to “reasonable and necessary” amounts to keep price inflation in check.

The bill will now be reconciled with the Senate version before it is sent to Governor Brian Kemp, who has championed the law.

The Consumer Choice Center (CCC), a nonpartisan consumer advocacy group and think tank, applauded state legislators for enacting tort and liability reforms that will bring more certainty to innovators while reserving liability courts for consumers are who legitimately harmed.

“Every consumer pays the cost of unjustified litigation, whether they know it or not. Georgia’s novel attempt at reforming the civil justice system will help keep companies accountable while safeguarding the court process for consumers and victims who have been harmed,” said Yaël Ossowski, deputy director at the Consumer Choice Center.

“Exaggerated liability claims pursued by crafty attorneys creates massive price inflation for firms and insurers and deprives those who are legitimately injured from seeking adequate and timely justice,” he added. “A less costly and inflationary legal system for responsible entrepreneurs and innovators who follow the law will allow consumers to benefit from less litigious system that remains responsive to actual harms.”

This week, the Consumer Choice Center published a policy primer analyzing similar tort and liability reforms passed in Florida in 2023 that have shown positive impacts by lowering costs for consumers by creating a more stable environment for small businesses.

READ THE PRIMER HERE

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in state and national capitals, as well as other hotspots of regulation, and inform and activate consumers to fight for #ConsumerChoice.

Exempt Small Online Businesses from E-Invoicing Requirement

The Consumer Choice Center (CCC), a global consumer advocacy group, today called on the Government to review and amend the current e-invoicing framework, urging authorities to exempt small online businesses earning RM150,000 or less annually. 

Under the present policy, small physical businesses with similar revenue thresholds are exempted, while online businesses are still required to comply with e-invoicing obligations.

The association expressed concern that the unequal treatment of small businesses based solely on their sales channel—physical or online—places unnecessary burdens on micro and small online entrepreneurs. This disparity may also result in higher costs being passed down to consumers, affecting product pricing and limiting variety in the market.

Tarmizi Anuwar, Malaysia Country Associate at the CCC said “As a consumer association, we are deeply concerned that the current e-invoicing policy unfairly penalises small online sellers, many of whom are everyday Malaysians trying to earn an honest living. It is not reasonable that small physical shops are exempt, yet online businesses operating at the same scale are forced to bear additional compliance costs and administrative burdens. Such an imbalance not only discourages digital entrepreneurship but may also reduce healthy market competition, ultimately impacting consumer choice and pricing.”

Many online businesses already use e-wallets, online banking, and digital payment platforms that automatically generate transaction records. These existing financial systems provide transparency and traceability, making additional e-invoicing requirements redundant and unnecessarily bureaucratic. Instead of imposing rigid compliance measures, policymakers should recognize that digital payment adoption itself enhances financial accountability without burdening small entrepreneurs.

“We strongly urge the Government to level the playing field by extending the same exemption to small online businesses. Supporting the growth of small businesses, regardless of whether they operate online or offline, ensures that consumers benefit from a broader range of affordable products and services, while encouraging the development of a fair and inclusive digital economy in Malaysia.”

CCC reiterated its commitment to safeguarding the interests of consumers and small businesses and welcomes engagement with relevant stakeholders to review policies that affect the broader marketplace.

THE US CONGRESS STANDS UP FOR APPLE AND CONSUMER PRIVACY EVERYWHERE

MARCH 13, 2025 | Today a bipartisan group of US lawmakers signed onto a joint letter calling on the UK’s government to immediately bring transparency to their upcoming hearing for Apple on March 14th. The American technology company has found themselves in a standoff with the UK’s Home Office, which demanded backdoor access to encrypted Apple iCloud data under the Investigatory Powers Act. 

Stephen Kent  of the Consumer Choice Center, an international consumer advocacy group based in Washington, D.C., London and Ottawa reacted to the letter from Congress:

“British authorities are actively harming their own people’s privacy and data security by pursuing backdoor access to Apple’s consumer encryption. The United States correctly sees this as a domestic threat, because a backdoor in the UK means a backdoor for access to Apple users’ cloud data everywhere.”

The demand by US Senators Ron Wyden and Alex Padilla, as well as Congressmen Andy Biggs, Warren Davidson and Zoe Lofgren, is that the UK make their March 14th hearing public so that its proceedings can be analyzed by cybersecurity experts and the US Congress. 

“The US government has changed its tune in recent years on the issue of encryption. They went from being outright hostile to encryption like the kind Apple provides, over concerns about countering terrorism, to then realizing it was the only thing keeping consumers safe whatsoever from massive foreign hacks,” Kent continued. 

Mike Salem of the Consumer Choice Center’s UK office told media in February about the clash between British authorities and Apple, saying “This marks a very sad day for the basic principle of consumer privacy in the 21st century, depriving users of the tools that leave UK citizens exposed to governments, criminals and malicious hackers. The fact this has been done without debate, oversight or advance warning to UK Apple users is extremely concerning.”

The Consumer Choice Center applauds Republicans and Democrats of the US Congress, as well as the Trump Administration, in their vocal defense of consumer privacy in the case of Apple vs the UK’s Home Office. We hope the Investigatory Powers Tribunal yields to the request of the US Congress and makes their hearing public, before taking steps to walk back this disastrous attack on encryption which has left UK consumers without the protection of Apple’s Advanced Data Protection tool. 

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FOR UK or US MEDIA QUERIES and INTERVIEWS PLEASE CONTACT:

Stephen Kent

Consumer Choice Center

stephen@consumerchoicecenter.org

The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva. Find out more at www.consumerchoicecenter.org.

Public Administration Efficiency Commitment Bill to Boost Competitiveness and Transparency

KUALA LUMPUR, 5th March 2025—The Consumer Choice Center (CCC) supports the Public Administration Efficiency Commitment Bill 2025, which seeks to enhance government efficiency, cut bureaucracy, and improve transparency. These reforms are key to strengthening governance, boosting economic growth, and improving Malaysia’s Corruption Perception Index (CPI) ranking. By reducing red tape and improving service delivery, the Bill can enhance Malaysia’s competitiveness in attracting investment and fostering a dynamic business environment.

Tarmizi Anuwar, Malaysia Country Associate at the Consumer Choice Center, stated:

“The tabling of the Public Administration Efficiency Commitment Bill is a positive move towards improving government efficiency and reducing regulatory burdens. This initiative aligns with global best practices in governance and public service delivery. By addressing excessive bureaucracy and implementing a service performance ratings system, the government can enhance transparency, promote accountability, and restore public trust. More importantly, these reforms can create a business-friendly environment that strengthens Malaysia’s overall competitiveness.”

Clause 6 of the Bill, which mandates government entities to review and reduce regulatory burdens by at least 25% every three years, is particularly commendable. Regulatory excess has long been a concern for businesses and consumers, stifling innovation and economic progress. Reducing unnecessary red tape will not only improve Malaysia’s business environment but also ensure a more consumer-friendly regulatory framework, making the country a more attractive destination for investment and entrepreneurship.

Furthermore, the introduction of a service performance ratings system under Clause 7 is a crucial step in monitoring the effectiveness and efficiency of government entities. This will encourage continuous improvement and provide the public with measurable insights into service delivery, ensuring that businesses and individuals benefit from a more responsive and efficient administration.

“The implementation of regular performance assessments and public reporting is essential in ensuring that government agencies remain accountable and efficient. Additionally, allowing state government entities to voluntarily submit performance reports enhances the culture of transparency and fosters competition in service delivery. A government tjrprioritizes efficiency and responsiveness will ultimately improve Malaysia’s ability to compete on a regional and global scale,” added Tarmizi.

The Bill represents an opportunity to tackle inefficiencies that hinder business growth. By streamlining administrative processes and fostering a results-driven public sector, Malaysia can create a more conducive environment for businesses and consumers alike.

The Consumer Choice Center urges the government to ensure the effective implementation of these measures, with clear benchmarks and public engagement mechanisms to guarantee meaningful outcomes. A transparent, efficient, and accountable public administration will not only enhance Malaysia’s international reputation but also improve economic opportunities and competitiveness.

US and EU: Transatlantic cooperation has benefited consumers – don’t undermine it for short-term tactical gains

BRUSSELS, BE and WASHINGTON, D.C. – Today, the Consumer Choice Center (CCC), an international consumer advocacy group with staff members on both sides of the Atlantic, published a policy primer focused on elevating and advancing EU-US relations in an era of uncertainty.

In “A Consumer-Focused Alternative: Reshoring Atlanticism in the Age of Uncertainty,” the Consumer Choice Center  outlines key cooperation opportunities that would strengthen the European and American economies, enhance innovation potential, and benefit consumers.

“At this moment of upheaval, and as liberty-minded Europeans and Americans, we urge policymakers to adopt a long-term perspective and resist the temptation to undermine transatlantic cooperation for short-term tactical gains. We call on industry representatives, political leaders, and policy experts to move beyond inflammatory rhetoric, and anti-free trade measures; instead, foster constructive dialogue that strengthens our shared economic and security interests,” writes Consumer Choice Center.

Here are the CCC’s recommendations to boost potential opportunities for cooperation between the American and European economies: 

  1. Energy 
    1. Buy American, not Russian gas
    2. Streamline LNG terminals and energy import projects
    3. Increase collaboration on energy innovation and technology transfer 
  2. Minerals 
    1. Accelerate alignment under the US-EU critical minerals agreement
    2. Align on joint investment in mining and refining globally
    3. Extend mineral trade opportunities with Canada
  3. Green Deal 
    1. Review the scope of Corporate Sustainability Reporting Directive – help European and American economies and consumers
  4. Defense
    1. Commit to further raises in defense spending
    2. Incorporate mutual private actors into national defense.
    3. Continue the format of the EU-US cyber-dialogue
  5. Digital 
    1. Make the most of cutting red tape for innovators – align goals 
    2. Ensure transatlantic independence from high-risk vendors
    3. Cooperate and complement, not compete and bicker on AI – align on regulatory standards 
    4. Coordinate digital development projects in the Global South
    5. Align on intellectual property  – unite to protect European and American innovators globally
  6. Agriculture
    1. Ensure mutual recognition of regulatory standards
    2. Analyze and evaluate subsidy schemes to avoid market distortions.
    3. Restart negotiations on a comprehensive trade agreement
    4. Extend red tape-cutting & simplification efforts to agriculture

The prospect of weakening transatlantic trust in politics, economics, and defense in favor of closer cooperation with illiberal, authoritarian regimes is deeply concerning—not only for policymakers and industry leaders but also for consumers and citizens in the EU and US.

“Most importantly, such cooperation is needed more than ever in a world of great power struggle where China and Russia seek to rewrite the rules of the international game for their own gain,” concludes the Consumer Choice Center. 

The Consumer Choice Center believes that the US and the EU should strive to complement, not compete with each other, at the expense of our citizens, consumers, political and security ties, and the future.

READ THE PRIMER HERE

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

CFPB is right to drop its lawsuit against Zelle

WASHINGTON, D.C. – Today, the Consumer Finance Protection Bureau dropped its lawsuit in the District Court of Arizona against the owners of the payment platform Zelle.

Zelle, jointly owned by seven of the nation’s largest banks, is a popular FinTech peer-to-peer payment platform used by consumers to easy send and receive money without additional fees. The CFPB originally alleged the app has not done enough to combat payment frauds committed by scammers.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, believes the case being dropped is the right move for consumers:

“In targeting the platform rather than punishing those who perpetuate fraud, the agency was regulating by enforcement, hoping to introduce backdoor liability for FinTech firms and payment services that hasn’t been endorsed or approved by Congress. This would have made debanking and offloading of customers even worse. The CFPB was right to drop the case.

“Payment services already employ strict anti-fraud and scam measures that allow consumers to get their money back. Using lawfare to enact new policies will result in costly and intrusive rules that will degrade the consumer experience, make it more difficult for consumers to use or even qualify for these apps, and likely create more amenable conditions for bad actors to steal,” concluded Ossowski.

The Consumer Choice Center recently launched a policy primer to evaluate legislative solutions for combatting and alleviating the harm caused by payment scams and frauds.

This primer analyzes whether liability remedies proposed in Congress would help combat consumer fraud and scams or would ultimately create unintended consequences for consumers that do not punish wrongdoers.

The primer includes key policy suggestions for legislators to help consumers avoid frauds and scams while demonstrating the errors that would come with expanded institutional liability:

  • Shifting liability to financial institutions and payment apps will ultimately backfire on consumers, leading to more expansive financial surveillance, higher costs due to more compliance and reimbursements, and a generally degraded consumer experience that eradicates the advantage of popular financial tech and banks.
  • Consumer financial education is the most effective way to prevent scams.
  • A national privacy law fostering innovation while protecting consumers
  • Stiffer penalties for individuals committing frauds and scams

READ THE PRIMER HERE

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

President Trump Is Headed Toward a Tariff Backlash

FEB 28, 2025 | President Donald Trump’s pledge to enact sweeping 25% tariffs on imports from Canada and Mexico begins this Tuesday, March 4. While Trump’s team has used the threat of tariffs to extract concessions from foreign adversaries and allies alike, the notion of open trade war with America’s neighbors remains an unpopular one with most Americans, according to a new poll from Public First.  

“This has a lot of potential to backfire on President Trump as his favorability gap shrinks” said Stephen Kent of the Consumer Choice Center, an international consumer advocacy group.  “Americans certainly elected Donald Trump to reassert US strength around the world and to be extra pushy, but when only 28% of Americans express support for tariffs on Canadian imports it goes to show that American voters don’t see Canada as being an opponent of any kind.” 

Asked why support for tariffs on Mexico is slightly more popular, with 35% of adults supportive, roughly ten percent above views about tariffs on Canada, Kent said,

“It’s pretty clear 2024 was an immigration election and Americans wanted to see Mexico brought to the table on restricting northbound migration and fentanyl trafficking. When Mexican President Sheinbaum put 10,000 more troops on the border in exchange for a delay of tariffs, that was the point.

But Americans still know that tariffs are ultimately a tax on their lifestyle and shopping lists.” 

President Trump’s tariff threats have already injected uncertainty into markets and supply chains. After pausing the tariffs in February, the administration’s indecisiveness created confusion for businesses that rely on predictable trade policies. Imposing the 25% tariffs will only escalate tensions, raise consumer prices and distract from Americans’ top concern of trade imbalance with China. 

Polling data from Public First, shared with POLITICO, underscores that tariffs are vastly more popular when it comes to China, with 45 percent of respondents supporting them versus 30 percent opposed. 

“Americans aren’t going to like the result of tariffs on Chinese imports any more than they like the cost increases for basic car repairs in the US after 25% tariffs hit Canada, but the difference is that Donald Trump’s entire political career was based on renegotiating relations with China, not Canada,” added Stephen Kent of the Consumer Choice Center. “If these tariffs go into effect on March 4, I’d expect them to be short-lived. Trump likes to do popular things, and trade war in North America is already unpopular. Americans want to poke fun and enjoy some nationalistic fun when watching hockey games between Canada and the US, not when they’re shopping or trying to fill up their car.”

The Consumer Choice Center’s staff in Canada, Europe, and the US call on the Trump Administration to help make America and its allies prosperous by rejecting trade barriers which limit consumer freedom and purchasing power. Tariffs are not the way. 

FOR MEDIA QUERIES OR INTERVIEWS PLEASE CONTACT:

Stephen Kent

Consumer Choice Center

stephen@consumerchoicecenter.org

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The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva. Find out more at www.consumerchoicecenter.org.

DNI Director Gabbard Stands Up For Apple & Consumer Privacy 

FEB 27, 2025 | Tulsi Gabbard, now U.S. Director of National Intelligence, has confirmed that U.S. officials and DNI lawyers are now reviewing whether the United Kingdom breached a bilateral treaty known as the CLOUD Act. Under the agreement, the UK is prohibited from demanding access to the data of U.S. citizens or individuals within U.S. borders. 

Stephen Kent, Media Director for the Consumer Choice Center, an international consumer advocacy group based in Washington, D.C., reacted to news of Gabbard’s invoking the CLOUD Act:

“Gabbard is spot on in her defense of American consumers at home and abroad being threatened by the UK’s effort to break Apple’s encryption for users. The nature of consumer encryption tech is that if it’s broken anywhere, it’s broken everywhere. The UK is acting more like China and less like a democratic ally of the US.”

The UK’s Home Office demanded access to encrypted Apple iCloud data under the Investigatory Powers Act (IPA, which would create a “backdoor” for the UK to Apple’s encryption for all its consumers worldwide. As a result, Apple has opted to suspend its Advanced Data Protection encryption feature for UK users. 

“This mode of thinking is why Europe was taken off guard last week by Vice President JD Vance’s speech at the Munich Security Conference. What Gabbard is pointing out in her defense of encryption is that an ally of the United States is trying to violate their citizens’ privacy in a way that compromises consumers in the United States,” Kent continued. 

“The FBI under former Director Christopher Wray used to advocate for the same ‘backdoor’ access to encryption, but they’ve since changed their tune about encryption because of the rising threat of foreign data hacks, which pose huge risks to American consumers and companies.”

Cybersecurity analysts have long warned that any backdoor created for a government could eventually be discovered and misused by cybercriminals and hostile foreign actors. The UK’s push to weaken encryption disregards these risks, potentially exposing sensitive data to hackers and bad actors worldwide.

Kent concluded, “There are few consumer privacy issues as important in the world today as maintaining the integrity of encryption technology and services. The Trump Administration should pull no punches in letting Keir Starmer’s government know that this kind of ‘big brother’ behavior won’t be tolerated and makes our people worse off.” 

FOR MEDIA QUERIES OR INTERVIEWS PLEASE CONTACT:

Stephen Kent

Consumer Choice Center

stephen@consumerchoicecenter.org

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The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva. Find out more at www.consumerchoicecenter.org.

Minimum Courier Charge Increase: Who is the Government Protecting?

KUALA LUMPUR, 27th February 2025—The Consumer Choice Center Malaysia, through its representative, Tarmizi Anuwar, has questioned the government’s decision to implement the Reference Price Guidelines for courier services, which take effect on 1 December 2024. These guidelines recommend increasing the minimum price for deliveries under 2kg from RM4.00 to RM5.00.

Deputy Minister of Communications Teo Nie Ching, recently stated that these guidelines are not mandatory and merely serve as a reference for the industry. However, Tarmizi argues that while they may not be legally binding, such guidelines still harm the market and consumers.

“Although the government claims this is just a guideline and not a mandatory directive, courier companies can use these recommended prices to justify raising their service charges. This will burden consumers, especially small businesses and online sellers who rely on competitive shipping costs,” said Tarmizi.

He also emphasized that this move reduces competition in the market, as courier companies will no longer be incentivized to offer lower prices to attract customers. This deprives consumers of the opportunity to access cheaper services and negatively impacts the growth of the e-commerce industry.

Additionally, these guidelines do not encourage improvements in service quality. “If courier companies are not required to compete on pricing, they may be less motivated to enhance efficiency and service quality. In the end, consumers will not only pay more but also fail to receive the service improvements they deserve,” he added.

A study by Blackbox Research, titled Grasping the E-Commerce Opportunity in Southeast Asia, also found that delivery timeliness and high costs remain major concerns in rural areas, directly affecting the efficiency of e-commerce operations and consumer satisfaction in Malaysia.

“With the increase in the minimum delivery charge, rural consumers, especially in remote areas like Sabah and Sarawak, where logistical access is already limited, will face even higher costs without any guarantee of improved services,” he noted.“This move not only raises costs for consumers but also does not ensure any enhancement in service quality. Therefore, policies that focus more on competition and innovation within the courier industry should be prioritized to ensure more efficient and affordable services for consumers,” he concluded.

CFPB must refocus on consumer protection and innovation 

Washington, D.C. – Tomorrow at 10 AM, the Senate Banking Committee will hold a confirmation hearing for several Trump appointees to regulatory finance roles, including Jonathan McKernan as director of the Consumer Financial Protection Bureau (CFPB).

Since Trump’s inauguration, the CFPB has been ordered to freeze virtually all actions, rulemaking, and pending litigation to reevaluate the overall role of the agency. Lawsuits have left the CFPB’s status in limbo.

Yaël Ossowski, Deputy Director of the Consumer Choice Center, an international consumer advocacy group based in Washington D.C., reacted to McKernan’s potential confirmation and the future of the CFPB:

“The CFPB was designed to help financial consumers navigate the marketplace and punish bad actors but morphed into a tool of federal regulators seeking to slow innovation in the sector. If the CFPB continues to exist under McKernan, it should return to its mandate, shed political agendas, and support consumer innovation,” said Ossowski.

Ossowski added, “Since its founding, the CFPB has avoided offering constructive guidance to institutions, including upcoming neobanks and FinTech firms. Most of CFPB’s time is spent defending its own existence in federal court rather than advancing legitimate consumer protection cases.

READ in REAL CLEAR POLITICS: DOGE is right to defang the CFPB

After weeks of consternation in Washington about whether the CFPB would be closed down entirely, the Trump administration indicated on Tuesday that the bureau would remain functional.

“Policing fraud and deception in our financial markets is an important role for the federal government to play, so if CFPB remains, it should be laser-focused on protecting consumers and not obstructing financial innovation that gives consumers more options,” concluded Ossowski.

The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva. Find out more at consumerchoicecenter.org

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