ISLAMABAD: Consumer Affairs Agency (CAA) of Japan on Tuesday conveyed to the Competition Commission of Pakistan (CCP) that the Japanese government is drafting a Digital Markets Act whereas the CCP is proposing a Bill on Digital Markets for development of digital market legal framework.
Yutaka Arai, Commissioner of the Consumer Affairs Agency (CAA) of Japan, visited the Competition Commission of Pakistan (CCP) and met with Dr Kabir Ahmed Sidhu, Chairman CCP, to discuss areas of mutual cooperation, particularly in the fields of digital market regulation and consumer protection.
During the meeting, Dr Sidhu briefed Arai on the CCP’s ongoing initiatives, including the launch of the study on “Competition Assessment of Digital Markets and Digital Services in Pakistan.”
This comprehensive study aims to examine the impact of digital markets and services on competition, economic growth, and employment opportunities in Pakistan. The study will culminate in policy recommendations to ensure regulatory harmonization with global best practices. Dr Sidhu further shared that, based on the study’s findings, CCP plans to propose a Draft Bill on Digital Markets, following international trends observed in jurisdictions such as Russia, the United Kingdom, the United States, and India, where similar legislative measures have already been introduced.
Arai noted that Japan faces similar challenges in regulating its digital markets and informed that the Japanese government is also in the process of drafting a Digital Markets Act. Both sides agreed to work closely together and share ongoing research efforts to enhance regulatory frameworks in their respective jurisdictions.
Highlighting recent developments in Japan, Arai shared that amendments to the Act on Specified Commercial Transactions, particularly relating to Mail Order Sales, were made in 2021 and enforced in June 2022. These amendments aim to strengthen consumer protection by requiring sellers to display specific contractual information on the final confirmation screen, such as the quantity of goods, payment terms, and delivery timing, while prohibiting misleading representations. Consumers are granted the right to rescind the contract if they are misled. Additionally, sellers must include mandatory information in mail order advertisements, such as the offer period and cancellation policies. The amendments also explicitly prohibit misrepresentation regarding cancellation rights, with violations subject not only to administrative measures but also direct punitive actions.
Arai emphasized that while Japanese law does not outrightly ban defective products in e-commerce, sellers are strongly encouraged to ensure product quality and provide clear usage guidelines to customers to minimize disputes and enhance consumer satisfaction.
In response, Dr Sidhu acknowledged the relevance of Japan’s experience to Pakistan’s evolving e-commerce sector, especially with the increase in cross border online shopping, which introduces new challenges in ensuring product authenticity and customer protection. Dr Sidhu emphasized the need for Pakistan to proactively address these risks.
Dr Sidhu further proposed that, inspired by the best practices of Japan’s Consumer Affairs Agency, CCP would recommend the formulation of a centralized law for product safety to the relevant Ministry, aiming to further strengthen the Pakistan’s consumer protection framework.
Both sides agreed to establish a Joint Research Group comprising experts from the CCP and the CAA Japan to facilitate continuous knowledge sharing, particularly focusing on digital market regulations and consumer protection strategies.
The meeting concluded on a positive note, paving the way for a strengthened institutional collaboration between the Consumer Affairs Agency of Japan and the Competition Commission of Pakistan. This partnership aims to advance the protection of consumer rights and foster research sharing on the development of the digital market legal framework.
Copyright Business Recorder, 2025
