|
Summary:
Compared to the average consumer, who is considered to be able to make rational choices to find the best deals and benefit from competitive markets, vulnerable consumers are not considered to be able to do so for a variety of reasons. There are two main approaches to identifying vulnerable consumers. One emphasises those individual characteristics of the consumer that increase the (theoretical) risk of becoming vulnerable, such as low socio-economic status, low education level, not being able to speak a particular language, or a minority status. The other suggests that all consumers can become vulnerable due to the interplay between their individual characteristics, the circumstances and the economic market. According to this view, consumers can move in and out of vulnerability, depending on their individual state.
The European Commission's 2018 consumer survey found that 43 % of EU citizens believed themselves to be vulnerable as consumers. The image of vulnerable consumers in European Union (EU) law is narrower than that found in the academic literature. They are defined in the Unfair Commercial Practices Directive, which requires additional protection for consumers who are 'particularly vulnerable due to their mental or physical infirmity, age or credulity'. This definition has been subject to much criticism, as it does not take the different variables that can make consumers vulnerable into account. Provisions protecting vulnerable consumers can be found in other horizontal consumer legislation, as well as legislation on specific sectors, for instance in the field of energy, finance and food legislation.
The development of e commerce and artificial intelligence have also been raising concerns about consumer vulnerability. For instance, the European consumer organisation BEUC is asking for a rethink of the concepts of 'average' and 'vulnerable' consumers, as some practices online, which combine collection of data with manipulating consumers, are making all consumers vulnerable and therefore require all consumers to be equally protected. The European Parliament has long advocated a wider concept in defining vulnerable consumers, and stronger protection for them, including in the energy, finance and digital sectors.
|
