Book Review: Beyond Greenwash? Explaining Credibility in Transnational Eco-Labeling, by Hamish van der Ven

Consumer Policy in 28 EU Member States: An Empirical Assessment in Four Dimensions Abstract This article examines consumer policy in 28 EU Member States. It introduces a new methodological framework and several indicators to analyse legal, social, enforcement, and associational dimensions of consumer policy. Drawing on the most recent data, the empirical results provide a detailed picture of consumer policy across Europe displayed in several indices. The results furthermore allow for statistically testing consumer policy regimes, as suggested by previous research. These indices reveal great differences between individual countries but only few instances of statistically significant differences between consumer policy regimes. Considering legal and political accounts as well as sociological explanations that have not yet been applied, possible explanations for these findings are discussed. It is concluded that comparative consumer policy analysis should further analyse differences between individual European countries in several dimensions and should not only account for consumer policy regimes from a legal or a political science perspective. The methodological framework and the theoretical explanations outlined in this article may help to accomplish this goal.

Irresponsible Lending in the Post-Crisis Era: Is the EU Consumer Credit Directive Fit for Its Purpose? Abstract More than a decade after the outbreak of the global financial crisis, consumers across the EU have been increasing their level of debt in terms of both volume and value of consumer credit products. Among the reasons for this trend are the low interest rate environment, the novel business practices of lenders aimed at finding new revenue sources, such as fees and charges on loans, and the innovative business models emerging in an increasingly digital marketplace, such as peer-to-peer lending. These developments present new risks to consumers and pose new challenges for regulators in terms of how to address them. This article aims to uncover the problematic aspects of consumer credit provision in the post-crisis lending environment across the EU and to assess to what extent the 2008 Consumer Credit Directive currently in force, which aims to ensure adequate consumer protection against irresponsible lending, is fit for its purpose today. In this context, the article explores the general meaning of “responsible lending” with emphasis on consumer credit, identifies the most imminent irresponsible lending practices in the consumer credit markets, and tentatively analyses their key drivers. It also reveals some important limitations of the Consumer Credit Directive in providing adequate consumer protection against irresponsible lending and offers tentative recommendations for improvement. In the authors’ view, the time now seems ripe for striking a different balance between access to credit and consumer protection in European consumer credit law.

Evaluating USA’s New Nutrition and Supplement Facts Label: Evidence from a Non-hypothetical Choice Experiment Abstract In May 2016, the FDA published new rules for Nutrition and Supplement Facts label formats and contents, which take effect in 2019. The revised labelling is designed to help consumers make better-informed product choices in support of a healthier diet. Changes in nutrition label requirements include the prominent display of “calories per serving” and “serving size” as well as updated nutritional requirements and information reflecting contemporary scientific knowledge about diet–disease relationships. No other known study however has directly examined whether these new upcoming changes will help consumers make healthier choices. To fill this void, we conducted a non-hypothetical choice experiment on “light” and “original” strawberry yogurt products at a major public University in the USA. Using a generalized mixed logit model with a scale parameter to account for taste heterogeneity among participants, we find that the new label changes food choice behavior. Specifically, we find that the new label reduces consumer’s preferences for both original and low-fat yogurts. This finding is evident among the more health-conscious subsample. It is possible that the new label generates an “alarm” effect given the revised features on calories, added sugar and serving size, especially among those who are more nutrition and health conscious and those who use labels for nutrient information.

Disabled People’s Vulnerability in the European Single Market: The Case of Consumer Information Abstract The United Nations Convention on the Rights of Persons with Disabilities (2006) recognizes access to consumer goods and services in the mainstream private market as essential for full participation in the society. It shapes the concepts of consumer participation and market accessibility around the social model of disability and does not make a distinction between disabled and non-disabled market participants. Meanwhile, the European Union and Member States do not recognize people with impairments as equal market participants. They see them as “vulnerable” consumers and classify impairment as one of the criteria for becoming a “vulnerable” participant in the European single market. This paper argues, however, that by shaping policy and market positions and actions around ableism, the European Union, Member States, and the private market prioritize non-disabled citizens and consumers and so construct people with impairments’ consumer vulnerability. To illustrate the case, empirical evidence from mystery shopping and qualitative interviews with consumers with impairments from Lithuania and the UK is used. Since consumer information is essential for informed choice and participation in the market, information provision about mainstream retail outlets and products is used as a case study.

Book Notes “Economics and Social Sciences”

Fragmentation Versus Convergence of Consumer Law Within One Legal System and Across Legal Systems: An African Perspective Abstract The theme of fragmentation versus convergence of consumer law has relevance for Africa, inter alia because the African Continental Free Trade Area is foreseen to become a single continental market. Fragmentation of consumer law within one legal system and across legal systems is inevitable. Several types of hyper-vulnerable consumers require special protection. Drafters and interpreters of consumer legislation should remember that the majority of African consumers are hyper-vulnerable. Consumer legislation attuned to this reality needs special reference to the needs of such consumers. More resources should be allocated to the protection of hyper-vulnerable consumers, including through proactive enforcement. The informal economy may require some special rules, but the rules on quality of products should mostly remain the same. More resources should be targeted at enforcing safety standards and rooting out counterfeit goods and creative ways found to bring consumers in the informal economy under the protection of consumer law. Fragmentation of sources of consumer law in Africa and at the level of enforcement agencies is also considered. Even if rules are harmonized across legal systems, fragmentation is inevitable, inter alia due to different interpretations by local agencies. An attempt at some convergence has benefits, but cogent arguments against harmonization exist. Some realities in the Global South militate against harmonization. There is greater potential for some level of harmonization where there is a real cross-border interest, such as in e-commerce, travel, and tourism. When convergence is considered, the reasons behind current divergence should be researched to establish the potential for convergence.

The Value of a Statistical Life in Thailand: Evidence from the Labour Market Abstract Using the 2012–2014 Labour Force survey (N = 109 947) and data from the Social Security Office, this study uses the standard hedonic wage approach to estimate the value of a statistical life (VSL) in Thailand. Population-weighted ordinary least-squares (OLS) and quantile regressions conditional on the 10th, 25th, 50th (median), 75th, and 90th percentiles of the income distribution are performed on the repeated cross-sectional sample as well as each of the survey waves. Based on the repeated cross-sectional sample, the mean and median VSLs, averaged across 2012–2014, are estimated to be approximately 1.21 and 0.66 million in 2011 USD, respectively. The mean income elasticity is 1.488, indicating the Thai VSL is income elastic. This study represents the first VSL study in Thailand that uses nationally representative data on actual labour market outcomes. It captures income heterogeneity of the VSL, and demonstrates that VSL estimates vary importantly with time, gender, job sector, and region of residence.

Does Consumer Financial Management Behavior Relate to Their Financial Access? Abstract Financial management behavior and financial access are important to overall financial well-being, yet have not been well studied. This study contributes to the literature of financial access and financial management behavior by empirically exploring relevant factors for each and the relationship between them. The data are derived from the 2012 and 2015 National Financial Capacity Study. Exploratory factor analysis (EFA) was applied to derive the factors relevant for consumer financial access and consumer financial management behaviors. Confirmatory factor analysis (CFA) was applied to establish reliability and construct validity of the identified factors. The structural equation modeling and linear regression were jointly used to examine the relationship between them. Results suggest that consumer financial access consists of a nine-element structure: savings accounts, checking accounts, retirement accounts, retirement plans, emergency funds, homeownership, investments, credit, and health insurance. Financial management behavior consists of a five-element structure: consumption, cash management, emergency savings, small-dollar consumer loans, and credit management. Financial management behavior is significantly associated with financial access. Better consumer financial management behavior is associated with better financial access. Policy implications are discussed.

A Matter of Principle: Comparing Norm-Based Explanations for Fair Trade Consumption Abstract Research on fair trade consumption has proliferated in recent years. However, to date, systematic comparisons of the various theoretical models attempting to explain the purchase of fair trade products are rare. The present paper addresses this gap by comparing three theories which explain fair trade consumption by reference to a personal norm: The norm-activation model (NAM), the value-belief-norm (VBN) theory, and the value-identity-personal norm (VIP) model. Using data from a random sample of the general population in Zurich (Switzerland), the paper compares the explanatory power and the causal structures of these theories with structural equation models. The results show that the value-identity-personal norm (VIP) model explains the largest amount of variance in the purchase of fair trade products, followed by the value-belief-norm (VBN) theory. Furthermore, the analysis indicates that values influence the personal norm via specific beliefs (awareness of consequences and ascription of responsibility), as specified in VBN, as well as via the more general concept of an identity as a critical consumer, as hypothesized by VIP. In contrast, the results do not support the moderator-formulation of the NAM. The paper therefore concludes that VIP and VBN both represent valuable theories specifying complementary mechanisms for explaining fair trade consumption, whereas there is no evidence for the NAM as an explanation of fair trade consumption.