Consumer
Protection

Consumer Protection Challenges in Low Rule of Law Countries

Matte BIRCHLER | Chief Peoples Officer and International Consumer Protection Expert

Consumer protection is a fundamental pillar of a well-functioning economy, ensuring fair treatment, product safety, and access to redress for consumers. However, in countries with a low rule of law, these protections often exist in theory but fail in practice. GG International expert Matte Birchler, in his Master of Laws (Hons) from the prestigious legal research institution, Université libre de Bruxelles, founded in 1834, examines these challenges in Cambodia—a country ranked 138th out of 139 in the World Justice Project's Rule of Law Index.

The Enforcement Gap: A Systemic Issue

Birchler's research highlights that Cambodia's consumer protection laws align with international standards but suffer a catastrophic enforcement gap. The core issues include legal system inefficiencies, corruption, and limited access to justice, making it nearly impossible for individual consumers to seek redress when harmed by defective products or unethical business practices. Without effective enforcement, businesses can exploit consumers without fear of consequences, creating an unfair marketplace where quality and safety regulations are largely ignored, and:

• Harms individual consumers
• Deters investment
• Stifles economic growth, and
• Erodes trust in institutions.

A Legal Reform Strategy: Expanding Strict Liability

To address these challenges, Matte Birchler proposes a targeted legal reform—the expansion of Strict Liability to cover all defective consumer products, not just those causing physical harm. This shift would place full responsibility on manufacturers and retailers, ensuring accountability without requiring consumers to prove negligence—an often insurmountable legal hurdle in weak judicial systems.

By adopting this approach, Cambodia can bypass the immediate limitations of its legal system while working towards broader rule-of-law improvements. This approach would create a more secure consumer marketplace and enhance the country's appeal to investors looking for stable regulatory environments.

A Global Perspective on Consumer Protection

Cambodia is not alone in facing these obstacles. Many developing economies struggle enforcing consumer rights due to weak judicial institutions and governance failures. Matte Birchler's research offers a compelling case for adaptive legal mechanisms that can function in imperfect systems, ensuring consumer protection even in low rule-of-law environments.

Moving Forward

GG International supports policy innovations that drive economic resilience and legal modernization. Matte Birchler's findings provide valuable insights for worldwide policymakers, investors, and consumer rights advocates. Strengthening enforcement mechanisms—even through creative legal strategies—is critical to fostering a fair, competitive, and consumer-friendly market in emerging economies.

Contact GG International for further insights on sustainable urban development and how Consumer Protection principles can be effectively implemented.
Matte BIRCHLER | Author