CASE EXPANSIONS: Growing Imperative for Enhanced Consumer Protection

Syllabus Topic

Option 1: Consumers

The nature of consumer law

• the developing need for consumer protection

Case Study 1: The Mother of All Breaches (MOAB)

Detailed Overview:

• Discovery and Scale: Discovered by cybersecurity researcher Bob Diachenko alongside the CyberNews team, the MOAB exposed 26 billion records, totaling 12TB of data, from various platforms including Tencent, Weibo, MySpace, and Twitter/X. It's recognized as one of the largest compilations of breached data, consisting of personal details, user credentials, and other sensitive information.
• Source and Composition: The data primarily came from various breaches over the years, suggesting significant portions of the database were from older leaks, with potentially new and previously unseen records included.

Relation to Syllabus: Emerging Challenges in Digital Consumer Protection

• The MOAB illustrates the severe privacy risks and challenges in the digital age, highlighting the need for heightened data security measures and regulations to protect consumer information in an increasingly digital marketplace.

Case Study 2: Banking Royal Commission

Detailed Overview:

• Background and Initiation: The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established in December 2017 by the then Governor-General of Australia, Sir Peter Cosgrove. The commission was a response to widespread public outcry over various scandals involving unethical practices within the banking sector.
• Findings and Outcomes: Led by Commissioner Kenneth Madison Hayne, the commission unearthed extensive misconduct and regulatory failures. Practices such as fee gouging and irresponsible lending were prevalent. The final report, submitted in February 2019, led to significant regulatory reforms aimed at tightening oversight and enhancing consumer protection.

Relation to Syllabus: The Role of Legislation and Regulatory Frameworks in Protecting Consumers

• The findings from the Banking Royal Commission directly influenced major reforms in Australian financial sector legislation, underlining the critical role that legislative and regulatory frameworks play in safeguarding consumer rights and ensuring fair business practices.

Case Study 3: Organisation for Economic Co-operation and Development (OECD)

Detailed Overview:

• Role and Functions: The OECD, an international economic organization, helps develop policies aimed at fostering economic stability and growth among its member countries. A key aspect of its mission involves setting global standards for practices in various sectors, including consumer protection.
• Consumer Protection Guidelines: One of the notable contributions of the OECD has been the development of guidelines for consumer protection in e-commerce, which address transparency, data security, and fair business practices in online transactions.

Relation to Syllabus: Global Perspectives on Consumer Protection

• The OECD's efforts in establishing and promoting international guidelines for consumer protection reflect the necessity of global cooperation and standardization in protecting consumers in a digital, globally interconnected economy. These guidelines help harmonize consumer protection laws across borders, ensuring a consistent level of protection for consumers worldwide.

Sources:

Cybernews: The Mother of All Breaches

Royal Commissions: Banking Royal Commission

OECD: Organisation for Economic Co-operation and Development