How can we secure stronger Consumer Protection in Cross-border data misuse?

22 November 2024

In an increasingly digital world, our personal data flows across borders every day, powering everything from social media to online shopping. But what happens when that data is misused—whether through unauthorised sharing, security breaches, or wrongful processing? For most consumers, options for redress are limited and confusing, especially when laws vary from country to country. This creates a trust gap, as people are left unsure of where to turn if their data is mishandled overseas.

Today, we launch a new report “Recommendations for Interoperable & Consumer-Centric Redress in Data Misuse Across Borders, as part of our Interoperability for All project. With input from a multistakeholder group of experts, this report tackles a critical challenge: ensuring that people’s right to accessible, fair and effective redress mechanisms is available when their personal data is transferred across borders. This is essential not only for protecting individual rights but also for maintaining trust in the digital economy. A multistakeholder approach builds trust and accountability by uniting diverse actors to address fragmented policies and shared challenges, like unclear responsibilities in complex supply chains. 

Read our Summary of Report

Read Full Report

 

The Problem and Why it Matters

 

As data is shared internationally, inconsistent protections make it difficult for consumers to exercise their rights. Often, international agreements promise strong protections on paper, but in reality, people struggle to access help when something goes wrong. This gap between theory and practice leaves people without effective recourse. The issue is especially serious in the Global South, where regulatory protections are often nascent, leaving individuals at higher risk.

When people can’t trust how their information is handled or feel underrepresented in decisions about their data, they lose confidence in digital platforms and companies. The report addresses these concerns by providing six clear recommendations for strengthening consumer trust in cross-border data flows. It outlines key actions different stakeholders can take to improve representation, amplify consumer voices, and achieve better outcomes for all.

Recommendations

1. Make Regulations Work Together

Rules for cross-border data flows must be interoperable and designed to help consumers everywhere exercise their rights – not just to enable data to flow more easily For consumers to feel safe wherever their data goes, these harmonised rules should uphold the highest standards of data protection, and not settle for the lowest common denominator. One example of this approach is the Data Free Flow with Trust” (DFFT), which aims to balance the free movement of data with essential security and privacy protections.influence the digital financial services space, consumer organisations should look at how they can build on their existing networks, expertise and skills.

2. Strengthen Collective Redress Systems

Right now, it’s almost impossible for individuals to tackle data misuse alone. For instance, under the EU-US Data Privacy Framework, there is no clear path for consumers to submit a complaint alone as they must navigate multiple options with varying levels of complexity and limited remedies. Strengthening collective redress options would allow groups of affected consumers to seek solutions together, potentially making the process more accessible and effective. 

3. Offer Informal Resolution Options

Investing in alternative dispute resolution options, like online platforms and data fiduciaries, may help resolve consumer issues quickly and affordably. Currently there are limited to no options available, so making these systems more accessible can empower consumers to seek redress efficiently.

4. Leverage Technology for Consumer Empowerment

Technology can play a major role in making consumer rights more accessible. User-friendly technology that provides inclusive, relevant and timely educational information can make it easier for consumers to understand and exercise their rights. 

5. Ensure Global Collaboration to Enforce Rights 

Policymakers must work together to create international agreements that protect consumers everywhere. Organisations like the OECD and UN can help align standards and push for real enforcement, ensuring that protections don’t stop at borders.

6. Include Consumer Voices in Policy Design

Civil society groups and consumer advocates bring essential perspectives to the table. Their involvement in policy discussions can help shape rules that are grounded in the real experiences and challenges that consumers face. For years Consumers International and its Members have shaped discussion and outcomes to ensure participatory policy making. This includes our work in clean energy transitions being taken forward by UNCTAD, and our recommendations being included in the OECD’s Declaration on Consumer Protection.

Building a Trusted Digital Future

The global movement to protect consumers’ data requires urgent, united action. At Consumers International, we bring together key actors – governments, businesses, civil society, and international organisations – to drive collective progress. Having already presented this report at the Global Privacy Assembly and the UN Data Forum, we will continue to advocate for stronger protections on the global stage. Now is the time for us to work together to establish robust standards that safeguard consumers as their data crosses borders. By collaborating, we can ensure transparency, strengthen redress mechanisms, and address regulatory gaps in vulnerable regions. Join us in making this vision a reality. 

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To learn how you can support our work in interoperability, contact impact@consint.org